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 reporting comprises local insurance activities and the financial advisory companies Swiss Life Select, Tecis, Horbach and Proventus operating in Germany.
During the reporting year, in a still challenging market environment characterised by continuing low interest rates, Swiss Life Germany posted a segment result of CHF 142 million (previous year: CHF 153 million). The decline is due to a lower savings result, since the previous year’s result comprised positive one-off effects to finance the statutory additional interest rate reserve. The improved risk and cost results were able to partially compensate for this decline.
Swiss Life Germany posted premiums of CHF 1.4 billion in 2018, an increase of 2% in local currency over the previous year. The core product areas of Swiss Life Germany are employee insurance, occupational pensions, long-term care insurance and modern guarantee concepts.
Fee income was increased in 2018 to CHF 456 million, equivalent to an increase of 10% in local currency. The main driver was the strong growth of the distribution base in the owned IFAs as well as the brokered new business across all product areas. At the end of 2018 the proprietary financial advisory companies in Germany had 3808 trained and registered financial advisors under contract (+8% over the previous year).
Administrative costs adjusted for one-offs increased, due to investments under the new Groupwide programme, “Swiss Life 2021”, by 2% over the previous year.
In the coming three years, Swiss Life Germany will focus on the three strategic thrusts: expansion of position as biometry and occupational pensions specialist, positioning as leading advisor to German Mittelschicht companies and increase of efficiency and service quality. The focus on insurance is on biometric, sector-specific and occupational pensions solutions. Swiss Life Germany wants to leverage its competency in biometry to set insurance market standards in service as well as in the scalable application process. In financial consulting Swiss Life Germany has set its sights on becoming the «financial home” of the German Mittelschicht companies and further increasing its own distribution strength – for example through a scalable distribution platform. In order to achieve this goal, connectivity is being improved and the administration processes are being automated, in step with the systematic advance of digitalisation.
Key figures for Germany
|Amounts in CHF million||2018||2017||+/-|
|GROSS WRITTEN PREMIUMS, POLICY FEES AND DEPOSITS RECEIVED||1 395||1 313||6%|
|Net earned premiums||1 156||1 125||3%|
|Fee and commission income||456||400||14%|
|TOTAL INCOME||2 386||2 329||2%|
|Net insurance benefits and claims||–1 263||–1 095||15%|
|TOTAL EXPENSE||–2 244||–2 177||3%|
|Assets under control||21 941||23 032||–5%|
|Insurance reserves||19 670||20 413||–4%|
|Number of employees (full-time equivalents)||1 482||1 488||0%|