elipsLife Annual Report 2016

Page 1

Annual report


Key figures in CHF

31.12.2016

31.12.2015

786.2 m

670.1 m

Gross claims*

–677.9 m

–555.3 m

Profit (in CHF)

1.2 m

1.3 m

721.7 m

545.6 m

158.6 m

138.4 m

182

140

Gross premiums earned (in CHF)

Total assets** (in CHF) Equity** (in CHF) Full-time equivalents**

* incl. change in reserves ** Total as at 31.12.


Contents 1 Preface ___________________________________________________________________ 5 2

Foreword by CEO ____________________________________________________ 8

3

Consolidated annual report ____________________________________ 12

3.1

Management report ________________________________________________________ 12

3.1.1 Business development _______________________________________________ 12

3.1.2 Investments, equity, solvency _______________________________________ 14

3.1.3 Risks ___________________________________________________________________ 14

3.1.4 Future development _________________________________________________ 16

3.2

elipsLife in the market ______________________________________________________ 18

3.2.1 Business environment _______________________________________________ 18

3.2.2 Existing markets _____________________________________________________ 19

3.2.3 Expansion into new markets ________________________________________ 21

3.2.4 International presence _______________________________________________ 22

3.3

Guarantees of success ______________________________________________________ 23

3.3.1 Technology and processes: on the way to digitisation ____________ 23

3.3.2 Diversity creates potential __________________________________________ 24

3.4

Corporate governance ______________________________________________________ 26

3.4.1 Group structure ______________________________________________________ 26

3.4.2 Organisation __________________________________________________________ 26

3.4.3 Compliance ___________________________________________________________ 27

3.4.4 Solvency II ____________________________________________________________ 28

3.4.5 Risk management ____________________________________________________ 28

3.4.6 Internal audit _________________________________________________________ 29

4

Consolidated financial statements _________________________ 32

4.1

Consolidated balance sheet ________________________________________________ 32

4.2

Consolidated income statement ___________________________________________ 34

4.3

Notes to the consolidated financial statements ___________________________ 35

4.3.1 Accounting policies __________________________________________________ 35

4.3.2 Valuation methods ___________________________________________________ 36

4.3.3 Notes to the consolidated balance sheet ___________________________ 39

4.3.4 Notes to the consolidated income statement ______________________ 43

4.3.5 Other disclosures ____________________________________________________ 45

4.4

Auditor’s report _____________________________________________________________ 46



elipsLife | Annual report 2016

Preface

5

1 Healthy growth before profitability The Board of Directors and Executive Board of elipsLife are looking back on an eventful and challenging 2016 financial year. In spite of a difficult market environment and huge investments, elipsLife ended the year on a positive note. I would like to take this opportunity to warmly thank everybody who contributed to this success: the employees of elipsLife for their commitment and devotion, and our customers and partners for their loyalty and cooperation. elipsLife broke new ground in the reporting year. Firstly, the company became part of the new Life Capital business unit established by Swiss Re at the beginning of 2016. Secondly, elipsLife took an important step towards achieving its goal of expanding into Europe with its entry into the German and Italian markets. The integration into the Life Capital business unit – a cornerstone of the Swiss Re Group with around 4 million insured, 40 billion in assets and some 2,800 employees – underlines the ambition of Swiss Re to grow elipsLife into one of the leading providers of group life solutions. Swiss Re is therefore correspondingly keen to provide its Group company with strategic support in achieving this goal. As the group business provides efficient and low-cost access to attractive biometric risks, it makes a considerable contribution to the implementation of Swiss Re’s vision to “Make the world more resilient”. Given the long-term objective of expanding the market position in Europe, the focus falls on development, growth and service. The prospects are very good that we will also reach our objectives for 2017, a year in which the market expansion into Germany and Italy will take centre stage. Swiss Re as the sole shareholder of elipsLife recognises that strict risk management and the preservation of our service quality have top priority in this expansion phase. Against this background, I am very pleased that elipsLife repeated the successes of the previous years and posted a profit for the 2016 financial year – in spite of the fact that the low interest rate environment had a severe negative effect on performance in the reporting year. In the current year, elipsLife will focus on strengthening its position in its core markets and will continue with the targeted expansion of its business activities into Germany and Italy. And as always, elipsLife will endeavour to provide its customers and partners with the best possible service. Thierry Léger Chairman of the Board of Directors of elipsLife


Sustainable expansion in European markets



elipsLife | Annual report 2016

8

Foreword by CEO

2 Substantial growth despite difficult environment A German proverb says that a person’s true character is only revealed in difficult situations. In the reporting year, elipsLife revealed its true character by sustaining its position in an unfavourable interest rate environment. Interest rates are not usually a serious problem for a biometric insurer. However, as a young company, elipsLife has not yet built up an asset portfolio that can still earn a return in this unusual interest rate landscape. This has now become a problem because the liabilities are measured with a technical interest rate that cannot be realised in the current environment. As a result, all current pension liabilities had to be restated using a new technical interest rate, and the resulting loss had to be charged to the income statement. This had an enormous impact on elipsLife in the reporting year, as the reserves had to be stocked up by millions. The company nevertheless managed to close the reporting year in the black, thanks to stable technical results – except for the Irish health insurance business – and strict cost control. The year 2016 was characterised by high growth. Premium volumes for the core business increased massively again by around 28 % from CHF 190.6 million to CHF 243.6 million. This growth was gener­ ated equally in the two main markets in Switzerland/Liechtenstein and the Netherlands. In the middle of the year we also launched our entry into two new markets: in Germany, we started with the new income protection benefits, and in Italy we launched our traditional products, but repackaged them to allow more flexibility. We will slowly build up these two markets with the objective of providing substan­ tial support to elipsLife’s growth in the coming years. In spite of severe competition we successfully increased our market volume in Ireland. Thanks to this, we posted an encouraging consolidated premium volume of CHF 786.2 million for 2016. In the reporting year we made great progress in our efforts to implement a fully digital process chain. We commissioned the module for the processing of life claims, which means that all main processes – partner management, contract administration, claims settlement, collections/payments, commis­ sions, document management, output, CRM and the portal interface – are now operational. We have thus reached our objective of digitising the after­sales processes. The outstanding feature is that we now have a multinational solution with which we can manage individual life as well as group life products on a single platform and across all borders. This system approach will in future drastically reduce our cost ratio, which is already very low and serves as a benchmark in an international comparison.


9

The embedding of elipsLife into Swiss Re’s new Life Capital business unit established at Group level in 2016 was a development of strategic importance. Although this adaptation of Swiss Re’s organisa­ tional structure did not lead to any great organisational or corporate changes for elipsLife, the strategy had to be reviewed and growth as the objective took centre stage: Swiss Re’s strengthened commitment will translate directly into further notable growth for elipsLife. Our company is expect­ ed to grow more than 20 % in its core business again in 2017, and the Irish business is also likely to post growth. This brings us closer to the magic barrier of CHF 1 billion in premium volume, which we should be able to reach in the next few years. This would be a very big success, as elipsLife was only established at the end of 2008.

The focus still is on sustainable expansion. I would like to take this opportunity to warmly thank all our employees whose commitment and know-how ensured our success in the reporting year. I would also like to thank the Board of Directors for their active support. Most importantly, however, I need to thank our customers, who once again honoured us by giving us their loyalty, thereby making a decisive contribution to our remarkable growth. Reto Toscan CEO of elipsLife


Notable premium growth of 28 % in the core business



elipsLife | Annual report 2016

12

Consolidated annual report

3 Consolidated annual report 3.1 | Management report 3.1.1 | Business development Following the Swiss franc crisis and its massive impact on parts of the balance sheet and income statement in the previous year, 2016 should really have been a better year. But 2016 was also shaped by external factors: in such a persistent low-interest environment, it was practically impossible to find asset categories for the rather short-term biometric business that would generate a net return. elipsLife therefore had to reduce its technical interest rate during the reporting year. This required the revaluation of the liabilities, as higher reserves were needed in view of the lower technical interest rate. At around CHF 3 million, the additional reserves that had to be raised had a direct impact on the income statement. As a young company, elipsLife is not yet in a position to absorb such an effect without an impact on its annual result. The previously much discussed Solvency II regime was introduced in the reporting year. Solvency II preparations used up enormous resources in the previous years. Thanks to solid and careful planning and implementation, elipsLife managed the introduction of Solvency II without any undesired side effects. At the end of 2016, the Solvency II ratio was 266 % for Elips Life Ltd and 127 % for Elips ­Insurance Ltd. In the reporting year, the new elipsLife IT platform was “end to end” ready for operations. The old daily sickness benefits system was migrated to the BBT Enterprise system, which is much more advanced and flexible. With the claims module, the last of the operational processes for the life business were migrated to the new platform. All workflow and support processes will be reviewed in the coming years to ensure the fully coordinated operation of the system along all social insurance structures. The decisive advantage is that the system is multilingual and can process several currencies and manage customers across national borders. This means that elipsLife only needs one system for all its international markets. This brings huge efficiency gains, which translate into lower prices for end customers. The commissioning of the full platform in the reporting year was a central milestone, but the digitisation of our processes has not yet been finished. Premiums performed very well in the reporting year. Premium volume for the core business rose from CHF 190.6 million to CHF 243.6 million, and consolidated premium volume, including the health insurance business in Ireland, increased from CHF 670.1 million to CHF 786.2 million. However, the year was also shaped by other factors that had a negative impact on the result. These include the low interest rates and the escalating price war in the Irish health insurance business. Because of these factors, earnings dropped from CHF 3.2 million before taxes in 2015 to CHF 2.6 million in the reporting year. In this context, it should also be remembered that elipsLife is still in the middle of an intensive investment phase designed to optimally equip the company for the future.


