4 Segment Information
Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by management (Corporate Executive Board) in deciding how to allocate resources and in assessing performance.
The accounting policies for the segments are the same as those described in the Summary of Significant Accounting Policies section. Intersegmental services and transfers of assets and liabilities are treated as if the transactions were with third parties, i.e. at market prices applicable at the time of the transaction.
Corporate costs were not allocated to the individual segments as they consist of general administrative expenses and head office expenses that relate to the Swiss Life Group as a whole, as well as borrowing costs and income tax expense.
The reportable segments have been identified based on information about the components of the entity that management uses to make decisions about operating matters. The business is managed based on IFRS results.
The information provided to management focuses on product lines and services. The organisational and management structure within the insurance business is geographical. The reportable segments have therefore been identified as follows:
- Switzerland
- France
- – Germany
- International
- Asset Managers
- Other
The segments “Switzerland”, “France”, “Germany” and “International” primarily consist of life insurance operations and distribution units. The life insurance operations offer a broad range of life, pension, health, annuity and investment-type policies to both groups and individuals, including disability coverage. The Group’s strategy focuses primarily on life and pensions in Switzerland, France and Germany and on cross-border business from Liechtenstein, Luxembourg and Singapore. These segments also include a number of companies which hold investments mainly pertaining to life insurance.
“International” comprises the cross-border insurance operations in Liechtenstein, Luxembourg and Singapore, the newly acquired elipsLife operations in Liechtenstein, Switzerland, Germany, Italy and the Netherlands, the Fincentrum and Swiss Life Select units operating in Austria, Czech Republic and Slovakia, and Chase de Vere operating in the United Kingdom.
Non-life operations involve operations in the segment “France” and mainly include property and casualty, liability and motor insurance and accident and health insurance.
“Asset Managers” refers to the management of assets for institutional clients and the Group’s insurance business, as well as the provision of expert advice for such clients.
“Other” principally refers to various finance and service companies.
The statement of income and the balance sheet for the segments are provided on the following pages.
Statement of income for the year ended 31 December 2022
| In CHF million | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Switzer-land | France | Germany | Inter-national | Asset Managers | Other | Total before elimi-nations | Elimi-nations | Total | ||||||||||
| Income | ||||||||||||||||||
| Premiums earned on insurance contracts | 8 679 | 3 569 | 994 | 469 | – | – | 13 711 | –30 | 13 681 | |||||||||
| Premiums earned on investment contracts with discretionary participation | 753 | – | – | – | – | – | 753 | – | 753 | |||||||||
| Premiums ceded to reinsurers | –11 | –121 | –42 | –383 | – | – | –557 | 30 | –527 | |||||||||
| Net earned premiums | 9 421 | 3 448 | 952 | 86 | – | – | 13 907 | 0 | 13 907 | |||||||||
| Policy fees earned on insurance contracts | 4 | 2 | 25 | 0 | – | – | 31 | – | 31 | |||||||||
