In a bid to boost international development, Swiss Life took the decision, as 2007 drew to a close, to place Luxembourg at the centre of its strategy. The company has been present in the Grand Duchy since 1985 and is active in three sectors: employee benefit solutions for corporate clients, private placement life insurance for high net worth individuals and, since last Spring, variable annuities. As a financial centre, Luxembourg is renowned for its stability and, in the words of Swiss Life (Luxembourg) S.A Chief Executive Officer Tanguy Polet, this fits in with the perception of Swiss Life as a brand which is “calm and strong”.
In the Luxembourg market, Swiss Life’s total premium income from group insurance increased by 16% compared with the 2007 figures. The new strategy also took into account cross-border business: Luxembourg turnover from non-Luxembourg companies went up 33%, validating the company’s decision to place a focus on these potential clients. As regards future development, the company will continue to channel more energy in this direction: Swiss Life Corporate Solutions will offer a range of pension fund solutions to companies in previously unexplored markets, while private placement life insurance is also integrated into the cross-border business line. In this sector, following a refocusing of strategy towards dedicated funds, turnover is up 76% on 2007 figures.
New products are a key driver
Swiss Life (Luxembourg). saw turnover go from 309.198 million euros in 2007 to 487.752 million in 2008. This represents an increase of 58% from one year to the next. The company’s technical provisions in local standards saw a gain of 13% to stand at 1 597.036 million euros on December 31 of last year. These figures were achieved in spite of difficult market conditions, and the financial year 2008 was closed with the company in the black to the tune of close to 175 thousand euros, taking into account 100% of the company’s losses on its equity portfolio. These amounted to 5.677 million euros.
Furthermore, a new business line was established in Luxembourg involving the development and management of variable annuities under a separate entity within the Swiss Life group, Swiss Life Products (Luxembourg). . Last summer saw the launch of its first product, Swiss Life Champion, on the German market and, in partnership with DWS Investment, the leading fund promoter in Germany, it will launch a new product in April 2009.
The company counts the results in Luxembourg for 2008 to be among the best since it was established here. While other institutions have fallen by the wayside or suffered huge losses, Swiss Life Luxembourg has maintained a profit margin. The funds it has supported have continued to grow and there is no imminent danger for the one hundred or so staff employed in Luxembourg. Tanguy Polet admits that results, while good, would have been better were it not for the crisis. But he is also bullish in his belief about the company: “I am convinced that the solutions developed by Swiss Life respond perfectly to the needs of its clients and that, thanks to the quality of our services, our innovation and the close relationship we have with our partners and clients, the company is fully capable of rising to all the challenges that lie ahead.” The company’s solid reputation and financial centre know-how should see to that.