Annual Report 2007 Swiss Life (Luxembourg) SA

Transcription

Annual Report 2007
Swiss Life (Luxembourg) S.A.
Content
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Content
Content
05
Editorial
07
Executive bodies of Swiss Life (Luxembourg) S.A., a Luxembourg Insurance Company
08
Management report for the financial year 2007 to the Annual General Meeting of 5 June 2008
08
Events at the Company
11
Comments on the financial year 2007
15
Acknowledgements
16
Independent Auditor’s Report
18
Annual accounts
18
Balance sheets as at 31 December 2007 and 2006
20
Profit and loss accounts for the years ended 31 December 2007 and 2006
22
Notes to the accounts as at 31 December 2007
Audited Annual Financial Statements
for the year ended 31 December 2007
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Editorial
Editorial
05
In group insurance, the uniting of Luxembourg
operations with the Swiss Life Network will enable the
consolidation of the group insurance solutions offer
aimed at multinationals.
In individual insurance, the Swiss Life Group will be
able to offer a wider range of private placement life
insurance solutions from Luxembourg, Liechtenstein
and Singapore to international high net worth
individuals.
The year 2007 witnessed some significant fluctuations
on the financial markets, which led to a general
downturn in Luxembourg life insurance in the last
semester. Within this context, following many years of
exceptional growth in turnover, the remarkable premium
volume in 2006 constituted a performance which was
difficult to match for Swiss Life in Luxembourg. These
elements explain the decline in premium income in 2007.
The year has, however, been undeniably positive.
It marked an important change in Swiss Life’s business
from the Grand Duchy. Its heightened relationships with
many of the Group entities throughout the entire year
concluded in December with the integration of the
group and individual insurance operations within the
Swiss Life Corporate Solutions and Swiss Life Private
Placement international business lines respectively.
This new organisation will enable the development of
synergies at Group level, and will especially strengthen
the exchange of good practices and competence sharing.
By contributing to the functional excellence pursued by
Swiss Life, it will open up new perspectives, not only for
our Group, but also and more importantly, for our clients.
However, our ambitious goals will only be reached with
the contribution of our teams. We appreciate that the
quality of our offers rests on them, and we remain
totally convinced that they are our most precious asset.
This is why we have continued to invest in human
capital, and we will continue our efforts in 2008. We
therefore remain attentive to the development of our
team’s competencies, and to their commitment to the
company. A commitment on which we have always been
able to rely and which, together with the
professionalism and efficiency they show on a daily
basis, is the very best guarantee of success for our clients.
Margrit Schmid
Chairman of the Board of Directors
April 2008
06
Values
Ambition We aim to become the leading international
life and pensions specialist.
Mission We are committed to helping people create a
financially secure future. For life.
Values
Expertise We offer first-class solutions for pensions and
long-term savings. This expertise is based on our proven
professional competence and many years of experience.
Proximity We foster close relationships with our
customers and partners and endeavour to understand
their needs. This proximity enables us to provide
optimum solutions tailored to their requirements.
Openness We nurture open and direct dialogue both
within and outside of our organisation.
This approach builds trust in the work we do.
Clarity We communicate clearly and offer products and
services that are comprehensible. This clarity gives our
customers and partners a sense of security.
Commitment We work with commitment and
enthusiasm to help our customers, staff and
shareholders achieve their goals. This commitment
forms the basis of long-term partnerships, and enables
us to meet our social responsibilities.
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Executive bodies of Swiss Life (Luxembourg) S.A., a Luxembourg Insurance Company
Executive bodies of Swiss Life (Luxembourg) S.A.,
a Luxembourg Insurance Company
The Board of Directors
Until 3 December 2007
Since 3 December 2007
Bruno Pfister
Chief Executive Officer International of the Swiss Life Group
Chairman
Margrit Schmid
Chief Executive Officer of Swiss Life Corporate Solutions
Chairman
Margrit Schmid
Head of Swiss Life Network
Member of the Board
Jacques Richier
Chief Executive Officer of Swiss Life in France
Vice-Chairman
Patrick Schols
Chief Executive Officer of Swiss Life in Luxembourg
Member of the Board
Beat Hubacher
Delegate for Corporate Mandates of the Swiss Life Group
Member of the Board
Beat Hubacher
Chief Compliance Officer of the Swiss Life Group
Chief Executive Officer of Banca del Gottardo in
Luxembourg
Member of the Board (since 22 March 2007)
Beat Reichen
Branch Manager of Swiss Life Private Placement in
Luxembourg
Member of the Board
David Brandt
Head of Human Resources of Swiss Life in Luxembourg
Member of the Board
Management
Patrick Schols
Chief Executive Officer (until 31 December 2007)
Pierre Dubru
Employee Benefits Director
Margrit Schmid
Chief Executive Officer (since 1 January 2008)
Peter Jeurissen
Business Development Director (until 31 December 2007)
Hocine Berrane
Director IT & Organisation
Raphaël Warland
Technical & Financial Director
Independent Auditor
The Annual General Meeting of 7 June 2007 appointed PricewaterhouseCoopers S.à r.l., Luxembourg
as Independent Auditor for one year.
