Net profit In CHF million 1 equity excl. unrealised gains/losses on financial instruments 2 incl. share buy-back
At the end of 2020 the Swiss Life Group employed approximately 9800 people worldwide and had a network of some 15 800 advisors.
Swiss Life enables people to lead a self-determined life. In doing so, the company is responding to a fundamental need: representative surveys conducted by Swiss Life in its core markets show that over 80% of people see self-determination and independence as a fundamental need in their lives, leading to satisfaction, optimism and less stress. Against the backdrop of demographic change and people’s increasing personal responsibility for their future personal provisions, Swiss Life’s work, advisory services and products will continue to grow in relevance.
The Group-wide programme contains specific financial goals for the period from 2019 to 2021 in the areas of earnings quality and growth, operational efficiency and disciplined capital management.
Als 1864 mit der Gründung von «Ganzoni und Barthelts» in Winterthur der Grundstein für SIGVARIS GROUP gelegt wurde, gab es den Begriff «Start-up» noch nicht. Was es hingegen gab, war der Wille, sich immer wieder neu zu erfinden – genau wie ein Start-up. Zuerst stellte man einfache Gummibänder her, und heute ist man der führende Anbieter von medizinischen Kompressionstextilien. Seit über 100 Jahren mit dabei: Swiss Life. Wir begleiten SIGVARIS GROUP durch alle Höhen und Tiefen und unterstützen sie dabei, weiterhin selbstbestimmt entscheiden zu können. SIGVARIS GROUP und Swiss Life – seit Generationen gemeinsam am Start.
As at 31 December 2020, Swiss Life Asset Managers had a total of CHF 269.7 billion under management. Third-party assets under management at year-end were CHF 91.6 billion – a 10% increase over the previous year.
In the home market of Switzerland, the segment result came to CHF 830 million in 2020 (previous year: CHF 892 million). The decline is due to the lower investment result caused by financial market developments arising from the Covid-19 pandemic. The risk result increased slightly (+2%). In addition, the fee result increased to CHF 26 million (+29%). This was due in particular to the successful expansion of investment solutions for private clients as well as real estate and mortgage brokerage.
Assets under management by Swiss Life Asset Managers came to CHF 269.7 billion at the end of 2020. Assets from insurance business climbed by around CHF 6.8 billion to CHF 178.1 billion. Due to the regulatory operating conditions long-term nature of its liabilities, Swiss Life invests especially in fixed-income securities, which accounted for an unchanged share of the portfolio at the end of 2020 (57%). The real estate holding increased further from 21% to 22% and the net equity holding was under 4% as at 31 December 2020.
Swiss Life Holding has no convertible bonds outstanding on the balance sheet date. The 0% convertible bond (2013–2020) issued by Swiss Life Holding Ltd in 2013 in the amount of CHF 500 000 000 was fully converted or repurchased during the 2017 financial year.
With the exception of Thomas Buess, up until 28 February 2019 Group Chief Financial Officer (Group CFO), no member of Swiss Life Holding’s Board of Directors exercised any duties relating to operational management within the Swiss Life Group in the year under review and during the three financial years preceding the reporting period.
Compensation Committee The Compensation Committee supports the Board of Directors with regard to setting the compensation policy and in key personnel decisions regarding appointments to the highest levels of management and related performance-based and market consistent compensation. The fundamental duties and responsibilities of the Compensation Committee are set out in Article 12 of the Articles of Association as amended on 23 April 2014 (www.swisslife.com/articles).
The Board of Directors is continually and comprehensively briefed on the activities of the Corporate Executive Board. The Group CEO regularly informs the Chairman of the Board of Directors and the Board of Directors and its committees on the course of business, new business activities and significant projects. The Group CEO informs the Chairman of the Board of Directors immediately of any extraordinary matters. Considerable expenditure which is unbudgeted for and amounts to more than 10% of the relevant budget must be submitted to the Chairman’s and Corporate Governance Committee for approval. Similarly, significant investments and divestments require the approval of the Investment and Risk Committee or, when they reach a certain level, the approval of the Board of Directors as a whole.
