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## SWITZERLAND 

## _ Allianz Suisse Lebensversicherungs-Gesellschaft posted revenues of 1.2 billion euros. 

## _ That makes the company number six in the Swiss market. 

Total premium income remained at 1.2 billion euros. It came mainly from the consumer life insurance business, which in- cludes a high percentage of non-recurring premiums. Revenues were boosted by the introduction of unit-linked products. Pre- mium income from group health insurance plans also posted 2 percent growth. Revenues in IFRS accounts, which only rec- ognize the risk and cost components of premiums from invest- ment-oriented life insurance products, total premium income declined to 557 (651) million euros. 

The expense ratio improved 3.7 percentage points to 8.6 per- cent. Write-downs of deferred acquisition costs were lower than in the previous year, and our cost-cutting measures in distribu- tion began to show palpable results. 

Lower realized losses and write-downs on the investment port- folio pushed up investment income to 205 (31) million euros. 

But despite operating improvements and higher investment in- come, our Swiss company once again posted an after-tax loss. This loss came to 9 (loss of 80) million euros and is again at- tributable to an excessive guaranteed interest in the Swiss life insurance business. This interest rate had been lowered from 4 to 3.25 percent at the beginning of 2003, but even that level cannot be sustained under the prevailing conditions in the finan- cial markets. Swiss government bonds, for example, have a yield of 2.5 percent. A further cut of the interest rate to 2.25 percent was decided, effective January 1, 2004. In the group insurance business, this new rate also applies to the insurance portfolio. 

This regulatory measure enables us to once again under- write profitable new business. In addition, we have introduced comprehensive measures aimed at revising our product port- folio, standardizing our administrative systems and implement- ing new requirements due to changes in the regulatory en- vironment. 

## Allianz Suisse 

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*) In relation to total premiums earned (net). 

With a uniform and modernized product portfolio, we antici- pate a return to the profit zone in the current fiscal year . 

