insurance France — Swiss Life in France posted a segment result of CHF 124 million (2010: CHF 82 million), driven by rate increases in 2011, a stable financial margin despite an extremely tough economic environment, cost discipline resulting in higher productivity, and the absence of any extraordinary events in property and casualty business.

The French insurance market contracted by 8% at constant exchange rates, which was principally attributable to a 14% fall in savings and retirement provisions, whereas health, death and disability insurance, as well as property and casualty posted 8% and 4% growth respectively. At constant exchange rates, Swiss Life in France benefited from its market diversification, generating premium volume of CHF 4.4 billion (down by 6%). Although net inflows in savings and retirement provisions fell by 16%, the quality of premium income improved with the share of unit-linked contracts and of periodic premium contracts growing by 10% and 6% respectively. The share of unit-linked premiums was well above the market level (29% compared to 14% for the market), primarily due to the greater differentiation in the bonus distribution policy. In an extremely competitive market, health, death and disability insurance, as well as property and casualty grew by 8% and 6% respectively in local currency terms, attributable to rate changes and the writing of new business. Furthermore, Swiss Life Banque Privée again posted a positive result.

In 2012, Swiss Life in France aims to reinforce its leading position in life insurance for affluent and high net worth individuals by pursuing its strategy of improving profitability with a stronger focus on customer orientation.

Key figures for insurance France
Amounts in CHF million  
  2011 2010 +/–
Gross written premiums, policy fees and deposits received
  4 379 5 307 –17.5%
Net earned premiums and policy fees
  2 374 2 724 –12.8%
Commission income
  93 89 4.5%
Financial result
  727 878 –17.2%
Other income
  1 6 –83.3%
Total income
  3 195 3 697 –13.6%
Net insurance benefits and claims
  –1 847 –2 100 –12.0%
Policyholder participation
  –102 –251 –59.4%
Interest expense
  –168 –183 –8.2%
Operating expense
  –954 –1 081 –11.7%
Total expense
  –3 071 –3 615 –15.0%
Segment result
  124 82 51.2%
Assets under control
  26 436 26 029 1.6%
Insurance reserves
  20 986 20 965 0.1%
Number of employees (full-time equivalents)
  2 075 2 223 –6.7%


 

The future starts here.