Other appointments: – Roche Holding AG, Member of the Board of Directors (from March 2020) – Avenir Suisse, Member of the Board of Trustees – Zurich Chamber of Commerce, Member of the Board of Directors – Zürcher Volkswirtschaftliche Gesellschaft, (Zurich Economic Society),
Other appointment: – Swiss Insurance Association (SIA), Chairman of the Finance and Regulation Committee
In July 2008 Charles Relecom was appointed Chief Executive Officer France (CEO France) of the Swiss Life Group and Member of the Corporate Executive Board.
Jörg Arnold — Born 1964, German national Chief Executive Officer Germany (CEO Germany)
In addition to customer centricity, Swiss Life also engages in dialogue with its interest groups on an equal footing in other areas. This includes dialogue with employees (see section on “Sustainability as an Employer”) and regarding its role in society (section on “Sustainability in Society”).
In this way, Swiss Life is meeting an area of customer demand – as clearly highlighted by a representative survey conducted by the company in 2019 in Switzerland, France and Germany. People want digital aids that help advisors to identify the best solution and thus give them more time to provide personal advice.
To further strengthen its commitment to responsible investing, Swiss Life has formalised its approach to integrating ESG criteria into investment and risk management processes. The resulting Responsible Investment Framework is aligned to the Principles for Responsible Investment (PRI). Swiss Life as asset owner and Swiss Life Asset Managers as investment manager, as well as all the subsidiaries, are fully committed to the PRI and disclose their responsible investing activities accordingly. In the year under review the PRI rewarded this achievement with (among other things) an A+ rating in the Strategy and Governance module.
Data protection has priority at Swiss Life. All legal, regulatory and internal requirements are implemented throughout the Group. Group-wide standards for data protection have been defined. These cover all areas of business and are specified and implemented through divisional data protection directives and data protection consent forms. These govern the processing, storage, deletion, archiving and transfer of data and documents. In addition, Swiss Life has binding standards and regulations for uniform data classification, the handling of personal and highly sensitive data and for trade secrets, as well as for the rights of data subjects, such as the right to access, rectification and deletion. When processing personal data, Swiss Life consistently complies with the applicable regulations for Switzerland and the EU, and with other local laws. Swiss Life provides personal data to third parties only if the latter are to process it on behalf of Swiss Life.
In Switzerland, the insurance sector as a whole generates gross value-added of approximately CHF 30 billion and makes a significant contribution of nearly 5% to the country’s economic output.
– As a long-term investor, Swiss Life also contributes to the stability of the financial centre and provides vital risk capital to companies and institutions.
Political advocacy work and communication in Switzerland, France and Germany are closely coordinated with trade associations. Moreover, a number of company executives are members of various national trade associations. The Chairman of Swiss Life’s Board of Directors, Rolf Dörig, is Chairman of the Swiss Insurance Association (SIA). In addition, members of the Corporate Executive Board and Swiss Life employees work on various SIA committees.
– Swiss Life Asset Managers has sponsored the “Swiss Life Thesis Award” for the past seven years. The Award, presented in cooperation with the Institute for Financial Services Zug (IFZ), part of Lucerne University of Applied Sciences and Arts, and the business journal Finanz und Wirtschaft, provides a platform for innovative and practice-oriented research work at Swiss universities. The best theses in the fields of investment, financial markets, financial services companies, financial instruments and corporate finance are singled out for awards each year. The “Swiss Life Thesis Award” comes to CHF 20 000 in total.
