Swiss Life increases fee income in the first quarter of 2017

10.05.2017

  • The Swiss Life Group generated fee income of CHF 340 million in the first three months of 2017. That corresponds to 5% growth in local currency compared to the previous year.
  • Group-wide premiums were down 1% in local currency to CHF 6.5 billion. At the same time, insurance reserves for the benefit of the company's policyholders rose by 2% in local currency.
  • Swiss Life Asset Managers acquired net new assets of CHF 2.7 billion in its third-party asset management in the first quarter of 2017. The company had CHF 52.7 billion in third-party assets under management as of 31 March 2017 (year-end 2016: CHF 49.6 billion).
  • The direct investment income was slightly below the prior year at CHF 1 037 million (Q1 2016: CHF 1 053 million). The non-annualised direct investment yield remained stable at 0.7% (Q1 2016: 0.7%); the non-annualised net investment yield stood at 0.5% (Q1 2016: 0.7%).
  • Swiss Life had an SST ratio of 161% as of 1 January 2017 (as filed with Finma, based on the internal model approved with conditions).

“Swiss Life has made a good start to the year”, says Thomas Buess, Group CFO of Swiss Life. “We also managed to increase fee income and assets under management in the first quarter of 2017. That shows we are continuing our progress towards implementing our Group-wide programme ‘Swiss Life 2018’.”

Business development in the first quarter of 2017

The Swiss Life Group generated premiums of CHF 6.5 billion in the first three months of 2017 (Q1 2016: CHF 6.7 billion). In local currency this equates to a decline of 1%. Insurance reserves for the benefit of the company's policyholders rose by 2% in local currency as of 31 March 2017. Fee income was up 5% in local currency in the first quarter of the year, to CHF 340 million (Q1 2016: CHF 332 million).

In its home market of Switzerland, Swiss Life achieved premiums of CHF 4.6 billion (Q1 2016: CHF 4.9 billion), a decrease of 7%. The decline in group life business (-7%) stems from the selective full insurance underwriting policy; the share of new business with semi-autonomous solutions rose to 18% (Q1 2016: 8%). In individual life business, Swiss Life grew by 8%. Fee income was CHF 62 million, 2% higher than in the prior year period (Q1 2016: CHF 61 million). In France, premiums grew in local currency by 6% to CHF 1.1 billion (Q1 2016: CHF 1.1 billion) compared to the same period last year. Fee income rose by 19% in local currency to CHF 69 million (Q1 2016: CHF 59 million); this growth was achieved through higher fees from banking and the higher share of unit-linked solutions in life business. Swiss Life in Germany generated premiums of CHF 345 million in the first three months of 2017 (Q1 2016: CHF 347 million), corresponding to a 2% increase in local currency over the same period last year. Fee income was almost as high as last year at 92 million (Q1 2016: CHF 94 million), whereby the owned IFAs increased their turnover on a standalone basis by 6% in local currency. The International market unit recorded a premium increase of 38% in local currency to CHF 493 million (Q1 2016: CHF 364 million). Fee income was up 6% in local currency to CHF 55 million (Q1 2016: CHF 55 million) compared to the prior-year level.

Swiss Life Asset Managers acquired CHF 2.7 billion in net new assets for its third-party business in the first three months of 2017. As a result, assets under management from third parties increased to CHF 52.7 billion as of 31 March 2017 (year-end 2016: CHF 49.6 billion). In total, Swiss Life Asset Managers achieved fee income of CHF 133 million in the first quarter (Q1 2016: CHF 133 million), equivalent to an increase of 1% in local currency.

Investment result and solvency

Swiss Life generated direct investment income of CHF 1 037 million in the first three months of 2017 (Q1 2016: CHF 1 053 million). The non-annualised direct investment yield remained stable at 0.7% on 31 March 2017 (Q1 2016: 0.7%). As a result of lower realised gains, the net investment yield fell by 12 basis points to 0.5% on a non-annualised basis in the first three months of 2017 (Q1 2016: 0.7%). The Swiss Life Group had an SST ratio of 161% on 1 January 2017 (as filed with Finma, based on the internal model approved with conditions).

