Swiss Life Holding will acquire the entire share capital of CapitalLeben, domiciled in Liechtenstein, and will merge the company with its subsidiary Swiss Life (Liechtenstein) AG. The companies have a comparable business model, similar products and complementary areas of geographical focus. This acquisition makes Swiss Life, with its companies in Liechtenstein and Luxembourg, one of the leading providers of structured life insurance products for high net worth individuals. Its presence in these two locations, both key for this global business, offers a unique position from which to seize the opportunities engendered by this rapidly expanding market. The parties have agreed not to disclose details of the purchase price.
Bruno Pfister, CEO International of the Swiss Life Group: “The acquisition of CapitalLeben enables us to further exploit the major growth potential of this attractive business area and to rapidly expand beyond the markets we already cover.”
Hans Haumer, Chairman of the Board of Directors of CapitalLeben: “CapitalLeben is one of the first movers in the structured life insurance products business. The strong growth of the past few years has brought us to a threshold in our development. In Swiss Life we have found the ideal partner with which to take the next step. This merger also enhances professional development perspectives for CapitalLeben employees.”
Structured life insurance products for high net worth individuals: an attractive market with major growth potential
The insurance law introduced in 1996 and compatible with applicable European Union directives, has made Liechtenstein an attractive location for business with structured life insurance products. Policies concluded under Liechtenstein law enable wealthy customers to invest their assets in life insurance and therefore benefit from attractive tax conditions and from the advantages of wealth management and estate planning. Premium income totalling around CHF 6 billion is expected for this market for 2006.
As a non-listed, autonomous company, CapitalLeben has successfully operated in this business for the last ten years and is now the market leader among life insurance companies in Liechtenstein. The company offers tailor-made private insuring concepts via a network of banks, asset managers, legal experts and tax advisors to optimally combine individual asset management with attractive pension planning from both a tax and legal perspective. CapitalLeben is particularly well positioned with customers from Germany, Austria and Italy. CapitalLeben expects premium income for 2006 of CHF 1.25 billion (2005: CHF 1.0 billion; +25%) and net profit of approximately CHF 9 million (2005: CHF 6 million; +50%). The company currently manages customer assets of around CHF 4 billion and employs a staff of 33.
Swiss Life (Liechtenstein) AG, established in November 2004, has, within a short period of time, successfully established itself in the market as a provider of structured life insurance products for high net worth individuals. Swiss Life successfully distributes these products in collaboration with Banca del Gottardo and other banks and brokers focusing on this discerning customer segment. Previously, the company’s customer base primarily comprised private individuals from Germany, Italy and Scandinavia. Recently, however, activities have been expanded to the Asian and US markets. Premium income of about CHF 600 million is forecast for 2006. The company currently manages customer assets of around CHF 800 million and employs a staff of 13.
Gradual integration planned
Subject to the approval of the relevant authorities, the acquisition will be finalised by the end of the first quarter of 2007. A merger of CapitalLeben with Swiss Life (Liechtenstein) AG is planned at a later date. The merger will not result in the loss of jobs. In order to grow, the company requires employees qualified in this highly specialised business. Following the merger, Hans Haumer, Chairman of the Board of Directors of CapitalLeben, will become Vice-Chairman of the Board of Directors of Swiss Life (Liechtenstein) AG. Bruno Pfister, Chairman of the Board of Directors, and Peter Huber, CEO of Swiss Life (Liechtenstein) AG, will retain their roles in the merged company.
Phone: +41 43 284 77 77
Phone: +41 43 284 52 76
The Swiss Life Group is one of Europe’s leading providers of pension and life insurance products. The Swiss Life Group offers individuals and companies comprehensive advice across a broad range of products via agents, brokers and banks in its domestic market, Switzerland, where it is market leader, and selected European markets. Multinational companies are serviced with tailor-made solutions by a network of partners in over 60 countries and regions. With Banca del Gottardo, the Swiss Life Group is also a provider of private banking services. The bank, with its head office in Lugano, has an extended national and international network and around CHF 34 billion in customer assets under management.
Swiss Life Holding, registered in Zurich, dates back to the Schweizerische Rentenanstalt founded in 1857. Shares of Swiss Life Holding are listed on the SWX Swiss Exchange (SLHN). The Swiss Life Group employs a staff of around 9000.
Cautionary statement regarding forward-looking information
This publication contains specific forward-looking statements, e.g. statements including terms like “believe”, “assume”, “expect” or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the company and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties readers should not place undue reliance on forward-looking statements. The company assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.