insurance Germany — Swiss Life in Germany posted a segment result of CHF 58 million (2010: CHF 102 million). This is mainly attributable to the lower financial result. Swiss Life grew stronger than the market in the key area of periodic premiums.

The German life insurance market contracted by 4% in 2011. Swiss Life generated premium volume of CHF 1.7 billion, equivalent to a drop of 6% in local currency.Occupational pensions and the “Sofortrente”, a single premium refund annuity product, on the other hand, were very successful. Insurance benefits and policyholder participation declined by 14% overall in 2011, chiefly due to the decrease in policyholder participation to CHF 237 million on the back of the lower financial result. Operating expenses fell by 21% (11% in local currency) while new business premiums dropped 23% (in local currency) to CHF 470 million.

Due to margin considerations, the distribution of products through AWD, measured by production volume, declined by 7% (in local currency) to CHF 493 million.

Swiss Life in Germany is expecting premium income development in 2012 to be in line with the market. Products with modern guarantee concepts, in particular the Swiss Life Champion product family, as well as the successful disability insurance solution and the long-term care insurance solution to be launched in 2012 are set to boost growth. There are also plans to strengthen occupational pensions business.

Key figures for insurance Germany
Amounts in CHF million  
  2011 2010 +/–
Gross written premiums, policy fees and deposits received
  1 739 2 073 –16.1%
Net earned premiums and policy fees
  1 618 1 814 –10.8%
Commission income
  34 34 n/ a
Financial result
  727 990 –26.6%
Other income
  2 5 –60.0%
Total income
  2 381 2 843 –16.3%
Net insurance benefits and claims
  –1 776 –1 969 –9.8%
Policyholder participation
  –237 –378 –37.3%
Interest expense
  –15 –20 –25.0%
Operating expense
  –295 –374 –21.1%
Total expense
  –2 323 –2 741 –15.2%
Segment result
  58 102 –43.1%
Assets under control
  17 944 17 435 2.9%
Insurance reserves
  17 269 17 334 –0.4%
Number of employees (full-time equivalents)
  715 734 –2.6%


 

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