07
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Management report for the financial year 2007 to the Annual General Meeting of 5 June 2008
08
Events at the Company
For the life insurance market in Luxembourg, 2007
Concerning group insurance, Swiss Life in Luxembourg
came to an end in a difficult context, which had a negative
has maintained and even strengthened its leading position
effect on premium income of Luxembourg life insurance
on the local market. New relations have been established
companies. Swiss Life did not escape this trend and
with local companies, enabling the renewal of 2006
despite a positive beginning of the year, turnover declined
premium income which, nevertheless, profited from
compared with the previous year. Production amounted to
exceptional single premiums. Appreciation expressed by
309.198 million euros against 534.869 million euros in
companies also remained excellent. The results of the
2006. However, the 2006 premium volume constituted an
survey that we carried out over the year are just as
exceptional performance, after several years of continued
insightful as the fact that the HR One Best Pension
progress in turnover, and it was becoming difficult to
Solutions Award was presented to Swiss Life for the fifth
continue such a rapid rhythm of growth.
consecutive year.
In other respects, Swiss Life experienced significant
Swiss Life also intensified its collaboration with the
growth in its results. Profits attained 3.478 million euros
Swiss Life Network to offer life insurance and pension
in 2007.
solutions to multinational companies. Unified from 2008
within the supranational business unit, Swiss Life
The root of the decrease in turnover can be found in
Corporate Solutions, it offers a complete range of
certain individual insurance products. For this segment,
collective insurance solutions for international groups.
2007 was synonymous with the development of new
markets and new products which will be fully exploited
As well as pensions and retirement, and growth being
from 2008.
highlighted, functional excellence appears among the
In parallel, another step was attained in the diversification
strategic directions reaffirmed by the Group in December
strategy of distribution channels and products on offer.
2007. In Luxembourg, various measures have already
Two thousand and seven witnessed a deepening of
contributed to the improvement of efficiency over the
relations between the Luxembourg and Liechtenstein
course of the year.
companies, and the development of common sales
First of all, mention should be made of the working
support material, prior to the new Group strategy
environment, whose quality contributes to the proficiency
announced in December.
of our teams. In this regard, the personnel have been
Thus, the Swiss Life Group will, in the future, be in the
redeployed in a more efficient way, and the IT equipment
position of a first-rate player in the field of private
has been replaced. Swiss Life has also automated some of
placement life insurance through offering, via the
its procedures. Finally, to better manage the multitude of
supranational business unit, Swiss Life Private Placement,
projects which have been launched, a Project Management
solutions aimed at an international clientele of high net
Office now oversees the development and application of
worth individuals, distributed from Luxembourg,
the relevant methodology.
Liechtenstein and Singapore.
09
Putting the Group values into practice is what overlies our
In fact, although 2007 assumed a particular importance
success. We have therefore multiplied initiatives in terms
for the Swiss Life Group which celebrated its 150th
of proximity, as much towards our clients as towards our
anniversary, the year-end and the announcement of the
partners. The most marked examples are the two
new strategy also marked a new stage in the international
satisfaction surveys that were carried out in 2007, one of
integration of its activities. Luxembourg is called upon to
them addressed to our clients in group insurance, and the
play an important role in this respect from 2008. There is
other to our partners in international individual
no doubt that the year which is beginning will be rich
insurance.
with new challenges and opportunities.
The first has already led to many new developments and
improvements to our services. We can cite setting up new
online operations for affiliates of a supplementary
pension scheme comprising a Swiss Flex-Invest contract.
Other actions are underway, and will be completed over
the course of 2008.
Proximity has also been paramount within the company
giving rise to initiatives such as the Employee
Commitment Survey. Organised annually on a Swiss Life
Group scale, the employee survey once again enabled an
appreciation of the commitment of our colleagues within
the Luxembourg entity, which yet again made progress.
Swiss Life can also count on commitment concerning
security and confidentiality. And in this field, a new stage
was accomplished in 2007, with the formalisation of strict
security rules through Swiss Life in Luxembourg’s
Security Policy. This is just one illustration of the level of
professionalism that we hope to maintain.
To contribute to this, we have also pursued the
strengthening of our teams and participated, for the first
time in 2007, in the recruitment fair, Talent for
Luxembourg. The consolidation of our presence in the
Grand Duchy will speed up in 2008, so as to meet
ambitious challenges set out by the new Group strategy.
Comments on the financial year 2007
1. General considerations
Swiss Life (Luxembourg) S.A. closed the 2007 financial
year with a profit of 3.478 million euros. The progress of
over 80% compared with the preceding year (1.907 million
euros) was mainly due to:
- the increase in the risk result owing to the multiple
effects of the rise in premiums and the fall in claims
observed as much for the death risk as for the disability
risk;
- the clear growth in the financial result, following
realised gains;
- the deterioration of the cost result, largely attributed to
the first expenses linked to the reorganisation of the
Group activities in Luxembourg.
11
Total premium income
Evolution in million euros
In group insurance, premium income was stable compared
with 2006, which nevertheless constitutes an excellent
performance; indeed, premium income for 2006 which
Distribution of premiums by country in 2007
moreover benefited from exceptional elements (significant
Distribution in million euros
single premiums) was practically renewed.
Turnover in individual insurance was, on the other hand,
in sharp decline. This mainly concerned dedicated funds.
Products linked to collective internal or external funds
progressed.
