Swiss Life Holding Ag · SIX:SLHN
Swiss Life — H1 2006 Earnings Presentation
61 slides from Swiss Life's earnings presentation, Sep 6, 2006
Slide 1: Halbjahresergebnis 2006 Medienpräsentation
Halbjahresergebnis 2006 Medienpräsentation Zürich, 6. September 2006
Slide 2: Agenda
Agenda 1. Übersicht Rolf Dörig 2. Halbjahresergebnis Thomas Müller 3. Ausblick Rolf Dörig 1
Slide 3: Ergebnis verbessert sich kontinuierlich
Ergebnis verbessert sich kontinuierlich Reingewinn CHF 523 Millionen +13% Betriebsgewinn CHF 660 Millionen +22% Prämien CHF 12,7 Milliarden +9% reduziert auf Betriebsaufwand -4% CHF 1,5 Milliarden Eigenkapital CHF 7,2 Milliarden -6% Embedded Value CHF 10,1 Milliarden +13% 2
Slide 4: Weitere deutliche Fortschritte gemacht
Weitere deutliche Fortschritte gemacht z Internationale Märkte: Anhaltende Wachstumsdynamik - Prämienwachstum von 20% erzielt; über dem Marktdurchschnitt - Massnahmen eingeleitet, um Profitabilität weiter zu verbessern z Schweiz: Wert Neugeschäft im Einzel- und Kollektivbereich erhöht - Massnahmen z
Slide 5: Agenda
Agenda 1. Übersicht Rolf Dörig 2. Halbjahresergebnis Thomas Müller 3. Ausblick Rolf Dörig 4
Slide 6: Starkes Prämienwachstum von 20% in internationalen Märkten
Starkes Prämienwachstum von 20% in internationalen Märkten Bruttoprämien und Beiträge mit Anlagecharakter; Mio. CHF (Basis: IFRS) Total 12 693 +9% ausgewiesen 11 635 5 474 Schweiz 5 610 -2% 1) 7 250 Luxemburg International +20% 2% 6 066 Belgien Übrige 4 276 2% Frankreich +17% Niederlande 3% 3 658 8%
Slide 7: Reingewinn um 13% auf CHF 523 Millionen gesteigert
Reingewinn um 13% auf CHF 523 Millionen gesteigert Mio. CHF (Basis: IFRS) HJ 2006 HJ 2005 Verbuchte Bruttoprämien, Gebühren und erhaltene 12 693 11 635 Einlagen Finanzergebnis auf den auf eigenes Risiko 2 958 2 902 gehaltenen Kapitalanlagen Versicherungsleistungen und Schadenfälle (netto) -8 783 -8
Slide 8: Steigender Gewinnbeitrag im Versicherungs- und Bankgeschäft
Steigender Gewinnbeitrag im Versicherungs- und Bankgeschäft Segmentergebnis Mio. CHF (Basis: IFRS) 573 HJ HJ 2005 2006 265 Schweiz Versicherungsgeschäft 462 573 Bankgeschäft 1) 76 98 Investment Management 22 17 Übrige 19 23 132 Frankreich Eliminationen -10 -26 40 Deutschland Nicht zugeordnete -28 -2
Slide 9: Entwicklung der Bilanz in steigendem Zinsumfeld wie erwartet
Entwicklung der Bilanz in steigendem Zinsumfeld wie erwartet Mio. CHF (Basis: IFRS) 30.06.2006 31.12.2005 Versicherungstechnische Rückstellungen 141 282 139 252 Verbindlichkeiten aus Versicherungsgeschäft 108 854 106 541 Kapitalanlageverträge 26 712 24 629 Verbindlichkeiten aus Überschussbeteiligung
Slide 10: Eigenkapital auf stabilem Niveau
Eigenkapital auf stabilem Niveau Mio. CHF (Basis: IFRS) 7 655 7 172 -483 511 -6% -967 -27 31.12.2005 Veränderung der Veränderung Den Aktionären 30.06.2006 nicht realisierten Währungsum- zurechenbarer Gewinne/Verluste rechnungs- Gewinn 1) differenzen, Agio, eigene Aktien und Übrige 1) Gewinn in Höhe
Slide 11: Gruppensolvabilität auf komfortablem Niveau
Gruppensolvabilität auf komfortablem Niveau Basis: Eigenkapital gemäss IFRS, Berechnungsmethode gemäss Bundesamt für Privatversicherungen 252% 211% 192% 155% 144% 30.06.2004 31.12.2004 30.06.2005 31.12.2005 30.06.2006 10
Slide 12: Untergrenze der statutarischen Solvenz bei 141%
Untergrenze der statutarischen Solvenz bei 141% Basis: Stammhaus 295% 257% 219% 169% Unter- 148% grenze 141% 30.06.2004 31.12.2004 30.06.2005 31.12.2005 30.06.2006 11
