Swiss Life Holding Ag · SIX:SLHN
Swiss Life — FY2002 Earnings Presentation
87 slides from Swiss Life's earnings presentation, Apr 8, 2003
Slide 1: Swiss Life Group 2002 Results Media Presentation
Swiss Life Group 2002 Results Media Presentation Zurich, 8 April 2003
Slide 2: Agenda
Agenda 1. Overview Rolf Dörig 2. Financial Results Bruno Pfister 3. Swiss Business Paul Müller 4. Summary and Outlook Rolf Dörig 2
Slide 3: Consolidated net loss of CHF 1.7 billion
Consolidated net loss of CHF 1.7 billion In million CHF (IAS basis) 2001 2002 Change (restated) Gross written premiums and policyholder 19 980 19 473 -2.5% deposits Gross written premiums 15 630 15 757 +0.8% Financial result 5 771 4 713 -18.3% Operating result 80 -788 - Net result -115 -1 694 - Shar
Slide 4: Review financial year
Review financial year Group result impacted by special items • Goodwill impairments on BdG and STG: CHF -832 million • Other special items: CHF -838 million Cost reduction target ahead of plan • Cost reduction target achieved: CHF - 212 million (= 41% of target 2004) • Headcount reduction target ach
Slide 5: Management team in charge
Management team in charge CEO Rolf Dörig CRO CIO CMO CFO CTO Michael Koller Martin Senn Paul Müller Bruno Pfister Reto Himmel René van der Smeede Risk Management Investment Switzerland Controlling Information Management Technology Accounting Actuary Real Estate International Corporate General Servic
Slide 6: Achievements to date
Achievements to date • Successful capital increase of CHF 1.1 billion (gross) • Cost reduction program ahead of plan • Repricing of Swiss group life business • New management team operational • New board of directors proposed for upcoming annual general meeting • Functional structure across core cou
Slide 7: Key actions to return to profitability
Key actions to return to profitability • Consolidate/strengthen position in core markets Business Focus • Pursue divestment opportunities • Establish governance along core functions/across countries Streamlined Structure • Delist RAN VX and optimise legal structure • Achieve planned cost reduction t
Slide 8: Agenda
Agenda 1. Overview Rolf Dörig 2. Financial Results Bruno Pfister 3. Swiss Business Paul Müller 4. Summary and Outlook Rolf Dörig 8
Slide 9: Profit and loss highlights
Profit and loss highlights In million CHF (IAS basis) 2001 2002 Change (restated) Premiums and policyholder deposits (gross) 19 980 19 473 - 2.5% l Gross written premiums 15 630 15 757 0.8% l Policyholder deposits 4 350 3 716 - 14.6% Financial result and investment income 5 771 4 713 - 18.3% Net pai
Slide 10: Group result impacted by special items
Group result impacted by special items In million CHF (IAS basis) Goodwill impairments on • BdG (CHF 745 m) -832 • STG (CHF 87 m) 302 Tax loss carry forward Reduction in equity exposure(1) -792 Special effects • Restructuring costs (CHF 144 m) • DAC adjustments (CHF 136 m) -348 • Reserve for employe
Slide 11: Segment results
Segment results In million CHF (IAS basis) 2001 2002 Change (restated) Life Core - 83 - 559 -476 Life Non-Core 18 - 155 -173 Non-Life -2 - 89 -87 Private Banking 100 - 109 -209 Investment Management 131 106 -25 Other - 84 18 +102 Operating result(1) 80 - 788 -868 (1) Profit before amortization of go
Slide 12: Adjusted operating expenses
Adjusted operating expenses In million CHF (IAS basis) 2001 2002 Change (restated) Operating expenses 3 600 3 455 - 145 DAC amortization & commissions - 725 - 744 - 19 Loss adjustment expenses +128 +181 + 53 Currency effects -36 0 + 36 Restructuring cost - 32 - 144 - 112 Reserve for employee pension
Slide 13: Cost reduction target exceeded
Cost reduction target exceeded In million CHF (IAS basis) Costs Headcount(1) 02 03/04 02 03/04 Target 170 345 515 Target 500 1 000 1 500 Actual 212 (41%) Actual(2) 724 (48%) Ahead of plan Ahead of plan • Measures with immediate effect have been realized in 2002 • Initiated 2002 FTE reductions will s