13

Cost ratio, consolidated

Premiums and claims, consolidated

670.1

149 %

555.3

655.9 531.7

545.7 453.0

677.9

786.2

in CHF million

91 %

3.6 3.2

2.2 1.4

10.8 7.5

139.8 105.7

58 %

2009*

2010*

2011

9 %

2012

2013

2014

2015

2016

2009*

2010*

2011

2012

4 % 2013

4 % 2014

5 % 2015

5 % 2016

Premiums and equity, ­consolidated

in CHF million

in CHF million

545.7

12.3

670.1

655.9

Profit before income tax, consolidated

786.2

Gross premiums earned Gross loss (incl. change in reserves)

7.4

2012

2013

2014

2015

2016

2009*

2010*

2011

Gross premiums earned Equity * 2009 and 2010 only Elips Life Ltd, from 2011 consolidated figures

2012

2013

2014

2015

158.6

138.4

2011

128.0

2010*

139.8

2009*

59.2

–3.5 10.8 19.4

–2.9

2.2 9.3

–3.3

2.6

3.6 12.2

3.2

111.4

4.0

2016


elipsLife | Annual report 2016

14

Consolidated annual report

In 2016, elipsLife expanded into two new markets and again invested heavily in digitisation. Against this background, elipsLife’s result for the reporting year certainly qualifies as positive overall with a consolidated annual profit of CHF 1.2 million. elipsLife’s equity was strengthened at the same time from CHF 138.4 million in the previous year to CHF 158.6 million. To calculate the consolidated result, a Swiss franc/euro exchange rate of 1.09 was used for the income statement and 1.07 for the balance sheet items.

3.1.2 | Investments, equity, solvency Investments In spite of the negative interest rates, the investment strategy did not change materially in the reporting year. The problem with elipsLife’s investments is that the average maturity does not exceed three years, and in the health insurance business the average maturity is only one year. The return was therefore very modest and at 0.1 % was lower in 2016 than ever before as a result of the investments in time deposits and bonds as well as the negative interest rates. The investment strategy has been selected to make the risk capital available to the insurance business, which is seeing strong growth. The low net return was the reason why elipsLife reduced its technical interest rate. Equity and solvency The reporting year was dominated by the introduction of the Solvency II regime. Thanks to its professional planning and implementation processes, elipsLife was very well prepared for this step and met the expectations of its stakeholders and specifically also the regulator. The equity capital was also strengthened: the sole shareholder contributed new capital of CHF 4 million to Elips Life Ltd and CHF 15 million to Elips Insurance Ltd.

3.1.3 | Risks elipsLife reviews its strategic focus every year: all factors affecting the current strategy are analysed and any measures that may be needed are implemented. The Risk Management Committee also reviews the operational risks every quarter. No changes to the strategy were needed in the reporting year, as the focus fell on sustainable growth, both in the core business and in the new markets. The risk landscape was more or less the same as in the previous year. Currently, however, the focus has expanded to also include the risks arising from the transition from manual to digital processes. The controls in this regard were intensified and the risk map was adjusted. The reinsurance programmes also did not change much from the previous year. The diversification measures – relating to geography, lines of business and customer size – stood the test again in the reporting year and contributed to the prompt identification and management of the risks. As the operational risks are growing constantly in tandem with the company’s growth and internationalisation, the Risk Management department was expanded and professionalised further. This surely also contributed to the fact that elipsLife managed to close such a difficult reporting year with a profit. The process improvements introduced in 2015 proved to be very efficient and purposeful.


15

Cost ratio, core business

Premiums and claims, core business

159.3

148.3 2011

58 % 64.5

52.2 31.9 2012

91 %

113.0

96.3 2.2 1.4 2010*

10.8 7.5

3.6 3.2 2009*

149 %

191.4

190.6

243.6

in CHF million

22 %

2013

2014

2015

2016

2009*

2010*

2011

2012

19 %

16 %

16 %

16 %

2013

2014

2015

2016

Gross premiums earned Gross loss (incl. change in reserves)

Premiums, core business

Full-time equivalents at end of ­financial year

Share by market

182

2 % 1 %

140 115 51 %

86 55

46 %

9 Switzerland The Netherlands Belgium Liechtenstein

* 2009 and 2010 only Elips Life Ltd, from 2011 consolidated figures

10

27

2009* 2010* 2011 2012 2013

2014

2015

2016


elipsLife | Annual report 2016

16

Consolidated annual report

Events after the reporting date With effect from 1 January 2017, Swiss Re Life Capital Ltd in Zurich acquired all the shares of Elips Life Ltd from Swiss Reinsurance Company Ltd, Zurich. This represented the legal implementation of Elips Life Ltd and Elips Insurance Ltd into Swiss Re’s Life ­Capital business, which has been in place since 2016.

3.1.4 | Future development 2016 was elipsLife’s first year under the umbrella of Swiss Re’s new group unit, Life Capital. This restructuring emphasised elipsLife’s embedding into the group strategy of Swiss Re and offered the company synergies in new as well as existing markets. The course has clearly been set for sustain­ able growth. While the objective in 2016 was to gain a foothold in the German and Italian markets and prepare for entering other new markets, elipsLife wants to continue to grow in 2017 and will push ahead with its consistent cost management in order to further expand its competitive advantage. The next few years will be dominated by efficiency and growth. elipsLife wants to present itself as a strong player in its core markets and intends to gain market share. As the focus will fall on the internationalisation of the company, the corporate functions will have to be restructured to become more international. The company’s organisational structure has to be adjusted to these new ­circumstances, and the Executive Board has already started working extensively on this task.


Security and stability thanks to consistent risk management


elipsLife | Annual report 2016

18

Consolidated annual report

3.2 | elipsLife in the market 3.2.1 | Business environment Target markets elipsLife’s business activities focus on the European Economic Area and Switzerland, in particular on countries such as the Netherlands, Germany and Italy that have well-established and developed three pillar systems or are moving in this direction. Social environment In the reporting year, Europe was confronted by changes of which the effects are to some extent still unknown, such as Brexit. In the run-up to the referendum, nobody expected that Great Britain would decide to leave the EU. Many questions regarding this exit are still pending and the consequences, for example with regard to the free movement of persons and future economic cooperation, cannot yet be estimated. Europe is facing a time of great change, and the resulting uncertainties are also affecting the economy. Many jobs have fallen victim to consolidation, relocation and optimisation measures. The pressure on the “remaining” employees, in particular managerial employees, is growing. Against this background, health management is becoming ever more important. elipsLife, which has for some years been leading in case and care management, is focusing even more strongly on this area. At the same time, the greying of society is continuing unabated. Although the inflow of immigrants compensates in part for the decline in the birth rate and the increase in life expectancy, the situation is not sustainable. The prospect of a longer life may be attractive, but it also accentuates the financing gap in retirement assets. Politicians are challenged to react appropriately to the changed conditions. The macroeconomic environment in Europe 2016 was overshadowed by a persistent period of low interest rates and the introduction of negative interest rates in various markets, including in Switzerland. While balance sheets and income statements were battered in the previous year by the scrapping of the euro floor and the SNB’s expansionary monetary policy, the euro-franc exchange rate was relatively stable in the reporting year. ­However, uncertainty on equity markets combined with low interest rates still made it a challenging year for the insurance industry. The low interest rates are making it impossible for life insurance companies to earn an adequate return on their assets. These companies are therefore forced to reduce their technical interest rates, which not only affects their current liabilities, but also the expected premiums for customers. Low returns on assets lead to low technical interest rates and higher premiums for the customers. As a provider of biometric solutions only, elipsLife is not as badly affected as it does not offer savings premiums, but its equity and benefit reserves are not earning much interest in the current interest rate environment.


19

Regulatory environment The reporting year was dominated by the introduction of Solvency II. elipsLife mastered the intro­ duction very efficiently and without any significant hiccups. The solvency ratio is also sufficient under Solvency II, and elipsLife can face the new challenges with composure under the new regime. It should be mentioned, however, that the new rules are considerably more complex and impose stricter reporting requirements on companies. Market environment In the reporting year, the market environment for life insurance companies was shaped in almost all fields and lines of business by growing competition and falling prices. In this difficult climate, some factors gained notably in importance: Technology is increasingly turning into a driver of innovation and new distribution models. It is also playing an ever bigger role in after-sales processes. New technologies and their interactive features are changing the value chain. While this is interpreted as a risk by many companies, elipsLife as a dynamic company sees this development much more as an opportunity to identify and forge ahead with new trends at an early stage. As costs are a central driver of prices, the greatest possible attention should be paid to cost developments. Savings programmes are not a solution on their own. It is more important to reduce the costs on a sustainable basis. elipsLife is on the right track with its focused strategy and can increasingly benefit from its integrated IT landscape and lean player approach. Data are a decisive factor in many areas. This includes data sovereignty as well as the ability to work with as much data as possible, as this can give the company a competitive edge. Data play a key role in the optimised pricing of risks. As this could lead to a long-term price advantage, most large insurance companies have their own data projects. Complexity is growing for customers and brokers. This complexity is born from many factors, including regulation, internationalisation, new employment models and changing social insurance systems. With its total solution approach, elipsLife tries to reduce this complexity for its customers. The objective is to accommodate the historic social insurance systems with coordinated solutions designed to simplify the service and create as much transparency as possible. Experience speaks for the success of a single provider offering all personal insurance products. Growing numbers of customers are putting their trust in this approach.