| Policy fees earned on investment and unit-linked contracts | 65 | 224 | 22 | 81 | – | – | 392 | – | 392 | |||||||||
| Net earned policy fees | 69 | 226 | 47 | 81 | – | – | 423 | – | 423 | |||||||||
| Commission income | 253 | 198 | 625 | 294 | 984 | 1 | 2 354 | –408 | 1 947 | |||||||||
| Investment income | 2 754 | 647 | 474 | 27 | 2 | 18 | 3 921 | –4 | 3 917 | |||||||||
| Net gains/losses on financial assets | –1 229 | 148 | 231 | 4 | –3 | –55 | –903 | – | –903 | |||||||||
| Net gains/losses on financial instruments at fair value through profit or loss | 868 | –51 | –86 | 2 | 0 | –20 | 713 | 0 | 713 | |||||||||
| Net gains/losses on investment property | 646 | 86 | 135 | – | 180 | – | 1 047 | – | 1 047 | |||||||||
| Share of profit or loss of associates | 2 | –3 | 0 | – | 1 | – | 0 | – | 0 | |||||||||
| Other income | 161 | 12 | –2 | –5 | 91 | 53 | 309 | –2 | 307 | |||||||||
| Total income | 12 945 | 4 711 | 2 377 | 489 | 1 255 | –3 | 21 773 | –414 | 21 358 | |||||||||
| of which intersegment | 110 | –43 | –26 | –13 | 385 | 1 | 414 | –414 | ||||||||||
| Expenses | ||||||||||||||||||
| Benefits and claims under insurance contracts | –8 395 | –3 199 | –1 042 | –329 | – | – | –12 965 | 9 | –12 956 | |||||||||
| Benefits and claims under investment contracts with discretionary participation | –742 | – | – | – | – | – | –742 | – | –742 | |||||||||
| Benefits and claims recovered from reinsurers | 4 | 90 | 25 | 295 | – | – | 414 | –9 | 405 | |||||||||
| Net insurance benefits and claims | –9 133 | –3 109 | –1 018 | –34 | – | – | –13 294 | 0 | –13 294 | |||||||||
| Policyholder participation | –1 425 | –46 | –432 | 0 | – | – | –1 902 | 0 | –1 903 | |||||||||
| Interest expense | –69 | –80 | –18 | –12 | –7 | 1 | –187 | 6 | –180 | |||||||||
| Commission expense | –552 | –597 | –537 | –172 | –115 | 0 | –1 974 | 407 | –1 567 | |||||||||
| Employee benefits expense | –304 | –223 | –161 | –88 | –409 | –3 | –1 189 | –4 | –1 193 | |||||||||
| Depreciation and amortisation expense | –48 | –209 | 53 | –39 | –32 | 0 | –274 | – | –274 | |||||||||
| Impairment of property and equipment and intangible assets | – | – | –2 | – | –1 | – | –2 | – | –2 | |||||||||
| Other expenses | –197 | –167 | –84 | –43 | –258 | –35 | –784 | 4 | –780 | |||||||||
| Total expenses | –11 727 | –4 432 | –2 199 | –388 | –822 | –38 | –19 606 | 414 | –19 192 | |||||||||
| of which intersegment | –303 | –25 | –42 | 9 | –48 | –6 | –414 | 414 | ||||||||||
| Segment result | 1 218 | 279 | 178 | 101 | 433 | –41 | 2 167 | – | 2 167 | |||||||||
| Unallocated corporate costs | –112 | |||||||||||||||||
| Profit from operations | 2 054 | |||||||||||||||||
| Borrowing costs | –120 | |||||||||||||||||
| Income tax expense | –479 | |||||||||||||||||
| Net profit | 1 455 | |||||||||||||||||
| Additions to non-current assets | 1 615 | 110 | 363 | 101 | 62 | – | 2 253 | – | 2 253 | |||||||||
Statement of income for the year ended 31 December 2021
| In CHF million | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Switzer-land | France | Germany | Inter-national | Asset Managers | Other | Total before elimi-nations | Elimi-nations | Total | ||||||||||
| Income | ||||||||||||||||||
| Premiums earned on insurance contracts | 8 588 | 4 035 | 1 086 | 93 | – | – | 13 802 | –24 | 13 778 | |||||||||
| Premiums earned on investment contracts with discretionary participation | 790 | – | – | – | – | – | 790 | – | 790 | |||||||||
| Premiums ceded to reinsurers | –10 | –129 | –45 | –19 | – | – | –203 | 24 | –179 | |||||||||
