Global Employee Benefits The Swiss Life Network Perspectives May 2015

SL_Newsletter_March_2015_V03.indd 1 13.05.15 13:44 Dear Reader

This edition contains a variety of examples of how the Swiss Life Network is committed around the globe to supporting our clients and business partners turning challenges into opportunities. To do this, Swiss Life Network relies on the sound expertise and proven experience of all its long term Network Partners, and the trust and loyalty of clients since very many years.

This is my last editorial. I have greatly enjoyed heading and being part of the Swiss Life Network for the past nine years and shaping it, together with all of you – clients, partners, and a great team at head office – into what it is today. Thank you very much for all your input, feedback, challenges and opportunities. I wish you all the very best for a successful and exciting future.

Yours sincerely Margrit Schmid

SL_Newsletter_March_2015_V03.indd 2 13.05.15 13:44 Future Outlook

Broker Outlook 2015 for Employee Benefits 4 Feature Story

Challenges are always opportunities 9 Beyond Retirement

Flexible retirement 11 France: Swiss Life France targets seniors12 New Benefits

Disability coverage to close the gap 12 South Africa: Momentum’s latest innovations: new death benefits for employees 14 Flexibility

Canada: Evolving healthcare trends call for flexibility 15 Sustainability

Spain: VidaCaixa recognised for excellent pension fund management 16 Striking a balance between low interest rates and performance 17 Swiss Life looks back on a successful financial year 2014 18 The Netherlands: Zwitserleven again most sustainable investor 19 Network News

Training and networking for a fast-paced, evolving world 20 Network Partner anniversaries 22 Swiss Life Network Partners23

Impressum Publisher Swiss Life Network, General-Guisan-Quai 40, P.O. Box, 8022 Zurich, Switzerland, T +41 43 284 37 97, F +41 43 284 39 97, [email protected] • Editor Swiss Life Network in cooperation with network partners, clients and Openline • Photos Swiss Life Network in cooperation with network partners and clients Photo Front SL_CC_Pottery • Design and Print Swiss Life Marketing Support • Copyright Swiss Life Network Reprint authorisation on agreement with the Publisher • The quarterly Global Employee Benefits Newsletter is available online: www.swisslife-network.com/newsletter

Global Employee Benefits Newsletter | May 2015

SL_Newsletter_March_2015_V03.indd 3 13.05.15 13:44 4 Feature Story Broker Outlook 2015 for Employee Benefits

We asked leading brokers and consultants to share their thoughts and measurements for international employee benefits in 2015. Looking ahead into a constantly changing environment, the impact of disruptive business models on Employee benefits and how to address the challenges which they pose, stand in the centre of our attention.

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What main factors do you see influencing the Employee Benefits industry in a world of radical change, with political instability, uncertainty, and economic fluctuations?

AON The ageing of the work force, people’s inability to retire financially, healthcare costs rising at double the rate of regular inflation, social security cutbacks, expectations from millennials for everything on demand, the do-it-your- self economy, continuous education, flexible careers, big data: all these factors point toward mass customisation, flexibility, and more choices for Employee Benefits.

Kessler We are facing many challenges from a local and also from an international point of view. Local issues are changes in legislation, longevity, low interest rates, and how benefits are financed. Internationally we have subjects such as managing international benefits, keeping information up to date, costs, compliance, mobile employees, and han- dling M&As.

Mercer The need for employers to find innovative, cost-effective, and relevant benefit programmes that can be offered to employees. Employers need to offer attractive programmes that meet the needs of both ageing and next-genera- tion employees. The one-size-fits-all model is long gone for certain industries.

Towers Watson It’s certainly an interesting world, but I doubt we will ever live in a period without political instabilities and other uncertainties. I think the most critical issue impacting Employee Benefits today, and likely to continue dominat- ing the focus of multinational leaders, is governance. Companies require clear delineations of roles and responsi- bilities for employee benefit programmes, for both larger and smaller cost plans. It’s why we’re seeing such an in- crease in demand for global brokerage and global pension investment and advisory appointments: multinational leaders need the assurance that everything is being covered and that benefit programmes are aligned with glob- al reward strategies, properly leveraged to ensure costs consistent with their multinational competitors, and that the long-term impacts on benefit programmes are being considered and planned for appropriately in all markets.

Francois Choquette Francois Choquette leads the Global Benefits consulting business for Aon. He has 25 years of experience assisting multinationals with a broad range of international benefits issues such as M&A, global benefit design and financing, global governance policies, and employee mobility. He has lived in Montreal, Toronto, New York, and San Francisco, and worked and travelled in more than 40 countries.

Global Employee Benefits Newsletter | May 2015

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Will disruptive business models (such as Amazon, Uber or Youtube) affect the Employee Benefits industry? How?

AON The biggest challenge for us at Aon is the emergence of mid-size (some would even say small) multinationals. How do you help clients who go from zero to 2,000 employees in 50 countries in two years (still with “just” 20 employees per country). Employee Benefits need to cross borders and scale more easily. Multi-employer platforms must emerge. Demands from clients to obtain timely and relevant health-related claims data will impact health intervention programmes and shape the delivery of healthcare in emerging markets.

Kessler New business models will certainly have an impact on the employee benefits industry. Employees are able to access more information and will have more knowledge about Employee Benefits. Depending also on the age group, these new models will be used differently. Due to complexity and the diverse personal situations of each employee, we be- lieve that focusing on personal consulting will remain crucial.

Mercer Yes, to some extent. The younger workforce will be looking for new ways to access and be informed about all as- pects of a compensation package. The term ‘benefit’ will perhaps be re-defined in the near future.

Towers Watson Towers Watson is fortunate to work with some of the most innovative companies around, who are constantly challenging the status quo of their own business models to generate new and profitable products and services. These companies are likewise demanding innovation from their consultants and benefit providers. While tradi- tional global solutions such as pooling and brokerage continue to remain relevant, we must continually look for cutting edge solutions that deliver results for our clients. Towers Watson has been pioneering several new and evolving global benefit solutions, such as: •Benefit captives: the number of captives used to fund Employee Benefits has nearly doubled over the last seven to eight years, and Towers Watson has supported most of these companies newly entering the captive space. •Global risk marketing: taking global books of business for life and disability coverages out to bid simultane- ously gains immediate leveraging on cost savings through reduced premiums and increased corporate gover- nance. •Towers Watson’s Global Access: offering pre-packaged benefit solutions eliminates the need for brokers and greatly reduces the role of local HR in managing benefit programmes.

