In order to promote a performance culture we are establishing a system of binding financial and functional objectives. These will be complemented by appropriate tools for measuring the achievement of targets and detecting any deviations at an early stage.
The 3% decline in gross premiums in 2002 to CHF 19.5 billion was principally caused by the markedly lower demand for unit-linked products (deposits under policyholder investment contracts), which fell by 17%. In pure insurance business, premiums remained at the level of the previous year in the life segment, while increasing by 12% in the non-life segment. The improvement in non-life resulted from the transfer of the health insurance business from Swiss Life/Rentenanstalt to «La Suisse» and the corresponding reclassification in the non-life sector.
For this reason the Swiss Life Group reduced the equity exposure in its investment portfolio last year from 16% to less than 2%. The aim is to further keep this exposure in the long-term at a level between 0% and 5%. As a result of the general trends on the international financial markets, the Group anticipates that it will deliver a lower financial result in future than in recent years. In order for its activities to remain profitable under these circumstances efficiency must be increased and product terms must be adjusted to market conditions.
These risks can be countered by setting adequate premiums and strengthening reserves.
Number of employees 426 466 – 8.6 1 IAS figures, before consolidation 2 incl. loss adjustment expenses 3 excl. loss adjustment expenses
34 Spain In Spain Swiss Life is a specialist in the occupational provisions market and ranked eleventh in this market segment in 2002.
In 2002, Swiss Life implemented most of the modules of the very sophisticated new group insurance administration system. The final module will be introduced in 2003.
United Kingdom Swiss Life holds a leading position in the UK protection sector. In group protection, which is the main business segment, it is the third largest player. 2002 was another very successful year for Swiss Life in the UK. Premium volume grew by 3% to GBP 386 million. In the core sector, the protection business, premium growth was 13%. Assets under management decreased in the course of the year from GBP 1.9 billion to GBP 1.4 billion.
In February 2003 a new administration system for individual life business was successfully implemented. The implementation of the Financial Services Authority ’s Integrated Prudential Sourcebook in 2004 will place the entire financial sector (e.g. banking and insurance) under one regulatory regime. The areas addressed include distribution, management of with-profits business (participating life insurance contracts), and the regulation of insurance products, pensions, capital adequacy and systems and control requirements.
45She will be resigning her position on the Board of Directors of Swiss Life Holding with effect from the Annual General Meeting of Shareholders on 27 May 2003. Other appointments: – Maluba AG, Chairman of the Board – Immobiliare Spazio SA,
– Swisspipe, Member BoD – WRG-FM SA, Member BoD – Gertrude Hirzel Foundation,
Audit Committee The Audit Committee consists of Ulrich Oppikofer (Chairman), Gilbert Coutau and Josef Kühne. The Audit Committee has the following remit: to prepare a recommendation on the appointment of the External Auditors and to ascertain the independence thereof, to commission supplementary audits, to review and comment on the External Auditors’ conclusions and recommendations, to review and assess the quality of external reporting as well as to analyse the results of the internal audits. Further information on the duties of the Audit Committee can be found in the Auditors section. The Board of Directors and its Committees normally meet at the following intervals: Board of Directors six times a year Chairmen’s Committee monthly Finance Committee four times a year Audit Committee four times a year