Luxembourg
Belgium
France
2. Insurance operations
Production attained 309.198 million euros, which is a fall
of 42% compared with 2006.
The following charts illustrate the evolution of premiums
over the last four financial years, as well as the breakdown
of premiums by country where the contracts are taken out.
Italy
Other EEA countries
Countries outside the EEA
12
The movements in premium income between 2006 and 2007
On the contrary, a global decrease of 54% for products
according to product types is shown in the following charts,
whose investment risk is borne by the policyholder can be
and discussed below.
observed. This concerns all segments, with the following
breakdown:
Movements in individual/group premium income
- fall of 52% for collective insurance, but it should be
remembered that 2006 enjoyed exceptional single
premiums;
600
- fall of 55% for individual insurance: dedicated funds
declined by 65%, while products linked to collective
500
internal funds and external funds rose by 29%.
400
300
Total technical provisions
200
1 500
100
1 375
429 206
105 103
535 309
Individual insurance
Group insurance
Total
0
1 250
2006
2007
1 125
1 000
875
750
Movements in premium income - Type of product
625
500
375
250
600
1007
836
371
407
331
401
356
2004
2005
2006
2007
184
125
500
0
400
Products with guaranteed rates
Investment risk borne by policyholder
300
200
On 31 December 2007, technical provisions of contracts
with guaranteed rates amounted to 407.031 million euros,
100
65
0
95
Products with
guaranteed rates
2006
470 214
535 309
Investment risk
borne by policyholder
Total
2007
an escalation of 10% compared with the preceding financial
year.
Contracts with the investment risk borne by the
policyholder have seen their technical provisions increase by
20%, to cross the billion euro threshold.
In 2007, the premium income in products with technical
rates guaranteed by the insurer rose sharply (+47%)
compared with 2006. This progression is concentrated in
collective insurance (+48% compared with 2006), while
individual insurance improved by 43%.
Therefore, the company’s global technical provisions
amounted to a grand total of 1.414 billion euros.
Finally, benefits paid have grown by 22% (100.112 million
euros against 82.176 million euros in 2006).
3. Financial income
Net investment income amounted to 20.742 million euros
against 17.318 million euros in 2006 while the 2007
5. Profit for the year and proposed allocation
For the year under review, the company realised a profit
after tax of 3 478 312 euros.
13
financial year benefited from realised gains through
UCITS redemption for a sum of 2.283 million euros.
Taking into account the balance brought forward from
2006 of 154 752 euros, the balance available to the Annual
4. Description and management of main risks
The management of the main risks to which the company
is exposed directly falls within the scope of the policy in
force within the Swiss Life Group. Thus, a quantitative
and qualitative assessment of all the risks is carried out on
a half-year basis. Furthermore, financial risks are followed
up on a monthly basis.
Asset allocation is also subject to a periodic process, of
which one of the objectives consists in ensuring
observance of the set risk limits, in particular while
favouring high quality securities.
At an operational level, a continuity plan is established,
allowing for a continuity of the administration operations
in case of unavailability or of serious IT failures of the
current equipment.
General Meeting is 3 633 064 euros.
We propose to allocate this balance as follows:
- Allocation to legal reserve:
EUR
- Allocation to free reserve:
EUR 2 552 663
173 915
- Allocation to unavailable reserve
for tax purposes (*):
EUR
423 680
- Unavailable reserve brought forward
for tax purposes (**):
(EUR
517 194)
- Dividend to be paid to shareholders:
EUR
0
- Balance carried forward:
EUR 1 000 000
(*) in accordance with article 174bis of the Income Tax Law allowing wealth tax to be
charged to its own base.
(**) clawback of due past allocation to unavailable reserve for tax purposes, i.e., the
allocation to unavailable reserve for the year 2001 (unavailable reserve retained for
5 tax years following the year in which the request to set up the reserve was made)
and transfer to the free reserve.
Acknowledgements
We would like to thank our clients for the confidence that
they have once again shown in us in 2007.
We also direct our heartfelt thanks to each one of our
partners, as well as to our colleagues in the Swiss Life Group,
for their precious collaboration.
Finally, warm thanks go to our staff, whose commitment
and professionalism has never failed throughout the year,
and who enable us to approach new challenges with
optimism.
The Board of Directors
Strassen, 25 April 2008
15
16
Independent Auditor’s Report
Report on the annual accounts
Following our appointment by the General Meeting of the Shareholders dated 7 June 2007, we have audited the
accompanying annual accounts of Swiss Life (Luxembourg) S.A., which comprise the balance sheet as at 31 December
2007, the profit and loss account for the year then ended and a summary of significant accounting policies and other
explanatory notes.
Board of Directors responsibility for the annual accounts
The Board of Directors is responsible for the preparation and fair presentation of these annual accounts in accordance
with Luxembourg legal and regulatory requirements relating to the preparation of the annual accounts.
