Swiss Life Holding Ag · SIX:SLHN
Swiss Life — Kepler Capital Markets - Swiss Seminar 2011
26 slides from Swiss Life's conference presentation, Mar 23, 2011
Slide 1: Swiss Life from a Group and Swiss market unit perspective
Kepler Capital Markets - Swiss Seminar 2011 Swiss Life from a Group and Swiss market unit perspective Ivo Furrer, CEO Switzerland Zurich, 23 March 2011
Slide 2: Agenda
Agenda Æ Swiss Life Group: Key performance metrics further improved Swiss Life Switzerland: Strategy execution on track Summary Kepler Capital Markets - Swiss Seminar 2011: Swiss Life from a Group and Swiss market unit perspective 2
Slide 3: 2010 results
2010 results FY 2010 vs FY 2009 Net profit CHF 560 m +102% Profit from operations CHF 694 m +23% New business margin (% PVNBP) 1.4% +0.5 ppts GWP incl. PHD CHF 20.2 bn +4%1) Shareholders’ equity CHF 7.4 bn +3% Return on equity 7.6% +3.6 ppts Group solvency 172% +8 ppts Dividend (proposed) CHF 4.50 +
Slide 4: Swiss Life Group at a glance
Swiss Life Group at a glance Key figures as per FY10 Switzerland AWD Germany Life GWP: CHF 7.6 bn Revenues: EUR 547 m Life GWP: EUR 1.5 bn Segment result: CHF 488 m EBIT: EUR 49 m Segment result: EUR 74 m Leading position in group life Leading financial adviser with Leading provide
Slide 5: Update on MILESTONE programme
Update on MILESTONE programme Workstream Objectives Enhance Margin management focus: “We are growing – customer value & VNB and NBM but not at 1 Drive shift to modern products & the expense new business promote risk products of value” profitability Optimise distribution “We are increasing Incr
Slide 6: Margin management counteracted capital market movements
1. New business profitability Margin management counteracted capital market movements New business margin development (VNB as % of PVNBP) 1.4% Volume, business mix, and pricing measures Higher sales volumes and related scale +0.7% effects: mainly in FR, DE and PPLI 0.9% Repricing: CH, PPLI Cha
Slide 7: Risk and health business strongly contributed to targeted business mix
1. New business profitability Risk and health business strongly contributed to targeted business mix New business product mix (based on NBP) 2012 shift target already met 36% 31% < 30% CH: Successful new product launches Traditional 46% (e.g. SL Premium Select, SL Premium Junior Plan, SL Champion
Slide 8: Sales through AWD distribution channel increased by 9%
2. Distribution Sales through AWD distribution channel increased by 9%1) Swiss Life in Germany – AWD channel NBP2) in EUR million Reasons for development in 2010 431 384 Very successful sale of modern products e.g. disability insurance "Selbständige BU" & Champion products Action points 2011 183 3
Slide 9: Major progress in implementing targeted cost savings in last quarter
3. Operational excellence Major progress in implementing targeted cost savings in last quarter Status of targeted cost savings implemented as per FY 2010 – project view ~85% ~10% ~5% CHF 350-400 m Switzerland 34% AWD Corporate Center 28% France & Germany 11% Others 10% 2% Targeted cost Targeted cost
Slide 10: Based on its internal model, Swiss Life meets SST requirements
4. Balance sheet & in-force business Based on its internal model, Swiss Life meets SST requirements SST ratio Swiss Life AG, estimate based on internal model Operational improvements / Market management actions impact Comfort zone +17-20% ~-30% +16-18% Negative economic impact more than offset by op
Slide 11: Agenda
Agenda Swiss Life Group: Key performance metrics further improved Æ Swiss Life Switzerland: Strategy execution on track Summary Kepler Capital Markets - Swiss Seminar 2011: Swiss Life from a Group and Swiss market unit perspective 11
Slide 12: Swiss Life CH with a leading market position in Switzerland
Æ Swiss Life Switzerland: At a glance Swiss Life CH with a leading market position in Switzerland Individual customers Corporate customers Investment Traditional Modern Modern Investment Full insur- Semi- Full- products and risk and risk ance autono- autono- Risk Risk Product with products products
Slide 13: Business review Insurance Switzerland
Æ Swiss Life Switzerland: At a glance Business review Insurance Switzerland CHF million (IFRS basis, MCEV) FY 2009 FY 2010 Change GWP incl. PHD 7 518 7 631 +2% GL: +4%, slightly below market, periodic & single premiums up due to good new business and lower lapses IL: -7%, below market, effect of
