Taken as a whole, these measures will make us a harder-hitting, higher-quality and more efficient organisation. They establish a foundation that will enable us to continue to improve our products and
Despite the negative result, there were definitely positive aspects to 2002, which has emerged as a watershed year. With our decision to concentrate on core business and the measures introduced to boost efficiency we have set out in the right direction. However, considerable effort is still required if we are to achieve enduring success with our ambitious goals in this challenging market environment.
Multinational enterprises will continue to be provided with comprehensive employee benefit solutions in future through the Swiss Life Network, the world’s leading partner network.
Swiss Life Holding is the new parent company of the Group. The holding structure offers the Swiss Life Group the possibility of accommodating all its participations efficiently under the one roof. The shares of Swiss Life Holding have been listed on the SWX Swiss Exchange since 19 November 2002.
During the year under review, the corporate strategy, organisation and resources were adjusted to respond to the changed market environment. Premium income amounted to CHF 8.2 billion (down by 3%). One reason for this drop was the transfer of the short-term disability benefit portfolio to «La Suisse». In the second half of the year, moreover, the negative publicity concerning the company accentuated the decline. Premium volume in individual insurance came to CHF 2.4 billion (down by 3%), as higher income from single-premium business offset the clear downturn in unit-linked products. Group insurance premium income fell by 3% to CHF 5.7 billion, although it must be noted that all the insurance providers in this market were very conservative about writing new business. The rise of 6% in insurance benefits – bringing them to CHF 9.1 billion – was due above all to the expiry of a special single-premium contract with a five-year term and to an above-average increase in policy surrenders in connection with the bad publicity.The higher figure for disability claims was also a reflection of the generally weaker economy.
Gross premiums, incl. deposits under policyholder investment contracts 955 987 – 3.2 of which individual insurance 444 480 – 7.5 of which group insurance 511 507 + 0.8 of which variable acquisition costs 14 8 + 75.0 of which administrative costs 110 123 – 10.6
27In Belgium and Luxembourg Swiss Life experienced a 16% decline in premium volume, bringing the figure down to EUR 366 million. The setback was due above all to the individual insurance business in Belgium, where it was primarily the demand for unit-linked products that recorded a pronounced decline. Other factors influencing the drop in premiums included the decision to refrain from aggressively matching various price adjustments in the market and the effect of the restructuring measures. The 2% growth in insurance benefits to EUR 179 million was in line with expectations. In 2002 functional responsibilities were laid down clearly, distribution was reorganised (agents with fixed employment contracts became independent, but continue to maintain an exclusive relationship with the organisation) and a wide-ranging early retirement programme was implemented following successful negotiations between labour and management. Despite this restructuring, costs rose by only 9%. The impact of the savings (which are already reflected in part in the staff reductions) will be fully felt starting with the next business year.
Gross premiums, incl. deposits under policyholder investment contracts 366 438 – 16.4 of which individual insurance 153 223 – 31.4 of which group insurance 212 214 – 0.9 of which variable acquisition costs 5 4 + 25.0 of which administrative costs 69 64 + 7.8
Within the framework of the general strategic realignment premium rates and controlling were further refined and process improvements were introduced to increase efficiency and profitability.
Group structure Swiss Life Holding is a public limited company incorporated under Swiss law with its registered office in Zurich. It was established in 2002 and now brings all Swiss Life Group companies and activities together under a single holding company umbrella.
Georges Muller 1997 2003 1 Andres F. Leuenberger, Ulrich Oppikofer, Gilbert Coutau,
Sponsored Foundation and SMP Employee Benefits Foundation, Chairman of the Board of Trustees
Corporate Executive Board As of 15 January 2003 the Corporate Executive Board is composed of the following members: Rolf Dörig Born 1957 Swiss national Chief Executive Officer (CEO) since 6 November 2002 Rolf Dörig laid the groundwork for his professional career by obtaining a Doctorate in Law from the University of Zurich before being called to the Bar of Zurich. Joining Credit Suisse in 1986, he assumed a number of executive responsibilities in various areas of banking and in different geographical markets. He subsequently became Chief of Staff and Chief Communications Officer for the Credit Suisse Group. As a member of the Executive Board of Credit Suisse Financial Services, he was assigned responsibility for Swiss Corporate and Retail Banking from 2000 onwards. In spring 2002 he became Chairman Switzerland for the Credit Suisse Group. Rolf Dörig has been CEO of the Swiss Life Group since November 2002. Alongside his professional career, he also finds time to involve himself in important social projects: examples include the successful joint application by Switzerland and Austria to host the European football championship in 2008 and his work on behalf of Expo.02, where he contributed his expertise in the financial sector on an interim basis. Rolf Dörig is married with three children.