Swiss Life Germany is a leading provider of insurance and pension solutions in the areas of life insurance, occupational pensions and employee insurance as well as comprehensive financial and pension advice independent of product provider under the Swiss Life Select, Tecis, Horbach and Proventus brands. The segment reporting comprises local insurance activities and the financial consultancies operating in Germany.
In the year under review, Swiss Life Germany achieved a segment result of CHF 180 million (previous year: CHF 186 million) in a persistently challenging market environment. The moderate decline is attributable to currency effects. The fee result increased by 32% in local currency due to further growth in owned IFAs, while the exceptionally high savings result in 2019 could not be maintained as expected.
Thanks to various digitalisation measures, such as video consulting, remote signature and mobile working, Swiss Life Germany was able to further expand its consulting business during the Covid-19 pandemic. Fee income increased to CHF 552.0 million in 2020, equivalent to a 15% increase 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 2020, the proprietary financial advisory companies in Germany had 4635 trained and registered financial advisors under contract (+11% over the previous year).
Swiss Life Germany posted premiums of CHF 1.4 billion in 2020. This corresponds to an increase of 5% in local currency over the previous year and is thus well above the market performance in Germany (market growth: -0.4%). The core product areas of Swiss Life Germany are employee insurance, occupational pensions, long-term care insurance and modern guarantee concepts. The unit-linked life insurance Investo was successfully expanded during the year under review. In 2020, overall new business volume increased by 15% in local currency compared to the previous year.
Operating costs increased 1% less than business volume due to continuous improvement in operational efficiency.
In 2021, Swiss Life Germany will focus on the three strategic thrusts: the focus in insurance is on biometric, sector-specific and occupational pension solutions. For occupational and private retirement provisions, Swiss Life Germany focuses on unit-linked or hybrid products with low guarantees and therefore higher earnings expectations for customers. 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 consistent advance of digitalisation.
Key figures for Germany
|Amounts in CHF million||2020||2019||+/-|
|GROSS WRITTEN PREMIUMS, POLICY FEES AND DEPOSITS RECEIVED||1 390||1 375||1%|
|Net earned premiums||1 047||1 092||–4%|
|Fee and commission income||552||498||11%|
|TOTAL INCOME||2 353||2 526||–7%|
|Net insurance benefits and claims||–1 157||–1 199||–3%|
|TOTAL EXPENSE||–2 174||–2 340||–7%|
|Assets under control||25 208||23 549||7%|
|Insurance reserves||21 403||20 443||5%|
|Number of employees (full-time equivalents)||1 657||1 608||3%|