Management Report

Swiss Life Holding increased its profit in the 2015 financial year to CHF 349 million (2014: CHF 258 million).

The annual profit of Swiss Life Holding consisted mainly of dividends, guarantee fees and interest income within the Group, as well as investment income. Dividend payments received by the holding company from subsidiaries increased from CHF 232 million to CHF 337 million. Guarantee fees including processing fees for new loans rose from CHF 44 million to CHF 45 million. Corpus Sireo units were granted two new loans totalling EUR 44 million to finance new real estate projects. In addition, the Group-wide credit structure was simplified, as a result of which the volume of loans to Group companies rose from CHF 638 million to CHF 642 million. Interest earned on loans to Group companies increased from CHF 25 million to CHF 30 million. Most of the additional interest income arises from loans granted to subsidiaries in the previous year. Earnings from investments in bonds and fund units rose from CHF 16 million to CHF 29 million. All loans granted internally and external investments in foreign currencies are hedged with currency futures. The cost of hedging during the reporting period was CHF 9 million (2014: CHF 1.3 million). During the period under review, CHF 31 million in loans granted to subsidiaries was converted into equity capital. Furthermore, the investment book value of Swiss Life Deutschland Holding was revalued by CHF 41 million. The value of all participations thus declined slightly, from CHF 3946 million to CHF 3936 million.

Swiss Life Holding’s profit distribution to shareholders in the period under review came to CHF 207 million or CHF 6.50 per share and was made out of the capital contribution reserve. The par value of the Swiss Life Holding share stands unchanged at CHF 5.10. The company’s nominal share capital at the end of the year remained at CHF 164 million.

As at the end of the year Swiss Life Holding holds debt capital amounting to CHF 918 million. It consists of two senior bonds in the total nominal amount of CHF 425 million, comprising a tranche of CHF 225 million with a six-year maturity (coupon 1.125%; maturing 2019) and a tranche of CHF 200 million with a ten-year maturity (coupon 1.875%; maturing 2023), as well as a sevenyear convertible bond in the amount of CHF 500 million (coupon 0%; maturing 2020). All financial instruments were issued in 2013. Interest on the bonds came to CHF 7 million. Total expenditure including taxes remained unchanged at CHF 33 million.

As at the end of the year Swiss Life Holding has assets (liquid funds, debt securities and investment funds) of CHF 1184 million. Due primarily to the reallocation of assets, liquid funds reduced from CHF 287 million to CHF 183 million, while debt security and investment fund holdings increased from CHF 801 million to CHF 1001 million. All debt securities are eligible for repo transactions.

My Annual Report

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