Swiss Life posted an adjusted return on equity of 9.3%, which is within the 8–10% target. Moreover, in terms of the fee result, we have already achieved our objective under the Group-wide programme “Swiss Life 2018” sooner than planned. We are ahead of target for the value of new business and cash generation. Meanwhile the development of the risk result lies within the target range we were aiming for. Third-party asset management business also contributed to our success, as we once again made gains last year. As of the end of 2017, third-party assets under management stood at CHF 61.4 billion – an increase of 24%. In the light of all these results, we are able to propose to the General Meeting of Shareholders on 24 April 2018 an increase in the dividend from CHF 11.00 to CHF 13.50 per share – once again in the form of a withholding tax-free distribution from the capital contribution reserves.
Segment Reporting Swiss Life made further operational progress in 2017: adjusted profit from operations increased by 5% to CHF 1475 million. Net profit rose by 9% to CHF 1013 million. All units developed positively and increased their contribution to the result.
Carrard Lugano SA. He has also served since 1997 as professor of business law, and since 2017 President of the Geneva Center for Philanthropy, at the University of Geneva. Between 2004 and 2015 he was a Member of the Swiss Takeover Board. Since 2007 he has been a Member of the Sanctions Commission of the SIX Swiss Exchange.
Committee – Consitex SA, Member of the Board of Directors – Ermenegildo Zegna Holditalia SpA, Member of the Board of Directors and Chairman of the Nomination and Compensation Committee – Global Petroprojects Services Ltd, Member of the Board of Directors – Bank Lombard Odier & Co Ltd, Member of the Board of Directors and Chairman of the
The proposed budget/maximum amount for the fixed and long-term variable compensation for the Corporate Executive Board for the 2019 financial year represents an upper limit, which would only be exhausted in the case of exceptional business performance. The Board of Directors will determine the fixed compensation and the long-term variable compensation component for the Corporate Executive Board at the beginning of 2019 and will detail the key underlying factors in the respective compensation report, on which the shareholders can in turn hold an advisory vote.
The Board of Directors may consult independent professionals where deemed appropriate. In the year under review, Swiss Life was advised on specific compensation-related matters by Price waterhouseCoopers (PwC).
Total Total compensation Bonus for 2016 Other compensation in cash and Salary paid in 2017 3 compensation 4 in cash Number Amount shares (amount)
Swiss Life depends on new working and development models through its Group-wide “Actively shaping your career” programme, aiming to ensure ongoing development and motivation for employees throughout all stages of life. For Swiss Life this means it intends to support its em ployees in all phases of their career so that they are able to make the most of the challenges posed by the professional environment. To this end, Swiss Life supports and promotes three main success factors at all its locations: ensuring employability, valuing and exploiting diversity and maintaining long-term work ability. This is how Swiss Life intends to take on the challenges of the working world today and tomorrow.
Representatives of Group Communications and Strategic Marketing, Public A�airs, Human Resources, Asset Management and the “Perspectives” Foundation
Since early 2017, representatives of the asset management, environmental management and corporate communication areas in Switzerland have stepped up their work on the topic of ecology and sustainability. The project team began by assessing the state of affairs in all areas and using its findings to define the next steps. The topic was also taken up as part of the existing corporate responsibility (CR) framework.
The materiality matrix displays and organises the central issues from the “Corporate Responsibility ” area along two axes. The Corporate Responsibility report covers all the subjects included in the matrix.2 The upper right quadrant of the matrix contains the issues that have proven most important to both internal and external stakeholders. These are action points, which are classified as being particularly important to business success and they feature prominently in the reporting.
Since November 2016, a “longer self-determined life” has been the guiding communication theme of Swiss Life and part of its corporate strategy. It is a hot topic, as average life expectancy in Europe has risen since 1950 from 70 to just over 80. It also keeps rising – by two to three years every decade. The ageing society is causing a fundamental shift in the social and economic coordinate system. Its implications are insufficiently accounted for in almost all areas of life. That is why Swiss Life is raising public awareness of this issue and calling for solutions to its concomitant challenges.
Swiss Life is committed to the militia principle in Switzerland and encourages its employees to exercise public and political mandates. The company has an interest in promoting a fully functional and integrated society. Swiss Life holds regular events for employees in Switzerland with public or political mandates. During the reporting year, Swiss Life organised an event known as “Transfer” in conjunction with Avenir Suisse, Swiss Re, Zurich Insurance Group, Helvetia and Axa. This was the second time the event was held. Over 60 mandate holders from different companies discussed current political issues at this event.
Swiss Life Switzerland has been a partner of the Swiss Football Association since 2004 and supports the men’s national teams (all teams from U-15s to the A-team) as well as the national women’s teams (all teams from U-16s to the A-team). As of the 2015/16 season, Swiss Life is also the main sponsor of ZSC Lions ice hockey club. The Lions are one of the biggest ice hockey clubs in Europe with a well-respected youth development programme.
Swiss Life is not only publicly committed to promoting a “longer self-determined life”: this commitment also applies to its employees, for whom the company has launched the Group-wide “Actively shaping your career” initiative. The aim is to support employees as they exploit the opportunities and challenges of their professional lives throughout all phases of their career to the maximum. To this end, three success factors have been identified: “Ensuring employability through constant development”, “Valuing and exploiting diversity” and “Maintaining long-term work ability”. These three focuses will ensure that individual resources are enhanced and various operational demands and personal requirements are taken into account, and harmonised with one another, during the various phases of an employee’s professional and personal life. That is how Swiss Life meets the current and future challenges of the working world.