Markus Leutenegger Markus Leutenegger is an international employee benefits spe- cialist. Born in the UK and now a British/Swiss national, he has nearly 30 years of pension consulting experience and has worked for Kessler since 2012. Before that he was with two life insurance companies and an insurance broker. His main functions are pen- sion scheme consulting, multinational pooling, and global bene- fits management.

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Will your business model be impacted by disruptive business models? If you think this could be the case, what measures are you taking?

AON Yes. We are building a global technology platform that can be used to help clients locally and globally for broking (e-auction), inventory, governance, data analytics and employee experience. We’re creating global common process- es to serve clients more efficiently, including an inbound dedicated team for multinational clients, and cross-border and offshore admin and consulting teams.

Kessler We are offering our clients up-to-date information software to help them manage international benefits. At the same time, we’re extending our personal consulting capabilities, for instance by organising special events for in- ternational employees coming to Switzerland. Our clients see these events as very valuable, as it is a challenge to communicate Employee Benefits.

Mercer Yes, it already has. We’re constantly developing tools and processes to meet increasing demands for quicker, more accessible, and updated information. Apps and direct access product solutions are already starting to be- come standard for distributing data and knowledge.

Towers Watson We consider it our role as a consultant to constantly challenge the status quo. We expect even greater leveraging of non-traditional global benefit solutions (described above) over the next two to three years, while we continue to develop the next “new” solutions to meet the unique needs of our clients.

Jimmy Johansen Jimmy Johansen is a partner with Mercer. He has worked with Mercer or Mercer-related companies since 2000, including two years in the Singapore office. He is now working with the Inter- national Consulting Group for the Nordics, responsible for client management for some of Mercer’s largest clients in the Nordic region. He also has a European role in leading Mercer’s Insurance Work Group, covering multinational pooling and global benefit management solutions.

Global Employee Benefits Newsletter | May 2015

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What will be the biggest challenges and changes for you and your clients in 2015?

AON For Aon, the biggest challenge will be to implement consistent processes and products while meeting our clients’ needs for customised solutions. For our clients, the biggest challenge will be to delegate some of their decision-making and control to us (or anoth- er third party).

Kessler We see our challenge as keeping up to date with all the changes going on, and filtering the essential information to our clients along with our advice on possible actions to take. We also see that Swiss companies are beginning to manage Employee Benefits across borders, and here it’s our challenge to give advice so they can benefit from our ex- perience and also from our worldwide network.

Mercer For us it is to be able to develop and deliver cost-effective, innovative solutions to our clients at an acceptable profit margin. We see that margins are getting slimmer. Our clients face different challenges depending on their industry. The energy sector, for example, will be espe- cially challenged to achieve cost savings, while many other industries will put greater focus on attracting and re- taining the right talent. Selecting and developing the right leadership team in a changing world will also be im- portant this year and in future.

Towers Watson Towers Watson continues to expand its Global Benefits Management business, which involves a variety of poten- tial solutions to match our clients’ individual needs. It’s incumbent on us to challenge our clients who are com- fortable with traditional approaches to governance and benefits financing to explore all their alternatives and ac- tively consider whether the status quo fully addresses their corporate objectives.

Gerry Winters Gerry Winters is a senior international consultant with Towers Watson. Now a senior adviser to multinational organisations on benefit and reward programmes, he spent several years as a ben- efits leader at a leading global company. He is pleased to once again be part of the largest, most experienced team of dedicated international consultants in our industry.

SL_Newsletter_March_2015_V03.indd 8 13.05.15 13:44 Feature Story 9

Challenges are always opportunities

Buzzwords such as the ageing population, diversity in the work- place, and the need for flexibility, are on everyone’s lips these days. In most cases, these are associated initially with additional costs and tough challenges. There’s always a flip side, however: what appears problematic from one point of view can also be seen as an opportunity for business innovation.

As a global employee benefits provider, we see ageing as growing number of older citizens without loading the more than just one of several major social changes now entire burden onto younger generations. taking place, such as globalising economies, continuing urbanisation, and rapidly evolving technology. Ageing is The level of longevity is related to multiple factors, in- a key challenge, and as such also a major opportunity. cluding gender, genetics, access to healthcare, and Peoplein developed and many developing economies crime rates – which often depend on geography and are having fewer children, often live in one-person economic development. Nonetheless, there are obvious households, and are thus less likely to live with older differences between life expectancy in developed coun- generations. With declining support from families, new tries and in developing countries. ways are needed to ensure the well-being of the world’s

Life Expectancy at Birth

89.57 84.4884.46 82.39 80 Years 80.44 79.56 77.09 75.15 73.28 71.83 67.80

60 Years

49.56

40 Years

20 Years ca ri and rl Af co any h il age ze na cau it rm ina er ut az dia pan In So Mo Ma Ja Sw Ge USA UAE Ch Br 0 Years Av

Source: The World Factbook 2014 est.

There are also differences in the speed at which life ex- tries. In many countries, this group is the fastest grow- pectancy is increasing. Not only are we seeing rising ing sector of the total population. numbers of old people, but also increasingly fast growth of the oldest sector of the population. The “oldest old” Longevity means that older people spend many more (people aged 85 or older) constitute 8% of the world’s years in retirement. As well as causing obvious prob- 65-and-over population, accounting for 12 % in more lems for retirement and healthcare financing, this also developed countries, and 6% in less developed coun- creates a challenge for workforce resource planning.