Thomas Buess, Group CFO, will hold a telephone conference in English for financial analysts and investors at 10 a.m. (CET) today. Please dial in ten minutes before the start of the conference. There is also an audio webcast on the web page https://www.swisslife.com.

 

Dial-in number for Europe

+41 (0) 58 310 50 00

Dial-in number for the UK

+44 (0) 203 059 58 62

Dial-in number for the USA

+1 (1) 631 570 56 13

 

Key figures as of 31.03.2017

 

CHF m.
IFRS basis, unaudited

Q1 2017

Q1 2016

Change
(CHF)

Change
(in local currency)

Switzerland

    

Gross written premiums, policy fees and deposits received

4 572

4 891

-7%

-7%

Fee income

62

61

+2%

+2%

France

Gross written premiums, policy fees and deposits received

1 133

1 093

+4%

+6%

Fee income

69

59

+16%

+19%

Germany

Gross written premiums, policy fees and deposits received

345

347

-0%

+2%

Fee income

92

94

-2%

-0%

International

Gross written premiums, policy fees and deposits received

493

364

+35%

+38%

Fee income

55

55

+1%

+6%

Asset Managers

Fee income

133

133

-0%

+1%

Net new assets in third-party business

2 663

2 339

+14%

+15%

Assets under management for third-party business

52 690

49 5643

+6%

+6%

Total

Gross written premiums, policy fees and deposits received1

6 539

6 679

-2%

-1%

Fee income2

340

332

+3%

+5%

 

1 Gross written premiums, policy fees and deposits received: Total includes Other and intersegment eliminations of CHF -17 m in Q1 2016 and CHF -4 m in Q1 2017.

2 Fee income: Total includes Other and intersegment eliminations of CHF -71 m in Q1 2016 and CHF -70 m in Q1 2017.

3 As of 31.12.2016

Information

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Further information

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Swiss Life

The Swiss Life Group is one of Europe's leading comprehensive life and pensions and financial solutions providers. In its core markets of Switzerland, France and Germany, Swiss Life offers individuals and corporations comprehensive and individual advice plus a broad range of own and partner products through its sales force and distribution partners such as brokers and banks.

Swiss Life Select, Tecis, Horbach, Proventus and Chase de Vere advisors choose suitable products for customers from the market according to the Best Select approach. Swiss Life Asset Managers offers institutional and private investors access to investment and asset management solutions. Swiss Life provides multinational corporations with employee benefits solutions and high net worth individuals with structured life and pensions products.

Swiss Life Holding Ltd, registered in Zurich, was founded in 1857 as Schweizerische Rentenanstalt. The shares of Swiss Life Holding Ltd are listed on the SIX Swiss Exchange (SLHN). The subsidiaries Livit, Corpus Sireo and Mayfair Capital are also part of the Swiss Life Group. The Group employs a workforce of around 7800 and approximately 4800 certified financial advisors.

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, by their nature, are subject to known and unknown risks, uncertainties and other important factors. These may result in a substantial divergence between the actual results, developments and expectations of Swiss Life and those explicitly or implicitly described in these forward-looking statements. Given these uncertainties, the reader is reminded that these statements are merely projections and should not be overvalued. Neither Swiss Life nor its Members of the Board of Directors, executive managers, managers, employees or external advisors nor any other person associated with Swiss Life or with any other relationship to the company makes any express or implied representation or warranty as to the correctness or completeness of the information contained in this publication. Swiss Life and the abovementioned persons shall not be liable under any circumstances for any direct or indirect loss resulting from the use of this information. Furthermore, Swiss Life undertakes no obligation to publicly update or change any of these forward-looking statements, or to adjust them to reflect new information, future events, developments or similar.

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