Review of Operations
Swiss Life Holding increased its profit in the 2011 financial year by CHF 38 million to CHF 238 million.
The annual profit was largely generated from the dividend payouts by subsidiaries. These fell slightly from CHF 197 million in 2010 to approximately CHF 191 million in 2011.
Total income improved significantly vis-à-vis the previous year, climbing from CHF 208 million to CHF 249 million. The additional income is chiefly derived from income and fees earned on loans and guarantees granted to subsidiaries in the previous year. In the year under review, a new loan for CHF 200 million was granted to Swiss Life Ltd, which will further increase future interest income. As a result of higher income tax, total expenditure rose by CHF 3 million to CHF 11 million.
In order to continue to finance the insurance business, CHF 200 million was made available to Swiss Life Ltd and CHF 87 million to Swiss Life International Holding AG, which comprises the foreign insurance companies. The total value of participations thus grew from CHF 3258 million to CHF 3545 million.
Swiss Life Holding’s profit distribution to shareholders in the period under review came to CHF 144 million or CHF 4.50 per share. This took the form of a reduction in par value of the Swiss Life Holding share from CHF 9.60 to CHF 5.10. The company’s nominal share capital thus totals CHF 163.6 million.
Swiss Life Holding was financed exclusively by equity during the period under review; no interest was paid on borrowings.
Swiss Life Holding’s liquid assets (liquid funds, time deposits, and bonds and investments) amounted to CHF 615 million on 31 December 2011. Liquid funds and time deposits contracted slightly from CHF 306 million to CHF 279 million, while easily tradable bonds and capital-protected investments accounted for CHF 336 million at the end of the year. These share certificates are all eligible for repos and can generate liquidity at any time.