Slide 14: Details on cost and headcount reduction
Details on cost and headcount reduction In million CHF (IAS basis) Costs Headcount(1) Actual 212 724 Switzerland -182 -149 France -60 -68 Germany -37 -70 Belgium/Lux. -12 -45 Netherlands -14 -72 Non Core(2) 52 61 Investment Management -14 -67 Private Banking 55 - 314 (1) Full time equivalents (2) Ex
Slide 15: Life core: Cost ratio reduced
Life core: Cost ratio reduced In million CHF (IAS basis) 2001 2002 Change (restated) Premium and policyholder deposits 16 334 16 120 -224 (-1.4%) Operating expenses 2 413 2 045 -368 (-15.3%) Technical reserves 116 341 117 413 +1 072 (+0.9%) Cost ratio • in % of technical reserves 2.1% 1.7% -33 bps •
Slide 16: Life core: Premiums and policyholder deposits
Life core: Premiums and policyholder deposits In million CHF (IAS basis) 8 423 (1) Switzerland 8 171 Belgium/Lux 3% Netherlands Germany 1 641 1 551 8% Switzerland France 4 144 4 473 France 28% 51% Netherlands 1 482 1 394 10% Belgium/Lux 654 531 (1) Germany Total 16 344 16 120 2001 2002 (1) Includes
Slide 17: Balance sheet highlights
Balance sheet highlights In million CHF (IAS basis) 2001 2002 Change (restated) Insurance policy and claim reserves 98 827 100 638 1.8% Shareholders’ equity 4 982 4 170 - 16.3% • Shareholders’ equity(1) 4 699 3 807 • Revaluation reserves 283 363 Total liabilities and equity 163 279 159 566 -2.3% Cor
Slide 18: Net reduction in shareholders' equity of 8%
Net reduction in shareholders' equity of 8% In million CHF (IAS basis) - 428 - 384 -8% + 102 + 216 -1 694 + 992 4 982 4 554 4 170 31.12.01 Net effect Holding Net loss Net Capital Change in Change in 31.12.02 (restated) holding(1) equity increase unrealised share gains/losses premium and currency and
Slide 19: Split of unrealised gains on bonds
Split of unrealised gains on bonds In million CHF (IAS basis) 3 376 1 349 361 445 90 1 131 Unrealised Deferred Shadow Deferred Minorities Allocated to gains on policyholder DAC Taxes shareholders’ bonds dividends adjustment equity 19
Slide 20: Equity exposure further reduced
Equity exposure further reduced Insurance portfolio, in million CHF (IAS basis) 122 047 123 922 Equities & equity funds 5.7% 0.3% 16.6% Private equity 8.6% 2.8% Hedge funds 0.5% 3.3% 7.9% Real estate 7.9% Mortgages 8.0% 12.5% Loans 8.8% 58.0% Bonds 47.3% Cash 3.0% 1.9% Other invested assets 4.6% 2.3
Slide 21: Investment return on insurance portfolio
Investment return on insurance portfolio In million CHF (IAS basis) Direct return of 4.6% Total return of 3.3% Bonds 3 154 4.9% 6 168 9.5% Equities 322 2.4% -3 915 -28.7% Private Equity 1 0.4% -176 -35.1% Hedge Funds 130 3.5% -321 -8.6% Real Estate 660 6.5% 579 5.7% (1) Loans 858 4.2% 885 4.4% Tradi
Slide 22: Statutory solvency remains strong at 182%
Statutory solvency remains strong at 182% In billion CHF (statutory basis) Solvency capital(1) Statutory solvency(1) Rentenanstalt stat.equity capital 1.3 7.00 182% Intangibles -0.1 Hybrid capital +1.3 3.85 Additional Zillmerisation +0.5 Unrealised capital gains +3.4 Unattributed surplus +0.6 Solven
Slide 23: Embedded value impacted by weaker stock markets
Embedded value impacted by weaker stock markets RA/SL, in million CHF (statutory basis) Switzerland Europe Total Decrease due to -36% -20% -31% • Poor performance of 8 102 stock markets • Lower interest rates 5 616 and reduced equity 5 311 4 644 backing ratio 3 379 But partially offset by 5 185 2 79
Slide 24: Embedded value for Swiss Life Holding
Embedded value for Swiss Life Holding RA/SL, in million CHF (statutory basis) RA/SL EV 2002 5 616 • SL Holding owns 92.23% SL Holding share of embedded value 5 179 Free Capital 881 Total 6 060 EV per share(1) CHF 279 EV per share (fully diluted)(2) CHF 259 (1) Based on 21 679 408 shares (2) Based on