Slide 13: Reinvestition in Obligationen bei weiterer Verkürzung der Duration
Reinvestition in Obligationen bei weiterer Verkürzung der Duration Anlagestruktur Versicherungsportefeuille; Mio. CHF (Basis: IFRS) 143 429 143 638 Aktien und Aktienfonds 7,3% 8,0% Alternative Anlagen 3,5% 3,2% Liegenschaften 8,1% 8,0% Hypotheken 4,6% 4,7% Darlehen 11,5% 11,8% Obligationen 57,3% 53,
Slide 14: Direkte Rendite stabil
Direkte Rendite stabil Anlagerendite Versicherungsportefeuille; Mio. CHF; nicht annualisiert Direkte Rendite von 1,9% 1) Gesamtrendite von -1,0% 2) Obligationen 1 592 2,0% - 2 516 -3,2% Aktien 122 1,1% 69 0,6% Alternative 57 144 1,2% 3,0% Anlagen Liegenschaften 324 2,8% 325 2,8% Hypotheken 115 1,7%
Slide 15: Embedded Value über CHF 10 Milliarden
Embedded Value über CHF 10 Milliarden Mio. CHF (statutarische Basis) Verän- 30.06.2006 31.12.2005 RoEV 1) derung Embedded Value Schweiz 3 863 3 614 +6,9% +11,2% Embedded Value International 4 175 3 460 +20,7% +20,0% ANAV der Swiss Life Holding 2 037 1 813 Swiss Life-Gruppe 10 075 8 887 +13,4% davon
Slide 16: Agenda
Agenda 1. Übersicht Rolf Dörig 2. Halbjahresergebnis Thomas Müller 3. Ausblick Rolf Dörig 15
Slide 17: Ergebnisse verbessern sich kontinuierlich
Ergebnisse verbessern sich kontinuierlich z Weitere operative Fortschritte erzielt - Prämienwachstum in den internationalen Märkten weiter gesteigert - Effizienz und Profitabilität des Neugeschäfts im Markt Schweiz erhöht z Starke Eigenkapitalbasis trotz Zinsanstieg geschützt z Embedded Value und We
Slide 18: Unsere Prioritäten
Unsere Prioritäten z Internationale Märkte - Wachstumschancen wahrnehmen - Profitabilität des laufenden und des neuen Geschäfts steigern z Schweiz - Effizienz und Profitabilität weiter verbessern und neue Produkte lancieren - Führende Stellung nutzen und Marktposition ausbauen z Investment Managemen
Slide 19: Auf Kurs für Ziele 2008
Auf Kurs für Ziele 2008 über dem Markt- Wachstum > 1% durchschnitt Gewinn bis 2008 CHF 1 Milliarde Basisergebnis Effizienz CHF 500 Mio. Versicherungs- geschäft bis 2008 Nachhaltige ROE > 10% Identifikation und Leadership > 80 Zufriedenheit der Mitarbeitenden Jährlich steigende Dividende 18
Slide 20: Supplementary information
e SwissLife Supplementary information
Slide 21: Supplementary information
Supplementary information 1. Profit and loss 2. Balance sheet 3. Embedded value 4. Banca del Gottardo 5. Assumptions and definitions 6. Contact details 20
Slide 22: Organic premium growth
Organic premium growth CHF million (IFRS basis) HY 2006 HY 2005 Change GWP & PHD 12 693 11 635 9.1% “Bols” deal Netherlands -202 Currency effects 58 GWP & PHD (adjusted) 12 491 11 693 6.8% 21
Slide 23: Adjusted operating expenses
Adjusted operating expenses CHF million (IFRS basis) HY 2006 HY 2005 Change Total operating expenses 1 474 1 528 -4% Commissions and DAC amortisation -465 -476 Goodwill & PVP amortisation -1 0 Restructuring costs -40 -60 Divestments 1) -27 Currency effects 5 Operating expenses (adjusted) 968 970 0%
Slide 24: Switzerland: Life insurance premiums
Switzerland: Life insurance premiums CHF million (IFRS basis) HY 2006 HY 2005 Change Total life GWP incl. PH deposits 1) 5 474 5 321 +2.9% Single premiums 2 184 2 064 5.8% Periodic premiums 3 163 2 966 6.6% Investment contract prem. & policy fees 76 250 n.m. Reinsurance premiums assumed 51 41 24.4%
Slide 25: Switzerland: Sales volume of performance-oriented products increased
