Swiss Life posts premium income of CHF 13.0 billion and achieves further operational improvements in the first nine months of 2011
 
Swiss Life recorded premium income of CHF 13.0 billion on 30 September 2011 – a decline of 13% in local currency (Q3 2010: CHF 15.8 billion). Premium volume in the home market of Switzerland, on the other hand, rose by 10% to CHF 6.9 billion. On the whole, Swiss Life further improved the quality of its premium income. The Group generated overall investment performance of 5.7% and an attractive net investment result of 2.7% (both not annualised) during the first nine months. By the end of September 2011, Swiss Life had already implemented all the initiatives underlying the cost savings targets for 2012.
 
Bruno Pfister, Group CEO, "The Swiss Life Group business model is proving its worth even in the current low interest rate environment. Further operational improvements have already enabled us to implement all our cost savings initiatives within the framework of the Group-wide MILESTONE programme – and it is only the end of the third quarter of 2011. We have also succeeded in again improving the quality of our premium income."
 

Focus on profitability impacts premium volume

In the first nine months of 2011, premium income in the Swiss Life Group fell by 13% in local currency. Overall, premiums were CHF 2.9 billion, representing a decrease of 13% in local currency compared with the third quarter of 2010. This is largely due to the reduced business with high net worth individuals and the focus on higher margins and profitability. Bruno Pfister, "We are not aiming for growth at any price. Nevertheless, we have succeeded in making advances in our key strategic core areas - such as corporate business in Switzerland, health insurance and unit-linked life insurance in France, and occupational disability insurance in Germany. This is very encouraging, especially given the interest rate environment, which remains difficult." Overall the Group has grown in Switzerland with premium income increasing by 10% to CHF 6.9 billion, compared with the same period in the previous year. In France, premium income (currency adjusted) declined by 6% to CHF 3.3 billion. In Germany, premium income stood at CHF 1.2 billion in local currency, 8% down on the same period in the previous year. The Insurance International segment, which represents the global business with high net worth individuals, recorded a 55% drop in premiums to CHF 1.7 billion. This is mainly attributable to the uncertainties in private banking and the extremely strong results in the previous year, which were notably boosted by the effects of the Italian tax amnesty. AWD increased its sales revenues by 1% in the first nine months of 2011 to EUR 392 million and also further improved productivity. It saw good development particularly in Germany, the UK and Switzerland, whereas business in Austria and Eastern Europe did not meet expectations.
 

All cost savings initiatives now implemented

The cost reduction measures introduced as part of the Group-wide MILESTONE programme made an impact again in the first nine months of 2011. As a consequence of the disciplined cost management, Swiss Life has already implemented all the initiatives underlying its cost savings targets for 2012.

 
Consistently good investment result and strong improvement in Group solvency

On a non-annualised basis, Swiss Life generated overall investment performance of 5.7% and a net investment result on the insurance portfolio of 2.7% in the first nine months of 2011 (September 2010: 3%). The Group solvency ratio, calculated on the basis of the IFRS balance sheet in accordance with Solvency I, came to 201% on 30 September 2011 (176% on 30 June 2011).