Zurich, 27 February 2013
Swiss Life posts 26% increase in profit from operations to CHF 993 million
with net profit after one-off effects of CHF 93 million
*Swiss Life increased its profit from operations adjusted for one-off
effects from CHF 788 million to CHF 993 million in 2012 (+26%) thanks to
further operational improvements and an excellent investment result.
*One-off effects, in particular as a result of the impairment in the value
of AWD's intangible assets of CHF 578 million announced last year, led to
reported net profit of CHF 93 million (2011: CHF 606 million).
*Important contributors to this positive development in the results were
the market units in Switzerland, Germany, France and Investment
Management. Results in AWD and Swiss Life International were lower than
*With investment performance of 8.5% (2011: 7.5%), an investment result of
CHF 5.7 billion and net investment return of 4.8% (2011: 3.8%) were
achieved, which enabled substantial strengthening of the technical
*With CHF 17.0 billion Swiss Life maintained premium income at its
prior-year level and improved its new business margin from 1.2% to 1.4%
despite the challenging market conditions.
*Shareholders' equity rose by 12% to CHF 10.3 billion; the Group's solvency
ratio climbed from 213% in 2011 to 242% at the end of 2012.
*The Board of Directors proposes that the Annual General Meeting approve a
distribution of CHF 4.50 per share.
In the words of Bruno Pfister, Group CEO, "Swiss Life succeeded in further
enhancing its operational effectiveness in 2012, fuelled by an excellent
investment result and further operational improvements. Even though net profit
contracted markedly due to the impairment in AWD's intangible assets, our key
figures for the past year show that we have a solid foundation on which to
further expand our market position in the coming years."
Growth in the strategically important business areas
Swiss Life has once again grown in the strategically important business areas.
Despite difficult market conditions, the company maintained overall premium
volume of CHF 17.0 billion at its prior-year level. Performance in the home
market of Switzerland was encouraging with growth of 2% to CHF 8.3 billion
(2011: CHF 8.1 billion), driven by both corporate client business (+2%) and
private client business (+1%). Swiss Life in France generated stable premium
income on a currency-adjusted basis (CHF 4.3 billion), which is encouraging in
light of the 4% contraction in the market as a whole. In Germany too, Swiss
Life held its position (CHF 1.7 billion); while single premiums edged down,
periodic premiums were up 2%. The Insurance International segment, where
premium income originates largely from global business with high net worth
individuals, recorded a currency-adjusted decline of 4% to CHF 2.9 billion
(2011: CHF 3 billion).
Since the beginning of the year, Investment Management's operations have been
bundled together under the sub-brand "Swiss Life Asset Managers". Assets under
management at Swiss Life Asset Managers stood at CHF 148 billion (2011: CHF
134 billion). This includes third-party assets in which Swiss Life can report
growth of 24% to over CHF 20 billion thanks to additional mandates and
positive market developments. Net new money inflow alone amounted to more than
CHF 2 billion. Technical provisions to cover obligations to our customers
increased by CHF 10 billion to CHF 138 billion, an increase of 8% on the
previous year. AWD recorded a drop in sales of 13% to EUR 489 million. In
Germany, in particular, AWD fell short of expectations. "Under our Group-wide
programme "Swiss Life 2015", we are reacting to the developments in Germany
and repositioning ourselves; we will manage our insurance operations and all
our distribution channels, that is Swiss Life, Swiss Life Select, tecis,
HORBACH and Proventus under one roof going forward," says Bruno Pfister. "This
new positioning is running to plan and will enable us to leverage synergies
and prominently reposition ourselves in the highly competitive but promising
Significant operational improvements
In the 2012 financial year Swiss Life increased its profit from operations,
adjusted for one-off effects, by 26% from CHF 788 million to CHF 993 million;
adjusted net profit stood at CHF 681 million, a 22% rise on the previous year
(CHF 557 million). Primarily as a result of the impairment in AWD's intangible
assets (CHF 578 million) and additional provisions for litigation, together
with restructuring costs under the new Group-wide programme "Swiss Life 2015",
this produces reported net profit of CHF 93 million. In Investment Management
Swiss Life generated a net investment result on the insurance portfolio of CHF
5.7 billion, up CHF 1.5 billion on the previous year. This gives a net
investment return of 4.8% (2011: 3.8%) and investment performance of 8.5%
(2011: 7.5%). "This result is also encouraging in an international peer
comparison," says Bruno Pfister. "And it enables us to substantially bolster
our technical reserves."
In Switzerland, Swiss Life posted a segment result of CHF 634 million, up CHF
158 million on the previous year, following efficiency gains and a very good
investment result. In France, Swiss Life recorded an increase in profits of
CHF 33 million to CHF 157 million due to good performance of financial
products and an improved technical margin. In Germany, Swiss Life improved
profits by CHF 11 million to CHF 69 million thanks to a successful investment
policy. The Insurance International segment's result was CHF 24 million down
on the previous year, attributable to restructuring costs (CHF 7 million) and
impairment of the customer relationship asset (CHF 17 million) resulting from
the concentration on two instead of three locations in the international
business with high net worth individuals. Investment Management contributed a
segment result of CHF 138 million, which was up CHF 8 million on the previous
year. The AWD segment adversely impacted the result by CHF -591 million.
Primarily as a result of the impairment in intangible assets of CHF 578
million and provisions for litigation of CHF 36 million, AWD's contribution to
the results adjusted for one-off effects was CHF 49 million.
Increase in new business margin and stronger capital base
Swiss Life made further advances in margin management: In 2012 the Group
increased its new business margin from 1.2% to 1.4%. The value of new business
improved from CHF 150 million in the previous year to CHF 158 million. In 2012
the Group generated a return on equity of 0.9%. Adjusted for one-off effects
and unrealised gains and losses on fixed-interest investments in equity,
return on equity stood at 8.6%. Swiss Life has a solid capital base:
Shareholders' equity climbed from CHF 9.1 billion to CHF 10.3 billion in 2012.
The Group's solvency ratio rose from 213% to 242%; on the basis of its
internal model, which is still being reviewed by FINMA, Swiss Life's SST ratio
is in the green.
Distribution of CHF 4.50 per share - new reporting as of Q1 2013
At the Annual General Meeting on 23 April 2013, the Board of Directors will
propose a distribution from the capital contribution reserve of CHF 4.50 per
share, the same level as in the previous year.
The changeover of the reporting to the new structure introduced under the
Group-wide programme "Swiss Life 2015" will take effect as of the first
quarter of 2013, with publication on 23 May 2013. The first comprehensive
reporting under the new "Swiss Life 2015" structure will be on the publication
of the half-year results on 14 August 2013.
Annual Results 2012 Info Kit
Key Figures (PDF)
Tel. +41 43 284 77 77
Tel. +41 43 284 52 76
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 (formerly AWD), 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 approximately 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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