The principles by which we work together at the Swiss Life Group are set down in the Code of Conduct, valid Group-wide. Swiss Life undertakes to offer its employees a work environment characterised by respect and mutual recognition, and to uphold such an environment. Among these is our zero-tolerance policy regarding mobbing and discrimination on the basis of race, sex, religion, confession, national origin, disability, age, sexual orientation, physical or mental handicap, marital status, political views or other attributes.
Council chair and speaker of the PR committee), nine members with no dispensation.
Total GHG emissions (in 1000 t) 1 27.75 26.23 27.56 AR, p. 123
Financial assets available for sale 11 104 922 100 256 96 026
On 13 March 2018, the Board of Directors approved the annual financial statements and the financial report and authorised them for issue. The financial report, therefore, only reflects events up to that date.
Premiums ceded to reinsurers –8 –124 –39 –10 – 0 –181 23 –159
Intangible assets including intangible insurance assets 644 368 1 443 266 210 0 2 931 – 2 931
Since the Group’s core business is insurance, its risk management is in line with the two main regulatory solvency frameworks in Switzerland (SST) and throughout Europe (Solvency II). In addition to general governance aspects and extensive reporting requirements, this includes an annual Own Risk and Solvency Assessment (ORSA) on Group level covering a comprehensive risk assessment as well as the integration of risk and solvency aspects in the overall management of the Swiss Life Group.
TOTAL LIABILITIES LINKED TO ASSETS FOR THE ACCOUNT AND RISK OF THE SWISS LIFE GROUP’S CUSTOMERS 35 466 29 833
Credit risk mitigation – collateral held and other credit enhancements as at 31 December 2016
TOTAL OTHER LOANS AND RECEIVABLES 3 088 2 578 1 910 5 744 1 927 41 15 287
Intangible assets including intangible insurance assets – – 2 931 2 717 – – 2 931 2 717
Operational risk management at Swiss Life includes the methods and processes used for the identification, assessment and steering or avoidance of operational risks. Operational risk management defines operational risk as the danger that losses may result from shortcomings or failures stemming from internal processes, people, systems or external events. Reliability of information and ensuring confidentiality, availability and integrity of data are an integral part of operational risk management. Swiss Life’s internal control system consists of the entirety of procedures, methods and measures prescribed by the Board of Directors and the Corporate Executive Board to ensure the orderly conduct of business. The focus is on the reliability of financial reporting, the effectiveness of business processes and compliance with laws and regulations issued to protect the company’s assets.
At 31 December 2017, if morbidity rates had been higher by 5 %, profit or loss would have been CHF 20 million lower (2016: CHF 15 million). If morbidity rates had been lower by 5 %, profit or loss would have been CHF 20 million higher (2016: CHF 15 million). These impacts are net after policyholder and tax.
Derivatives designated as cash flow hedges 304 444 135 94 5 222 3 922
Derivatives designated as net investment hedges 19 5 14 19 2 057 2 057
BALANCE AS AT END OF PERIOD 27 946 23 801 of which pledged as security for mortgage loans 506 152
The future minimum rental payments to be received under non-cancellable operating leases were as follows.
TOTAL OTHER ASSETS 688 844 1 of which CHF 291 million pledged as security for loans (2016: CHF 295 million)
Liabilities released for payments on death, surrender and other terminations –2 007 –1 725
On 12 April 2007, ELM B.V., a Dutch repackaging vehicle, issued EUR 700 million in fixed to floating rate subordinated perpetual notes to finance loan notes granted to Swiss Life Ltd, which are guaranteed by Swiss Life Holding. Swiss Life Ltd may repay the loan notes in full on 12 April 2017 or on any interest payment date thereafter, upon notice and subject to the consent of the Swiss Financial Market Supervisory Authority. The notes bear interest from 12 April 2007 to 12 April 2017 at a rate of 5.849 % p.a. The notes were redeemed on 12 April 2017.
Swiss Life Holding AG CHF 200 1.875% 2013 2023 199 199 21 Other Financial Liabilities
The expected weighted-average tax rate for the Group in 2017 was 23.4 % (2016: 23.5 %). This rate was derived by obtaining a weighted average of the expected income tax rates in the various jurisdictions in which the Group operates. The change of the weighted-average tax rate is due to the geographical allocation of the profits and the different tax rates in these jurisdictions. The actual income tax expense differs from the expected amount as follows.
Unused amounts reversed 0 –3 –10 –14 –5 –6 –16 –23
NET CHANGE IN CASH AND CASH EQUIVALENTS 829 906 3 1
BALANCE AS AT END OF PERIOD – – 152 150 933 877 1 085 1 027
CORPUS SIREO Asset Management Retail GmbH, Köln AM until 14.07.2017 – –
CORPUS SIREO Aurum GmbH & Co. KG, Köln CH from 25.07.2016 100.0% 100.0% Asset management & Real estate
Swiss Life Holding’s profit distribution to shareholders in the period under review came to CHF 356 million, or CHF 11.00 per share, and was made out of the capital contribution reserve. The par value of the Swiss Life Holding share stands unchanged at CHF 5.10. The company’s nominal share capital rose from CHF 164 million to CHF 175 million. In 2017, Swiss Life exercised its right to conclude an early buyback of a convertible bond issued in 2013 and due to mature in 2020. Almost all the bond holders exercised their right to convert their bonds into Swiss Life Holding shares. Bonds with a principal of CHF 499 160 000 were converted, which led in turn to the issue of 2 141 905 new shares in Swiss Life Holding from conditional capital. The remaining convertible bonds, with a principal of CHF 805 000, were repurchased on 27 December 2017.