3.2.2 | Existing markets In the individual markets, the 2016 financial year was dominated by the general factors mentioned above, which further intensified competition and aggravated the price situation. Specific market factors also played an important role in the existing markets.


elipsLife | Annual report 2016

20

Consolidated annual report

Developments in Switzerland/Liechtenstein The trend towards the consolidation of pension funds and collective foundations continued last year in Switzerland and in Liechtenstein. As a result of this development, both the risk capacity of the remaining pension funds and collective foundations and their willingness to engage in reduced or changed risk cessions increased. This further accentuated the price war and intensified compe­ tition in the biometric risk insurance segment, particularly for matching reinsurance solutions for semi-autonomous pension funds and collective foundations. Small as well as medium-sized companies that do not have their own pension funds are increasingly looking for modular solutions for administration, asset management and biometrics. As an innovative insurance company and a provider of total biometric solutions, elipsLife continuously expanded its tailor-made range of employee benefits and respective white labelling products. With these products, it can optimally and sustainably meet the diverse needs of its customers and distribution partners. Because of the mostly high loss ratios for the daily sickness benefits business reported in the market, elipsLife strictly applied the pricing and underwriting guidelines in the reporting year. As a result, premiums for the daily sickness benefits insurance had to be increased substantially again. It is the objective of elipsLife to reduce the loss ratio for this business to a sustainable level and to consist­ ently pursue the total solution approach. In many cases, we have already sold tailor-made insurance solutions from a single provider (daily sickness benefits, accident insurance and employee benefits insurance) to our customers and insurance partners. With this approach, elipsLife has laid the foundations for an excellent mix of insurance lines and sustainable technical results for the particular insurance segments. Developments in the Netherlands The market position in the Netherlands was expanded further in 2016 and the position as leader in the Premium Pension Institutions (PPI) business was strengthened substantially through additional ­ cooperation projects with renowned PPI. This is a strategic business segment for elipsLife as the different interests – administration, asset management and insurance – are optimally geared to one another and no conflicts of interest can affect the parties. elipsLife keeps a close eye on specific developments in the individual markets. In the Netherlands, for example, contact has already been established with various “Algemeen Pensioen Fonds” (APFs). In contrast to the PPI, this new form of pension fund can carry part or all of the biometric risk on their own balance sheet. By establishing early contact with the new APFs elipsLife can make sure that the needs of these new institutions are identified at an early stage and can develop and offer suitable solutions. elipsLife sees the establishment of these new APFs as an opportunity, and aims to become a leading provider of innovative insurance solutions to this segment, too. Thanks to new product features, the market position in the WGA/ERD segment (partial disability of employees) was also expanded continuously via the strategic distribution partners. An amendment to the law made these new products possible, and together with a distribution partner, elipsLife was the first company to react to the new situation and to create tailor-made solutions for its customers.


21

It is the objective of elipsLife to continuously develop its range of products further to meet the varied needs and requirements of its customers. Only innovative providers of biometric insurance solutions will be distinguishable in the market in future – elipsLife wants to be one of these.

3.2.3 | Expansion into new markets Not only did elipsLife successfully expand its market share in the existing markets in Switzerland/ Liechtenstein and Benelux, it also started to successfully implement its strategy of European expan­ sion in the reporting year. To this end, branch offices were opened in the first half of 2016 in Cologne for the German market and in Rome for the Italian market. Local centres of subject expertise are being established in both new markets. Germany As an innovative insurer, elipsLife offers a unique biometric solution in the German market in the form of income protection benefits. In contrast to the existing disability insurance ­product, the income protection pension covers the income that is lost as a result of a reduced ability to work, regardless of the specific profession, and provides customised cover for the gaps in income suffered by the individual customer. Thanks to the broker network, elipsLife quickly managed to convince national and regional brokers of the new biometric insurance solution. Based on the experiences of various distribution partners and an in-depth analysis of customer needs, the new occupational income protection pension was developed and launched in the second half of the reporting year. As a result, in addition to establishing a bank distribution channel and expanding the collective framework contracts, elipsLife will focus on building up a sustainable corporate portfolio this year. A number of industry brokers has already been added as distribution partners for the new ­occupational income protection pension. elipsLife is also concentrating on the biometric reinsurance of pension funds as another strategic business area. Italy Thanks to the strategic cooperation with RBM Salute S.P.A. in Preganziol, elipsLife has already participated in various new welfare insurance tenders and gained its first positive experiences. The first major transaction was concluded after just a few months. The new insurance solutions for the Italian market comprise a tailor-made combination of insurance benefits for death, disability, long-term nursing care and involuntary unemployment. Based on experience to date and the initial success, elipsLife – supported by its international broker network – will build up its own distribution partner network with various leading national and local brokers in Italy in the current year. elipsLife has opened a new office in Milan. The objective is to gain additional local talents for the continued expansion in Italy and to further improve the conditions for meeting the high expectations of the Italian market in the coming years.


elipsLife | Annual report 2016

22

Consolidated annual report

3.2.4 | International presence

Head office Liechtenstein (Triesen) Core markets Switzerland, branch office in Zurich The Netherlands, branch office in Amstelveen Germany, branch office in Cologne Italy, branch office in Rome Other markets Belgium Ireland


23

3.3 | Guarantees of success The year 2016 will go down in the history of elipsLife as another difficult year. Two factors were ­decisive in helping elipsLife to achieve success: a lean application landscape with clearly designed and standardised processes, and highly qualified employees from increasingly diverse cultural and social backgrounds.

3.3.1 | Technology and processes: on the way to digitisation The provision of services from a single source, coordinated claims processing within the social ­insurance systems of a country, and holistic insurance solutions that eliminate overinsurance and gaps – these are the strategic objectives that elipsLife adopted from the outset. In pursuing these objectives, elipsLife exploited the similarity of the individual and group life business segments in the B2B environment in Europe arising from the consistent focus on biometric products. The aim was to exploit this similarity and come up with a generic design for all contract administration processes to handle all lines of business and optimally implement the strategic total solution approach of elipsLife. Against this background, elipsLife started investing in business processes and project management at a very early stage in its development. After consensus was reached internally on the processes that will remain relevant for all target markets, also in the event of strong growth, a system landscape allowing the expansion and further development of scalable processes was designed. As a start-up company, elipsLife has the advantage over its competitors of not being burdened with any toxic legacies in the form of complex IT patchwork solutions that push up costs and hamper further development. Because of the strategic focus, it was decided to mostly use standardised software in order to keep the costs low. Where necessary, specific developments by elipsLife should guarantee flexible, customer-focused solutions. The life insurance software developed by elipsLife together with its software partner in the past four years is the core element accommodating the different requirements on a single platform. Since 2015, this software – as the first solution ever – has been able to handle all contract administration processes for the group and individual life business for different countries and different distribution channels. Another milestone was reached in 2016 when the system was also ready to handle all claims processes. Gaps and media breaks were closed by linking the system to central applications such as the customer relationship management and document management systems. The intro­ duction of an output management system administered internally also reduced the dependence on external providers, speeded up the time-to-market process, and enabled elipsLife to react quickly to regulatory changes and new conditions. The advantage of the new platform is that it can administer individual life as well as group life products across all national borders and for the social insurance systems of all the different ­countries. It is multilingual and can work with different currencies. It is a great advantage for elipsLife to work internationally with a single system. This not only substantially improves efficiency and quality, but also lays the foundation for a holistic approach to customer support. Thanks to this significant investment, the company will be able to keep its maintenance and operating costs low in the long


elipsLife | Annual report 2016

24

Consolidated annual report

term. This supports elipsLife’s ambition to further strengthen its position as the market leader in terms of cost management among its competitors – to the advantage of its customers. The digitised process models and lean application landscape are flexible enough that adaptations can be made quickly and easily, but they are also generic enough that a single system can be used to cover many countries. This not only results in more efficient processes, lower IT costs and optimised operations, but is also a crucial requirement and tool for the successful implementation of the planned expansion by elipsLife into new markets. Clearly defined, simple and digital process models and a lean, strong application landscape will continue to be key components of success in future.

3.3.2 | Diversity creates potential In 2016, elipsLife successfully implemented its ambitious growth strategy. It will continue to do so this year, particularly in view of the plans for international expansion. The workforce continues to grow in tandem with the growth in business volume. At the end of December 2016, the company employed 182 full-time equivalents (195 employees), 42.3 FTEs or more than one-quarter more than a year ago. In spite of the strong increase in the number of employees, the company has never compromised on the high standards that have to be met by candidates during the selection process. By adhering to these standards, elipsLife is living up to its principles: this is the only way to ensure that the employees are experts in their field and can implement the ambitious service strategy every day. elipsLife also has high standards when it comes to conduct: every day, our employees apply the corporate values for the benefit of our customers. Diversity, in particular with regard to gender, age and nationality, has been important to elipsLife since its establishment. Currently, the company employs an equal number of men and women. The age distribution is also very balanced: 20 % of the employees are younger than 30, 35 % are between 30 and 40, 31 % between 40 and 50, and 14 % are older than 50. Given the current expansion into new markets and the establishment of local organisations in Germany and Italy, the percentage of the jobs that are located in Switzerland is falling. At the same time, the strong growth seen for the international teams is having a very noticeable effect, and diversity is constantly growing with regard to the origin, nationality and mother tongues of the employees.