Global Employee Benefits Newsletter | May 2015

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Western Europe and North America in particular face and services. These extend from tailor-made travel or shortages of know-how and talent as more people leave leisure services adapted to the requirements of elderly for retirement than join the workforce. persons, to products and services needed beyond retire- ment, such as financial planning, ongoing wealth accu- What is the flip side? How can these challenges be seen mulation services, and health and life insurance. as an opportunity to tap new business potential and new markets? We can illustrate this with a few concrete This is why we are working to expand our offering be- examples. yond retirement in order to provide employee benefit- type solutions after retirement as well. This issue of New ideas and youth can be optimally complemented “Global Employee Benefits” includes several illustra- by experience, business networks, and sometimes even tions of innovative solutions offered by our Network access to financial support from retirees. Young retirees Partners to take care of customer needs after retire- are often glad to share their knowledge by acting as ment. business advisors or business angels. Numerous organ- isations around the globe have been founded to tap While ageing is a key challenge and opportunity for us, into this potential. we also consider the high level of diversity in the work- place, increased requests for flexibility and sustainabil- One example is Innovage, an independent Swiss associ- ity, and continuously evolving technology – and the ation set up in 2006 as a platform for 150 retired or combination of these trends - as an opportunity to re- soon-to-be retired executives and professionals from spond with matching solutions to help our customers business, government, education, consulting and the manage these challenges successfully. Whether the media, who offer their experience and knowledge free of challenges occur before retirement, during employ- charge to younger people setting up social projects. An- ment, or after retirement, the Swiss Life Network can other example is the SCORE Association (previously help. known as the Service Corps of Retired Executives), which provides free business mentoring services to en- Read on to see examples of innovative approaches by trepreneurs in the United States. our Network Partners, as we work hard to remain at the forefront of innovative global employee benefit solu- Furthermore, retirees are an important and growing tions and support our clients in today’s fast changing customer segment that needs very specific products world.

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Flexible retirement

Not all employees want to retire once they reach normal retirement age. Many would like to work for longer. Others would like to retire somewhat earlier, ideally on a staggered basis. With modern occupa- tional provisions, neither option poses any particular problems.

Flexible and individually structured occupational pro- visions are not only in keeping with the times, they also At a glance reflect a real need. Only a third of the workforce in Swit- Attractive opportunities with Swiss Life: zerland still observes the statutory retirement age of Normal retirement: 64/65. Moreover, thetrend is increasingly movingaway ɬ Normal retirement age for women 64, from early retirement to remaining within the work- men 65 years force for longer. ɬ Close any shortfalls through voluntary purchases ɬ Withdraw retirement benefits as a pension or Less, but work for longer lump sum Insured employees can nowadays take early retirement or enter semi-retirement from the age of 58, or even reduce Early retirement from the age of 58: their workload on a staggered basis of 20% increments. If ɬ A reduced conversion rate is used for the an employee reduces his workload, he is entitled to with- retirement pension draw some of his assets from the 2nd pillar. Furthermore, ɬ Compensation of pension or capital reductions if the employee decides to continue working from the age possible through voluntary purchases of 58 on a salary reduced by up to 50%, he is still entitled Semi-retirement from the age of 58: to maintain his occupational provisions in full until the ɬ Within the scope of the reduction: normal age of retirement and even to continue to make Termination of the employment relationship purchases. The advantage: There are no pension reduc- and withdrawal of the retirement benefits as tions. Good to know: Nowadays the BVG facilitates paid a pension or lump sum employment beyond the statutory age of retirement up ɬ For tax reasons: Limited to two reductions until the 70th year of age. It is generally possible to con- tinue paying into the 2nd pillar even during this phase. Deferred retirement: ɬ Continue working after the normal retirement However, it is important to keep in mind, that if one does age until age 70 at the latest not pay in until the normal age of retirement, the retire- ɬ Continuation of insurance with continuation ment benefits will automatically diminish. The conse- of the employment relationship with or without quence: AHV and BVG pensions or one’s BVG capital will retirement credits. In the event of termination be correspondingly smaller. These gaps can be closed by due to health reasons, the retirement benefits making voluntary purchases before retirement. are triggered at the end of the employment relationship. Good for employers too ɬ An increased conversion rate is used for the Flexible occupational provisions can be a real competitive retirement pension advantage when it comes to employees' working condi- tions, which offers the opportunity to secure key workers for the company over the long term. For more information Please visit www.swisslife.ch Or contact Martin Naegeli Tel: +41 43 284 65 25 Email: [email protected]

Global Employee Benefits Newsletter | May 2015

SL_Newsletter_March_2015_V03.indd 11 13.05.15 13:44 12 Beyond Retirement/New Benefits

France: Swiss Life France targets seniors

Two years ago, Swiss Life France developed a special new product for senior people: Swiss Life Santé Retraités, a health contract dedicated to retirees.

Beneficiaries are retirees aged 55 years to age 80, who can Other services included in the contract comprise of: de- select from five different solutions, depending the level livery of drugs and medicines, organisation of home care, and type of cover they require. psychological assistance, pet care, and other types of sup- port. To complete the offer and allow clients to stay in Benefits are adapted to the targeted clients and include: constant touch, many on-line services are accessible via specialised branches of medicine, optical coverages, dental the website www.swisslife.fr. treatments, and hospitalisation costs. As Swiss Life Santé Retraités is designed to meet the specific needs of this pop- For more information ulation, benefits include, for example, reimbursement of Please visit www.swisslife.fr Or contact Mr Denis Fendt hearing aids, as well as the costs of preventative actions Email: [email protected] such as screening for osteoporosis and colon cancer. Phone: +33 1 46 17 36 59

Disability coverage to close the gap

Against the background of the economic crisis of the last few years, it is no coincidence that employers are concerned with a likely increase of disability claims. These concerns are not unjustified as many empirical studies validate the increase in disability claims during periods of economic downturns.