Switzerland: Sales volume of performance- oriented products increased Gross premium/asset growth; unit-linked & funds (in CHF million) 133 87 Main drivers are new products GarantiePlus 27 90/100 1st HY 2005 2nd HY 2005 1st HY 2006 24
Slide 26: Switzerland: Current issues in legislation
Switzerland: Current issues in legislation Group business Individual business z Conversion Rate: More substantial The following parliamentary initiatives and faster reduction recommended by have been put forward, but have not yet the Federal Council (6.4% by 2011) been decided upon: z Minimum Intere
Slide 27: Supplementary information
Supplementary information 1. Profit and loss 2. Balance sheet 3. Embedded value 4. Banca del Gottardo 5. Assumptions and definitions 6. Contact details 26
Slide 28: Less than 10% of Swiss Life Group reserves are subject to BVG minimum interest rates
Less than 10% of Swiss Life Group reserves are subject to BVG minimum interest rates Breakdown of technical reserves as per 30.06.2006; CHF billion (IFRS basis) Total: 141 1) Non-life (1 billion) Investment contracts & PH deposits 35 Europe 42 Traditional business 105 Individual 23 Guaranteed CH Con
Slide 29: Impact of rising interest rates
Impact of rising interest rates Statutory IFRS Economic Equity Liabilities Equity Liabilities Liabilities Equity securities (long-term) securities (long-term) (long-term) securities Real estate Real estate Real estate Fixed Fixed Fixed DPF liability maturities maturities maturities (mid-term) (mid-t
Slide 30: Duration of bond portfolio - including interest rate hedges
Duration of bond portfolio - including interest rate hedges Effective duration parent company (Stammhaus); years 30.06.2006 31.12.2005 30.06.2005 CHF 7.2 8.8 8.9 EUR 5.3 7.7 10.0 GBP 5.1 5.5 10.1 USD 2.9 3.4 11.6 Average 5.7 7.8 9.8 29
Slide 31: Bond portfolio: Ratings
Bond portfolio: Ratings Insurance portfolio (IFRS basis) Breakdown by rating CHF million 143 429 BBB Not rated A 1) 1% 0% 9% AA 1) 22% Bonds 57.3% AAA 1) 68% 1) Including 56% government bonds in aggregate 30
Slide 32: Bond portfolio: Currency exposure
Bond portfolio: Currency exposure Insurance portfolio (IFRS basis) Before hedges USD 3% GBP 1% CHF million 143 429 CHF 22% EUR 74% After hedges Bonds 57.3% GBP 1% CHF 39% EUR 60% 31
Slide 33: Loan and mortgage portfolio
Loan and mortgage portfolio Insurance portfolio (IFRS basis) CHF million Breakdown by type 143 429 Policyholder Due from loans 4% banks 7% Loans & 16.1% mortgages Other Mortgages loans 61% 28% 32
Slide 34: Real estate portfolio
Real estate portfolio Insurance portfolio (IFRS basis) Breakdown by country Belgium 1% Germany 5% Netherlands 1% CHF million France 10% 143 429 Real 8.1% Switzerland estate 83% Breakdown by type Centres 10% Others 1% Mixed Residential 24% 44% Commercial 21% 33
Slide 35: Equity portfolio: Currency exposure
Equity portfolio: Currency exposure Insurance portfolio (IFRS basis) Breakdown by currency CHF million 143 429 JPY GBP Other Equities USD 3% 1% 1% & equity 7.3% funds 9% CHF 10% EUR 76% 34
Slide 36: Alternative investment portfolio
Alternative investment portfolio Insurance portfolio (IFRS basis) Hedge funds: CHF 4.9 billion (2005: CHF 4.5 billion) Leveraged Fund of finance 4% funds 3% Equity hedged Tactical trading CHF million 17% 32% 143 429 Alternative 3.5% investments Event driven 19% Relative value 25% Private equity : CH
Slide 37: Currency exposure