| Net earned premiums | 9 368 | 3 905 | 1 041 | 74 | – | – | 14 389 | 0 | 14 389 | |||||||||
| Policy fees earned on insurance contracts | 4 | 4 | 27 | 0 | – | – | 35 | – | 35 | |||||||||
| Policy fees earned on investment and unit-linked contracts | 62 | 244 | 19 | 83 | – | – | 408 | 0 | 408 | |||||||||
| Net earned policy fees | 66 | 247 | 46 | 83 | – | – | 443 | 0 | 443 | |||||||||
| Commission income | 264 | 167 | 652 | 254 | 944 | 1 | 2 282 | –429 | 1 853 | |||||||||
| Investment income | 2 709 | 662 | 500 | 28 | 4 | 18 | 3 920 | –2 | 3 918 | |||||||||
| Net gains/losses on financial assets | 140 | 273 | 327 | 20 | –2 | –44 | 715 | – | 715 | |||||||||
| Net gains/losses on financial instruments at fair value through profit or loss | –1 034 | –65 | 167 | 0 | 0 | –20 | –953 | 0 | –953 | |||||||||
| Net gains/losses on investment property | 1 280 | 105 | 113 | – | 7 | – | 1 505 | – | 1 505 | |||||||||
| Share of profit or loss of associates | 1 | 2 | 0 | – | 5 | – | 8 | – | 8 | |||||||||
| Other income | 115 | 7 | 4 | –13 | 170 | 58 | 342 | –2 | 340 | |||||||||
| Total income | 12 909 | 5 304 | 2 851 | 447 | 1 127 | 14 | 22 652 | –433 | 22 219 | |||||||||
| of which intersegment | 116 | –47 | –36 | –3 | 403 | 1 | 433 | –433 | ||||||||||
| Expenses | ||||||||||||||||||
| Benefits and claims under insurance contracts | –8 948 | –3 527 | –1 153 | –40 | – | – | –13 667 | 9 | –13 658 | |||||||||
| Benefits and claims under investment contracts with discretionary participation | –800 | – | – | – | – | – | –800 | – | –800 | |||||||||
| Benefits and claims recovered from reinsurers | 7 | 84 | 25 | 8 | – | – | 125 | –9 | 115 | |||||||||
| Net insurance benefits and claims | –9 740 | –3 443 | –1 128 | –31 | – | – | –14 343 | 0 | –14 343 | |||||||||
| Policyholder participation | –1 137 | –303 | –543 | –19 | – | – | –2 001 | 0 | –2 001 | |||||||||
| Interest expense | –33 | –76 | –48 | –13 | –6 | 1 | –176 | 5 | –172 | |||||||||
| Commission expense | –546 | –574 | –579 | –170 | –79 | 0 | –1 948 | 429 | –1 520 | |||||||||
| Employee benefits expense | –303 | –228 | –163 | –64 | –385 | –3 | –1 147 | –3 | –1 149 | |||||||||
| Depreciation and amortisation expense | –137 | –219 | –63 | –19 | –27 | 0 | –466 | – | –466 | |||||||||
| Impairment of property and equipment and intangible assets | – | – | 0 | – | –15 | – | –15 | – | –15 | |||||||||
| Other expenses | –114 | –174 | –80 | –36 | –240 | –18 | –662 | 3 | –660 | |||||||||
| Total expenses | –12 011 | –5 017 | –2 604 | –353 | –753 | –20 | –20 758 | 433 | –20 325 | |||||||||
| of which intersegment | –296 | –31 | –60 | 5 | –47 | –4 | –433 | 433 | ||||||||||
| Segment result | 897 | 287 | 247 | 94 | 374 | –6 | 1 893 | – | 1 893 | |||||||||
| Unallocated corporate costs | –110 | |||||||||||||||||
| Profit from operations | 1 783 | |||||||||||||||||
| Borrowing costs | –121 | |||||||||||||||||
| Income tax expense | –406 | |||||||||||||||||
| Net profit | 1 257 | |||||||||||||||||
| Additions to non-current assets | 2 238 | 235 | 693 | 114 | 205 | – | 3 485 | – | 3 485 | |||||||||
Balance sheet as at 31 December 2022
| In CHF million | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Switzer-land | France | Germany | Inter-national | Asset Managers | Other | Total before elimi-nations | Elimi-nations | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and cash equivalents | 2 498 | 2 604 | 427 | 1 013 | 358 | 9 | 6 910 | – | 6 910 | |||||||||