For example, high unemployment and bankruptcies Suddenly they become dependent and turn to the state as well as deteriorating consumer confidence have been with all sorts of questions: When will I get payments? found as appropriate determinants for rising disability How much will I get? How long can I receive financial sup- claims and vice versa. At the same time, surveys show that port for? At this point, they also need to know what their more employees are working very long hours or outside employer will provide. Given the ongoing war for talent “normal” hours; more jobs are involving high work inten- and the need for corporate reputation management, this sity and job contracts are becoming less secure – all these is a topic that responsible employers are paying far more indicators being correlated with stress and, in turn, a po- attention to. tential health risk. The technical conditions for receiving financial support There are usually dramatic financial consequences when in case of disability are specific to each country, with vari- people become unable to work due to accident or illness. ations in the levels of disability acknowledged, and the

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amount and duration of benefits subsequently paid out. and only need to see one doctor. This in turn allows pay- Let’s take one example: Luxembourg. ments to be made much faster, sheltering the beneficiary from a long period of uncertainty and loss of income. Luxembourg To qualify for state benefits in Luxembourg, the disabled Financial security individual must have paid contributions for at least 12 In Luxembourg, state payments in case of disability are months during the preceding three years before the occur- linked to the length of the individual career in the country. rence of the insured event (except in the event of disability Swiss Life then steps in and closes the gap with its com- caused by accident). This is a particularly significant reg- plementary solution, which is salary linked, meaning that ulation in a country that has many foreign employees in the insured’s overall disability income is a fixed percent- its workforce. age of their previous salary at the time of the claim.

The amount paid out depends on the level of disability, Advantages but also on the person’s career and years of employment Swiss Life Luxembourg’s approach offers numerous ben- within Luxembourg. The longer the person has worked in efits, as it: Luxembourg, the more he or she will receive in state ben- ɬ Closes the gap in benefits for the insured efits, and vice versa. This means that “newer” employees ɬ Provides financial security in the event of disability with only a few years of working in Luxembourg will be ɬ Does not require further medical check-ups missing contributions, and thus receive very low and thus ɬ Removes an impediment to attracting and retaining tal- insufficient benefits. ent from abroad ɬ Involves less administrative work for employers and in- When talking to its corporate clients, Swiss Life identified sureds a strong need to close this gap with a solution that com- plements social security disability benefits and provides For more information about Swiss Life Luxembourg’s flex- a guaranteed targeted overall salary replacement income ible disability plans, which include long-term disability, (70% for example, for total disability). Swiss Life’s new total and permanent disability, and waiver of death premi- disability solution is specifically designed to ensure that ums and/or retirement contributions, please contact: employees coming from abroad are not disadvantaged by Geoffroy Guissard, Swiss Life (Luxembourg) S.A their short working careers in Luxembourg should they become disabled.

Faster payout Swiss Life’s solution starts with the disability assessment For more information done by the state. In the majority of the cases Swiss Life Please contact Swiss Life Network agrees to follow this decision, and as a result insureds do [email protected] not have to undergo a separate examination by the insurer,

Global Employee Benefits Newsletter | May 2015

SL_Newsletter_March_2015_V03.indd 13 13.05.15 13:45 14 New Benefits South Africa: Momentum’s latest innovations: new death benefits for employees

Momentum is continually striving to improve its offering to meet the needs of a world experiencing rapid growth and change. With a combination of meticulous research and creative thinking, it finds ways to turn great benefits into exceptional ones. Momentum is now proud to introduce its significantly enhanced Funeral Benefit, and brand new Children’s Education Benefit.

Funeral Benefit – increased benefits beyond direct Children’s Education Benefit –safeguarding a funeralcosts successful education In response to the rising costs and expanding needs of This brand new risk product has been developed to cov- members and their families who face the painful experi- er tuition and many peripheral costs involved in educat- ence of burying a loved one, Momentum has increased its ing members’ natural and legally adopted children in the cover and is making broader options and benefits avail- event of the parents’ death. With cover extending from able. Highlights of the newly enhanced Funeral Benefit in- pre-primary school to tertiary education at recognised clude: South African institutions – and even top international ɬ Memorial Benefit: an additional pay out to commemo- universities – for an unlimited number of children, this rate the deceased up to 12 months after the Funeral Ben- product is the ultimate reassurance that children’s edu- efit has been paid. cation is secure. Highlights of the Children’s Education ɬ Debt Relief Benefit: financial assistance for minor house- Benefit include: hold debts that will still be paid even if the family is ɬ Tuition Benefit: based on the child’s tuition fees in the debt-free. year of the member’s death, this benefit offers gener- ɬ Inkomo Benefit: a sum to cover the cost of livestock or ous allowances for annual increases and also covers in- any other traditional ceremonial requirements, payable creased costs incurred when the child changes school or regardless of the member’s traditions or requirements. education levels. ɬ Funeral Transport Benefit: an additional payment that ɬ Education Booster Benefit: this benefit is paid out over can be used for transport costs or any other funeral ar- and above tuition costs in order to cover books, uni- rangements. forms and other expenses. It is calculated as a percent- ɬ AirtimeBenefit: an optional extra that provides a sum to age of the actual fees, and the full amount is paid out re- pay for airtime needed to organise the funeral. gardless of how much was spent. ɬ Education BonusBenefit: should a beneficiary receive a bursary or other fee exemption, they will be rewarded with 40% of that bursary or exemption amount paid di- rectly to them. ɬ Gap year after school allowed ɬ 44 prestigious international universities covered ɬ No underwriting is required

For more information Please visit www.momentum.co.za Or contact Mr Redwaan Zoutenberg Tel: +27 21 940 40 11 Email: [email protected]

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Canada: Evolving healthcare trends call for flexibility

Changing demographics in the workplace, the trend towards pro- active healthcare solutions, and growing technological advances are factors that have employers examining what the future holds for benefit plans. Great-West Life’s research has found that a one-size- fits-all plan design no longer works when it comes to supporting employee health and wellness.

According to the Sanofi Canada Healthcare Survey 2014, Constantly evolving trends and needs in the healthcare 75% of Generation Y plan members want more flexibili- landscape mean that providing flexible benefit plan op- ty in their benefit plans. What’s more, consumer trends tions that focus on overall health and wellness is bene- show a growing need for plans to include a focus on ficial for both employers and plan members. Plan mem- wellness and prevention, creating demand for proactive bers are encouraged to become active participants in their healthcare solutions. healthcare and make responsible choices, while employers are helped to maintain affordable and sustainable plans. Plan members also expect employers to be partners in health. In the Sanofi Canada Healthcare Survey 2013, 69% of plan members agreed that employers should do more to help prevent disease, illness and injury among employees, rather than just pay for treatment.