Currency exposure Net 3.5% of insurance portfolio JPY Other 2% 4% USD 18% EUR 52% GBP 24% Gross currency exposure CHF 28 327 million Hedged currency exposure CHF 23 875 million Net currency exposure CHF 4 452 million 36
Slide 38: Allocation of unrealised gains/losses on bonds
Allocation of unrealised gains/losses on bonds CHF million (IFRS basis) 555 -536 -24 -3 -3 -11 Unrealised Deferred Shadow Deferred Minority Allocated to gains on policyholder DAC taxes interest shareholders’ bonds bonuses adjustment equity 37
Slide 39: Insurance reserves by country
Insurance reserves by country CHF million (IFRS basis) 66 763 1% Switzerland 66 337 37 150 4% Belgium France Luxembourg 35 671 Netherlands 3% 10% 1% Germany 18 632 2% 18 248 Germany 14 466 13% Netherlands -3% Switzer- 14 952 land 3 820 6% 47% Belgium 3 604 France 26% 589 5% Luxembourg 562 141 282 2%
Slide 40: Average technical interest rate of 3.02%
Average technical interest rate of 3.02% CHF / EUR / USD / GBP million (statutory basis) CHF EUR USD GBP Total reserves 64 819 33 489 471 9 Mean technical 2.79% 3.29% 4.09% 3.58% interest rate Overall: 3.02% (FY 2005: 3.03%) 39
Slide 41: Statutory solvency at 169%
Statutory solvency at 169% CHF million (statutory basis) Solvency capital Statutory solvency Parent company statutory equity 3 032 736 7 169% Intangibles -47 Hybrid capital 1 544 4 565 Fund for future appropriation 678 Additional Zillmerisation 527 Unrealised capital gains 1 311 Unattributed surplus
Slide 42: Supplementary information
Supplementary information 1. Profit and loss 2. Balance sheet 3. Embedded value 4. Banca del Gottardo 5. Assumptions and definitions 6. Contact details 41
Slide 43: Implementation of embedded value at Swiss Life
Implementation of embedded value at Swiss Life z ANAV and PVFP have been Swiss Life BE calculated for more than 95% of . Swiss Life LU the mathematical reserves Swiss Life NL z For other life insurance entities Swiss Life DE only the NAV has been included Swiss Life FR 2) z The banking 1) and non-li
Slide 44: Embedded value increased by 13%
Embedded value increased by 13% Analysis of change; CHF million (statutory basis) Swiss Life Group 31.12.2005 8 887 Unwind 2006 +351 Investment return 2006 variance +174 Future investment return variance +621 Value of new business 2006 +78 Various -36 Swiss Life Group 30.06.2006 10 075 43
Slide 45: Strong contribution to value of new business by all markets
Strong contribution to value of new business by all markets CHF million (statutory basis) Belgium / Switzerland France Germany Netherlands Total Luxembourg 78 32 23 19 15 14 12 7 0 3 0 -1 APE 206 195 207 117 94 119 188 218 36 34 731 683 New business margin 10.7% 3.4% HY 2006 HY 2005 44
Slide 46: Key assumptions for embedded value calculation
Key assumptions for embedded value calculation z Weighted new money 30.06.2006 31.12.2005 CH EU CH EU return based on asset allocation Risk discount 7.0% 8.0% 7.0% 8.0% z Weighted returns are rate lower due to reduced assumed future Equity return 6.5% 7.5% 6.5% 7.5% investment returns z Long-term bo
Slide 47: Asset allocation assumptions by region
Asset allocation assumptions by region 30.06.2006 31.12.2005 CH EU CH EU Cash and cash equivalents 1% 1% 4% 2% Bonds and loans 65% 82% 56% 82% Mortgages 7% 2% 9% 2% Real estate 14% 5% 13% 5% Equities 7% 6% 7% 7% Participations 0% 0% 3% 0% Alternative investments 6% 4% 8% 2% 46
Slide 48: Sensitivities of embedded value
