Germany

Swiss Life is positioning itself in Germany as a leading provider of pensions and financial solutions under one roof by managing all production and distribution organisations from a single source. The segment information comprises local insurance activities and the financial advisory companies operating in Germany under Swiss Life Select, tecis, Horbach and Deutsche Proventus.

During the year under review, Swiss Life Germany increased its segment result to CHF 129 million due to an excellent fee result and a good risk result – in spite of a challenging operating environment due mainly to sustained low interest rates and new requirements resulting from the Life Insurance Reform Act. Moreover, the operating result was affected by currency effects.

Swiss Life Germany generated premium volume of CHF 1.4 billion in 2015, equivalent to a fall of 14% (–2% in local currency). The core product areas of Swiss Life Germany are employee insurance, occupational pensions, long-term care insurance and modern guarantee concepts. Premium volume was affected by declining single-premium contributions in individual insurance due to the consistent focus on profitability before growth. New business premiums increased by 8.8% relative to 2014 (in local currency). The insurance benefits and bonus distribution were significantly lower than in the previous year, mainly due to the lower financial result in 2015.

Fee and commission income fell by 14% in 2015 to CHF 364 million due to exchange rate effects. In local currency they remained virtually at the previous year’s level (–2%). 2014 was positively affected by the extraordinary economic circumstances triggered by a reduction in the maximum technical interest rate for life insurance effective 1 January 2015.

At the end of 2015 the proprietary financial advisory companies in Germany had 3138 trained and registered financial advisors under contract (+4%).

Administrative costs adjusted for one-offs fell by 5% in local currency to CHF 214 million. Swiss Life Germany thus continued its strict cost management and achieved additional cost savings.

The challenging market conditions look set to persist in 2016. Nevertheless, Swiss Life expects to again achieve an increase in its insurance business due to the extension and updating of its product range complemented by its efficient distribution structure. In financial consulting, Swiss Life expects the number of advisors to increase, which should have a positive impact on business development.


Key figures for Germany

Amounts in CHF million  
  2015 2014 +/–
GROSS WRITTEN PREMIUMS, POLICY FEES AND DEPOSITS RECEIVED 1 399 1 618 -14%
Net earned premiums 1 167 1 447 -19%
Fee and commission income 364 425 -14%
Financial result 678 958 -29%
Other income 2 2 17%
TOTAL INCOME 2 211 2 832 -22%
Net insurance benefits and claims -1 287 -1 591 -19%
Policyholder participation -283 -557 -49%
Interest expense -12 -14 -13%
Operating expense -500 -572 -13%
TOTAL EXPENSE -2 082 -2 735 -24%
SEGMENT RESULT 129 971 33%
Assets under control 20 045 22 956 -13%
Insurance reserves 18 238 20 187 -10%
Number of employees (full-time equivalents) 1 364 1 368 -0%

1 adjusted for the Group’s internal trademark fees, both levied and received
(Swiss Life brand)
2 restated

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