Review of Operations
Swiss Life Holding generated a profit of CHF 106 million in the 2012 financial year compared with CHF 238 million the previous year.
The annual profit largely resulted from interest and fee income. Interest earned on loans to Group companies increased from CHF 38 million to CHF 50 million. Fees on guarantees rose from CHF 21 million to CHF 35 million. Most of the new loans and guarantees were granted to subsidiaries in the previous year. Dividend payouts by subsidiaries declined from CHF 191 million to CHF 24 million. Improved management of liquid funds produced an increase in interest income on fixed-interest securities from CHF 2 million in the previous year to CHF 8 million in 2012. Total expenditure remained unchanged at CHF 11 million.
Swiss Life Holding continued to streamline the Group structure during the reporting period. The establishment of the new subsidiary Swiss Life Schweiz Holding AG has brought the legal structure further into line with the new management structure. This new holding company comprises the Swiss unit of AWD, now known as Swiss Life Select Schweiz. In order to continue to finance the insurance business, CHF 50 million was made available to Swiss Life International Holding AG, including CHF 30 million through the conversion of debt capital into equity capital. The total value of participations grew as a result of these transactions from CHF 3545 million to CHF 3658 million, while internal loans fell by CHF 82 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. The distribution was made out of the capital contribution reserve. The par value of the Swiss Life Holding share thus remained the same at CHF 5.10. The company’s overall nominal share capital at the end of the year totalled CHF 163.6 million.
Swiss Life Holding paid CHF 0.5 million in interest on an intra-group current account debit balance in 2012. The account was closed at the end of the year; as a result, Swiss Life Holding is financed exclusively by equity.
Swiss Life Holding’s liquid assets (liquid funds, time deposits, and bonds and investments) amounted to CHF 316 million on 31 December 2012. Liquid funds and time deposits contracted from CHF 279 million to CHF 88 million, while easily tradable bonds and capital-protected investments accounted for CHF 228 million at the end of the year. These share certificates are all eligible for repos and can generate liquidity at any time.