Greater efficiency via technology For more information Technology is also changing the way that Great-West Life Please visit www.greatwestlife.com does business. The company has introduced several new Or contact Mr. David Henry tools to increase efficiency and enhance plan member Tel: +1 416 552 58 02 Email: [email protected] convenience and satisfaction. Online health claim sub- missions have been a convenient way of helping both plan members and the insurer to process claims faster and eas- ier. In 2014, 87% of health and dental claims were received electronically via prescription drug card transactions, pro- vider and member online submissions, or mobile devices.

Another way Great-West Life has used technology to make life easier for plan sponsors and plan members is through Health SolutionsPlus, a Visa® payment card that can be used at the point of purchase to pay for eligible healthcare products and services. Great-West Life worked with Evo- lution1 to implement this electronic payment option for healthcare spending accounts – a first in Canada.

Global Employee Benefits Newsletter | May 2015

SL_Newsletter_March_2015_V03.indd 15 13.05.15 13:45 16 Sustainability Spain: VidaCaixa recognised for excellent pension fund management

VidaCaixa achieved some of Spain’s best pension fund results last year, following excellent results over the previous four years both for individual pension plans and occupational pension plans. In recog- nition of this, the pension fund management team has won numer- ous awards over the past five years.

VidaCaixa offers a wide range of pension plans for all In 2009, VidaCaixa became the first Spanish life and pen- risk profiles, from the most conservative, focusing on sion insurer to follow the UN’s principles on responsible cash funds, to the most aggressive, using long-term in- investment. This means that our customers are assured of vestments in emerging market equities, for example. The socially responsible investment of their savings and great- company’s active discretionary management style aims er returns to society overall. to maximise the profitability of the risk level set in the As one of the very few Spanish entities offering pension investment mandate. This is done through using tacti- funds, life and accident insurance, as well as savings plans, cal asset allocation within the strategic asset allocation, VidaCaixa is a constantly growing market leader (with a as well as careful selection of the securities within each market share of 20.5% in 2014, 7.8 points ahead of its asset class. nearest competitor) recognised for its high levels of qual- A crucial aspect of VidaCaixa’s management style is its use ity by ADECOSE, the Spanish Association of Insurance of third-party funds, which allows it to invest in any type Brokers. of asset, while identifying the best specialists for each and actively managing its global position. This model has en- sured yields above the benchmark indices and the mar- ket average. For more information Please visit www.vidacaixaprevisionsocial.com Or contact Ms. Ana Delgado Desarollo de Negocio VidaCaixa Previsión Social Tel: +34 93 227 89 57 Email: [email protected] Recognition of pension fund management 5 consecutive years accumulating awards for good investment management

1. Pensions Caixa 10 Ahorro, best euro bond pension fund in Spain 2. PlanCaixa Ambición Global, Best moderate mixed 4. PlanCaixa Bolsa Internacional, Best global pension fund in Spain 2014 pension fund in Spain 3. PlanCaixa Oportunidad, best mixed agressive pension Allfunds Bank Investment Research fund in Spain Morningstar

Pensions Caixa 30, Best pension fund in Spain PlanCaixa Seleción, Best european equity pension fund in Spain 2013 Revista IPE Allfunds Bank Investment Research

PlanCaixa Privada Activo Variable, Best global equity pension fund Pensions Caixa 30, Best pension fund in Spain 2012 in Spain Revista IPE Morningstar

Pensions Caixa 30, Best pension fund in Spain 2011 Revista IPE

PlanCaixa Ambición, Best european equity pension fund in Spain. 2010 Best bond and equities pension fund manager in Spain. Expansión y la consultora financiera Interactive Data Morningstar y El Economista

SL_Newsletter_March_2015_V03.indd 16 13.05.15 13:45 Sustainability 17

Striking a balance between low interest rates and performance

An awareness of one's own situation and a systematic assessment of the options for manoeuvre.

In the current low interest rate environment, pension minating in parallel and mutually dependent stochastic funds and foundations face particular challenges in simulations of assets and liabilities. maintaining their ability to consistently meet the bene- In diametrically opposed cases, the methodology boils fit obligations to which they are committed vis-à-vis the down to the simple calculation of minimum interest re- insured. On the one hand, the last financial market cri- quirements and the sequentially related optimisation of sis made risk awareness with regard to investments even the investments. If the demands placed on the perfor- more acute whilst it also curtailed any risk appetite for in- mance of the investments are unrealistic, additional mea- vesting, which still persists today in some areas. On the sures must be identified to restore the long-term stability other hand the returns on safe investments are extremely of the institution in the most efficient way. Such an ALM low. How can the decision-making committees for insur- analysis should generally be carried out every two to three ance institutions react to this challenge? years, or sooner if the situation of the employee benefits The lower the tolerance for bad decisions, the more institution has changed significantly. important an awareness of one's own position and a sys- The options for action on the investment side in view tematic assessment of the different options for action of the low interest rate environment can be divided into become. two types: Either adjustments within a traditional bench- The starting point for the required active Asset Liability mark-oriented approach are made or a more flexible risk- Management (ALM) is the modelling of the future liabil- based investment policy is introduced. In the case of ad- ities and payment streams for the insurance institution. justments within a traditional benchmark-oriented These are influenced by many factors, for example: How approach, the ALM optimises a strategic asset allocation is the portfolio of insurance beneficiaries made up, in par- (SAA) over a time horizon of three to five years. The com- ticular with regard to the age structure, the ratio of active position of the SAA has changed, however, in view of the insured members to pensioners and of contributions to low interest rate environment. benefits? How will these develop in the future? How are the benefit commitments defined? Are these defined bene- Increasingly, higher yield bond types are being employed, fit or defined contribution plans? Do the benefit commit- such as corporate bonds, high yield bonds or emerging ments have a nominal value characteristic or are they in- market bonds, at the expense of very safe government dexed (e.g. tied to the last salary)? bonds. The higher yields from these bonds offer a great- In the next step of the analysis, the capital investments er buffer against the negative effect of rising interest rates. made by the investment institution must be fed into the The higher credit risk of these bonds is offset by active model. What investments cover the liabilities? What char- management within the segment. Real estate investments acteristics of the investments, such as steady yields or real are also becoming increasingly popular due to their high- value character are advantageous when it comes to cov- er and more stable yields and their real value character- ering the liabilities? What challenges do the investments istics. Finally, the equity share can be increased, whereby face in order to be able to provide for the benefits on a higher-yield strategies (for example high dividend or over- consistent basis and to safeguard the financial stability of writing) or lower market risk (for example minimum vola- the institution? tility or hedging via options) are frequently employed. The The third step in ALM regards the optimisation of the in- increased risk in the SAA is generally countered through vestment policy. The more the defined benefit plan pre- more active asset management within the segments. dominates in the insurance commitment, the more collec- The introduction of a flexible risk-based investment pol- tive elements it contains, and the further the composition icy is not primarily about optimising the SAA. The au- of the portfolio is removed from the state of equilibrium thorised investment universe, the bandwidths and the (for example in the case of a closed portfolio with an in- permissible investment risk form the direct basis for the creasingly large proportion of pensioners), the greater the investment guidelines. The asset manager receives the or- requirement for complex analysis methods becomes, cul- der to achieve the best possible, stable yield within these