This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and
fair presentation of annual accounts that are free from material misstatement, whether due to fraud or error; selecting
and applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these annual accounts based on our audit. We conducted our audit in
accordance with International Standards on Auditing as adopted by the “Institut des Réviseurs d’Entreprises”. Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance whether the annual accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual
accounts. The procedures selected depend on the Auditor’s judgment, including the assessment of the risks of material
misstatement of the annual accounts, whether due to fraud or error. In making those risk assessments, the Auditor
considers internal control relevant to the entity’s preparation and fair presentation of the annual accounts in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the Board of Directors, as well as evaluating the overall presentation of the annual accounts.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
17
Opinion
In our opinion, these annual accounts give a true and fair view of the financial position of Swiss Life (Luxembourg) S.A.
as of 31 December 2007, and of the results of its operations for the year then ended in accordance with Luxembourg
legal and regulatory requirements relating to the preparation of the annual accounts.
Report on other legal and regulatory requirements
The annual report, which is the responsibility of the Board of Directors, is consistent with the annual accounts.
PricewaterhouseCoopers S.à r.l.
Luxembourg, 26 May 2008
Réviseur d’entreprises
Represented by
Mervyn R. Martins
Only the French version of the present Annual Report has been reviewed by the Independent Auditor. Consequently,
the Independent Auditor’s report refers to the French version of the report, other versions result from a conscientious
translation made under the responsibility of the Board of Directors. In case of differences between the French version
and the translation, the French version prevails.
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Balance sheets as at 31 December 2007 and 2006
18
(expressed in euros)
Assets
Notes
2007
2006
10
7 436 806
7 436 806
3(b), 4
75 353
59 381
Investments in affiliated undertakings and participating interests
3(d), 5
99 526
99 526
Other financial investments
3(e), 6
Subscribed capital unpaid
Intangible assets
Investments
- Shares and other variable yield
transferable securities and units in unit trusts
3(f)
12 002 142
6 596 214
- Debt securities and other fixed income transferable securities
3(g)
398 472 762
369 375 509
- Other loans
Investments for the benefit of life insurance policyholders
who bear the investment risk
7
3(h)
264 137
155 392
410 838 567
376 226 641
1 006 923 835
835 929 404
475 382
509 881
7 001 235
5 086 487
103 194
430 261
728 914
2 380 771
Reinsurers’ share of technical provisions
Life insurance provision
Debtors
Debtors arising out of direct insurance operations
3(i), 8
- Policyholders
- Intermediaries
Debtors arising out of reinsurance operations
- due on claimss
- other debtors
1 360 079
43 890
Other debtors
1 652 779
1 535 891
10 846 201
9 477 300
Other assets
Tangible assets and stocks
3(c)
Cash at bank and in hand
479 015
166 456
19 305 256
19 777 643
19 784 271
19 944 099
9 427 193
8 589 938
6 177 507
4 335 975
Prepayments and accrued income
Accrued interest and rent
Deferred acquisition costs
Other prepayments and accrued income
Total assets
The accompanying notes form an integral part of these financial statements.
3(j), 9
712 449
491 844
16 317 149
13 417 757
1 472 697 564
1 263 001 269
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Balance sheets as at 31 December 2007 and 2006
19
Liabilities
Notes
Capital and reserves
2007
2006
15 000 000
15 000 000
10
Subscribed capital
Reserves
- Legal reserve
11
- Other reserves
Profit brought forward
Profit for the financial year
618 228
522 865
7 919 041
6 446 548
154 752
615 353
3 478 312
1 907 254
27 170 333
24 492 020
6 500 000
6 500 000
Subordinated liabilities
Subordinated loan
Technical provisions
8
3(k), 12
Provision for unearned premiums
Claims outstanding
Provision for bonuses and rebates
Technical provisions for life insurance policies
where the investment risk is borne by the policyholders
Provisions for other risks and charges
3(k), 12
13
Deposits received from reinsurers
Creditors
667 282
357 931 131
10 653 873
8 925 307
8 732 550
4 002 394
407 030 772
371 526 114
1 006 923 835
835 929 404
3 340 454
3 443 380
3(l)
Provisions for taxation
Other provisions
702 335
386 942 014
300 000
0
3 640 454
3 443 380
475 381
509 881
6 136 318
8 955 129
3(m), 8, 14
Creditors arising out of direct insurance operations
Creditors arising out of reinsurance operations
- Payable reassigned premiums
Other creditors, including tax and social security
Accruals and deferred income
Total liabilities
3(n)
10 086 174
7 712 051
4 400 154
2 878 430
20 622 646
19 545 610
334 143
1 054 860
1 472 697 564
1 263 001 269
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Profit and loss accounts for the years ended 31 December 2007 and 2006
20
Notes
Technical account - Life insurance business
Earned premium, net of reinsurance
15
Gross premiums written
16
Outward reinsurance premiums
Change in the provision for unearned premiums, net of reinsurance
2007
2006
309 197 624
534 868 553
-9 537 823
-7 842 722
-36 538
18 801
299 623 263
527 044 632
19 575 796
19 104 314
Investment income
Income from participating interests
- Income from other investments
Gains on the realisation of investments
Unrealised gains on investments
3(h)
Other technical income, net of reinsurance
7 071 708
2 584 218
26 647 504
21 688 532
27 674 497
20 280 917
1 003 404
1 436 906
-100 111 547
-82 175 740
728 914
2 380 771
Claims incurred, net of reinsurance
Claims paid
- Gross amount
- Reinsurers’ share
Changes in provisions for claims
- Gross amount
-1 844 300
-5 010 796