25

elipsLife consciously formulated the term “diversity” very broadly. In addition to these traditional aspects, diversity also embraces employees with a limited ability to work. There are many part-time jobs – around one-third of the workforce works part-time and part-time positions are also available for employees in a managerial position. This is made possible by the company’s culture and structures, in contrast to other companies where this is not the norm. elipsLife also does very well when it comes to gender distribution in management positions: out of a total of 35 managers, nine are ­women, and as many as four out of eleven Managing Directors are women. The lion’s share of services to customers are provided in the local language, and this is an important component of elipsLife’s above-average customer service. It is an exciting challenge to translate this diversity into a mutual internal language and to ensure cooperation between employees from many different nationalities and speakers of many different mother tongues at all times, everywhere and without misunderstandings or friction. Within the company, German is the official first language, but English is becoming ever more important, in particular also because the official corporate language of the parent company Swiss Re is English. Employees with diverse cultural and social backgrounds contribute a wide diversity of ­experience and ideas. If elipsLife can continue to fully exploit this enormous potential, this diversity will help to provide an even better service to customers, to remain innovative and to launch new initiatives and projects. In this sense diversity is also a keystone of elipsLife’s customer-focused approach, even more so as diversity in action is one of the basic requirements for achieving ­success in business. For elipsLife, diversity is more than just a modern buzzword. It is not limited to gender issues, but forms an integral part of the corporate values. The diversified workforce of elipsLife contributes ­different perspectives and the most diverse experiences to the benefit of customers. This is of inestimable value.


elipsLife | Annual report 2016

26

Consolidated annual report

3.4 | Corporate governance The structures and processes defined by elipsLife will ensure management of the company in line with the principles of good corporate governance and facilitate efficient cooperation between the Board of Directors and the Executive Board. Elips Life Ltd and Elips Insurance Ltd are subject to supervision by the Financial Market Authority (FMA) of Liechtenstein and have to meet the FMA’s supervisory requirements for corporate gov­ ernance. This in particular also includes the processes for capturing and managing all risks and the maintenance of effective internal control systems.

3.4.1 | Group structure The sole shareholder of Elips Life Ltd is Swiss Reinsurance Company Ltd in Zurich. Elips Insurance Ltd is a wholly owned subsidiary of Elips Life Ltd. Elips Life Ltd has branches in Switzerland (Zurich), the Netherlands (Amstelveen), Germany (Cologne), Italy (Rome) and Curaçao. Elips Insurance Ltd has a branch office in Italy (Rome).

3.4.2 | Organisation Board of Directors According to the articles of incorporation, the Board of Directors consists of at least three members. The term of office is one year, and re-election is possible. Luc Albert was re-elected as Chairman of the Board of Directors at the Annual General Meeting of 14 April 2016. When he resigned at the end of the year, Thierry Léger was elected as Chairman of the Board of Directors by the Extraordinary General Meeting of 12 December 2016. Thierry Léger took up his office on 1 January 2017. Jos Cobben, Bruce Hodkinson and Claudia Cordioli did not stand for re-election. In their stead, the Annual General Meeting of 14 April 2016 elected Ian Patrick, Philip Long and Claus Kriebel as members of the Board of Directors. The mandate of Julien Descombes, who now serves as the Vice-Chairman of the Board of Directors, was confirmed. The current members of the Board of Directors cover a broad spectrum of competence and international experience. For reasons of efficiency, the Board members of the parent company Elips Life Ltd also sit on the Board of Directors of Elips Insurance Ltd. Given its manageable size, the Board of Directors did not establish any committees. As none of the Board members is entrusted with the management of elipsLife, the separation of powers between the Board of Directors and the Executive Board and the required independence of the Board of Directors are guaranteed. The Board of Directors passes its resolutions with a simple majority of the votes cast. In compliance with the supervisory requirements, the Board of Directors has delegated the management of the company to the Executive Board. It remains responsible for the following tasks in particular:


27

• Determining the overall strategy, in particular with regard to the fields of business and the target markets • Approving the financial plan and the annual financial statement • Defining the organisational principles and approving important changes to the management ­functions • Adopting the principles of governance, compliance and risk management as well as the code of conduct • Approving acquisitions and sales transactions as well as transactions that are generally ­considered to be important • Supervising the persons entrusted with the management of business operations, in particular with regard to compliance with the laws, articles of incorporation, by-laws and directives The Board of Directors held four ordinary and four extraordinary meetings in the reporting year. The members of the Executive Board usually attend the Board meetings, also for agenda items that concern the ordinary course of business. Executive Board The Sales department was split into Sales and Products on 1 May 2015. When Mario Lampert joined the company, Christian Jaggy took over as Chief Product Officer. In the reporting year the Executive Board therefore consisted of the following persons: • Reto Toscan, CEO • Alberto Franceschetti, CFO & CRO, Finance & Risk Management • Christian Jaggy, CPO, Products • Ralf Hardegger, COO, Operations • Mario Lampert, CSO, Sales • Kaspar Weiss, CTO, Technology The Executive Board usually meets every two weeks. Its meetings are also attended by the Head of HR & Central Services. Auditor The external auditor carries out all the audits required under the law and the articles of incorporation. The auditors are appointed by the Annual General Meeting for one year. PricewaterhouseCoopers Ltd, Zurich (PwC) was confirmed as the auditors by the shareholders at the Annual General Meeting on 14 April 2016. Although PwC carried out an additional audit for elipsLife, this audit had no impact on the independence of the auditor, neither in terms of its content nor in terms of its scope. PwC was not mandated to provide advisory services to either Elips Life Ltd or Elips Insurance Ltd.

3.4.3 | Compliance Integrity in business operations elipsLife is committed to total integrity and compliance with all laws and internal regulations. elipsLife expects its employees to assume responsibility for their actions, to show consideration for people, society and the environment, to follow the rules and to report breaches. The principles governing integrity in business operations are outlined in the Code of Conduct.


elipsLife | Annual report 2016

28

Consolidated annual report

Internal directives and compliance process The Compliance unit issues internal guidelines, trains the employees and monitors compliance with the regulatory requirements of the compliance charter. The sphere of activity as well as the specific tasks of the Compliance unit are defined on the basis of a regular review of the compliance risks.

3.4.4 | Solvency II The Solvency II legislation entered into force in the countries of the European Union and the European Economic Area (EEA) on 1 January 2016. The new guidelines apply throughout Europe and introduce harmonised, expanded publication obligations and new solvency guidelines for the equity reserves of insurance companies. Thanks to the comprehensive preparations done in the previous year, elipsLife complies in full with all Solvency II requirements: • The regulatory equity capital of both legal entities of elipsLife considerably exceeds the minimum requirements under the new guidelines. elipsLife has also implemented the precautions needed to make sure that its capital base remains strong in the future. – As at 31 December 2016, the Solvency II ratio was 266 % for Elips Life Ltd and 127 % for Elips ­Insurance Ltd. –C omprehensive stress tests were carried out (e.g. reduction in euro/franc exchange rate of 20 %) and the risk profile was adjusted to ensure that both legal entities of elipsLife will meet the ­minimum capital requirements of Solvency II (capital ratio of 100 %) even in the case of such extreme events. • The expanded reporting obligations under Solvency II, which include, for example, a differentiated supervisory report that goes far beyond the scope of a report on the solvency situation, were also fulfilled. For example, the ORSA Report 2016 (Own Risk and Solvency Assessment) that was approved by the Board of Directors and the Executive Board at the end of December 2016 was submitted to the insurance supervisory authority in good time.

3.4.5 | Risk management The objectives of elipsLife’s risk management are to identify, analyse and assess current and future risks and opportunities in order to create a corporate risk profile that not only secures elipsLife’s ­continued existence (solvency), but also makes a significant contribution towards increasing the value of the company. The substantial growth and the momentum that can be expected in the future not only offer opportunities, but also harbour potential strategic, insurance, operational, financial and reputational risks. To identify these potential risks in a timely manner and optimally manage them in the current dynamic environment, elipsLife • emphasises the first line of defence to make sure that the risks are successfully handled at the front,


29

• has a well-established risk management department with a clear-cut risk strategy, governance and organisational structures and defined processes and systems to guarantee a very solid second and third line of defence. The first line of defence comprises the operational functions with direct authority to take and implement decisions. elipsLife selectively fosters an active risk culture for these functions. The rule applies that risks may only be assumed if they are comprehensively understood, can be controlled, are in line with the risk strategy, and generate an appropriate return for elipsLife that improves the value of the company. All these requirements have to be met. To equip the elipsLife employees to fulfil this important role, they regularly attend training courses on various risk aspects, such as operational processes and the risk strategy and risk tolerance. The responsibilities and powers of authority of the individual “risk-taking” functions have been clearly defined and documented. A comprehensive internal control system (ICS) and strict guidelines in the form of policies ensure consistent compliance with the superordinate parameters. The entire process is managed and monitored by a second line of defence – an internal risk man­ agement process, which at elipsLife is based on the following pillars: • Clearly defined risk strategy for coping with current business operations as well as the planned strong growth • Established risk governance processes and powers and responsibilities that are visibly integrated into the organisational structure • Institutionalised risk controlling The independent internal auditors serve as the third line of defence. They apply an external and independent view to regularly check whether elipsLife’s risk management system is suitable and whether the defined rules and processes are observed. The internal auditors report on their findings directly to the Board of Directors of elipsLife. This third level function is carried out by the internal audit department of the parent company Swiss Re. elipsLife has a proactive approach to risk management that takes optimal account of the momentum and rapid growth of the company in a fast-changing environment. This approach offers security and stability for the customers, the insurance supervision and the parent company Swiss Re.

