Swiss Life launches new Group-wide programme - AWD will operate

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
  *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

  *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

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

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

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

  *Information on the audio/video webcast

  *Media and investor presentations

  *CVs and photos of Directors proposed for election

  *Swiss Life Select logo


Media Relations

Tel. +41 43 284 77 77

Investor Relations

Tel. +41 43 284 52 76

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)

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