Swiss Life continued its positive performance: adjusted profit from operations increased by 10% in 2019, compared with the previous year, to CHF 1.69 billion and net profit was up 12%, to CHF 1.20 billion.
In the Swiss domestic market, Swiss Life achieved a segment result of CHF 892 million, a rise of 3% over the previous year. France reported a segment result of CHF 275 million. The 1% decrease is attributable to the currency effects. Swiss Life in Germany contributed CHF 186 million to the result. The 30% rise is partly attributable to an exceptionally high savings result. Swiss Life International increased its segment result by 20% to CHF 81 million and Swiss Life Asset Managers achieved a segment result of CHF 309 million, which was 14% higher than the previous year.
Swiss Life generated direct investment income of CHF 4.4 billion, equal to its 2018 level. Reflecting appreciations in the investment portfolio and higher average capital investments, the direct investment yield fell to 2.8% (previous year: 2.9%). After appreciations, the net investment yield came to 2.9% (previous year: 3.0%).
Swiss Life was able to increase its fee income by 13% to CHF 1820 million. This growth was supported by acquisitions in the past year and consolidation effects. Swiss Life posted premiums of CHF 23.0 billion for 2019 (previous year: CHF 19.2 billion). The extraordinary rise is attributable to group life business in Switzerland and the withdrawal of a competitor from full insurance. Insurance reserves for the benefit of the company’s policyholders rose by 8% in local currency.
As of 31 December 2019, Swiss Life Asset Managers had a total of CHF 254.4 billion under management. Third-party assets under management at year-end were CHF 83.0 billion – a 17% increase 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||2019||2018||+/–|
|GROSS WRITTEN PREMIUMS, POLICY FEES AND DEPOSITS RECEIVED||23 008||19 218||20%|
|Net earned premiums||17 034||13 157||29%|
|Fee and commission income||1 820||1 615||13%|
|Financial result||5 227||5 003||4%|
|TOTAL INCOME||24 320||20 062||21%|
|Net insurance benefits and claims||–17 838||–13 961||28%|
|Policyholder participation||–1 124||–1 155||–3%|
|Operating expense||–3 541||–3 268||8%|
|TOTAL EXPENSE||–22 669||–18 527||22%|
|PROFIT FROM OPERATIONS||1 651||1 534||8%|
|NET PROFIT||1 205||1 080||12%|
|Equity||16 435||15 034||9%|
|Insurance reserves||183 339||170 048||8%|
|Assets under management||279 258||254 200||10%|
|Assets under control||303 677||277 040||10%|
|Return on equity (in %) 1, 2||10.8||9.6||+1.2 ppt|
|Number of employees (full-time equivalents)||9 330||8 624||8%|
|1 equity excl. unrealised gains/losses on financial instruments|
2 incl. share buy-back (2019: CHF 913 million / 2018: CHF 87 million)