-101 226 933
-84 805 765
-206 979 778
-455 685 971
Changes in other technical provisions, net of reinsurance
- Gross amount
- Reinsurers’ share
Bonuses and rebates, net of resinsurance
-34 499
66 880
-207 014 277
-455 619 091
-7 084 072
-2 188 388
-11 228 852
-5 909 006
Net operating expenses
Acquisition costs
17
Changes in deferred acquisition costs
Administrative expenses
3(p)
Reinsurance commissions and profit participation
1 842 556
533 913
-8 174 248
-5 542 018
1 331 630
24 492
-16 228 914
-10 892 619
-2 462 622
-2 710 133
Investment charges
Investment management charges, including interest
Value adjustments on investments
Losses on the realisation of investments
Unrealised losses on investments
3(h)
Other technical charges, net of reinsurance
Allocated investment return transferred to the non-technical account
Balance on the technical account - Life insurance business
3(o)
-158 340
-47 752
-3 284 632
-1 612 503
-5 905 594
-4 370 388
-12 519 463
-9 232 150
-149 276
-137 472
-1 468 383
-430 518
3 351 756
2 774 596
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Profit and loss accounts for the years ended 31 December 2007 and 2006
21
Notes
2007
2006
3 351 756
2 774 596
1 468 383
430 518
Non-technical account
Balance on the technical account - life insurance business
Allocated investment return transferred from the life insurance technical account
3(o)
Other charges, including value adjustments
-500 000
0
Tax on profit or loss on ordinary activities
-88 940
-1 260 223
4 231 199
1 944 891
Profit on ordinary activities after tax
Extraordinary charges
-638 775
0
Extraordinary loss
-638 775
0
Other taxes, not shown under the preceding items
Profit for the financial year
-114 112
-37 637
3 478 312
1 907 254
Swiss Life (Luxembourg) S.A. . Annual Report 2007 . Notes to the accounts as at 31 December 2007
22
Notes to the accounts as at 31 December 2005
1. General
The company is, in accordance with Luxembourg law,
Swiss Life (Luxembourg) S.A. ("the company") is an
exempt from the requirement to prepare consolidated
insurance company incorporated in the Grand Duchy of
financial statements and a consolidated Management
Luxembourg on 27 March 1985, as a limited liability
report for the year ended 31 December 2007. Therefore, in
company (société anonyme). The objects of the company are to
conformity with legal provisions, these accounts were
engage in any insurance and reinsurance business in the "life"
presented on a non consolidated basis for approval by the
branch, both in the Grand Duchy of Luxembourg and abroad,
shareholders at the Annual General Meeting.
on its own behalf and on behalf of third parties, as follows:
3. Summary of significant accounting policies
(a) Insurance operations
The significant accounting policies applied by the company
- in case of death
are as follows:
- in case of life, with or without reinsurance
- combined
(a) Translation of items expressed in foreign currencies
- regarding complementary covers providing non-
The assets and liabilities expressed in foreign currencies are
indemnity benefits in the event of sickness or accident,
translated into euros (EUR) at the exchange rates prevailing
in particular in the event of disability.
at the balance sheet date.
(b) Capitalisation operations
Transactions during the accounting period, expressed in
foreign currencies are translated into euros (EUR) at the
(c) Management of collective pension funds, and more
exchange rates prevailing at the balance sheet date.
generally, any financial, asset and real estate transactions
directly connected with the objects above.
(b) Intangible assets
The intangible assets are valued at historical acquisition cost.
The company may also acquire any interests and
Intangible assets are amortised on a straight line basis at
shareholdings in any other companies or insurance
33.33% p.a. on setup costs, 16.67% to 50% p.a. on software
companies which are liable to further the company’s
and 10% on goodwill.
business, and more particularly by establishing special
purpose companies, investments, mergers, subscribing for
(c) Land and buildings - Tangible fixed assets
and purchasing shares, bonds and other securities,
Land and buildings and tangible assets, are valued at
purchasing interests in companies and by any partnership
historical acquisition cost. The acquisition cost includes
or other agreements of any kind whatsoever.
expenses incidental to the purchase.
2. Presentation of the financial statements
Buildings and tangible assets with limited useful economic
These financial statements have been prepared in
lives are amortised on a straight line basis at the following
conformity with the law of 8 December 1994 on financial
rates:
statements with respect to insurance and reinsurance
undertakings, and with the significant accounting policies
generally accepted within the insurance industry in the
Grand Duchy of Luxembourg.
The accounting policies and the valuation rules apart from
those defined by the law or the Commissariat aux Assurances
are determined and applied by the Board of Directors.
Plant
Electrical equipment
Machinery
Office furniture
10 % - 25 %
20 % - 33,3 %
20 % - 33,3 %
10 % - 33,3 %
23
(d) Shares in affiliated undertakings and participating
interests
Affiliated undertakings are considered to be the undertakings
at historical acquisition cost, or redemption value, taking
into account the following elements:
- a positive difference between the acquisition cost and
between which the company or the parent company exercises
redemption value is written off in instalments over the
a dominant influence either directly or indirectly.
duration of the holding of the security;
Participating interests refer to rights contained in the capital
of other undertakings which, when creating a durable link
with those undertakings, are intended to contribute to the
- a negative difference between the acquisition cost and
redemption value is released to income in instalments
over the period remaining to repayment.
company’s activities.