Slide 25: Value of new business improved by 104%
Value of new business improved by 104% RA/SL, in million CHF (statutory basis) Switzerland Europe Total Value of new business of CHF 94 million due to +51% +37% +104% • Reduced policyholder profit participation and reduced expenses in Switzerland 111 • Increased volumes, 94 81 particularly in 46 Swi
Slide 26: Agenda
Agenda 1. Overview Rolf Dörig 2. Financial Results Bruno Pfister 3. Swiss Business Paul Müller 4. Summary and Outlook Rolf Dörig 26
Slide 27: Biggest market with strong focus on group life
Biggest market with strong focus on group life Premium and policyholder deposits Premium volume (IAS basis) (statutory basis) 100% 51% Individual life 30% Single 58% premium 49% Group life 70% Periodic 42% premium Life core Switzer- Switzer- Other Other life life Switzerland land land core core coun
Slide 28: Moderate premium growth
Moderate premium growth In million CHF (statutory basis) 2001 2002 Change Individual life • single premiums 1 401 1 377 -1.7% • periodic premiums 1 045 1 045 0.0% Sub total 2 446 2 422 -1.0% Group life • single premiums 3 322 3 296 -0.8% • periodic premiums 2 257 2 401 6.4% Sub total 5 579 5 697 2.1
Slide 29: Positive portfolio development
Positive portfolio development In million CHF (statutory basis) 2001(1) 2002 Change Individual insurance • Capital insurance 48 171 46 651 -3.2% • Pension insurance 419 454 8.4% Sub total(2) 52 357 51 187 -2.2% Group insurance • Capital insurance 92 443 95 903 3.7% • Pension insurance 2 347 2 273 -3
Slide 30: Analysis of surplus
Analysis of surplus In million CHF (statutory basis) Individual life Group life Total Change vs. 01 Risk result 16.5 97.9 114.4 -95.1 Cost result -73.4 -189.2 -262.6 198.3 Net interest income 280.2 88.2 368.5 57.0 Other income/expend. -68.9 -74.3 -143.2 208.8 Technical result 154.5 -77.4 77.1 369.0
Slide 31: Current bonuses can be paid from available reserves
Current bonuses can be paid from available reserves Individual and group bonuses, in million CHF (statutory basis) Individual life Group life Total As of 31.12.2001 prior to allocation 80.4 268.0 348.4 • allocation charged to 2001 180.0 1 450.0 1 630.0 Provision for policyholder bonuses on 260.4 1 7
Slide 32: Cost deficit in Swiss group life
Cost deficit in Swiss group life KT 95 reduced cost tariff Cost deficit was covered by financial result until 01 This is no longer possible (3) in 02 and 03 (2) (1) Cost Cost Cost Cost tariff tariff tariff tariff (KT 84) (KT 95) (KT 95) (KT 95) 95 01 02 03 (1) First cost tariff adjustment CHF 30 mil
Slide 33: Guarantees do not reflect interest rate environment
Guarantees do not reflect interest rate environment 95% of yields Minimum interest paid out as bonuses(1) above risk free rate 8% Policyholder return credited by Swiss Life 6% BVG minimum interest rate 4% 2% Swiss Government Bonds (10-year) 0% 1985 1990 1995 2000 2003 (1) For 1985-2001; average retu
Slide 34: Interest rate structure in Swiss business
Interest rate structure in Swiss business In billion CHF (statutory basis) Technical Technical reserves interest rate Group Life 36.8 3.6% • BVG tariffs 19.9(1) 4.0% • Other tariffs 16.9 3.2% Individual Life 24.0 3.1% Total 60.8 3.4% (1) Excluding La Suisse CHF 1.8 billion 34
Slide 35: Impact of minimum interest rate
Impact of minimum interest rate The change of the minimum interest rate affects only part of the technical reserves • CHF 19.9 billion of technical reserves affected (54%(1) of group life reserves) Technical reserves not affected are those for • Annuities in payment • Vested benefits from employees
Slide 36: EU has clear rules for adjustments of guarantees
EU has clear rules for adjustments of guarantees EU rule Maximum technical interest rates for new business (Swiss Life) EU legislation • Maximum interest rate may not Germany 3.25 exceed 60% of 10-year risk-free investments on a rolling basis France 2.50 Belgium 3.25 EU risk-free rate on average at