3.4.6 | Internal audit The internal audit function is carried out by Group Internal Audit of Swiss Re. In this regard elipsLife benefits from the enormous know-how and professionalism of the Swiss Re Group. The organisational and physical separation between the auditors and the company also strengthens the independence of the internal audit unit. Audit reports are submitted directly to the Board of Directors of elipsLife.



Lower costs due to digital after-sales processes


elipsLife | Annual report 2016

32

Consolidated financial statements

4 Consolidated financial statements

4.1 | Consolidated balance sheet Assets (in CHF)

31.12.2016

31.12.2015

A. Intangible assets

13 231 171

14 195 349

I. Costs for establishing and expanding business operations

IV. Other intangible assets

B. Investments

III. Other investments

2. Bonds and other fixed-interest securities 6. Deposits with banks

D. Other receivables

I. Receivables from own insurance business

1.

Due from policyholders

c) Due from other policyholders

2. Due from insurance brokers

II. Accounts receivable from reinsurance business

1.

c) Due from other insurance brokers Due from affiliates

3. Due from other debtors

——

260 487

13 231 171

13 934 862

230 712 579

194 683 671

190 209 967

123 537 261

40 502 612

71 146 410

401 834 277

267 645 713

7 254 685

12 042 206

310 541 802

255 020 057

82 017 508

——

508 468

——

III. Other receivables

3. Due from other debtors

E. Other assets

1 511 814

583 450

72 739 535

67 306 418

1 732 262

2 090 527

71 007 273

65 215 891

F. Deferrals

3 209 622

1 794 197

I. Deferred interest and rent

2 426 594

1 289 543

III. Other deferrals

I. Tangible assets (excluding land and buildings) and inventories

II. Current deposits with banks, post office deposits, checks and cash on hand

Total assets

783 028

504 654

721 727 184

545 625 348


33

Liabilities and equity (in CHF) A. Equity

31.12.2015 138 355 972

12 400 000

12 400 000

I. Called-up capital

II. Organisation fund

III. Capital reserve

1.

Subscribed capital

IV. Retained earnings

1. Legal reserve

V. Profit/loss carryforward

VI. Annual profit

D. Technical reserves

31.12.2016 158 586 301

10 100 000

10 100 000

124 800 000

105 800 000

587 892

450 076

9 468 080

8 268 822

1 230 328

1 337 074

370 274 083

271 639 292

210 352 778

190 895 005

—126 186 372

—95 523 958

I. Unearned premium reserve

1. Gross amount

2. Of which: reinsurers' share

II. Actuarial reserve

1. Gross amount

186 371 666

74 714 531

—60 425 925

—36 822 017

III. Reserve for outstanding claims

2. Of which: reinsurers' share

1. Gross amount

2. Of which: reinsurers' share

IV. Provision for premium refunds

299 499 842

233 839 996

—153 436 139

—112 134 870

1. Gross amount

22 594 678

31 455 264

—9 480 092

—15 727 632

V. Claims equalisation reserve

609 676

375 253

VI. Other technical reserves 747 939

1 135 440

2. Of which: reinsurers' share

1. Gross amount

—373 970

—567 720

F. Other provisions

7 585 033

6 060 477

II. Provision for taxes

2 124 068

808 991

III. Other provisions

5 460 966

5 251 487

2. Of which: reinsurers' share

G. Deposit liabilities from insurance business ceded to reinsurance H. Other liabilities

I. Liabilities from own insurance business

II. Accounts payable on reinsurance business

3. Due to other creditors

V. Other liabilities

1.

Due to affiliates

1. Tax liabilities

2. Social security liabilities

5. Other liabilities to other creditors

I. Deferrals Total liabilities and equity

113 282 578

——

69 094 899

127 223 499

16 629 924

19 380 401

——

58 825 200

50 785 805

47 548 411

462 568

642 969

1 216 602

826 518

2 904 290

2 346 108

721 727 184

545 625 348

As the appointed actuary for elipsLife we herewith confirm that the technical reserves reported in the balance sheet as at 31 December 2016 were raised in accordance with the applicable statutory provisions and acknowledged actuarial principles. Tigran Kalberer | Appointed Actuary for Elips Life Ltd | Milliman AG | Zurich, 21 March 2017 Bernhard König | Appointed Actuary for Elips Insurance Ltd | Milliman AG | Zurich, 10 March 2017


elipsLife | Annual report 2016

34

Consolidated financial statements

4.2 | Consolidated income statement Income statement (in CHF)

2016

2015

II. Technical account 1. Net premiums earned

331 123 234

333 766 942

a) Gross premiums written

811 349 966

680 949 118

b) Reinsurance premiums ceded

—470 115 153

—341 568 238

c) Change in unearned premium reserve, gross

—25 129 428

—10 877 270

d) Change in reinsurers' share in unearned premium reserve, gross

15 017 850

5 263 332

2. Investment income

686 073

765 622

c) Current income from other investments

672 903

764 664

e) Gain on disposal of investments

4. Other technical income, net 5. Net claims incurred

13 170

958

28 546 056

22 726 263

—284 739 059

—266 516 074

—652 863 728

—539 213 827

373 634 961

263 246 131

a) Claims incurred

aa) Gross amount

bb) Reinsurers' share

b) Change in reserve for outstanding claims

aa) Gross amount

—1 713 092

21 036 918

bb) Reinsurers' share

—3 797 201

—11 585 296

—14 719 327

—17 870 504

—35 603 417

—34 891 640

20 926 944

17 323 429

6. Change in other technical reserves, net

a) Change in actuarial reserve

aa) Gross amount

bb) Reinsurers' share

b) Change in other technical reserves

7. Expenses for premium refunds, net

—42 854

—302 293

51 397

—13 475 893

8. Expenses for own insurance business

—49 031 950

—44 702 744

a) Acquisition costs

—44 955 478

—41 821 425

b) Administration expenses

—4 076 472

—2 881 319

9. Investment expenses

—492 755

—280 148

a) Asset management and interest expenses

—492 755

—280 148

c) Loss on disposal of investments

14. Result of technical account

——

——

11 423 669

14 413 463

11 423 669

14 413 463

III. Non-technical account 2. Result of technical account for non-life and life insurance 7. Other income from ordinary activities 8. Other expenses from ordinary activities 9. Result from ordinary activities 13. Income taxes

585 352

1 143 451

—9 359 824

—12 311 191

2 649 197

3 245 723

—1 159 079

—1 822 738

14. Other taxes

—259 790

—85 911

15. Annual profit

1 230 328

1 337 074


35

4.3 | Notes to the consolidated financial statements 4.3.1 Accounting policies Accounting policies elipsLife prepares its consolidated financial statements in accordance with the provisions of the Liechtenstein Law on ­Persons and Companies (PGR) of 20 January 1926 in the version that is valid on the relevant reporting date as well as the provisions of the Act of 12 June 2015 on the Supervision of Insurance Undertakings (Insurance Supervision Act; ­VersAG) and the Ordinance of 25 August 2015 to the Act on the Supervision of Insurance Undertakings (Insurance ­Supervision Ordinance; VersAV). Scope of consolidated financial statements The reporting date for the consolidated financial statements of elipsLife is 31 December. This date is also the reporting date for all companies included in the consolidated financial statements. The consolidated financial statements of elipsLife comprise all assets, liabilities, income and expenses of Elips Life Ltd and its subsidiary Elips Insurance Ltd, whereby all business relationships between the consolidated companies are eliminated in the balance sheet and the income statement. elipsLife offers personal and life insurance products. To ensure a uniform presentation, the consolidated income statement follows the chart of accounts of the life insurance company. The carrying amount of the share in affiliates is set off against the equity of the subsidiary. 2016

2015

Company

Elips Insurance Ltd

Elips Insurance Ltd

Activities

Insurance

Insurance

100 %

100 %

INVESTMENTS IN AFFILIATES

Capital share

elipsLife is part of the Swiss Re Group and is included in the consolidated financial statements of Swiss Reinsurance ­Company Ltd in Zurich (SRZ). The consolidated financial statements of the SRZ Group can be obtained from: Swiss Reinsurance Company Ltd | Mythenquai 50 / 60 | P.O. Box | 8022 Zurich | Switzerland www.swissre.com


elipsLife | Annual report 2016

36

Consolidated financial statements

Translation to Swiss francs Foreign currency items in the balance sheet are translated to Swiss francs at the closing rate on the reporting date, while foreign currency items in the income statement are translated to Swiss francs at the average annual exchange rate. ­Realised foreign exchange gains and losses are netted and reported in the income statement under “Other income from ordinary activities” and “Other expenses from ordinary activities” respectively. Provisions are raised for unrealised foreign exchange gains. The following rates were used for translation to CHF: Balance sheet

Income statement

31.12.2016

31.12.2015

2016

2015

EUR / CHF

1.0718

1.0874

1.0906

1.0682

USD / CHF

1.0161

1.0006

0.9837

0.9619

GBP / CHF

1.2562

1.4750

1.3382

1.4714

As amounts are rounded to full Swiss franc amounts, the tables in the notes may have rounding differences.

4.3.2 | Valuation methods Intangible assets The intangible assets comprise purchased and proprietary software. They are measured at cost less accumulated depreciation. The cost for developing company-specific software is capitalised if it is realisable, future economic benefits are likely, and the cost can be reliably estimated. It includes the salaries and non-wage costs for the employees directly involved in the development of the software and related administrative overhead costs. The following depreciation rate applies:

Other intangible assets

Useful life

Depreciation rate

4 years

25 %

A test for impairment is performed annually and if needed, additional depreciation or write-downs are recognised in the income statement. Other investments Bonds and other fixed-interest securities are measured at amortised cost. The difference between cost and repayment value is amortised over the remaining life of the security in accordance with the effective interest method. Additional depreciation or write-downs are recognised if a permanent impairment is expected.