Global Employee Benefits Newsletter | May 2015

SL_Newsletter_March_2015_V03.indd 17 13.05.15 13:45 18 Sustainability

guidelines, whereby he is given greater flexibility to react Conclusion to changing market conditions as he sees fit. The low interest rate environment poses considerable This type of investment strategy concerns multi-asset challenges for the decision-making committees of pen- portfolios with absolute return characteristics that are sion funds and foundations. These challenges demand not linked to a benchmark but must comply with abso- an acute awareness of the actual situation and the sys- lute risk specifications and allocation limits. The great- tematic assessment of the options for action. From the er flexibility in the investment strategy is flanked by a investment perspective, it is possible to exploit both the strengthening of the risk management during the invest- traditional benchmark-oriented approach as well as to in- ment activity. troduce a flexible risk-based investment policy. As a rule, In Germany the demand for multi-asset solutions has in- both approaches entail more stringent risk management creased, whereby they are often used as a supplement to during the investment activity. an existing solution. In combination with a benchmark- oriented approach, this strategy can stabilise the per- formance of the whole portfolio by means of its flexible For more information management of the asset allocation. As part of a liability Please visit www.swisslife.de Or contact Ms Marion Vintz matching approach, it is ideal as an investment concept Tel: +49 89 381 09 18 72 for the yield-hungry part of the investment. Email: [email protected]

Swiss Life looks back on a successful financial year 2014

Swiss Life achieves profitable growth, increasing premium income by 7%to CHF 19.1 billion and net profit by 4%to CHF 818 million.

Here we share with you some key figures on Swiss Life Group. FY 2013 vs. FY 2012

Adjusted profit from operations CHF 1182 m +4%

Net profit CHF 818 m +4%

GWP incl. PHD (in local currency) CHF 19.1 bn +7%

Fee and commission income (in local currency) CHF 1317 m +15%

New business margin (% PVNBP) 1.8% -0.4ppts

Shareholders' equity CHF 12.8 bn +43%

Return on equity1) 9.6% -0.4ppts

Group solvency 269% +59ppts

Dividend (proposed) CHF 6.50 CHF +1.00

1) Equity excl. unrealised gains/losses on bonds

SL_Newsletter_March_2015_V03.indd 18 13.05.15 13:45 Sustainability 19 The Netherlands: Zwitserleven again most sustainable investor

Every year, the Vereniging van Beleggers voor Duurzame Ontwikkel- ing (VBDO) (Association of Investors for Sustainable Development) publishes its benchmark report ‘Duurzaam Beleggen voor Verzeker- aars in Nederland’ (Sustainable Investing for Insurance Companies in the Netherlands). In 2014, Zwitserleven was the winner for the third time in a row. Zwitserleven likes thinking ahead and is deeply committed to helping customers build their financial future.

Progressive investment policy genuinely motivated to look for and find improvements. Zwitserleven is a ‘best practice’ company in the area Zwitserleven actively encourages companies that it invests of sustainable investment. Investing for the custom- in to do business in a socially responsible way by talking er’s pension scheme with an eye toward creating a bet- to them, for example, about how a company can improve ter future for people and the environment. Clear in- its sustainability performance. It also talks to companies formation about Zwitserleven’s investment funds and that are at risk of breaking laws or rules to prevent them products is accessible to everyone. Also Zwitserleven is from doing so. If there aren’t any improvements, collabo- transparent about their choices and the respective out- ration with the company is ceased and the investments in come, looking beyond the own organisation and en- the company are sold. Zwisterleven continues to do their couraging the companies invested in to make socially best to keep the leading edge. To make a difference when responsible choices. it comes to responsible investing. “Zwitserleven’s efforts in the area of sustainable invest- ment are ‘best practice’.” Top 10 responsible investors in 2014 and 2013 Zwitserleven is one of the first insurance companies in Total Score 2013 (max. 5 points) the Netherlands to sign the Principals for Sustainable Insurance (PSI) set out by the United Nations. This is 2014 2013 Insurance CompanyScore only one of the reasons why Zwitserleven is the winner 11Zwitserleven 4,4 of the VBDO benchmark for the third time in a row. 22Reaal 4,2 33ASR nederland 3,8 44Achmea 3,6 Progress by staying on the ball 58Menzis Zorgverzekeraar 3,4 Making it to the top is one thing, staying at the top is 65Aegon (Nederland) 3,3 another. Last year, Zwitserleven took a number of steps 76Nationale-Nederlanden 3,3 that enabled it to score higher than in previous years. 811Delta Loyd 3,1 97Loyalis 2,8 For example: 10 20 Zorgverz. Zorg en Zekerheid 2,3 ɬ VBDO and Zwitserleven organized a round-table meeting with other insurance companies on sustain- Source: vBDO Benchmark Responsible investment by insurance able investment in the insurance sector. Companies in the Netherlands 2014. ɬ Zwitserleven participated in the community of prac- tice on biodiversity and circular economy together with MVO Nederland. ɬ Works with Qredits to help starting entrepreneurs in the Netherlands. For more information Make a difference? Please visit www.zwitserleven.nl Or contact Ms Rolina von Hebel All levels of the company work together on its sustain- Tel: +31 65 379 57 52 able investment policy. Both managers and employees are Email: [email protected]

Global Employee Benefits Newsletter | May 2015

SL_Newsletter_March_2015_V03.indd 19 13.05.15 13:45 20 Network News

Training and networking for a fast-paced, evolving world

The recurring Swiss Life Network Partner training sessions are ex- tremely valuable to our Network Partners. Participants gain insights into all areas of the Swiss Life Network’s operations and processes, while also taking advantage of the opportunity to network between themselves.