Slide 37: EU model applied to interest situation in Switzerland
EU model applied to interest situation in Switzerland 8%8 7%7 10-year Swiss 6%6 Govt. Bond 5%5 4%4 3%3 2%2 60% of 10-year 1%1 rolling average 0 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 37
Slide 38: Measures to return to profitability in BVG business
Measures to return to profitability in BVG business Increased transparency • Split of premiums into risk, savings, interest and cost components Economically based tariff schemes • Introduction of increased disability, death and cost tariffs Reduced operational cost • Reduction of operational expense
Slide 39: Swiss Life takes a clear position in the BVG debate
Swiss Life takes a clear position in the BVG debate Belief in a sustainable secure BVG system • Collective foundations reserves are always for at least 100% BVG minimum interest and conversion rate must be determined on the basis of economic and actuarial factors • Swiss Life is aware of its respons
Slide 40: Agenda
Agenda 1. Overview Rolf Dörig 2. Financial Results Bruno Pfister 3. Swiss Business Paul Müller 4. Summary and Outlook Rolf Dörig 40
Slide 41: Necessary steps taken
Necessary steps taken Financial stability with capital increase and reduced equity exposure Strategy implementation on track New management team and functional organization established Cost reduction ahead of plan Pricing measures implemented in Swiss group life business 41
Slide 42: However, environment remains volatile
However, environment remains volatile Sharp decrease in interest rates • Long-term interest rates at the end of first quarter 80 bps below average of 2002 Further fall in equity markets • 12% decline in SMI in first quarter of 2003 Slow and cautious M&A market • Divestment opportunities are limited
Slide 43: Nevertheless, we stick to our targets
Nevertheless, we stick to our targets Return to profitability in 2003 Achieve announced cost reduction target of CHF 515 million in 2004 Accomplish RoE goal of 10% in 2005/06 43
Slide 44: Swiss Life Group 2002 Results Appendix
Swiss Life Group 2002 Results Appendix Zurich, 8 April 2003
Slide 45: Appendix
Appendix Profit and Loss Balance Sheet Embedded Value Contact Details 45
Slide 46: Accounting changes in 2002
Accounting changes in 2002 New holding structure reflected in the consolidated financial statements with effect from January 1, 2002 • Non-exchanged RA/SL shares represent minority interests (= 7.8%) Segmental reporting changed due to new business strategy • Segment „Life“ split into „Life Core“ and
Slide 47: Applied impairment policy for financial assets
Applied impairment policy for financial assets General impairment rule • Impairment write-down if carrying amount is greater than estimated recoverable amount Special case equity securities • As a Group policy, available-for-sale equity securities are reviewed for impairment where the market value r
Slide 48: Goodwill impairments in 2002
Goodwill impairments in 2002 In million CHF (IAS basis)(1) 2 449 214 -1 097 (-45%) Results in lower 745 goodwill amor- 87 51 tisation in the 1 352 future Total goodwill Ordinary Impairment Impairment Other Total goodwill 12.2001 amortisation BdG STG changes 12.2002 (1) Only fully consolidated compan
Slide 49: Cost reduction by segment and by cost category
Cost reduction by segment and by cost category In million CHF (IAS basis) Progress by segment Progress by cost category Total -212 Total -212 Professional -104 expenses Core -325 -41 Staff -29 Advertising Non-core +71 -72 Infrastructure(1) Investment -14 Other -55 Management LAE(2) +53 Private +55 C
Slide 50: Life core: Overview of key financials