37

Other receivables Receivables from own insurance business, accounts receivable from reinsurance business and other receivables are ­recognised at par value less specific valuation allowance. Other assets Property, plant and equipment are measured at historical cost and depreciated using the straight-line method over the expected useful life. The following depreciation rates apply: Useful life

Depreciation rate

10 years

10 %

Hardware/equipment

4 years

25 %

Interior finishing

5 years

20 %

Furniture

Current deposits with banks, post office deposits and cash on hand are recognised in the balance sheet at par value. Deferrals Deferrals are recognised at par value. Technical reserves The technical reserves comprise the liabilities from insurance contracts on the reporting date. They are set up in accordance with actuarial principles to ensure that elipsLife can meet all its liabilities from its insurance contracts. Life insurance: The unearned premium reserve comprises the portion of the premiums written relating to the period after the reporting date. The unearned premium reserve is calculated individually for each insurance contract. The actuarial reserve comprises the actuarial value of the liabilities of elipsLife, including policyholder dividends already allocated less the aggregate present value of the premiums due after the reporting date. The calculation is done individually per contract in accordance with accepted actuarial methods. As a rule, elipsLife uses the BVG 2010 actuarial tables with a technical interest rate of 0.5 % for calculating the actuarial reserves for contracts in Switzerland and Liechtenstein. For contracts in Belgium, the Netherlands, Luxembourg and the Netherlands Antilles, the KAZO model (for disability) and the GBM/V 2010-60 life tables (for whole life insurance) are used. The benefits are measured using risk-free yield curves. The reserve for outstanding claims is calculated individually for each insurance claim. The amount to be set aside for each insurance claim consists of the amount owed to the beneficiaries plus the claim settlement costs. Amounts already paid out before the reporting date are deducted. Claims that were incurred but not yet reported by the reporting date are included in the calculation using estimates based on past experience regarding the observed delays in reporting a claim.


elipsLife | Annual report 2016

38

Consolidated financial statements

elipsLife applies two categories of reserves for outstanding claims: •• Reserve for claims that have been reported but not yet settled (RBNS reserve) •• Reserve for claims that have been incurred but not yet reported (IBNR reserve) Non-life insurance: The unearned premium reserve comprises the portion of the premiums written relating to the period

after the reporting date. The unearned premium reserve is calculated individually for each insurance contract. Exercising the option under VersAV Annex IV para. 8, deferred acquisition costs are deducted from the gross unearned premium reserve. The reserve for outstanding claims is calculated individually for each insurance claim, based on the expected ultimate costs to be borne after the reporting date, including all claim settlement costs. Insurance claims incurred but not yet reported by the reporting date are covered by a separate reserve, the calculation of which takes account of past experience regarding the number of insurance claims that occurred before the reporting date but are only reported after this date and the amounts that usually have to be spent on these claims (IBNR reserve). Reserves for insurance claims that have to be settled in the form of an annuity are calculated in accordance with accepted actuarial methods. Provisions for premium refunds are based on the actual claims experience and the terms of the relevant insurance contracts. Other provisions Other provisions are raised for obligations that are probable but uncertain (either in amount or timing) on the reporting date.

The amount is based on a best estimate of the future cash outflow. Provisions are tested for adequacy on every reporting date. Deposit liabilities from insurance business ceded to reinsurance

The deposit liabilities include the amounts held back as collateral under reinsurance contracts. The amount is based on the valuation of the underlying reinsurance items. Other liabilities

Liabilities from own insurance business, accounts payable on reinsurance business and other liabilities are stated at par value. Accounts payable on reinsurance business are set off from accounts receivable from reinsurance business if the ­conditions for offsetting are met. Gross premiums written

Gross premiums written comprise all premiums that fell due during the reporting year, regardless whether they relate in whole or in part to periods after the reporting date. These premiums also include pipeline premiums (if they can only be calculated at the end of the financial year), single premiums and payments for annuities, instalment charges in the case of semi-annual, quarterly and monthly premium payments and additional payments from policyholders for expenses borne by the insurance company. Taxes and parafiscal charges levied with or on the premiums are not reported as gross premiums written. Cancellation expenses relating to the reporting year are deducted from the gross premiums.


39

Claims incurred Claims incurred comprise all payments made in the reporting year, including pension payments and policy surrender ­payments as well as external and internal claim settlement costs. The item “Change in reserve for outstanding claims” equals the difference between the reserve for outstanding claims at the end and the beginning of the financial year, less the difference between the claims under recourse at the end and the beginning of the financial year in accordance with para. 14(e) VersAV. When the difference is calculated, the reserves for claims that were incurred but not yet reported in the financial year and for non-life insurance claims that have to be settled in the form of a pension are also taken into account. Expenses for own insurance business The acquisition costs include the costs that can be charged to individual insurance contracts immediately upon acquisition, in particular the acquisition and renewal commission and advertising costs as well as the costs for processing the application, issuing a policy and capturing the contract in the portfolio. The administration expenses primarily include the expenses for premium collection, portfolio management, premium refund administration and reinsurance processing. This item also includes the commission for collection and portfolio management commission.

4.3.3 | Notes to the consolidated balance sheet Intangible assets The intangible assets changed as follows:

IN CHF

Balance at 01.01.

Additions

Disposals

Value adjustments Write-downs

Balance at 31.12

260 487

40 000

——

—164 552

—135 935

——

Other intangible assets

13 934 862

5 311 245

——

—402 610

—5 612 326

13 231 171

Total

14 195 349

5 351 245

——

—567 162

—5 748 261

13 231 171

Costs for establishing and expanding business operations

The additions to “Other intangible assets” include capitalised expenses of CHF 2 703 222 for internally produced assets (previous year: CHF 3 351 213). The costs for establishing and expanding business operations were written down to zero as at 31 December 2016.


elipsLife | Annual report 2016

40

Consolidated financial statements

Bonds and other fixed-interest securities Bonds and other fixed-interest securities mainly comprise government bonds with a rating of AA or better. The sharp increase on the previous year is related to the increase in the actuarial reserve (acquisition of a run-off portfolio). Deposits with banks include fixed deposits with terms of one to 12 months for CHF 40 000 000 (previous year: CHF 49 918 055) and cash not yet invested of CHF 502 612 (previous year: CHF 21 228 355).

IN CHF Bonds and other fixed-interest securities Deposits with banks

Balance at 01.01.

Additions

123 537 261

127 687 896

—56 372 630

—3 891 953

—750 608

190 209 967

71 146 410

70 208 551

—100 131 749

––

—720 599

40 502 612

Disposals

BONDS AND OTHER FIXED-INTEREST SECURITIES IN CHF Historical cost

Foreign Redemption ­currency effect

Balance at 31.12

31.12.2016

31.12.2015

195 881 602

127 862 827

—5 671 636

—4 325 566

Carrying amount at 31.12.

190 209 967

123 537 261

Market value

195 713 302

127 375 895

Amortisation

Other receivables Receivables due from policyholders mainly consist of receivables from the reinsurance and broker business in the ­Netherlands. Receivables due from insurance brokers mainly include receivables from the Irish health insurance business where the main renewal season is November and December. Accounts receivable from reinsurance business due from affiliates amounted to CHF 82 017 508 (previous year: accounts payable of CHF 58 825 200). These receivables are set off against the increase in the quota share reinsurance contract by Elips Insurance Ltd in the first quarter of 2017 and will thus be substantially reduced. elipsLife has the contractual right to set off the outstanding accounts payable and receivable for the reinsurer. Other receivables include rent deposits for the rented offices and receivables from the acquisition of insurance portfolios.


41

Property, plant and equipment Property, plant and equipment changed as follows: Foreign currency effect Write-downs

Balance at 31.12

—579

—133 171

875 533

—1 059

—385 146

529 561

Balance at 01.01.

Additions

Furniture

882 919

126 364

––

Hardware/equipment

700 526

215 240

––

Interior finishing

507 082

––

––

—1 387

—178 529

327 167

2 090 527

341 604

––

—3 024

—696 846

1 732 262

IN CHF

Total

Disposals

Equity The share capital of elipsLife is CHF 12 400 000, divided into 124 000 registered shares with a par value of CHF 100 each. IN CHF

31.12.2016

31.12.2015

I. Called-up capital

12 400 000

12 400 000

II. Organisation fund

10 100 000

10 100 000

124 800 000

105 800 000

III. Capital reserve

587 892

450 076

9 468 080

8 268 822

IV. Retained earnings V. Profit/loss carryforward VI. Annual profit Total equity

1 230 328

1 337 074

158 586 301

138 355 972

In the 2016 financial year, contributions of CHF 19 000 000 were made to the capital reserve. The 2015 annual profit was appropriated as follows: IN CHF Annual profit for 2015 Allocation to retained earnings To be carried forward

1 337 074 137 816 1 199 258

Technical reserves The technical reserves totalled CHF 370 274 083 on the reporting date (previous year: CHF 271 639 292). The increase in the technical reserves is explained by the acquisition of a run-off portfolio to the value of CHF 92 063 672, retroactively to  1 January 2016, and the continuous growth of elipsLife’s insurance business. The acquisition of the above run-off portfolio was recognised directly in the balance sheet without affecting the income statement. The year-on-year increase in the reinsurers’ share is related to the increase in the quota share reinsurance contracts by Elips Insurance Ltd from 1 January 2016.


