Switzerland's largest life insurer, Swiss Life's, earnings rose significantly in the first half, with full insurance the only fly in the ointment.
Swiss Life’s first-half net profit increased 15 percent year on year to 618 million Swiss francs ($676 million), the company said in a results statement Tuesday.
Premium income from the life business, the most important source of income for Switzerland’s largest life insurer was 10.9 billion francs, a fall of 7 percent in local currency. The decrease was mainly due to the full insurance business in occupational pensions of companies in Switzerland; This caused premiums in Swiss Life’s home market to fall by 20 percent.
Fund Unit’s New Money Flows Surge
By contrast, the semi-autonomous business, which is largely not reported in premium income, expanded. Swiss Life's international business also grew
Revenues from consulting fees from the fee business – an area the insurer is promoting – rose by 15 percent to 1.081 billion francs.
Net new money inflows into Swiss Life Asset Managers, the company’s fund unit’s, financial products sold to third parties almost doubled to 4.6 billion francs over the course of the first half from 2.4 billion a year earlier, taking assets under management 8 percent higher on the year to 98.9 billion francs. In its own-account activities, Swiss Life generated direct investment income on the financial markets of 1.97 billion francs compared with 2.03 billion a year earlier.