Life core: Overview of key financials In million CHF (IAS basis) 2001 2002 Change (restated) Premiums, policy fees, other fee income(1) 12 559 12 661 0.8% Financial result 4 852 4 182 - 13.8% Other income 181 136 - 24.9% Total Revenues 17 592 16 979 - 3.5% Interest credited to clients & borrowings -
Slide 51: Life core: Premiums and policyholder deposits (direct)
Life core: Premiums and policyholder deposits (direct) In million CHF (IAS basis) Growth in life core 2001: 16 171 m 2002: 15 971 m premiums by line of business 23% 22% Group + 0.4% 46% 46% Individual + 1.9% Policyholder deposits - 8.6% 31% 32% 2% 2% Periodical - 0.8% 23% 22% 40% 40% Single + 1.5% P
Slide 52: Life Non-Core: Overview of key financials
Life Non-Core: Overview of key financials In million CHF (IAS basis) 2001 2002 Change (restated) Premiums, policy fees, other fee income(1) 1 697 1 592 - 6.2% Financial result 347 315 - 9.2% Other income 15 17 13.3% Total Revenues 2 059 1 924 - 6.6% Interest credited to clients & borrowings - 43 - 3
Slide 53: Life Non-Core: Premiums and policyholder deposits (direct)
Life Non-Core: Premiums and policyholder deposits (direct) In million CHF (IAS basis) Growth in life non-core 2001: 2 411 m 2002: 2 035 m premiums by line of business 23% 13% Group - 5.8% 60% 21% Individual + 4.2% 17% 66% Policyholder deposits - 54.6% 1% 1% 13% Periodical + 6.6% 23% 42% Single - 16.
Slide 54: Non-Life: Overview of key financials
Non-Life: Overview of key financials In million CHF (IAS basis) 2001 2002 Change (restated) Revenues from Insurance 866 1 004 +15.9% Provisions for ins. reserves + benefits paid - 704 - 868 - 23.3% PH dividends and participation in profit 3 25 - Operating expenses - 329 - 346 - 5.2% Total Expenses f
Slide 55: Banca del Gottardo: Overview of key financials
Banca del Gottardo: Overview of key financials In million CHF (statutory basis) 2001 2002 Change (restated) Results from interest activities 165 155 - 5.8% Results from commission and service act. 295 250 - 15.3% Results from trading operations 20 52 + 162.5% Other 5 - 10 nm Net revenues 485 447 - 7
Slide 56: Banca del Gottardo: Special items
Banca del Gottardo: Special items In million CHF (statutory basis) 2002 Depreciation on financial participation - 84 Depreciation on goodwill and real estate - 76 Provisioning for loans - 27 Social plan and other provisions - 24 Total extraordinary items - 211 56
Slide 57: Investment Management: Overview of key financials
Investment Management: Overview of key financials In million CHF (IAS basis) 2001 2002 Change (restated) Investment management, other income 319 229 - 28.2% Financial result 23 50 117.4% Total revenues 342 279 - 18.4% Total expenses - 209 - 173 - 17.2% Operating result(1) 131 106 - 19.1% (1) Profit
Slide 58: Appendix
Appendix Profit and Loss Balance Sheet Embedded Value Contact Details 58
Slide 59: What is the impact of rising interest rates?
What is the impact of rising interest rates? Statutory view IAS view Economic view Equity Liabilities Equity Liabilities Equity Liabilities Securities (long-term) Securities (long-term) Securities (long-term) Real estate Real estate Real estate Fixed Fixed Fixed maturities maturities maturities (mid
Slide 60: Change of assets under management definition
Change of assets under management definition Category Background Major changes to 2001 Total cash and invested assets All assets where Swiss Life Stable bears the investment risk + Total on-balance sheet assets All assets that are on Swiss Decrease due to the reduction Life’s balance sheet, includin
Slide 61: Assets under management decreased by 6%
Assets under management decreased by 6% In billion CHF (IAS basis) AuM as per 31.12.2001 203.3 Exclusion of certain asset categories(1) - 9.9 Change allocation methodology on-balance sheet assets +8.0 Changed BdG definition Externally managed on-balance sheet assets(2) - 7.2 AuM as per 31.12.2001 (n
