The Swiss Life Group, Switzerland's biggest life insurer, is taking the final step in the process of implementing its strategy of focusing on its core business. It is now integrating the life operations of its La Suisse subsidiary and concentrating on the Swiss Life brand in Switzerland.
In the process, the company is divesting all other La Suisse operations, selling the La Suisse property and liability lines to Vaudoise and taking on the latter’s group life business in return. The short-term disability and accident insurance business conducted by La Suisse is being sold to Helsana. Swiss Life will enter into distribution and sales cooperation agreements with Vaudoise and Helsana.
Overall, Swiss Life expects annual cost savings of CHF70 million as of 2007. The majority of the total restructuring costs of approximately CHF80 million will be charged to the 2005 financial year. In addition, of the roughly 900 La Suisse positions, about 100 will be discontinued in 2005. A further 100 positions will be phased out in 2006 and 2007.
Rolf Dorig, Swiss Life Group CEO, commented: by integrating the La Suisse life operations into Swiss Life, merging both companies’ distribution and sales networks, and acquiring the Vaudoise group life portfolio, we are significantly strengthening our position in our domestic market, Switzerland.
Furthermore, thanks to the cooperation agreements with Helsana and Vaudoise we are opening up new distribution and sales channels and will be able to offer our clients comprehensive individual insurance solutions.