The Asset Managers segment comprises Swiss Life’s Group-wide asset management and real estate services activities.
In 2018, Swiss Life Asset Managers posted a segment result of CHF 272 million (previous year: CHF 258 million). This equates to a 5% increase. Fee income in the year under review was increased by 8% overall. Adjusted operating expenses rose 5%, driven by continuing growth in third-party business, mainly in the real estate area.
Assets under management by Swiss Life Asset Managers came to CHF 232.6 billion at the end of 2018. Assets from insurance business remained virtually stable at CHF 161.5 billion. Due to the long-term nature of its liabilities, Swiss Life invests especially in fixed-income securities, which at the end of 2018 made up 58% of its portfolio. The real estate holding increased further from 18% to 20% and the net equity holding was 4% as at 31 December 2018.
Third-party business grew vigorously: Swiss Life Asset Managers had assets of CHF 71.2 billion under management at the end of 2018, an increase of 16% over the previous year. This growth is primarily due to net new assets of CHF 8.4 billion. Mixed mandates and real estate products in particular posted significant growth. This was offset by outflows in the money market funds.
With its acquisition of Beos, Swiss Life Asset Managers added the corporate property asset class to its real estate competency. The expansion of the pan-European real estate funds, investing in real estate in various European countries, was pursued. As a result, Swiss Life Asset Managers can fill a major need of institutional investors. The real estate funds for private investors, launched in the previous year, are enjoying healthy demand in France and Germany. The focus in the securities area was on bundling the product and service range into a complete package for institutional clients, which is being demanded increasingly by investors in the challenging pensions market. The strong growth and increasing demands led to the development of a Target Operating Model in 2018. The Executive Board, meanwhile, was enhanced by a Chief Technology Officer, a CEO for Germany and a Head of Sales & Marketing. The reorganisation will help Swiss Life Asset Managers continue to grow its third-party business and expand its position in its core markets.
Key figures for Asset Managers
|Amounts in CHF million||2018||2017||+/-|
|Fee and commission income||697||645||8%|
|Assets under management||232 637||223 649||4%|
|Number of employees (full-time equivalents)||1 719||1 577||9%|