Zurich, 28 November 2012 Swiss Life Group Investors' Day Swiss Life launches new Group-wide programme - AWD will operate under the "Swiss Life Select" brand from 2013 Swiss Life anticipates operating profit before special charges of over CHF 850 million for 2012. Swiss Life is reducing the value of intangible assets of AWD by a total of CHF 576 million. Swiss Life therefore expects net profit in the double-digit millions for the 2012 financial year. At the Annual General Meeting, the Board of Directors will propose three new board members and an unchanged dividend of CHF 4.50 per share. Swiss Life is launching the new Group-wide programme "Swiss Life 2015" at today's Investors' Day. *With its new Group-wide programme Swiss Life is focusing on continuity and is aiming to achieve a return on equity of 8% to 10%, a new business margin of over 1.5%, cost savings of CHF 130 to 160 million and further diversification of profit sources over the next three years. *Swiss Life will strengthen its presence in Germany and Switzerland: from now all production and distribution organisations in each market will be managed under one roof to optimise market development and exploit synergies. In France, Swiss Life will continue to build on its strong position as a "private and personal insurer". *The distribution companies which previously operated under the AWD brand will now come under the "Swiss Life Select" brand; this rebranding will underpin the repositioning in those countries. *A total of 300 to 400 jobs may be lost in Germany and Switzerland over the next three years. In Switzerland, there will be a reduction of about 90 jobs. *As part of "Swiss Life 2015" the Group will significantly expand its asset management business under the new brand "Swiss Life Asset Managers". "With our new Group-wide programme we are staying on the profitable growth path we have been following for the past few years and adapting in line with the market," says Bruno Pfister, Swiss Life CEO. "We are well equipped to expand our strong position in the growing and at the same time challenging life and pensions and financial solutions market." New goals up to 2015 Swiss Life aims to step up its drive to diversify its products and profit sources. An additional aim is to further protect the balance sheet, consistently optimise in-force business and profitably grow new business. The Group intends to leverage its new plans to achieve the following goals by 2015: *a return of 8% to 10% on equity adjusted for unrealised gains on fixed-interest investments *a new business margin of over 1.5% *cost savings of CHF 130 to 160 million in total and *in the context of diversifying profit sources, a 60% to 70% profit share going forward from risk business such as death and disability and fee business. However, Swiss Life's Group-wide programme also includes qualitative ambitions designed to expand its market position: The aim is to consistently align all processes to benefit the customer. The five strategic thrusts of "Swiss Life 2015" Swiss Life aims to strengthen key parts of its value chain by focusing on the following five strategic thrusts: 1.Customer promise - Swiss Life increases the quality and quantity of touch points with its customers. 2.Offering - Swiss Life focuses its own solutions on profitable and flexible products and expands its third-party offering. 3.Distribution - Swiss Life further strengthens its advisory expertise and manages its production and distribution organisations in each market under one roof. 4.Efficiency and quality - Swiss Life continues to strengthen its operational effectiveness. 5.Financial strength - Swiss Life enhances its financial strength and the resilience of its business model. All production and distribution organisations operating under one roof Swiss Life will especially strengthen its presence in Germany and Switzerland under "Swiss Life 2015": from now all production and distribution organisations in each market will be managed under one roof to optimise market development and exploit synergies. Swiss Life aims to become a comprehensive life and pensions and financial solutions provider in Switzerland, a financial advisory and insurance company in Germany, and to further expand its strong position as a "private and personal insurer" in France. In its international business, Swiss Life will provide protection, financial solutions and advice in selected markets and reduce organisational complexity. Swiss Life wants to further improve its competitiveness and is reducing its staff and material costs by CHF 130 to 160 million by 2015. The joining together of Swiss Life and AWD could lead to a reduction of 300 to 400 jobs in Germany and Switzerland in the next three years, mainly in administration and staff departments. A reduction of 300 jobs is envisaged in Germany. About 90 jobs will be lost in Switzerland, a third of which will result from the synergies of teaming up with AWD, with two thirds coming from further efficiency gains in IT, as well as outsourcing. The plan is to take advantage of natural fluctuation, retirement regulations and in-house job opportunities as part of this reduction. "We will be careful in how we deal with the job reductions and support those affected with their professional reorientation," says Bruno Pfister. Swiss Life will manage its asset management business from now on under the brand "Swiss Life Asset Managers" and use its expert knowledge and experience in the field of real estate investment and fixed-interest and asset-allocation-based products to expand the business with the goal of increasing its contribution to earnings by more than 20% by 2015. New framework conditions - Goodwill adjustment to AWD In the last few weeks and months the Board of Directors and Corporate Executive Board of Swiss Life have undertaken an assessment of the situation with respect to the entire AWD Group as part of "Swiss Life 2015". "Strategically speaking, the expansion of the Swiss Life Group through the acquisition of a complementary financial distribution company like AWD was, and still is, an important development. Professional distribution organisations working closely with the customer are a crucial success factor in our