Slide 14: Right strategy in place, targets for 2010 achieved
Æ Swiss Life Switzerland: Strategy Right strategy in place Targets for 2010 achieved Strategic Ambition 2012 MILESTONE Objectives 2012 Achievements 2010 Enhance 20% Modern 9 Most preferred customer 68% of NBP from modern and risk 38% >50% & risk products in the individual customers distribution
Slide 15: Switzerland: Shift to modern products successfully initiated and will continue
1. Customer value / New business profitability Switzerland: Shift to modern products successfully initiated and will continue New Business Production development Switzerland, Individual & Group Life < 50% Traditional 62% Continue the 79% shift to modern 85% and risk products for individual and corpo
Slide 16: Individual customers: Continuous introduction of modern products
1. Customer value / New business profitability Individual customers: Continuous introduction of modern products MILESTONE Achievements 2010 Outlook 2011 New modern & risk products Strengthen the shift SL Champion Uno new SL Premium Junior Plan Savings Bundle product with to modern & risk products in
Slide 17: Corporate customers: Expansion of product and services portfolio
1. Customer value / New business profitability Corporate customers: Expansion of product and services portfolio MILESTONE Achievements 2010 Outlook 2011 Full-coverage provider Investment Full insurance Business Offer full-coverage for Expansion of the solutions Invest corporate customers SME produ
Slide 18: Operational result: Disciplined execution of cost and balance sheet measures
2. Operational result Operational result: Disciplined execution of cost and balance sheet measures MILESTONE Achievements 2010 Outlook 2011 9 -33% Continuous execution of cost-saving measures 24% Increase efficiency Improve 52% Operational excellence operational Focused investments excellenc
Slide 19: Own distribution still the most important sales channel
3. Distribution quality and power Own distribution still the most important sales channel, now and in the future Business area New business production split Individual customers 87% 80% 79% 78% 75% Own distribution 9% 12% AWD 5% 8% 8% 9% 10% 10% 10% Brokers Others 2008 2009 2010 2011P 2012P Corporat
Slide 20: Multichanneling: Expand distribution channels and strengthen own distribution
3. Distribution quality and power Multichanneling: Expand distribution channels and strengthen own distribution Topic Achievements 2010 Outlook 2011 Sales efficiency Decrease churn rate from 23% Own sales distribution programme to 16% Continue sales efficiency programme Own sales Enhance advisor
Slide 21: Agenda
Agenda Swiss Life Group: Key performance metrics further improved Swiss Life Switzerland: Strategy execution on track Æ Summary Kepler Capital Markets - Swiss Seminar 2011: Swiss Life from a Group and Swiss market unit perspective 21
Slide 22: Summary: Managing for value at Swiss Life Group
Summary: Managing for value at Swiss Life Group Workstream Objectives Status Enhance New business margin > 2.2% customer value & > 70% of NBP from modern and 1 new business risk products profitability 20–25% share of Swiss Life Increase products in relevant product 2 distribution Drive categor
Slide 23: 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 24: Supplementary information
Supplementary information Swiss Life Group: Key performance metrics further improved Swiss Life Switzerland: Strategy execution on track Summary Æ Contact details and financial calendar Kepler Capital Markets - Swiss Seminar 2011: Swiss Life from a Group and Swiss market unit perspective 24
Slide 25: Contact details and financial calendar
Contact details and financial calendar Contact Robert Moser Phone +41 (43) 284 67 67 Head of Investor Relations E-mail robert.moser@swisslife.ch Rolf Winter Phone +41 (43) 284 49 19 Senior Investor Relations Manager E-mail rolf.winter@swisslife.ch Financial calendar Interim statement Q1 3 May 2011 A
Slide 26: The future starts here.
The future starts here. Kepler CapitalPlace, Presentation, Markets Date - Swiss Seminar 2011: Swiss Life from a Group and Swiss market unit perspective 26
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