Premium volume and key figures

06 October 2022

The premiums received domestically and internationally every year, combined with the most important key balance sheet figures, give an overview of the economic significance of the Swiss insurance industry.

Private insurers with based or headquartered in Switzerland received a total of 226,5 billion Swiss francs in premiums in 2021. Many of the country’s major insurance companies have a strong international focus: around three-quarters of premiums were generated abroad.

Global premium volume 2021
	Switzerland	International	Total
Life	23,1	39,6	62,7
Non-life	29,9	77,3	108,2
Total direct insurance (CHF billion)	53,0	117,9	170,9
Reinsurance *	2,5	53,1	55,6
Overall total in CHF billion	55,5	171,0	226,5
Breakdown in percent	24%	76%	100%

_{* Estimates: Swiss Insurance Association SIA

Source: Finma}

The largest share of the assets reported by private insurers in all lines of business relates to investments. Insurers act as investors, injecting this money into the economic cycle over the long term.

Extract from the balance sheet and key figures – Assets

	2021	2020	2019	2018
Life insurers	325,8	325,8	328,6	348,8
of which financial investments	310,6	313,3	317,1	338,1
Non-life insurance	186,9	179,4	179,3	169,1
of which financial investments	158,2	153,4	152,6	150,5
Reinsurance	204,9	207,4	204,3	166,3
of which financial investments	105,4	101,6	97,0	93,3
Total in CHF billion	717,6	712,6	712,2	684,2
of which financial investments	574,3	568,3	566,7	581,9

The financial assets of insurance companies have to be secured using tied assets, as the companies need them in order to fulfil their obligations as insurers. The minimum funding requirement is 101 per cent. This must be covered at all times by corresponding assets, which are governed by stringent investment guidelines. The coverage ratio indicates which resources are available in tied assets as a percentage of the minimum funding requirement.

Extract from the balance sheet and key figures – Tied assets
	2021	2020	2019	2018
Life insurance
Target amount	267'607	268'435	270'086	292'375
Total value of coverage	293'290	290'733	293'239	316'067
Coverage ratio – tied assets	110%	108%	109%	108%
Property/casualty insurance
Target amount	63'792	60'811	59'673	59'695
Total value of coverage	84'335	77'128	77'313	74'094
Coverage ratio – tied assets	132%	127%	130%	124%

The Swiss Solvency Test (SST) is used to evaluate the capital resources of an insurance company. The requirement for solvency is met where the available capital (risk-bearing capital) is greater than the capital required (target capital). Tied assets and the risk-based solvency regime under the SST guarantee a high degree of security for policyholders.

Extract from the balance sheet and key figures – Solvency ratio
	2021	2020	2019	2018
Life insurers	236%	207%	201%	194%
Non-life insurance	264%	241%	273%	252%
Reinsurance	203%	189%	199%	203%
Total	238%	216%	226%	219%

Investments are a central part of insurance companies’ assets. Insurers use them to meet their long-term insurance obligations. Capital is invested in various classes that also benefit the Swiss economy.

Extract from the balance sheet and key figures – Investments 2021
	Life	Property/ casualty	Reinsurance	Total
Fixed-income securities	149,6	50,8	36,8	237,2
Participations	6,2	43,3	27,0	76,5
Land and real estate	41,5	7,4	0,1	49,0
Mortgage loans	33,0	5,2	0,0	38,3
Loans and debt register claims	8,9	9,6	3,8	22,4
Equity (incl. treasury shares/bonds)	12,1	7,2	0,8	20,0
Collective investment schemes	-	-	-	-
Alternative investments and derivatives	-	-	-	-
Other investments	29,6	24,4	28,2	82,1
Cash, fixed-term deposits, other money market investments	5.8	11,1	4,5	21,3
Unit-linked life insurance	24,1	0,0	0,0	24,2
Total investments in CHF billion	310,8	158,9	101,2	571,0
Receivables and other assets	15,0	20,5	106,3	141,7
Total assets in CHF billion	325,8	179,4	207,4	712,6

_{Source: Finma}