industry," says Bruno Pfister. "Nevertheless, we must stand up and acknowledge that we overestimated the growth opportunities in Eastern Europe and Austria." The brand shift from AWD to Swiss Life Select is strategically consistent and supports the integrated development of the markets. It will help to better position the current strengths of AWD. Swiss Life will continue to adhere to AWD's proven "Best Select" success model, which allows for free selection of products. Swiss Life is fully convinced of the market potential of this unique approach. Swiss Life Select will target the German, Swiss, Austrian, Polish and Czech markets. It will exit from the markets of Slovakia and Hungary at the end of the year. The reassessment of the future earning power of Swiss Life Select, i.e. the former AWD units in Eastern Europe and Austria in particular and the new plans in Germany will produce an adjustment in the value of intangible assets of AWD in the fourth quarter of 2012 of approximately CHF 576 million with no effect on cash flow, tied assets of insured persons or solvency. The current AWD companies in the UK, Austria, the Czech Republic and Poland will come under the umbrella of the International market unit, which also includes business with high net worth individuals and multinational companies. Facts on the adjustment of AWD's goodwill position The changes announced today such as the reassessment of the business in Central and Eastern Europe, the adjusted plans for Germany, the exit from Slovakia and Hungary and the abandoning of the brand reduce the value of intangible assets of AWD by CHF 576 million from CHF 1.341 billion to CHF 765 million. This adjustment will have no impact on cash flow, tied assets of insured persons or solvency, however it will influence the current financial year: Swiss Life anticipates operating profit before special charges of over CHF 850 million for 2012 and reduced net profit in the double-digit millions due to the adjustment. At the Annual General Meeting, the Board of Directors will propose the distribution of an unchanged dividend of CHF 4.50 per share for 2012. Changes to the Board of Directors At the next Annual General Meeting Volker Bremkamp will step down from the Swiss Life Board of Directors for reasons of age. Peter Quadri will stand for re-election for a one-year term. Frank W. Keuper, formerly a member of the Executive Committee of AXA Group and Director of AXA Konzern AG Germany, Ueli Dietiker, CFO of the Swisscom Group, and Klaus Tschütscher, Head of Government of the Principality of Liechtenstein until the 2013 elections, will be proposed to the shareholders for election to the Board of Directors. Information on today's events A media conference will be held in German at 08:30 (CET) this morning and will be broadcast live on the internet as a video webcast. The investors' and analysts' conference in English starts at 10:45 (CET) and will also be accessible as an audio webcast. Both events will take place at Swiss Life, Binz Center, Grubenstrasse 49, CH-8045 Zurich. Further information and downloads from www.swisslife.com/investorsday *Information on the audio/video webcast *Media and investor presentations *CVs and photos of Directors proposed for election *Swiss Life Select logo Information Media Relations Tel. +41 43 284 77 77 firstname.lastname@example.org Investor Relations Tel. +41 43 284 52 76 email@example.com www.swisslife.com Swiss Life The Swiss Life Group is one of Europe's leading comprehensive life and pensions and financial solutions providers. In its core markets of Switzerland, France and Germany, Swiss Life offers individuals and corporations comprehensive and individual advice plus a broad range of own and partner products through its sales force and distribution partners such as brokers and banks. Swiss Life Select, tecis, HORBACH, Proventus and Chase de Vere advisors choose suitable products for customers from the market according to the Best Select approach. Swiss Life Asset Managers offers institutional and private investors access to investment and asset management solutions. Swiss Life provides multinational corporations with employee benefits solutions and high net worth individuals with structured life and pensions products. Swiss Life Holding Ltd, registered in Zurich, was founded in 1857 as Schweizerische Rentenanstalt. The shares of Swiss Life Holding Ltd are listed on the SIX Swiss Exchange (SLHN). The Swiss Life Group employs a workforce of around 7000, with 4600 certified financial advisors. Cautionary statement regarding forward-looking information This publication contains specific forward-looking statements, e.g. statements including terms like "believe", "assume", "expect" or similar expressions. Such forward-looking statements, by their nature, are subject to known and unknown risks, uncertainties and other important factors. These may result in a substantial divergence between the actual results, developments and expectations of Swiss Life and those explicitly or implicitly described in these forward-looking statements. Given these uncertainties, the reader is reminded that these statements are merely projections and should not be overvalued. Neither Swiss Life nor its Members of the Board of Directors, executive managers, managers, employees or external advisors nor any other person associated with Swiss Life or with any other relationship to the company makes any express or implied representation or warranty as to the correctness or completeness of the information contained in this publication. Swiss Life and the abovementioned persons shall not be liable under any circumstances for any direct or indirect loss resulting from the use of this information. Furthermore, Swiss Life undertakes no obligation to publicly update or change any of these forward-looking statements, or to adjust them to reflect new information, future events, developments or similar. Media Release (PDF) Provider Channel Contact Tensid Ltd., Switzerland newsbox.ch Provider/Channel related enquiries www.tensid.ch www.newsbox.ch firstname.lastname@example.org +41 41 763 00 50
Swiss Life launches new Group-wide programme - AWD will operate
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