The highly regarded two-day programme takes place regularly at our headquarters in Zurich. It is designed for sales, sales administration, and actuarial employees who are newly involved in working with the Swiss Life Network, as well as for any Network Partner staff wishing to brush up or deepen their knowledge.

Here is what some of our Network Partners say about the training programmes:

“The training session proved extremely worthwhile as it enabled me to meet with Swiss Life colleagues for the first time and exchange ideas and experiences with other Network Partners. It also allowed me to deepen my knowledge of Swiss Life’s range of solutions, which helps me to perform my daily activities more efficiently.”

Andrego Oliveira Team for Multinationals, Group lcatu Seguros Brazil

“You learn the technical aspect of pooling and this is valuable in your dialogues with clients and brokers. I believe that communication via e-mail with the SLN is much easier after the training when you can put a face to the name. The two days of training are very educational and inspiring.”

Alexander Gellein Westby Employee Benefits Manager, International Department I Wealth Management, DNB Bank ASA Norway

SL_Newsletter_March_2015_V03.indd 20 13.05.15 13:45 Network News 21

“It was amazing to see who the Swiss Life Network Partners are, where they are based all over the world, their different offerings, and their experiences of working together with Swiss Life. Finally, it was very interesting to see that the Swiss Life Network not only provides local solutions through its Network Partners worldwide, but also so- lutions for the mobile (expat) populations of multinational clients.”

Daniel Schönenberger Broker Consultant, Swiss Life Switzerland

“The Network Partner training provides access to our global network of partners who often insure the same multinational clients, enabling us to share intelligence and experiences to the benefit of our clients. It allows us to keep abreast of innovations that will ensure our continued success in this fast-paced and evolving world.”

Redwaan Zoutenberg Business Development Manager, Employee Benefits – Group Risk, Momentum South Africa

“It’s very useful for me to get a deep understanding of international pooling. Such as, how pooling works, why Network Partners must cooperate closely, and what pooling can offer clients. During the training, I met many experienced executive managers and directors who taught me a lot about pooling and introduced their important clients to me.”

Danny Liu Sales Director, China Life China

Upcoming training sessions Date Location June 11 – 12, 2015 Zurich September 23 – 24, 2015 Zurich

For detailed information and to register online, visit: For more information Please contact Fabian Geiger www.swisslife-network.com Tel: +41 43 284 46 81 Email: [email protected]

Global Employee Benefits Newsletter | May 2015

SL_Newsletter_March_2015_V03.indd 21 13.05.15 13:45 22 Network News Swiss Life Network is proud to celebrate the strong partnership anniversaries with the following Network Partners.

