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 Proventus.
During the year under review, Swiss Life Germany virtually maintained its segment result, at CHF 125 million as against CHF 130 million in 2015. The decline can be attributed to a reduced savings result under difficult circumstances, particularly the continuing low interest rates.
Swiss Life Germany had premium volume in 2016 of CHF 1.3 billion, a fall of 8% (2015: CHF 1.4 billion). The core product areas of Swiss Life Germany are employee insurance, occupational pensions, long-term care insurance and modern guarantee concepts. Premium volume was especially affected by declining single-premium contributions in individual insurance due to the consistent focus on profitability. New business premiums rose year-on-year in local currency by 7%. Insurance benefits and bonus distribution rose significantly, mainly due to the increased expiration of tax- privileged contracts with 12-year maturities.
Fee and commission income was increased by 4% to CHF 379 million. The main driver of this development was the expansion of the distribution base and greater productivity by commercial agents.
At the end of 2016 the proprietary financial advisory companies in Germany had 3286 trained and registered financial advisors under contract (+5 %).
Swiss Life Germany continued to pursue strict cost management. Administrative costs adjusted for one-offs remained at the previous year’s level in local currency.
The challenging market conditions look set to persist in 2017. Nevertheless, Swiss Life expects a positive development 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.
|Amounts in CHF million||2016||2015||+/-|
|GROSS WRITTEN PREMIUMS, POLICY FEES AND DEPOSITS RECEIVED||1 290||1 399||–8%|
|Net earned premiums||1 128||1 167||–3%|
|Fee and commission income||379||364||4%|
|TOTAL INCOME||2 405||2 211||9%|
|Net insurance benefits and claims||–1 278||–1 287||–1%|
|TOTAL EXPENSE||–2 280||–2 082||10%|
|Assets under control||20 860||20 045||4%|
|Insurance reserves||18 284||18 238||0%|
|Number of employees (full-time equivalents)||1 369||1 364||0%|
|1 without interest income and guarantee fees between the segments|