AWD — The AWD Group posted an adjusted operating result of EUR 54 million (up EUR 5 million or 10% on the previous year). The company’s operating result (EBIT) was affected by one-off effects, primarily caused by reserves for potential client compensation payments and legal and process costs for AWD Austria and AWD Germany. As a result the AWD Group posted EBIT of EUR 7 million. Taking into account the charges related to the amortisation of acquired customer relationship assets, the segment result stands at CHF –13 million (2010: CHF +43 million).

In the year under review, the AWD Group generated overall sales revenue of EUR 561 million (+3%). Commission income from new business rose by EUR 1 million to EUR 407 million. Sales of unit-linked products increased by 5% and those of life insurance and pension products went up 4%. Sales of investment funds together with property and accident insurance fell by 21% and 18% respectively, while private health insurance sales rose by 10%.

In the core market of Germany, sales revenues amounted to EUR 376 million (+7%). The local companies in Germany benefited from strong end-of-year business caused by the guaranteed interest rate reduction for life insurance scheduled for 2012. Restructuring of the business model in Austria was driven forward. After the consolidation of 2010/2011, AWD in the Austria and Eastern Europe region is being reorganised as a professional consulting organisation. The region posted sales revenue of EUR 64 million (–14%). AWD Switzerland generated revenue of EUR 72 million (–2%) in 2011. Sales revenue in the UK was further increased to EUR 49 million (+5%) in 2011, helped by the increase in the number of advisors to 208 (+5%).

The improvement in revenue for the AWD Group is partly attributable to a rise in advisor productivity (+5%). The efficiency of advisors in the AWD Group is also a consequence of the consistent quality of advisory services.

At the end of 2011, the AWD Group had 4932 trained and registered financial advisors, as well as 2407 advisors in training under contract. The number of advisors has fallen since the previous year, chiefly due to stricter training and registration requirements within the financial services industry. Although this may quell growth in advisor numbers in the short term, it serves to improve the quality and sustainability of the advice provided in the medium term.

With a 10% increase in the adjusted operating result for the AWD Group compared to the previous year, AWD is on a solid profitable footing. AWD will continue to invest in processes and measures which help cut costs, further improve advisor productivity and, as a result, boost the company’s profitability on a sustainable basis.

Key figures for AWD
Amounts in CHF million  
  2011 2010 +/–
Commission income
  692 756 –8.5%
Financial result
  1 –3 n/a
Other income
  5 7 –28.6%
Total income
  698 760 –8.2%
Interest expense
  –1 –2 –50.0%
Operating expense
  –710 –715 –0.7%
Segment result
  –13 43 n/a
Number of employees (full-time equivalents)
  1 452 1 445 0.5%
Financial advisors
  4 932 5 292 –6.8%
 

The future starts here.