Sensitivities of embedded value CHF million (statutory basis) Switzerland International Total EmbV HY 2006 (base case) 3 863 4 175 10 075 1) Δ Bond returns +100 bps 145 294 439 Δ Bond returns -100 bps -198 -310 -508 Δ Equity returns +10 ppts 192 65 257 Δ Equity returns -10 ppts -201 -62 -263 Δ Inves
Slide 49: Sensitivities of value of new business
Sensitivities of value of new business CHF million (statutory basis) Total VnB HY 2006 (base case) 78 Δ Bond return +100 bps 19 Δ Investment returns +100 bps 22 Δ Risk discount rate -100 bps 26 Δ Administration costs -10 ppts 8 Δ Acquisition costs -10 ppts 14 48
Slide 50: IFRS equity to embedded value bridge
IFRS equity to embedded value bridge CHF million 5 303 10 075 -1 864 7 172 232 -768 IFRS Difference in Goodwill & PVFP Cost of capital Embedded shareholders’ tangible/net other value equity assets intangible assets 1) 1) Including goodwill CHF 692 million, customer relationships CHF 8 million and ot
Slide 51: Supplementary information
Supplementary information 1. Profit and loss 2. Balance sheet 3. Embedded value 4. Banca del Gottardo 5. Assumptions and definitions 6. Contact details 50
Slide 52: Banca del Gottardo: Overview of key financials
Banca del Gottardo: Overview of key financials CHF million (statutory basis) HY 2006 HY 2005 Change Results from interest activities 62 71 -13% Results from commission and service fee activities 128 126 2% Results from trading operations 37 37 - Other ordinary result 5 3 67% Net revenues 232 237 -2%
Slide 53: Banca del Gottardo: Key ratios
Banca del Gottardo: Key ratios CHF million (statutory basis) 30.6.2006 31.12.2005 Change Return on equity 16.8% 1) 8.1% 9% Cost/income ratio 69.4% 2) 68.0% 1.4 ppts BIS ratio (Tier 1) 14.7% 11.6% 3.1 ppts BIS ratio (Tier 2) 15.2% 12.0% 3.2 ppts Assets under management 33 819 38 741 -13% Assets under
Slide 54: Supplementary information
Supplementary information 1. Profit and loss 2. Balance sheet 3. Embedded value 4. Banca del Gottardo 5. Assumptions and definitions 6. Contact details 53
Slide 55: Basic insurance result best reflects operational performance
Basic insurance result best reflects operational performance Main components Issues Target Drivers of profitability z Volume Risk result z Pricing z Basic Basic insurance CHF 500 million z Risk selection insurance result still by 2008 z Reserves result unsatisfactory Cost z Costs & fee result z Stra
Slide 56: Basic insurance result: Definitions
Basic insurance result: Definitions Main components Definition (IFRS basis) of profitability + Net earned premiums + Fees 1) Risk result - Claims and benefits paid BASIC Cost and fee = -/+ Change in reserves INSURANCE RESULT result + Technical interest - Acquisition costs 2) - Adjusted operating exp
Slide 57: Forex and interest rates
Forex and interest rates Foreign currency exchange rates 30.06.06 31.12.05 30.06.05 1.1.-30.06.06 1.1.-30.06.05 EUR 1.5670 1.5550 1.5470 1.5616 1.5465 GBP 2.2620 2.2640 2.3130 2.2729 2.2548 USD 1.2330 1.3100 1.2800 1.2712 1.2035 Interest rates 1) 30.06.06 31.12.05 30.06.05 CHF 2.830 1.971 1.961 EUR
Slide 58: 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 59: Supplementary information
Supplementary information 1. Profit and loss 2. Balance sheet 3. Embedded value 4. Banca del Gottardo 5. Assumptions and definitions 6. Contact details 58
Slide 60: Contact the Media Team
Contact the Media Team Media Relations Hotline Tel. +41 (43) 284 77 77 E-Mail: media.relations@swisslife.ch Visit our website for up-to-date information www.swisslife.com 59
Slide 61: SwissLife
be SwissLife Prepared for the future.