2008 was a difficult year… (2)

Summary of published results for the main insurance companies operating in the Swiss market: Groupe Mutuel, Groupe AXA, SwissRe and Swiss Life


Groupe Mutuel
(temporary results - Swiss francs)

  • Turnover up at 3.08 billion (3.04 billion in 2007)
  • Loss of 112 million in compulsory insurance (+85.1 million in 2007)
  • Surplus of 59 million in complementary insurance (+43.1 million in 2007)
  • Turnover for compulsory insurance is 2,416 billion (2,405 billion in 2007)
  • Turnover for supplementary insurance up 6% at 440 million
  • Average level of equity capital for compulsory insurance down at 18.4% (24.6% in 2007). This drop in equity capital corresponds to the legal minimum (10% by 2010) aimed for by the political authorities
  • Company health and pension schemes have also been hit by the financial crisis; the cover ratio however remains healthy with an average at 100% in 2008 (against 112.7 % in 2007)
  • For 2009 the suggested premiums (+4.1%) will not cover the costs, therefore reserves will be used.



Groupe Axa
(final results - in euros)

  • Net profit of 923 million (against 5.7 billion in 2007)
  • Turnover down 2% at 91.22 billion
  • 43% fall in the "Life, Savings, Pension" business at 1.51 billion
  • Good trend for non life insurance business with a rise of 29% in the earnings before interest and tax at 2.39 billion
  • The combined ratio has risen from 1.9% to 95.5%
  • Dividend paid per share: 0.40 (1.20 in 2007)
  • The turnover for asset management decreased by 18.8% at 3.95 billion whereas the assets under management fell from 1,092 billion to 816 billion (with a net fund outflow of 28 billion), however output profit is stable at 589 million (590 million)
  • AXA plans to seek authorisation from its shareholders to issue preferred shares for 2 billion, a measure, among others, intended to strengthen its solvency by minimising dilution. 
  • S&P rating: AA



AXA Winterthur – Swiss subsidiary
(final results - in Swiss francs)

  • Profit of Swiss subsidiary AXA Winterthur fell by 84% at 69 million
  • 3% rise in the volume of premiums at 10.344 billion
  • Premiums for Individual life insurance -2% at 1.137 billion
  • Company life insurance +7% at 5.996 billion
  • Non life insurance nearly stable –0.3% at 3.11 billion
  • The combined ratio dropped 5.5% at 93.6%
  • Long term solvency is well over 150%
  • Cover relating to required reserves remains above 100%
  • S&P rating: AA



SwissRe
(final results - in Swiss francs)

  • Announced loss of 864 million (against a profit of 4,162 in 2007)
  • Premiums received: 25,501 million (31,664 million in 2007)
  • For the Property & Casualty business, premiums received reached 14,379 million (18,864 million en 2007), a reduction due mainly to an agreement with Berkshire Hattaway.
  • For Life & Health , premiums decreased to 11,090 million (12,665 million in 2007)
  • Equity capital, at the end of November, fell to 20.4 billion (31.9 at the end of 2007)
  • The combined ratio evolved from 90.1 to 97.9%
  • Dividend paid per share: 0.10
  • The negative result is mainly caused by losses on investments. The core business has nevertheless performed very well, despite the financial turmoil and a high number of claims caused by natural disasters.
  • SwissRe will be recapitalised with 3 billion by Berkshire Hattaway. An additional 2 billion is still planned.
  • Stephan Lippe is the new CEO and replaces Jacques Aigrain
  • Details of the strategy and goals for 2009 will be given during the General Assembly on 13 March. Broadly speaking, the Property business will be expanded whereas the least profitable sectors will be scaled down.
  • S&P rating: A+ stable



Swiss Life
(temporary results - in Swiss francs)

  • Net profit of 340 million (against 1,368 million in 2007)
  • This result includes the sale of certain units (1.5 billion), depreciation and losses due to capital investments as well as a 160 million write-down on MLP (25% stake)
  • Equity capital 6.6 billion (7.24 billion in 2007)
  • Group solvency rate at 160% (on an IFRS basis)
  • Statutory solvency rate at 175%
  • Distribution of profit for a nominal refund of CHF5 (CHF17 in 2007)
  • Publication of final results on 24 March



Sources :
- Groupe Mutuel (12.02)
- Groupe AXA & AXA Winterthur (19.02) 
- SwissRe (19.02) 
- Swiss Life (20.02)

Provisional timetable:
3 mars - Jardine Lloyd Thomson
18 mars - Bâloise
24 mars - Swiss Life

 

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