10 YEARS: Helsana 40 YEARS: Wiener Städtische 30 YEARS: Swiss Life

15 YEARS: Inbursa

10 YEARS: Ping An

20 YEARS: Hong Leong 40 YEARS: 35 YEARS: VidaCaixa Meiji Yasuda

15 YEARS: Galicia Seguros

SL_Newsletter_March_2015_V03.indd 22 13.05.15 13:45 Network News 23

Swiss Life Network Partners

Country Network PartnerWebsite ContactE-MailTelephone Argentina Galicia Seguros S.A.www.galiciaseguros.com.ar Ms. Lucía ARMANDO [email protected] +54 11 411 4812 9 Australia Hannover Life Re of Australasia www.hannoverlifere.com Ms. Kristine NUGENT [email protected] +61 2 925 16 91 1 Austria Wiener Städtische www.wienerstaedtische.at Ms. Monika RUDICH [email protected] +43 50 350 26 76 3 Belgium Delta Lloyd Lifewww.deltalloydlife.be Mr. Michel [email protected] +32 2 238 89 11 Brazil Icatu Seguros www.icatuseguros.com.br Ms. Vanessa DONKE [email protected] +55 11 347 23 91 6 Canada Great-West Lifewww.greatwestlife.com Mr. David HENRY [email protected] +1 416 552 58 02 Chile Vida Security www.vidasecurity.cl Mr. Cristobal TAGINI [email protected] +56 22 584 25 07 China China Lifewww.e-chinalife.com Mr. Yifei [email protected] +86 10 6363 18 86 China LZ Assist www.lzassist.com Mr. Ben SONG [email protected] +86 10 5925 5188 China Ping An of China www.pingan.com.cn Ms. Mengyuan (Rita) ZHOU [email protected] +86 21 3863 4794 Colombia Seguros Bolívar www.segurosbolivar.com Mr. Juan Camilo AGUDELO [email protected] +57 31 6524 0214 Costa Rica Mapfre Costa Rica www.mapfrecr.com Mr. Cesar HERRERA [email protected] +507 207 84 87 Czech Republic Kooperativa www.koop.cz Mr. Michal DLHOPOLCEK [email protected] +420 956 420 31 4 Denmark Danica Pension www.danicapension.dk Mr. Michael HANSEN [email protected] +46 703 533 190 Denmark PFA Pension www.pfa.dk Ms. Lis HASLING [email protected] +45 391 75 00 0 El Salvador Mapfre La Centro Americana www.lacentro.com Mr. Cesar HERRERA [email protected] +507 207 84 87 Finland Ilmarinen www.ilmarinen.fi Ms. Riitta RÄSÄNEN riitta.rasanen@ilmarinen.fi +358 10 284 26 28 Finland Mandatum Lifewww.mandatumlife.fi Ms. Riitta JOKELAINEN riitta.jokelainen@mandatumlife.fi +358 10 516 7492 France Swiss Life (France) www.swisslife.fr Ms. Anne-Gaëlle COLIN [email protected] +33 1 4617 22 47 Germany Swiss Life (Germany) www.swisslife.de Ms. Marion VINTZ [email protected] +49 89 381 09 18 72 Greece Groupama Phoenix www.groupama-phoenix.com Mr. Dimitris KALOUDIS [email protected] +30 210 937 62 44 Guatemala Mapfre Guatemala www.mapfre.com.gt Mr. Cesar HERRERA [email protected] +507 207 84 87 Guatemala Seguros de Occidente www.occidente.com.gt Mr. Wilber BARRIOS [email protected] +502 22 79 70 00ext. 9373 Honduras Mapfre Honduras www.mapfre.com.hn Mr. Cesar HERRERA [email protected] +507 207 84 87 Hong Kong Sun Life Hong Kong Limited www.sunlife.com.hk Mr. Cliff CHAN [email protected] +852 31 83 65 29 Hungary UNION Biztosító www.unionbiztosito.hu Mr. Gergely DANYADI [email protected] +36 1 666 76 54 India Apollo Munich Health Insurance www.apollomunichinsurance.com Dr. Nandini ALI [email protected] +91 995 981 0002 India Kotak Mahindra Old Mutual Life www.kotaklifeinsurance.com Mr. Sandeep SHRIKHANDE [email protected] +91 22 666 21 59 99 Indonesia PT Avrist Assurance www.Avrist.com Mr. J. Alvin PANJAITAN [email protected] +62 21 5789 8771 Ireland Irish Lifewww.irishlife.ie Mr. Damian FADDEN [email protected] +353 1 704 12 72 Italy Apulia previdenza www.apuliaprevidenza.it Mr. Gianrosario RUBINO [email protected] +39 02 725 66 741 Japan Meiji Yasuda Lifewww.meijiyasuda.co.jp Mr. Masaaki [email protected] +81 3 32 83 38 84 Korea Hanwha Life Insurance www.hanwhalife.com Ms. Jieun LEE [email protected] +82 2 789 88 92 Luxembourg Swiss Life (Luxembourg) www.swisslife.lu Mr. Geoffroy-Luc GUISSARD [email protected] +352 423 95 92 08 Malaysia Hong Leong Assurance www.hla.com.myMr. Chee Kwan FOONG [email protected]+60 3 765 01 35 8 Mexico Seguros Inbursa www.inbursa.com Mr. Jorge [email protected] +52 55 532 50 42 3 Netherlands Zwitserleven www.zwitserleven.nl Ms. Rolina VON HEBEL [email protected] +31 65 379 57 52 New Zealand Hannover Life Re of Australasia www.hannoverlifere.com Ms. Kristine NUGENT [email protected] +61 2 925 16 91 1 Nicaragua Mapfre Nicaragua www.mapfre.com.ni Mr. Cesar HERRERA [email protected] +507 207 84 87 Norway Danica Pensjon www.danica.no Mr. Michael HANSEN [email protected] +46 703 533 190 Norway DNB Livsforsikring ASA www.dnb.no Mr. Alexander Gellein WESTBY [email protected] +47 55 17 74 00 Panama Mapfre Panama www.mapfre.com.pa Mr. Cesar HERRERA [email protected] +507 207 84 87 Philippines First Lifewww.firstlife.com.ph Ms. Ninian CEDO ncedo@firstlife.com.ph +63 2 893 30 24 Poland Compensa Group www.compensa.pl Mr. Sebastian BOROWSKI [email protected] +48 22 501 63 43 Portugal Groupama Seguros www.groupama.ptMr. Rui ROSA [email protected]+351 21 792 32 27 Russia Rosgosstrakh www.rgs.ru Ms. Anastasia ZLATKUS [email protected] +7 495 783 24 24 Singapore Aetna www.aetna.com Ms. Shevaun NG [email protected] +65 6395 67 03 Singapore Prudential Assurance www.prudential.com.sg Mr. James [email protected] +65 6572 25 16 Slovakia Kooperativa www.koop.sk Ms. Eva ŠNIRCOVA [email protected] +421 (2) 5729 91 29 South Africa Momentum www.momentum.co.za Mr. Redwaan [email protected] +27 21 940 40 11 Spain SegurCaixa Adeslas www.adeslassegurcaixa.es Mr. Fabián VEGA RICHARD [email protected] +34 91 566 77 54 Spain VidaCaixa www.vidacaixaprevisionsocial.com Ms. Ana DELGADO [email protected] +34 93 227 89 57 Sweden Danica Pension www.danica.se Mr. Michael HANSEN [email protected] +46 703 533 190 Switzerland Helsana www.helsana.ch Mr. Frédéric URIO [email protected] +41 43 340 11 11 Switzerland Sanitas www.scpc.ch Ms. Pascale SCHAUFELBERGER [email protected] +41 44751 8104 Switzerland Swiss Life (Head Office) www.swisslife.ch Mr. René MÜLLER [email protected] +41 43 284 37 82 Switzerland Swiss Life Pension Services www.slps.ch Mr. Patricio SCOTONI [email protected] +41 800 002525 Taiwan TransGlobe Lifewww.transglobe.com.tw Mr. Sam FENG [email protected] +886 2 2176 5166 ext. 3351 Thailand Bangkok Life Assurance www.bla.co.th Ms. Prangwalai SEANG-CHIN [email protected] +66 814 391 118 UAE Dubai Insurance Companywww.dubins.ae Dr. Deepthy VELAYUDHAN [email protected] +971 4 269 30 30 ext.152 United Kingdom Unum www.unum.co.uk Mr. Keith BALE [email protected] +44 1306 873025 USA Aetna www.aetna.com Ms. Linda COTE [email protected] +1 760 633 30 45 USA Dearborn National www.dearbornnational.com Mr. Matthew [email protected] +1 630 824 60 96 Venezuela Atrio Seguros www.atrioseguros.com Ms. Elizabeth JIMENEZ [email protected] +58 212 416 87 56

Global Employee Benefits Newsletter | May 2015

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