| Derivatives | 5 027 | 121 | 57 | – | 7 | 12 | 5 224 | –98 | 5 126 | |||||||||
| Assets held for sale | 1 | – | – | – | – | – | 1 | – | 1 | |||||||||
| Financial assets at fair value through profit or loss | 8 092 | 19 803 | 3 353 | 18 065 | 9 | – | 49 321 | –238 | 49 083 | |||||||||
| Financial assets available for sale | 54 013 | 14 001 | 6 818 | 1 246 | 19 | 637 | 76 735 | – | 76 735 | |||||||||
| Loans and receivables | 17 039 | 4 597 | 5 111 | 592 | 459 | 2 864 | 30 662 | –4 642 | 26 020 | |||||||||
| Financial assets pledged as collateral | 1 873 | 1 362 | – | – | – | – | 3 234 | – | 3 234 | |||||||||
| Investment property | 35 135 | 2 935 | 3 767 | – | 323 | – | 42 160 | – | 42 160 | |||||||||
| Investments in associates | 27 | 53 | 65 | 3 | 4 | – | 152 | – | 152 | |||||||||
| Reinsurance assets | 31 | 293 | 145 | 1 908 | – | – | 2 378 | –40 | 2 338 | |||||||||
| Property and equipment | 222 | 117 | 140 | 29 | 58 | 0 | 566 | – | 566 | |||||||||
| Intangible assets including intangible insurance assets | 906 | 419 | 1 558 | 472 | 409 | – | 3 764 | – | 3 764 | |||||||||
| Other assets | 611 | 55 | 23 | 13 | 1 151 | 3 | 1 857 | –93 | 1 763 | |||||||||
| Segment assets | 125 474 | 46 362 | 21 464 | 23 342 | 2 798 | 3 524 | 222 964 | –5 112 | 217 853 | |||||||||
| Income tax assets | 497 | |||||||||||||||||
| Total assets | 218 349 | |||||||||||||||||
| Liabilities and equity | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Derivatives | 2 473 | 656 | 86 | – | – | 56 | 3 272 | –98 | 3 175 | |||||||||
| Investment and unit-linked contracts | 7 113 | 11 586 | 1 240 | 19 588 | – | – | 39 526 | –34 | 39 492 | |||||||||
| Other financial liabilities | 12 433 | 7 515 | 1 989 | 980 | 984 | 208 | 24 108 | –1 485 | 22 623 | |||||||||
| Insurance liabilities | 87 581 | 25 045 | 15 361 | 1 965 | – | – | 129 951 | –40 | 129 911 | |||||||||
| Policyholder participation liabilities | 3 726 | 153 | 1 301 | 84 | – | – | 5 264 | –1 | 5 263 | |||||||||
| Employee benefit liabilities | 514 | 91 | 113 | 22 | 128 | 3 | 869 | – | 869 | |||||||||
| Provisions | 13 | 6 | 2 | 12 | 8 | 24 | 66 | – | 66 | |||||||||
| Other liabilities | 175 | 126 | 71 | 18 | 48 | 24 | 462 | –1 | 460 | |||||||||
| Segment liabilities | 114 029 | 45 176 | 20 162 | 22 668 | 1 168 | 316 | 203 518 | –1 660 | 201 859 | |||||||||
| Borrowings | 4 409 | |||||||||||||||||
| Income tax liabilities | 1 798 | |||||||||||||||||
| Equity | 10 285 | |||||||||||||||||
| Total liabilities and equity | 218 349 | |||||||||||||||||
Balance sheet as at 31 December 2021
| In CHF million | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Switzer-land | France | Germany | Inter-national | Asset Managers | Other | Total before elimi-nations | Elimi-nations | Total | ||||||||||
| Assets | ||||||||||||||||||
| Cash and cash equivalents | 3 093 | 2 518 | 358 | 901 | 287 | 51 | 7 208 | – | 7 208 | |||||||||
| Derivatives | 2 680 | 108 | 32 | – | 3 | 6 | 2 829 | –61 | 2 768 | |||||||||
| Assets held for sale | 69 | – | – | – | – | – | 69 | – | 69 | |||||||||
| Financial assets at fair value through profit or loss | 7 732 | 19 960 | 4 890 | 20 840 | 10 | – | 53 433 | –120 | 53 313 | |||||||||
| Financial assets available for sale | 69 856 | 20 150 | 9 067 | 1 529 | 19 | 850 | 101 471 | – | 101 471 | |||||||||
| Loans and receivables | 16 182 | 3 499 | 5 544 | 212 | 472 | 2 895 | 28 805 | –4 546 | 24 260 | |||||||||
| Financial assets pledged as collateral | 2 490 | 1 486 | – | – | – | 164 | 4 140 | – | 4 140 | |||||||||