If the Directors expect the impairment in value to be
Shares in affiliated undertakings and participating interests
permanent in nature, debt securities and other fixed
are valued at historical acquisition cost which includes
income transferable securities are valued at the lower value
expenses incidental to the purchase.
at the balance sheet date. These value adjustments may not
If the impairment in value is of a permanent nature, the
be carried when the reasons for which they were made cease
shares in affiliated undertakings and participating interests
to apply.
are valued at the lower value at the balance sheet date.
These value adjustments should no longer continue when the
reasons for which they were made cease to apply.
(h) Investments for the benefit of life insurance
policyholders who bear the investment risk
Investments for the benefit of life insurance policyholders
(e) Other financial investments
who bear the investment risk are valued at the market value
Other financial investments are valued at historical
at the balance sheet date and any difference between this
acquisition cost which includes incidental purchase expenses.
value and the acquisition cost is disclosed in the technical
If the directors expect the impairment in value to be
account for life insurance in the unrealised gains or losses
permanent in nature, the other financial investments are
on investments line items.
valued at the lower value at the balance sheet date. These
The market value shall refer to that value quoted on a stock
value adjustments may not be carried when the reasons for
exchange or the value at which the investment could be
which they were made cease to apply.
sold, valued prudently and in good faith.
(f) Shares and other variable yield transferable securities
and units in unit trusts
(i) Debtors
Debtors are valued at the lower of their nominal and their
probable realisable value. Value adjustments shall be made
when recoverability is questionable, either in part or
entirely. These value adjustments shall no longer be carried
when the reasons for which they were made cease to apply.
Shares and other variable yield transferable securities and
units in unit trusts are valued at the lower of historical
acquisition cost and realisable value. The acquisition cost
includes expenses incidental to the purchase. The value
adjustments which correspond to the difference between
the realisable value and the acquisition cost are maintained
even if the reasons for which they were made cease to apply.
(g) Debt securities and other fixed income transferable
securities
Debt securities and other fixed income securities are valued
(j) Deferred acquisition costs
Deferred acquisition costs directly related to life insurance
contracts, disclosed as an asset, are based on the calculation
of the life insurance provision.
24
3. Summary of significant accounting policies
(continued)
Technical provisions for life insurance contracts where the
(k) Technical provisions
Sufficient technical provisions are set up in order that the
company can meet, as far as can be reasonably foreseen, any
liabilities arising from insurance contracts.
This item shall comprise technical provisions set up to
Provision for unearned premiums
policyholder bears the risk.
investment risk is borne by the policyholders
cover liabilities relating to investments in the context of life
insurance contracts whose value or return is determined by
reference to an index or to investments for which the
Written premiums include all the amounts received or
receivable with respect to insurance contracts concluded
(l) Provisions for other risks and charges
prior to the end of the accounting period.
Provisions for other risks and charges are intended to cover
That part of written premiums which is to be allocated to
losses or debts whose nature is clearly defined but are, at
one or more subsequent financial years is deferred by way of
the balance sheet date, either likely or certain to be incurred
the provision for unearned premiums, computed separately
but amounts or timing are indeterminable.
for each contract on a prorata basis.
The liabilities for the employees’ pension fund are included
under the technical provisions item.
The life insurance provision, which consists of the actuarial
value of the company’s liabilities net of future premiums, is
calculated separately for each contract.
The technical basis and methods applied for computing the
balance sheets’ life insurance provision are specified in the
annual actuarial report communicated to the supervisory
authority.
Provision for claims outstanding
The provision for claims outstanding corresponds to the
total estimated cost (including claims settlement costs) for
settling all claims arising from events which have occurred up
to the end of the financial year.
The provision for claims outstanding is computed separately
for each claim known by the company. Claims occurred but
not declared as at balance sheet date are assessed globally on
a flat-rate basis.
Provision for bonuses and rebates
This provision consists of amounts intended for
policyholders or contract beneficiaries to the extent that
such amounts represent an allocation of surplus or profit
arising on business, or a partial refund of premium made
based on the performance of the contracts.
(m) Creditors
Creditors are included in liabilities at settlement value.
If the amount payable is greater than the amount received,
the difference is charged at the date when the debt is
recognised.
If the amount payable is lower than the amount received,
the difference is released to income in instalments over the
remaining period of the contract.
(n) Accruals and deferred income
This item consists of both income receivable before the
balance sheet date but relating to a subsequent financial
year and charges that relate to the current financial year but
payable in a subsequent financial year.
(o) Allocated investment return transferred to the nontechnical account
The allocated investment return transferred from the
technical account to the non-technical account represents
the income relating to assets being part of the company’s
free assets.
25
(p) Administrative expenses
Administrative expenses specifically consist of costs arising
from premium collection, portfolio administration,
handling of bonuses and rebates and inward and outward
reinsurance. In particular they include staff costs and
depreciation provisions in respect of office furniture and
equipment in so far as these need not to be shown under
acquisition costs, claims incurred or investment charges.
(q) Value adjustments
Value adjustments are deducted directly from the related
individual asset.
