Full insurance remains a strategic cornerstone for Swiss Life. Nonetheless, the trend of the pension business in the second pillar shifting towards semi-autonomous collective solutions has continued.

In the past financial year, the company recorded gross premiums of 7.57 billion francs in group insurance, compared to 7.95 billion in the previous year. This represents a decrease of 4.8 percent.

Total income dropped by around 12 percent to 8.60 billion francs, according to the operating statement published on Wednesday.

Assets managed in semi-autonomous pension solutions increased to 7.1 billion from 6.4 billion francs, as Swiss Life had already reported with its annual figures. However, this business mostly does not contribute to premium income.

Significantly lower investment return

Operating profit in the occupational benefits business dropped sharply to 93 million francs from 138 million the previous year. One reason cited is the lower net investment return, which fell to 1.03 billion from 1.80 billion francs. The investment return was 1.36 percent, down from 2.36 percent the previous year.

«Due to the ongoing market volatility, net investment returns are often subject to significant fluctuations, as was the case in 2023,» the company stated.

Fewer fully insured individuals

The number of actively insured persons at the end of the financial year was just under 500,000, compared to 511,000 the previous year. Of these, about 310,000 were in full insurance, 4.7 percent less than the previous year. Conversely, the number of other actively insured individuals rose by 2.2 percent to just under 190,000. The number of pension recipients remained at around 87,000, the same as the previous year.

A total of 546 million francs were allocated to the surplus fund last year. This allows Swiss Life to continue offering a «reliably high total interest rate.» Policyholders received a higher payout from the surplus fund, totaling 262 million francs, compared to the previous year. The total interest rate on retirement assets in full insurance was 1.8 percent, while it was 2 percent in supplementary pensions.

Majority in bonds and real estate

The total capital of the investment portfolio amounted to 74.53 billion francs at the end of the year. More than 20 percent of this is allocated to foreign currency bonds (24 percent) and Swiss franc bonds (23 percent), as well as real estate (21 percent). Equities account for 9.9 percent, and mortgages 10.3 percent.