elipsLife | Annual report 2016

42

Consolidated financial statements

Unearned premium reserves are mainly set up for the non-life business of Elips Insurance Ltd in Ireland. Exercising the option under VersAV Annex IV para. 8c, the unearned premium reserve is reduced by deducting the deferred acquisition costs. Deferred acquisition costs of CHF 23 965 261 were deducted from the gross unearned premium reserve (previous year: CHF 21 735 707). 31.12.2016

31.12.2015

1. Gross amount

210 352 778

190 895 005

Unearned premium reserve

234 318 039

212 630 712

Deferred acquisition costs

—23 965 261

—21 735 707

UNEARNED PREMIUM RESERVE IN CHF

2. Of which: reinsurers' share

—126 186 372

—95 523 958

Unearned premium reserve

—140 565 529

—106 391 811

14 379 157

10 867 853

Deferred acquisition costs

Both the actuarial reserve and the reserve for outstanding claims contain provisions for claims handling and settlement costs. The actuarial reserves at the end of the year included loss reserves of CHF 6 785 308 (previous year: CHF 7 721 507), which were recognised upon takeover without affecting the income statement. At the same time, loss reserves of CHF 165 014 (previous year: CHF 0) were transferred to third parties without impact on the income statement. The claims equalisation reserve includes the statutory reserve for the accident insurance business in Liechtenstein and Switzerland pursuant to Art. 81e of the Liechtenstein Ordinance on Accident Insurance (UVersV) and Art. 111.1 of the Swiss Ordinance on Accident Insurance (UVV). The provision for premium refunds includes provisions for policyholder dividends and for policies with profit participation. Other provisions The other provisions mainly include provisions for employee bonuses and a provision for unused vacation. Liabilities from own insurance business The liabilities from own insurance business due to other creditors comprise the following: IN CHF Prepaid premiums for 2017

2016

2015

211 800

6 129 254

Other accounts payable due to policyholders

5 196 629

1 809 956

Accounts payable due to insurance brokers*

11 221 495

11 441 191

Total

16 629 924

19 380 401

*P ayments to insurance brokers include commission paid to agents and brokers and insurance benefits that are paid out to policyholders via agents and brokers.


43

Deposit liabilities from insurance business ceded to reinsurance The amount of CHF 113 282 578 (previous year: CHF 0) is related to the reinsurance contract for the Irish health insurance business with AIG (American International Reinsurance Company Ltd), which entered into force on 1 January 2016. Other liabilities Other liabilities mainly comprise insurance taxes in Ireland of CHF 50 615 358 (previous year: CHF 47 267 246).

4.3.4 | Notes to the consolidated income statement Net premiums earned In the 2016 financial year, elipsLife earned premiums of CHF 331 123 234 (previous year: CHF 333 766 942). These are assigned to the life and non-life business of elipsLife as follows: 2016 IN CHF

2015

Life insurance

Non-life insurance

Life insurance

Gross premiums written

149 790 720

661 559 246

116 862 648

564 086 470

Reinsurance premiums ceded

—76 251 256

—393 863 897

—59 355 498

—282 212 740

2 264

—10 113 844

——

—5 613 937

73 541 729

257 581 506

57 507 150

276 259 792

Unearned premium reserve, net Total net premiums earned

Non-life insurance

The gross premiums written derive from the following markets: IN CHF Liechtenstein

2016

2015

2 574 612

4 182 794

The Netherlands, Belgium, Luxembourg

116 645 281

87 161 553

Ireland

567 902 167

490 154 604

Switzerland

123 237 833

98 376 175

Other Total gross premiums written

990 073

1 073 992

811 349 966

680 949 118

The life insurance premiums are comprised as follows: 2016

2015

Premiums for group contracts

149 790 720

116 862 648

of which recurring premiums

149 790 720

116 862 648

IN CHF

of which single premiums Premiums for policies without profit participation Premiums for policies with profit participation

——

——

117 044 252

97 363 076

32 746 468

19 499 572

Other technical income, net This is mostly commission income on reinsurance business ceded to companies of the Swiss Re Group and to third parties. Commission is determined at arm’s length.


elipsLife | Annual report 2016

44

Consolidated financial statements

Claims incurred Claims incurred (gross) include cost allocations under VersAV Annex IV para. 24 of CHF 13 898 213 (previous year: CHF 12 590 354). Expenses for premium refunds, net This item includes expenses for premium refunds for policies without profit participation. The profit participation models are based on the performance of individual contracts or contract groups (pools). Expenses for own insurance business In the 2016 financial year, commission payments (acquisition, renewal and portfolio commission) amounted to CHF 28 265 328 (previous year: CHF 29 176 244). In accordance with VersAV Annex IV para. 24, personnel and operating expenses are split between the items “Claims ­incurred (gross)”, “Acquisition costs”, “Administration expenses” and “Other expenses from ordinary activities”. The ­expenses are split according to the number of employees in each function. Investment income and expenses IN CHF Investment income Redemption of bonds and other fixed-interest securities Total current income from other investments Profit/loss from disposal of investments Asset management expenses Profit/loss from investments

2016

2015

4 654 949

2 884 836

—3 982 046

—2 120 171

672 903

764 665

13 170

958

—492 755

—280 149

193 318

485 474

Other expenses from ordinary activities “Other expenses from ordinary activities” include foreign currency losses of CHF 857 694 (previous year: CHF 5 351 810). Taxes In the 2016 financial year, elipsLife paid income taxes of CHF 1 159 079 (previous year: CHF 1 822 738).


45

4.3.5 | Other disclosures Personnel expenses and remuneration for the Board of Directors and Executive Board In the 2016 financial year, elipsLife employed 161.2 people on average (previous year: 130.6). Personnel expenses (before the capitalisation of expenses for internally created assets) totalled CHF 26 989 940 in the ­reporting year (previous year: CHF 24 997 562). This amount includes salaries and wages of CHF 20 107 850 (previous year: CHF 19 484 524), social insurance contributions and contributions to retirement benefit plans of CHF 4 272 307 (­ previous year: CHF 3 423 102), and other personnel expenses of CHF 2 609 783 (previous year: CHF 2 089 936). In the reporting year, the total remuneration paid to the Executive Board amounted to CHF 2 766 667 (previous year: CHF 2 227 866). The members of the Board of Directors are not paid directly for their activities. Auditors’ fees The auditors’ fees for the audit of the 2016 annual financial statements amounted to CHF 267 524. This includes the audit of the FMA report and the annual report. CHF 18 896 was invoiced in the reporting year for other auditing and attestation services. Disposal restrictions For the branches in Zurich, Amstelveen, Cologne and the office in Basel, rent deposits have been pledged as security of CHF 618 591 (previous year: CHF 524 397). According to the regulatory provisions for insurance business in Curaçao, an amount of CHF 230 253 has been deposited with a local bank as a guarantee fund. Events after the reporting date All events relating to this reporting period that occurred after the reporting date were evaluated until 10 April 2017. On 1 January 2017, Swiss Reinsurance Company Ltd, Zurich sold all the shares of Elips Life Ltd to Swiss Re Life Capital Ltd, Zurich.


elipsLife | Annual report 2016

46

Consolidated financial statements

4.4 | Auditor's report The English translation of the auditor’s report is for information purposes only. As elipsLife’s official audited Annual Report is in German, please refer to the German version for the signed auditor’s report.

Bericht der Revisionsstelle (nach PGR) an die Generalversammlung der Elips Life AG Bericht der (nach PGR) PGR) Bericht der Revisionsstelle Revisionsstelle (nach Triesen an die Generalversammlung der an die Generalversammlung der Elips Life Elips Life AG AG Triesen Triesen

To the General Meeting of Elips Life Ltd Triesen

Bericht der Revisionsstelle zur Jahresrechnung

Report the group auditor Bericht derof Revisionsstelle zur Jahresrechnung konsolidierten Jahresrechnung Als Revisionsstelle nach den Bestimmungen des Personenund Gesellschaftsrechts (PGR) haben wir