4. Intangible assets
The movements in intangible assets incurred during the financial year are summarised as follows:
Gross book value 01/01/2007
Formation
expenses
Capital
increase
costs
Software
Goodwill
EUR
EUR
EUR
EUR
EUR
13 898
143 244
296 306
128 905
582 353
61 565
Total
Additions during the year
0
0
61 565
0
Disposals during the year
0
0
0
0
0
13 898
143 244
357 871
128 905
643 918
(13 898)
(143 244)
(236 925)
(128 905)
(522 972)
0
0
(45 593)
0
(45 593)
(13 898)
(143 244)
(282 518)
(128 905)
(568 565)
Net book value 31/12/2007
0
0
75 353
0
75 353
0
0
59 381
0
59 381
Accumulated depreciation 01/01/2007
Depreciation during the year
5. Shares in affiliated undertakings and participating interests
The movements during the financial year in respect of shares in affiliated undertakings and participating interests are as follows:
Participating interests
EUR
Additions during the year
Disposals during the year
99 526
0
0
99 526
0
Depreciation
0
Current value 31/12/2007
0
99 526
99 526
262 226
26
5. Shares in affiliated undertakings and
participating interests (cont.)
6. Other financial investments
The current value of shares in affiliated undertakings and
yield transferable securities" and "Debt securities and
participating interests has been determined by the following
other fixed income transferable securities" as at
methods:
31 December 2007, was 12 502 666 euros and
- Transferable securities which are admitted to official listing
391 992 252 euros respectively.
The current value of the items "Shares and other variable
on a stock exchange or dealt in on another regulated market
The current value of the investment portfolio has been
are valued on the basis of the last available price.
- Transferable securities not admitted to official listing on a
stock exchange or not dealt in on another regulated market
determined by the following methods:
- Transferable securities which are admitted to official
and transferable securities admitted to official listing on a
listing on a stock exchange or dealt in on another
stock exchange or dealt in on another regulated market for
regulated market are valued on the basis of the last
which the last available price is not representative are valued
available price.
- Transferable securities not admitted to official listing
on the basis of their reasonably foreseeable sales price
determined with prudence and good faith by the Board of
on a stock exchange or not dealt in on another
Directors.
regulated market and transferable securities admitted
to official listing on a stock exchange or dealt in on
The undertakings in which the company holds twenty per cent
another regulated market for which the last available
or more of the capital are the following:
price is not representative are valued on the basis of
Holding
percentage
Esofac International S.A.
Résidence Val Fleuri II
37, rue Michel Engels
Luxembourg
30%
SLGB Management S.A.
23, avenue de la Porte Neuve
Luxembourg
24%
Total
Capital &
Result of
Book value
reserve financial year
31/12/2007 31/12/2006 31/12/2006
EUR
EUR
EUR
44 621
424 541
19 545
their reasonably foreseeable sales price determined with
prudence and good faith by the Board of Directors.
The depreciation of the positive and negative differences
between the acquisition cost and the redemption value
(agio/disagio) in the financial year 2007 stands at
54 905
561 931
111 821
1 471 895 euros and 758 587 euros respectively.
The net balance for depreciation as at 31 December 2007,
99 526
stands at 11 995 522 euros.
7. Other loans
Other loans are secured by contracts taken out by the
borrowers.
8. Amounts owed by or to affiliated undertakings or undertakings with which the company is linked
by virtue of a participating interest
The items may be broken down as follows:
Affiliated
undertakings
Undertakings
linked by virtue
of participating interest
EUR
EUR
2 033 694
0
9 812 975
0
Debtors
Debtors arising out of reinsurance operations
Creditors
Creditors arising out of reinsurance operations
Debenture loans
- of which subordinated loans
6 500 000
Other creditors
1 476 945
14 000
9. Deferred acquisition costs
The movements in deferred acquisition costs during the financial year can be summarised as follows:
EUR
Net acquisition costs, opening balance
4 335 975
Conversion differences (net)
(1 024)
Net difference in additions/depreciation during the year
1 842 556
Net acquisition costs, closing balance
6 177 507
10. Capital and reserves
The movements during the financial year in respect of capital and reserves may be broken down as follows:
Subscribed
capital
As at 31/12/2006
Allocation of result 2006
Movements during financial year 2007
As at 31/12/2007
Legal
reserve
Other
reserves
Profit brought
forward
Profit for
the year
Distributed
dividends
EUR
EUR
EUR
EUR
EUR
EUR
15 000 000
522 865
6 446 548
615 353
1 907 254
0
0
95 363
1 472 493
(460 601)
(1 907 254)
800 000
0
0
0
0
3 478 312
0
15 000 000
618 228
7 919 041
154 752
3 478 312
800 000
As at 31 December 2007, the subscribed capital amounting to 15 000 000 euros, is represented by 15 000 shares with no
nominal value; the paid up capital is 7 563 194 euros.
11. Legal reserve
The company must allocate 5% of its net profit for each financial year in order to comply with Luxembourg company law
requirements. This allocation ceases to be compulsory once the legal reserve balance reaches 10% of the issued share capital.
The legal reserve is not available for distribution to shareholders, except upon the dissolution of the company.
