Swiss Life, Switzerland’s biggest life insurer, reported a 55 per cent slide in premiums for its international wealth business to SFr1.7 billion (around $1.85 billion) in the first nine months of 2011, blaming the fall on “uncertainties in private banking” as well as being in contrast to last year’s very strong result.

In its Insurance International segment, which represents the global business with high net worth individuals, Swiss Life said its latest results were also affected by the “effects of the Italian tax amnesty”. This refers to a drive by the Italian government to make holders of Swiss accounts come clean about their financial affairs.

In the three months to the end of September, Insurance International premium income fell by 43 per cent in local currency terms to SFr508 million.

As described by this publication recently (click here), life insurance firms, via products such as private placement life insurance and “wrappers” offer an alternative wealth protection route to banks and funds, although complex rules require holders to examine the fine print to avoid falling foul of tax rules. The definition of “wrapper,” varies between jurisdictions, having a different meaning in tax mitigation terms in Switzerland and the US.

The Zurich-listed firm recorded premium income of SFr13.0 billion on 30 September 2011 – a decline of 13 per cent in local currency (Q3 2010: SFr15.8 billion) or down 18 per cent in Swiss franc terms.

Premium volume in the home market of Switzerland, on the other hand, rose by 10 per cent to SFr6.9 billion. 

"The Swiss Life Group business model is proving its worth even in the current low interest rate environment. Further operational improvements have already enabled us to implement all our cost savings initiatives within the framework of the Group-wide Milestone programme – and it is only the end of the third quarter of 2011,” said Bruno Pfister, group chief executive.