| Investment property | 34 175 | 3 210 | 3 673 | – | 176 | – | 41 234 | – | 41 234 | |||||||||
| Investments in associates | 34 | 90 | 44 | – | 3 | – | 172 | – | 172 | |||||||||
| Reinsurance assets | 32 | 296 | 139 | 145 | – | – | 612 | –42 | 570 | |||||||||
| Property and equipment | 226 | 112 | 138 | 29 | 51 | 0 | 557 | – | 557 | |||||||||
| Intangible assets including intangible insurance assets | 741 | 401 | 1 361 | 428 | 464 | – | 3 395 | – | 3 395 | |||||||||
| Other assets | 595 | 58 | 81 | 9 | 598 | 3 | 1 344 | –180 | 1 164 | |||||||||
| Segment assets | 137 906 | 51 889 | 25 327 | 24 092 | 2 084 | 3 970 | 245 267 | –4 948 | 240 319 | |||||||||
| Income tax assets | 105 | |||||||||||||||||
| Total assets | 240 424 | |||||||||||||||||
| Liabilities and equity | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Derivatives | 1 555 | 113 | 81 | – | – | 58 | 1 807 | –61 | 1 746 | |||||||||
| Investment and unit-linked contracts | 7 404 | 13 373 | 1 397 | 22 697 | – | – | 44 872 | –35 | 44 837 | |||||||||
| Other financial liabilities | 11 832 | 6 540 | 2 520 | 318 | 546 | 422 | 22 178 | –1 439 | 20 738 | |||||||||
| Insurance liabilities | 89 586 | 24 505 | 16 053 | 197 | – | – | 130 342 | –84 | 130 258 | |||||||||
| Policyholder participation liabilities | 9 982 | 4 133 | 3 264 | 27 | – | – | 17 406 | –5 | 17 401 | |||||||||
| Employee benefit liabilities | 1 110 | 100 | 176 | 11 | 182 | 3 | 1 581 | – | 1 581 | |||||||||
| Provisions | 14 | 9 | 3 | 5 | 8 | 10 | 48 | – | 48 | |||||||||
| Other liabilities | 164 | 124 | 72 | 16 | 27 | 21 | 425 | –2 | 423 | |||||||||
| Segment liabilities | 121 647 | 48 897 | 23 568 | 23 270 | 763 | 514 | 218 658 | –1 626 | 217 032 | |||||||||
| Borrowings | 4 099 | |||||||||||||||||
| Income tax liabilities | 2 771 | |||||||||||||||||
| Equity | 16 522 | |||||||||||||||||
| Total liabilities and equity | 240 424 | |||||||||||||||||
Premiums and policy fees from external customers
| In CHF million | ||||||||
|---|---|---|---|---|---|---|---|---|
| Net earned premiums | Net earned policy fees | |||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| Life | ||||||||
| Individual life | 3 686 | 4 228 | 392 | 421 | ||||
| Group life | 9 839 | 9 735 | 31 | 22 | ||||
| Total life | 13 525 | 13 963 | 423 | 443 | ||||
| Non-Life | ||||||||
| Accident and health | 10 | 12 | – | – | ||||
| Property, casualty and other | 371 | 413 | – | – | ||||
| Total non-life | 382 | 426 | – | – | ||||
| Total | 13 907 | 14 389 | 423 | 443 | ||||
The Swiss Life Group operates in selected countries. The Group’s income and non-current assets by geographical location are detailed below.
| In CHF million | ||||||||
|---|---|---|---|---|---|---|---|---|
| Total income | Non-current assets | |||||||
| 2022 | 2021 | 31.12.2022 | 31.12.2021 | |||||
| Switzerland | 12 940 | 13 021 | 32 045 | 31 496 | ||||
| France | 4 822 | 5 350 | 5 242 | 5 035 | ||||
| Germany | 2 725 | 2 971 | 5 639 | 5 507 | ||||
| Other countries 1 | 871 | 876 | 1 701 | 1 645 | ||||
| Total | 21 358 | 22 219 | 44 627 | 43 684 | ||||
|
1 Includes Luxembourg, United Kingdom and Other countries (previously reported separately) which are not material individually and in aggregate
|
||||||||
Non-current assets for this purpose consist of investment property, property and equipment and intangible assets (except for intangible assets arising from insurance contracts).
Information about major customers
No revenue from transactions with a single external customer amounted to more than 10% of the Group’s revenue.