Pre­mi­um vol­ume and key fig­ures

18 November 2021

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 almost 230 billion Swiss francs in premiums in 2020. Many of the country’s major insurance companies have a strong international focus: around three-quarters of premiums were generated abroad.

Global premium volume 2020
  Switzerland International Total
Life 24,3 48,1 72,4
Non-life 29,1 73,4 102,5
Total direct insurance (CHF billion) 53,4 121,5 174,9
Reinsurance * 2,8 52,2 55,0
Overall total in CHF billion 56,2 173,7 229,9
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
           
  2016 2017 2018 2019 2020
Life insurers 349,7 352,8 348,8 328,6 325,8
of which financial investments 338,4 342,4 338,1 317,1 313,3
Non-life insurance 167,0 169,1 169,1 179,3 179,4
of which financial investments 148,6 150,6 150,5 152,6 153,4
Reinsurance 157,8 174,8 166,3 204,3 207,4
of which financial investments 92,3 93,7 93,3 97,0 101,6
Total in CHF billion 674,5 969,7 684,2 712,2 712,6
of which financial investments 579,3 586,7 581,9 566,7 568,3

 

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
  2016 2017 2018 2019 2020
Life insurance          
Target amount 290'254 293’664 292'375 270'086 268'435
Total value of coverage 310'819 318’302 316'067 293'239 290'733
Coverage ratio – tied assets 107% 108% 108% 109% 108%
Property/casualty insurance          
Target amount 56'737 58’316 59'695 59'673 60'811
Total value of coverage 70'769 74’961 74'094 77'313 77'128
Coverage ratio – tied assets 125% 129% 124% 130% 127%

 

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
  2016 2017 2018 2019 2020
Life insurers 160% 178% 194% 201% 207%
Non-life insurance 228% 231% 252% 273% 241%
Reinsurance 217% 223% 203% 199% 189%
Total 201% 209% 219% 226% 216%

 

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 2020
  Life Property/ casualty Reinsurance Total
Fixed-income securities 152,8 47,3 38,5 238,6
Participations 5,6 42,4 25,8 73,8
Land and real estate 40,7 7,4 0,1 48,2
Mortgage loans 34,0 5,3 0,0 39,3
Loans and debt register claims 9,3 7,9 3,8 21,0
Equity (incl. treasury shares/bonds) 12,1 7,2 1,0 20,4
Collective investment schemes - - - -
Alternative investments and derivatives - - - -
Other investments 30,7 23,8 27,5 82,0
Cash, fixed-term deposits, other money market investments 5.6 12,5 5,0 23,1
Unit-linked life insurance 22,7 0,0 0,0 22,7
Total investments in CHF billion 313,4 154,0 101,6 569,1
Receivables and other assets 12,4 25,4 105,8 143,5
Total assets in CHF billion 325,8 179,4 207,4 712,6

Source: Finma