27
12. Technical provisions
28
Closing balance 31/12/2006
Conversion difference
Opening balance 01/01/2007
Provision
for unearned
premiums
Life
insurance
provision
Provision
for claims
outstanding
Provision
for
bonuses
Technical
provisions*
Total
EUR
667 282
EUR
357 931 131
EUR
8 925 307
EUR
4 002 394
EUR
835 929 404
EUR
1 207 455 518
(1 485)
(4 741 448)
(115 734)
(4 404)
(2 233 016)
(7 096 087)
665 797
353 189 683
8 809 573
3 997 990
833 696 388
1 200 359 431
Movements during financial year 2007 36 538
Closing balance 31/12/2007
702 335
33 752 331
1 844 300
4 734 560
173 227 447
213 595 176
386 942 014
10 653 873
8 732 550
1 006 923 835
1 413 954 607
* relating to life insurance where investment risks are borne by the policyholder.
13. Other provisions
A provision for reorganisation amounting to 300 000 euros was set up in order to implement the integration of the group
and individual operations into the new Swiss Life Corporate Solutions and Swiss Life Private Placement transnational
divisions.
14. Classification of loans according to duration
With the exception of the subordinated loan having a duration of more than one year but less than five years, all loans
have a duration of less than one year.
15. Results from the life insurance business
The principal results of the life insurance business may be broken down as follows:
2007
Life insurance
EUR
Individual premiums
206 194 277
Premiums under group contracts
103 003 347
Periodic premiums
104 817 970
Single premiums
204 379 654
Premiums for non-bonus contracts
Premiums for bonus contracts
Premiums from contracts where the investment risks are borne by the policyholders
Reinsurance balance
1 235 305
93 522 300
214 440 019
- 7 511 778
16. Geographical breakdown of written premiums
Gross direct insurance premiums amounting to 309 197 624 euros, may be broken down into geographic zones according
to where the contracts have been concluded:
2007
Life insurance
EUR
Contracts concluded in the Grand Duchy of Luxembourg
Contracts concluded in other countries of the EEA
Contracts concluded in other countries outside the EEA
64 127 306
184 418 357
60 651 961
17. Commissions
21. Off balance sheet commitments
Commissions paid to insurance intermediaries relating
At 31 December 2007, the company has the following
to direct insurance amount to 7 707 637 euros (2006:
commitments:
3 521 675 euros), and is included in the acquisition costs item.
29
EUR
Leasing of hardware
115 991
18. Personnel employed during the year
Leasing of vehicles
208 107
The average number of persons employed during the
Leasing of office equipment
financial year 2007 amounts to 65, and may be broken
down in the following categories:
Category
9 768
Building lease agreement
2 115 234
22. Collective pension funds
Number of persons
Management
5
Executives
33
Salaried employees
26
Waged employees
1
The personnel costs with respect to the financial year may
be broken down as follows:
EUR
Investments
Other financial investments
- Shares and other variable yield transferable securities
and units in unit trusts
16 105 757
- Debt securities and other fixed income transferable securities
7 457 206
Other assets
EUR
Wages and salaries
Assets
5 888 542
- Cash at bank and in hand
3 812 473
Prepayments and accrued income
Social security costs
424 300
- Accrued interest and rent
- of which pensions
299 287
- Other prepayments and accrued income
81 370
0
27 456 806
19. Remuneration granted to members of
the Board of Directors and to Management
Directors’ fees or other remuneration to members of the
Board of Directors amount to 0 euro including employer
charges.
Remuneration granted to the company’s Management
Liabilities
EUR
Technical provisions
Technical provisions for life insurance
contracts where the investment risk
is borne by the policyholders
27 456 806
27 456 806
amounts to 996 198 euros including employer charges.
20. Fees of the Independent Auditor
23. Tax status
The fees of the Independent Auditor for the year ended
Swiss Life (Luxembourg) S.A. is subject to the tax
31 December 2007 in relation to the audit of the annual
legislation in force in the Grand Duchy of Luxembourg.
accounts, the issuance of the special report and the reporting to the parent company amount to 105 950 euros
(2006: 99 500 euros).
24. Information concerning consolidated
companies
Swiss Life (Luxembourg) S.A. is included in the
consolidated financial statements prepared by Swiss Life
Holding, a société anonyme under Swiss law, whose
registered office is at CH-8022 Zurich, General-Guisan-Quai
40 (Switzerland), being the largest group of companies to
which the company belongs as a subsidiary.
The consolidated accounts are available from the head
office of Swiss Life (Luxembourg) S.A.
Caution regarding forward-looking statements
This Annual Report contains forward-looking statements
about Swiss Life which involve certain risks and
uncertainties. The reader should be aware that such
statements represent projections which could differ
materially from actual outcomes and results. All forward
looking statements are based on the data available to
Swiss Life at the time this Annual Report was compiled.
This Annual Report is a translation of the audited French
document. The French text prevails.
Design and production
Kosmo, Luxembourg
Translation
Eilidh Horder, Momchilovtsi (Bulgaria)
Swiss Life, Luxembourg
Photography
Swiss Life, Zurich
Swiss Life (Luxembourg) S.A. - A limited company under Luxembourg law authorised by ministerial order on 2 May 1985 - Trade Register Luxembourg section B no. 22663
Swiss Life
25, route d’Arlon
L-8009 Strassen
B.P. 2086
L-1020 Luxembourg
T +352 42 39 59-1
F +352 26 43 40
www.swisslife.lu

Annual Report 2007 Swiss Life (Luxembourg) SA

Transcription

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