Slide 62: Target asset allocation
Target asset allocation Alternative Equity investments 0-5% 0-5% Property and mortgages 10-30% 60-80% Bonds and loans 62
Slide 63: Bond portfolio
Bond portfolio Insurance portfolio (IAS basis) Split by rating 2002 Split by currency(1) 2002 BBB Not rated US$ Other 2% 2% 1% 2% A 10% Sovereign 28% CHF AA 17% 41% 56% € 41% AAA (1) After currency hedges 63
Slide 64: Real estate portfolio
Real estate portfolio Insurance portfolio (IAS basis) Split by country Split by type 4.9% 1.6% Germany Others 20.2% 5.2% Commercial France 56.8% Residential 23% Mixed 88.2% Switzerland 64
Slide 65: Loan portfolio
Loan portfolio Insurance portfolio (IAS basis) 2001 2002 9% 20% 7% Policyholder Loans Money Markets1) Policyholder Loans 42% 34% Other Loans Other Loans 49% Mortgages 39% Mortgages (1) Money markets: in 2002 the fixed term deposits were reclassified from cash & cash equivalents into money markets 65
Slide 66: Private equity portfolio
Private equity portfolio Insurance portfolio (IAS basis) Investments: CHF 401 million 7% Direct Investments 30% 23% Venture Fund of Funds 10% Balanced 30% Buyout Additional commitments : CHF 623 million 66
Slide 67: Currency exposure
Currency exposure Insurance portfolio (IAS basis) Others 75m GBP (3%) 355m (14%) 2.1% of total USD insurance 249m EUR portfolio assets (10%) 1 894m (73%) Net currency exposure CHF 2 573 million Hedged CHF 11 893 million Gross exposure CHF 14 466 million 67
Slide 68: Net currency exposure in % of asset class
Net currency exposure in % of asset class Group, not consolidated (IAS basis) 12 10 Net currency 42 52 exposure 100 88 90 Currency 58 No No 48 Hedged currency currency risk risk Equities & Private Hedge Loans Real Estate Bonds Other equity funds Equity Funds Invested assets 68
Slide 69: Financial result
Financial result In million CHF (IAS basis) 2001 2002 Change (restated) Investment income, net 5 626 5 505 - 2.2% Real. & unreal. gains/losses(1) - 141 - 2 304 - Trading account income, net(2) 286 1 512 - Financial result 5 771 4 713 -18.3% (1) Includes foreign currency gains and losses recorded in
Slide 70: Life core: Technical reserves per country
Life core: Technical reserves per country In million CHF (IAS basis) Switzerland 63 620 63 176 Belgium/Luxembourg 3% Germany 15 382 Netherlands 15 651 10% France 21 569 22 998 France 20% 54% Netherlands 12 354 12 262 3 414 13% Belgium/Lux 3 328 Switzerland Germany Total 116 341 117 413 2001 2002 (1)
Slide 71: Appendix
Appendix Profit and Loss Balance Sheet Embedded Value Contact Details 71
Slide 72: Implementation of embedded value at Swiss Life
Implementation of embedded value at Swiss Life ANAV and PVFP were calculated for more Swiss Life than 95% of the Mathematical Reserves UK Swiss Life BE Zelia For other life insurance entities only the Swiss Life NL NAV has been included Swiss Life DE The banking and non-life insurance businesses hav
Slide 73: Components of the embedded value
Components of the embedded value ANAV: Adjusted Net Asset Value: ANAV = Equity + Adjustments PVFP: Present Value of Future Profits: Cash flow projection model • Calculation of the yearly statutory profits and losses • Long-term perspective Lock-in: Cost of solvency capital Value of the existing port
Slide 74: Key assumptions for embedded value calculation
Key assumptions for embedded value calculation 2001 2002 CH EU CH EU Risk discount rate 7.0% 8.3% 7.0% 7.9% • Risk discount rates include higher risk margins since 2001 Equity return 7.0% 8.1% 7.0% 8.0% • Weighted new money return based on strategic asset allocation Bond return 3.5% 5.1% 2.5% 4.3% •
Slide 75: Strategic asset allocation by region 31.12.2002
Strategic asset allocation by region 31.12.2002 2002 2001 CH EU CH EU Cash & Cash-equivalent 1% 3% 0% 1% Bonds & Loans 61% 75% 49% 59% Mortgages & Real Estate 24% 8% 28% 8% Equities 3% 8% 19% 31% Participation 4% 6% 0% 1% Alternatives 7% 0% 7% 0% 75
