Swiss Life again posted strong growth for the 2018 financial year: adjusted profit from operations increased by 4% over the previous year to CHF 1553 million and net profit rose by 7% to CHF 1080 million.
In the Swiss domestic market, Swiss Life achieved a segment result of CHF 865 million, a rise of 4% over the previous year. In France, Swiss Life grew its segment result by 6% to CHF 277 million. Germany made a contribution of CHF 142 million. The decline of 7% is due to a one-off effect in the previous year. Swiss Life International increased its segment result by 32% to CHF 67 million and Swiss Life Asset Managers achieved a segment result of CHF 272 million, which was 5% higher than the previous year.
Swiss Life increased direct investment income from insurance business to CHF 4.4 billion (previous year: CHF 4.3 billion). That corresponds to a direct investment yield of 2.9% (previous year: 2.8%). The net investment yield at the end of 2018 was 3.0% (previous year: 2.5%).
Swiss Life was able to increase its fee income by 6% to CHF 1615 million in local currency. This growth is due to higher contributions from owned IFAs (+10%), Swiss Life Asset Managers (+6%) and from own and third-party products and services (+2%). In 2018, Swiss Life saw premium growth of 2% in local currency to CHF 19.2 billion. Insurance reserves to the benefit of the company›s policyholders rose by 2% in local currency during the year under review.
As of 31 December 2018, Swiss Life Asset Managers had a total of CHF 233 billion in assets under management. Third-party assets under management at end of year were CHF 71 billion – a plus of 16% over the previous year.
Swiss Life’s segment reporting is on a country basis: Switzerland, France and Germany. It also discloses separately the results of its cross-border segments: International and Asset Managers.
Events after the reporting period
There were no events after the reporting period.
Key figures for the Swiss Life Group
|Amounts in CHF million||2018||2017||+/–|
|GROSS WRITTEN PREMIUMS, POLICY FEES AND DEPOSITS RECEIVED||19 218||18 565||4%|
|Net earned premiums||13 157||12 791||3%|
|Fee and commission income||1 615||1 469||10%|
|Financial result||5 003||4 395||14%|
|TOTAL INCOME||20 062||18 769||7%|
|Net insurance benefits and claims||–13 961||–13 189||6%|
|Policyholder participation||–1 155||–949||22%|
|Operating expense||–3 268||–2 842||15%|
|TOTAL EXPENSE||–18 527||–17 292||7%|
|PROFIT FROM OPERATIONS||1 534||1 476||4%|
|NET PROFIT||1 080||1 013||7%|
|Equity||15 034||15 583||–4%|
|Insurance reserves||170 048||171 649||–1%|
|Assets under management||254 200||245 675||3%|
|Assets under control||277 040||269 255||3%|
|Return on equity (in %) 1||9.1||9.3||–0.2 ppt|
|Number of employees (full-time equivalents)||8 624||7 979||8%|
|1 equity excl. unrealised gains/losses on bonds|