Swiss Life’s commitment is also recognised by external organisations: Switzerland - Top 100 Most Attractive Employers - Top 100 Most Attractive Employers - Top 100 Most Attractive Employers by “Universum”1 by “Universum”1 by “Universum”1 - Most attractive employer for students - Top Employer Certification (Swiss Life Select) - Top Employer Certification (Swiss Life Select) by “Universum”1 - Best Recruiter – silver award - Best Recruiter – silver award - Top Employer Certification (Swiss Life Select) - Top apprenticeship company for young - Best Recruiter – silver award talents Swiss Olympic - Top apprenticeship company for young sports talents Swiss Olympic
Number of employees who returned to work following completion of maternity/paternity leave
– For the training and certification of sales and asset management staff, Swiss Life France has entered into a partnership with KEDGE Business School, EM Normandie Business School and Université Dauphine, Paris.
The Group-wide Guideline on combating discrimination and promoting diversity and inclusion (according to the ILO Convention) forms the basis for the divisions’ specific initiatives and programmes. These enable Swiss Life to pursue the goal of increasing diversity in its workforce as a whole.
– As part of the 2021 salary review, the staff committee will make a formal application to the Executive Board for a salary increase. – At the inaugural meeting in spring 2020, the committee (one person per country) and the representatives – through the countries in the
The following agreements have also been signed: – Adaptation agreement following the merger of 21 June 2019, followed by the employee referendum for implementation of the agreement – Agreement on additional Works Council elections on 3 July 2019 – Pre-electoral agreement for the organisation of Works Council elections on 29 July 2019 – Supplement to the profit sharing agreement of 28 June 2019 – Supplement to the company savings plan in addition to the employer’s contribution of 16 April 2019
Collective bargaining agreements 100% of employees are covered by a collective bargaining agreement.
– The Central Works Council as the overarching body of all operations consists of five persons (two representatives of Works Council Internal Services, two representatives of Works Council Sales Force, one representative of the severely handicapped). The Central Works Council chair is also chair of the Works Council Internal Services, a member of the Business Committee and spokesperson for the European Works Council of Swiss Life Ltd.
Works Agreements 98% of employees are subject to a Works Agreement.
City of Hanover): klimaallianz-hannover.de – UK Sustainable Investment and Finance Association (UKSIF): uksif.org
GRI 206-1 Legal actions for anti-competitive behaviour, anti-trust None and monopoly practices
GRI 403-2 Hazard identification, risk assessment and p. 132–134 incident investigation
Health and safety policy is group-wide yes yes yes yes AR, p. 132–134
Total number of employees 10 524 10 219 9 298 8 457 AR, p. 120
Major merger or acquisition in the last three years no no no no (affecting large proportion of staff)
Financial assets at fair value through profit or loss 10 47 336 43 692
Financial assets pledged as collateral 13, 31, 33 4 064 2 438
BALANCE AS AT END OF PERIOD 171 7 –787 3 542 12 988 15 920 425 89 16 435
Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments. Loans include loans originated by the Group and investments in debt instruments which are not quoted in an active market and for which no intention of sale exists in the near term. Loans are initially recognised at fair value, net of transaction costs, or direct origination costs. Subsequent measurement is at amortised cost using the effective interest method.
The accounting policies for insurance contracts and investment contracts with discretionary participation features have been modified as appropriate to be consistent with the IFRS requirements. Guidance in dealing with similar and related issues, definitions, recognition and mea surement criteria for assets, liabilities, income and expenses as set out in the IASB Framework for the Preparation and Presentation of Financial Statements has been considered.
IFRS 4 Insurance Contracts is silent on the measurement of the amounts identified as DPF. This topic will be addressed in IFRS 17 Insurance Contracts. Cash flows to policyholders that vary depending on returns on underlying items are included in the measurement of insurance liabilities. If these cash flows are substantial, a modification of the general measurement model in IFRS 17 Insurance Contracts applies (“variable fee approach” for direct participating contracts).
A deferred income tax liability is recognised for taxable temporary differences relating to investments in subsidiaries, branches and associates, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of available-for-sale equity instruments is set out in note 11.
