Switzerland’s life insurance giant Swiss Life received a massive boost in the first three months of 2019, with its domestic market proving the major source of growth.
The Zurich-based life insurer is still profiting from last year's decision by Axa Switzerland to exit the business because of the combined risk that arises through negative interest rates and the need to guarantee a conversion rate.
Swiss Life boosted its premiums by 42 percent in the first quarter, reaching 9.9 billion Swiss francs ($9.7 billion), it said in a statement on Thursday. The return from fees increased by 9 percent.
Drop in Premiums Outside Switzerland
The company’s home market contributed the most to the rapid increase in business at Swiss Life with Axa’s strategy decision the main factor behind it. In Germany, France and in the global markets however the company booked fewer premiums.
Swiss Life also managed to bolster its asset management business, for which Chief Executive Patrick Frost had set some ambitious growth targets. The division added net new money from third parties of 4.6 billion francs – almost double the amount generated in the same period of 2018 – and now manages a total of 77.2 billion francs, up from 71.2 billion at the end of 2018.