Bericht der Revisionsstelle zur konsolidierten Jahresrechnung die Buchführung, die konsolidierte Jahresrechnung (Bilanz, Erfolgsrechnung und Anhang) und den Als Revisionsstelle nach des Personenund Gesellschaftsrechts Gesellschaftsrechts (PGR) haben Als Revisionsstelle nach den den Bestimmungen Bestimmungen desTriesen Personenund (PGR) haben wir wir konsolidierten Jahresbericht der Elips Life AG, für das am 31. Dezember 2013 abgeschlossene As group auditor, we audited the consolidated financial statements (balance income die Buchführung, die konsolidierte Jahresrechnung (Bilanz, und Anhang) und den die Buchführung, die have konsolidierte Jahresrechnung (Bilanz, Erfolgsrechnung Erfolgsrechnung undsheet, Anhang) und statement den Geschäftsjahr geprüft. and notes) and the consolidated management report of Elips Life Ltd for the year ended 31 December konsolidierten Jahresbericht der Elips Life AG, Triesen für das am 31. Dezember 2015 2014 abgeschlossene konsolidierten Jahresbericht der Elips Life AG, Triesen für das am 31. Dezember 2015 abgeschlossene 2016. Geschäftsjahr geprüft. Geschäftsjahr geprüft.Jahresrechnung und den konsolidierten Jahresbericht ist die Verwaltung verFür die konsolidierte antwortlich, während unserestatements Aufgabe darin besteht, diese zu prüfen und zu beurteilen. Wir bestätigen, of These consolidated financial and thekonsolidierten consolidated management are the responsibility Für die konsolidierte Jahresrechnung und den Jahresberichtreport ist verFür die Jahresrechnung undhinsichtlich konsolidierten Jahresbericht ist die die Verwaltung Verwaltung verdassboard wirkonsolidierte die gesetzlichen Anforderungen Befähigung undthese Unabhängigkeit erfüllen. express an opinion on consolidated financial statethe of directors. Our responsibility isden to antwortlich, während unsere Aufgabe darin besteht, diese zu prüfen und zu beurteilen. Wir bestätigen, antwortlich, während unsere Aufgabe darin besteht, diese zu prüfen und zu beurteilen. Wir bestätigen, ments based on our audit.Anforderungen We confirm that we meet the legal requirements concerningerfüllen. professional dass wir die gesetzlichen hinsichtlich Befähigung und Unabhängigkeit dass wir die gesetzlichen Anforderungen hinsichtlich Befähigung und Unabhängigkeit erfüllen. Unsere Prüfung erfolgte nach den Grundsätzen des liechtensteinischen Berufsstandes und Art. 41 qualification and independence. Abs. 1a VersAG, wonach eine Prüfung so zu planen und durchzuführen ist, dass wesentliche FehlausUnsere Prüfung erfolgte den des liechtensteinischen Berufsstandes und Our audit waskonsolidierten conducted in accordance with und auditing standards promulgated by the in Unsere erfolgte nach nach den Grundsätzen Grundsätzen des Berufsstandes und Art. Art. 41 41 Liechsagen inPrüfung der Jahresrechnung imliechtensteinischen konsolidierten Jahresbericht mitprofession angemessener Abs. 1a 1a VersAG, wonach eine zu durchzuführen ist, dass Fehlaustenstein, which require that anPrüfung audit beso andund performed toder obtain assurance about Abs. VersAG, wonach eineWir Prüfung soplanned zu planen planen und durchzuführen ist,reasonable dass wesentliche wesentliche Sicherheit erkannt werden. prüften die Posten Angaben Jahresrechnung mittelsFehlausAnalysen sagen in in the der consolidated konsolidierten Jahresrechnung und imthe konsolidierten Jahresbericht mit angemessener angemessener whether financial and consolidated management report aremassgefree from sagen der konsolidierten Jahresrechnung und im konsolidierten mit und Erhebungen auf der Basis von statements Stichproben. Ferner beurteilten Jahresbericht wir die Anwendung der Sicherheit erkannt Wir die Posten Angaben der Jahresrechnung mittels Analysen material misstatement. We have examined on a testund basis evidence supporting the amounts and discloSicherheit erkannt werden. werden. Wir prüften prüften diewesentlichen Posten und Angaben der Jahresrechnung mittels Analysen benden Rechnungslegungsgrundsätze, die Bewertungsentscheide sowie die Darstellung und Erhebungen Erhebungen auf der Basis von Stichproben. Ferner wir die Anwendung der sures in the consolidated financial statements. We have beurteilten also assessed the principles used, und auf als derGanzes. Basis von Stichproben. Ferner beurteilten wir dieaccounting Anwendung der massgemassgeder Jahresrechnung Wir sind der Auffassung, dass unsere Prüfung eine ausreichende benden Rechnungslegungsgrundsätze, Rechnungslegungsgrundsätze, die wesentlichen Bewertungsentscheide sowie significant the overall statement presentation. We believe that benden die consolidated wesentlichenfinancial Bewertungsentscheide sowie die die Darstellung Darstellung Grundlage estimates für unser made Urteil and bildet. der audit Jahresrechnung als Wir der Auffassung, our provides a reasonable for our der Jahresrechnung als Ganzes. Ganzes.basis Wir sind sind deropinion. Auffassung, dass dass unsere unsere Prüfung Prüfung eine eine ausreichende ausreichende Grundlage für für unser unser Urteil Urteil bildet. Grundlage bildet. Gemäss unserer Beurteilung vermittelt die konsolidierte Jahresrechnung ein den tatsächlichen VerIn our opinion, the consolidated financial statements and the consolidated management report comply hältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage in Übereinstimmung mit with Liechtenstein law and the company's articles of incorporation. Gemäss unserer Beurteilung vermittelt die konsolidierte Jahresrechnung ein ein den den tatsächlichen tatsächlichen VerGemäss unserer Beurteilung vermittelt die konsolidierte Jahresrechnung Verdem liechtensteinischen Recht. Ferner entsprechen die Buchführung, die konsolidierte Jahresrechhältnissen entsprechendes Bild der Finanz- und und Ertragslage Ertragslage in in Übereinstimmung mit hältnissen entsprechendes Bild der Vermögens-, Vermögens-, Finanzmit nungmanagement und der konsolidierte Jahresbericht demthe liechtensteinischen Recht undÜbereinstimmung den Statuten. The report is in accordance with financial statements. dem liechtensteinischen Recht. Ferner entsprechen die Buchführung, die konsolidierte Jahresrechdem liechtensteinischen Recht. Ferner entsprechen die Buchführung, die konsolidierte Jahresrechnung und der der konsolidierte konsolidierte Jahresbericht demsubmitted liechtensteinischen Recht den Statuten. We that the financial statements to konsolidierten you be approved. nung und Jahresbericht dem liechtensteinischen Recht und und den Statuten. Derrecommend konsolidierte Jahresbericht steht im Einklang mit der Jahresrechnung. Der konsolidierte Jahresbericht steht mit konsolidierten Jahresrechnung. Wir konsolidierte empfehlen, die vorliegende konsolidierte Jahresrechnung ohne Einschränkungen zu genehmigen. PricewaterhouseCoopers Ltd Der Jahresbericht steht im im Einklang Einklang mit der der konsolidierten Jahresrechnung. Wir empfehlen, die vorliegende konsolidierte Jahresrechnung ohne zu genehmigen. Einschränkungen zu genehmigen. Wir empfehlen, die vorliegende konsolidierte Jahresrechnung ohne Einschränkungen zu genehmigen. PricewaterhouseCoopers AG PricewaterhouseCoopers AG PricewaterhouseCoopers AG Enrico Strozzi

Enrico Strozzi Strozzi Auditor in charge Enrico Leitender Revisor Leitender Revisor

Michael Stämpfli

Michael Stämpfli Stämpfli Michael

Zürich, 30 5. 8. 2015 9. April 2014 Zurich, March 2017 Zürich, 13. April2016 2016 Beilagen: Beilagen: - Konsolidierte Jahresrechnung (Bilanz, Erfolgsrechnung und Anhang) -- Konsolidierte Jahresrechnung Konsolidierter Jahresbericht (Bilanz, Erfolgsrechnung und Anhang) - Konsolidierter Jahresbericht PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 Zürich Telefon: +41 58 792 44 00, Telefax: +41 58 792 44 10, www.pwc.ch PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 Zürich PricewaterhouseCoopers AG ist Mitglied eines globalen Netzwerks von rechtlich selbständigen voneinander unabhängigen Gesellschaften. PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 und Zürich Telefon: +41 58 792 44 00,AG, Telefax: +41 58 792 10, www.pwc.ch PricewaterhouseCoopers Birchstrasse 160,44 Postfach, CH-8050 Zürich, Switzerland Telefon: +41 58 792 44 00, Telefax: +41 58 792 44 10, www.pwc.ch Telephone: +41 58 792 44 00, Telefax: +41 58 792 44 10, www.pwc.ch

PricewaterhouseCoopers AG ist Mitglied eines globalen Netzwerks von rechtlich selbständigen und voneinander unabhängigen Gesellschaften. PricewaterhouseCoopers AG ist Mitglied eines globalen Netzwerks von rechtlich selbständigen und voneinander unabhängigen Gesellschaften. PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

11


About elipsLife Internet More information on the figures and performance of the company, also during the course of the year, is available on our website www.elipsLife.com

Contact addresses elipsLife Landstrasse 40, 9495 Triesen, Liechtenstein T +42 3 239 95 55, F +42 3 239 95 54, contact@elipslife.com elipsLife branch office in Switzerland Thurgauerstrasse 54, P.O. Box, 8050 Zurich, Switzerland T +41 44 215 45 45, F +41 44 215 45 44, contact@elipslife.com elipsLife branch office in the Netherlands Startbaan 8, P.O. Box 191, 1180 AD Amstelveen, The Netherlands T +31 20 7 55 98 00, F +31 20 7 55 98 99, contact.nl@elipslife.com elipsLife branch office in Germany Im Mediapark 8, 50670 Cologne, Germany T +49 221 993 0 98 00, F +49 221 993 0 98 10, contact.de@elipslife.com elipsLife branch office in Italy Via dei Giuochi Istmici 40, 00135 Rome, Italy T +39 06 8750 1007, F +39 06 8750 1008, contatto.it@elipslife.com

Photos Cover: Ober Gabelhorn (4 063 m), Valais, Switzerland Page 4: Breithorn (3 780 m), Bernese Oberland, Switzerland Pages 6 and 7: Liskamm (4 527 m), Valais, Switzerland Pages 10 and 11: MĂśnch and Jungfrau (4 107 m / 4 158 m), Bernese Oberland, Switzerland Page 17: Gspaltenhorn (3 436 m), Bernese Oberland, Switzerland Pages 30 and 31: Breithorn (3 780 m), Bernese Oberland, Switzerland

Publishing details The English translation is provided for information only. The original German version is the official version of the audited document. Š elipsLife 2017


www.elipsLife.com

elipsLife Landstrasse 40 9495 Triesen Liechtenstein T +423 239 95 55 F +423 239 95 54 contact@elipslife.com