Investment and unit-linked contracts 6 931 12 454 1 206 21 433 – – 42 024 – 42 024
Exposure to credit risk of debt instruments that meet the SPPI criterion as at 31 December 2020 in CHF million
Assets for the account and risk of the Swiss Life Group’s customers 81 3 907
Liabilities linked to assets for the account and risk of the Swiss Life Group’s customers –82 –3 891
Forward contracts are used as hedging instruments to protect non-monetary investments (equity securities, investment funds and hedge funds) against adverse movements in euro, British pound, US dollar and Japanese yen exchange rates. Such investments include equity securities, investment funds (equity funds and loan funds) and hedge funds.
Agrippa Quartier GmbH & Co. Geschlossene InvKG, Heusenstamm 37.5% 49 1 n/a n/a n/a
1 of which CHF 230 million pledged as security for loans (2019: CHF 214 million)
Acquisitions and disposals of subsidiaries – – – – –1 0 –1 0
At 31 December 2020, if the discount rate had been 50 basis points higher (lower), the defined benefit obligation would have decreased by CHF 288 million (increase CHF 329 million). At 31 December 2019, if the discount rate had been 50 basis points higher (lower), the defined benefit obligation would have decreased by CHF 298 million (increase CHF 340 million).
Income tax calculated using the expected weighted-average tax rate 275 291
BALANCE AS AT END OF PERIOD 10 11 22 23 89 33 121 66
BALANCE AS AT END OF PERIOD 219 132 1 721 351
Net balance as at 1 January –1 150 4 574 451 –2 3 873 67 –397 –330 3 542
Net cash flows from operating activities –417 1 203 1 –1
Swiss Life Holding is the ultimate parent of all of the Group’s legal entities. Capital and cash held at Swiss Life Holding have the highest fungibility. Therefore, the Group aims to hold an appropriate capital buffer at the holding level. Under consideration of legal and regulatory restrictions, internal limits and local capital buffers, the legal entities of the Group transfer cash and capital to Swiss Life Holding, in the form of dividends, interest on loans and fees (cash remittance). Capital at Swiss Life Holding is used as a buffer to ensure financial flexibility of the Group, to purchase treasury shares, to pay dividends to shareholders and to finance growth.
Total gains/losses recognised in other comprehensive income – – 1 – 88 – – 88
Gross amounts of recognised financial assets before offsetting 3 008 2 090 – – 4 9 3 011 2 099
Swiss Life Holding AG, Zürich Other – – Holding CHF 3 201 439
AGAMI, Levallois-Perret FR 100.0% 100.0% Services and broker EUR 1 250 055
BEOS Fixture GmbH, Berlin AM 100.0% 100.0% Asset management & Real estate EUR 25 000
Swiss Life Pensionsfonds AG, Garching b. München DE 100.0% 100.0% Life insurance EUR 3 000 000
Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We consider the valuation approach, and the assumptions and parameters used within, as a reasonable and adequate basis for management’s assessment of the recoverability of goodwill. The audit evidence obtained through our audit procedures was sufficient and suitable to assess the recoverability of goodwill.
Swiss Life Holding further provides capital guarantees for a maximum net asset value of CHF 1100 million to Swiss Life Ltd, CHF 141 million to Swiss Life Products, CHF 6 million to Swiss Life Liechtenstein and CHF 100 million to cover regulatory requirements at the level of subsidiaries.
In addition, under drawn credit lines Swiss Life Holding held liabilities totalling CHF 31 million for Swiss Life Products and credit lines totalling CHF 25 million for Corpus Sireo companies.
Share ownership/participation rights as at 31 December 2020 As at 31 December 2020, acting members of the Board of Directors and the Corporate Executive Board (including closely linked parties) held the following number of registered Swiss Life Holding shares and future subscription rights to Swiss Life Holding shares in the form of Restricted Share Units (RSUs).
Annual profit amounts to CHF 719 091 523. The Board of Directors proposes to the General Meeting of Shareholders that the profit be appropriated in accordance with the table below. If this proposal is adopted, an ordinary dividend of CHF 21.00 per share will be made from profit.
We critically assessed and tested the financial budgets approved by management and the board of directors.
We critically assessed the additional sensitivity analyses prepared by management to ascertain the level of prudency used.