In the home market of Switzerland, Swiss Life increased its segment result in 2019 by 3% to CHF 892 million (previous year: CHF 865 million). The growth was driven by the cost result, the risk result and the fee result.
In the year under review, Swiss Life Switzerland increased premium volume to a total CHF 13.5 billion (+41%), due especially to a competitor’s withdrawal from the full insurance business. Of the total premium volume, 88% came from group life business.
According to the Swiss Insurance Association (SIA), life insurance premiums in Switzerland increased to CHF 29.8 billion, up 0.6% on the previous year. In group life business, premiums for the market as a whole remained constant compared to the previous year, while premiums for individual life business increased 2.4% compared to the previous year. Swiss Life further increased its market share of group and individual life business.
Insurance benefits, including changes in insurance reserves, rose by 35% to CHF 14.2 billion in 2019, due mainly to the exceptionally large rise in premiums and the concomitant greater reserving requirements. Operating expenses rose by 9% during the year under review to CHF 1.2 billion. This rise is attributable to higher acquisition costs due to the steep rise in premiums. Operational administrative costs were once again slightly lower than the previous year.
The range of provisions products for private clients fully meets their fundamental requirements: predictability and security. The 2018 launch of Swiss Life Dynamic Elements savings insurance again helped to significantly increase the share of capital light solutions in new business in 2019, in line with the offer strategy. In single premium business, new business volume increased by more than 34% compared with 2018, partly due to attractive tranche solutions. A new investment product, the Swiss Life Premium PayoutPlan, was launched in Switzerland in co-operation with Swiss Life Asset Managers. The product is an innovative, actively managed payout plan for private customers.
The group life business focused on operational processing of the new clients won in the previous year. At the same time, another investment strategy, with a 75% equity share, was added to the offer in the individual investment field (1e solution) and successfully launched. The market remained noticeably dynamic, as falling conversion rates prompted many clients to review their existing occupational pension plans in line with their needs.
In 2020 Swiss Life Switzerland will continue the intensive implementation of its “Swiss Life 2021” strategy programme. The strategic thrust of the programme is the digitally supported advisory process, which should improve the customer journey and the effectiveness of consulting as well as leading to more business with existing and new customers.
Key figures for Switzerland
|Amounts in CHF million||2019||2018||+/-|
|GROSS WRITTEN PREMIUMS, POLICY FEES AND DEPOSITS RECEIVED||13 453||9 525||41%|
|Net earned premiums||13 067||9 254||41%|
|Fee and commission income||265||247||7%|
|Financial result||3 301||3 330||–1%|
|TOTAL INCOME||16 793||12 989||29%|
|Net insurance benefits and claims||–14 211||–10 531||35%|
|Operating expense||–1 179||–1 086||9%|
|TOTAL EXPENSE||–15 900||–12 124||31%|
|Assets under control||127 330||119 624||6%|
|Insurance reserves||103 344||96 097||8%|
|Number of employees (full-time equivalents)||2 074||2 029||2%|