LTS AG was a great commercial success. This was especially due to the sale of a stake held by the Swiss Life Group in the Swiss hedge fund group RMF Investment Group in May 2002 (see the Swiss Life/Rentenanstalt press release of 24 May 2002) in which LTS AG had been able to acquire a stake in the spring of 2000. Swiss Life/Rentenanstalt has successfully worked together with the RMF Group since 1996 and in 1998 and 2000 was able to acquire shareholdings in the company totalling 23.5% or CHF 44 million. The disposal of this stake, including profits from the sale of a stake in a joint venture, resulted in a profit of CHF 330 million for Swiss Life/Rentenanstalt. The resulting profits from the sale of the LTS AG shares amounted to CHF 14.6 million for Swiss Life/Rentenanstalt and CHF 11.5 million for the six members of the Corporate Executive Board who held shares in LTS AG, based on total investments of CHF 3.8 million. In detail the profits for the individual shareholders were: Swiss Life/Rentenanstalt CHF 14.6 million, Manfred Zobl CHF 2.2 million (CHF 800 000 invested), Dominique P. Morax CHF 3.6 million (CHF 967 000 invested) Roland Chlapowski CHF 3.2 million (CHF 967 000 invested), Hannes A. Meyer CHF 1.7 million (CHF 613 000 invested), Markus Weisskopf CHF 832 000 (CHF 200 000 invested) and Hans-Rudolf Strickler CHF 45 000 (CHF 258 000 invested).
In spring 2002 the Board of Directors, under the direction of Andres F. Leuenberger, decided that LTS AG should no longer function as an investment company for members of the Corporate Executive Board and that its operations should be wound down. The reason for this decision was a reassessment of the situation by the Board of Directors, which now considered the interlocking of capital, although legally and financially unexceptionable, to be undesirable for other overriding reasons.
LTS AG ceased its investment activities on 18 July 2002. Within the Swiss Life Group there are no other investment companies apart from LTS AG in which members of the Corporate Executive Board have personal investments.
The Federal Office of Private Insurance has appointed an independent expert to review the business activities of LTS AG. Swiss Life/Rentenanstalt's Board of Directors supports this measure and takes the public criticism regarding LTS AG very seriously. Swiss Life/Rentenanstalt will release information concerning the results of the review after it has been concluded and in consultation with the Federal Office of Private Insurance.