Slide 76: Mean technical interest rate of 3.5% for liabilities
Mean technical interest rate of 3.5% for liabilities In million CHF / EUR / USD (statutory basis); without Spain, Luxembourg and UK Technical interest rate in CHF in EUR in USD 0% - < 2% 1 998 (0.00%) 663 (0.40%) 0 (0.00%) 2% - < 3% 3 037 (2.50%) 1 002 (2.38%) 0 (0.00%) 3% - < 4% 32 725 (3.25%) 13 5
Slide 77: ANAV of CHF 1.7 bn does not include capital increase
ANAV of CHF 1.7 bn does not include capital increase RA/SL, in million CHF (statutory basis) Statutory equity of RA/SL 1 327 Unrealised capital gains after tax / +1 019 policyholder participation Statutory book value of life subsidiaries -854 Net asset value of other units +248 Adjusted net asset va
Slide 78: EV decreased by CHF 2.5 billion
EV decreased by CHF 2.5 billion RA/SL, in million CHF (statutory basis) RA/SL EV 2001 8 102 Unwind 2002 +602 Effective investment return 2002 -3 222 Future investment return -2 606 BVG: reduction interest rate +681 BVG: increase group tariff +1 109 Expense savings 2002 +834 Value of new business 200
Slide 79: EV decreased 31% but resilient since mid 2002
EV decreased 31% but resilient since mid 2002 RA/SL, in million CHF (statutory basis) RA/SL EV 2001 8 102 100% Investment returns -5 226 -64% • Unwind 2002 +602 • Effective 2002 -3 222 • Future -2 606 BVG Changes 2002 1 790 +22% Jan-Jun 02(1): - 2 150 (-27%) • Reduction of interest rate 681 Jul-Dec
Slide 80: Annual premium equivalents
Annual premium equivalents RA/SL, in million CHF (statutory basis) Switzerland(2) Germany France Netherlands Belgium(3) +29% -3% +13% -13% -46% 1 200 932 311 352 235 228 228 199 46 25 2001 01 2002 02 2001 01 2002 02 2001 01 2002 02 2001 01 2002 02 2001 01 2002 02 VNB(1) -31 -12 11 17 8 30 20 11 11 6
Slide 81: Analysis of change (since 30.06.2002)
Analysis of change (since 30.06.2002) In million CHF (statutory basis) RA/SL EV 30.06.02 5 952 Unwind 2002 256 Effective investment return 2002 -1 200 Future investment return -675 BVG: reduction interest rate 681 Expense savings 2002 190 Value of new business 2002 24 Various (e.g. taxes) 388 RA/SL
Slide 82: Analysis of change (since 31.12.2001 SL Holding)
Analysis of change (since 31.12.2001 SL Holding) In million CHF (statutory basis) Start EV 2002 8 102 Unwind 2002 602 Effective investment return 2002 -3 222 Future investment return -2 606 BVG: reduction interest rate 681 BVG: increase group tariff 1 109 Expense savings 2002 834 Value of new busine
Slide 83: Analysis of change (since 30.06.2002 SL Holding)
Analysis of change (since 30.06.2002 SL Holding) In million CHF (statutory basis) Start EV 2002 5 952 Unwind 2002 256 Effective investment return 2002 -1200 Future investment return -675 BVG: reduction interest rate 681 Expense savings 2002 190 Value of new business 2002 24 Various (e.g. taxes) 388
Slide 84: Sensitivities of embedded value
Sensitivities of embedded value RA/SL, in million CHF (statutory basis) Switzerland Europe Total RA/SL EV 2002 (base case) 3 379 2 237 5 616 • Cost Reduction Program +304 +183 +487 • ∆ Risk discount rate –100bps +213 +91 +304 • ∆ Risk discount rate +280bps(1) -596 -254 -850 • ∆ Investment returns +5
Slide 85: Cautionary statement regarding forward-looking information
Cautionary statement regarding forward-looking information This presentation is made by Swiss Life and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Swiss Life. Although all reasonable effort has been made to ensure the
Slide 86: Appendix
Appendix Profit and Loss Balance Sheet Embedded Value Contact Details 86
Slide 87: Contact the Media Relations Team
Contact the Media Relations Team Media Relations Hotline Tel. +41 (1) 284 77 77 E-Mail: media.relations@swisslife.ch Visit our website for up-to-date information www.swisslife.com 87