Swiss annuities market overview – fixed strategy - January 1, 2008
| Currently 15 companies | Fixed interest rate Strategy | Maturity value (G) | Dividend value (NG) | Total value (NG) | Net APY (G) | Net APY (NG) |
|---|---|---|---|---|---|---|
| Generali | GEO4 | 111'710 | 14'618 | 126'328 | 1.11 % | 2.36 % |
| Nationale | GEE | 111'341 | 14'718 | 126'059 | 1.08 % | 2.34 % |
| Basler | Gp | 111'789 | 14'144 | 125'933 | 1.12 % | 2.33 % |
| Zürich | G3EE | 111'177 | 13'962 | 125'139 | 1.07 % | 2.27 % |
| Vaudoise | Plano Capital | 108'968 | 15'800 | 124'768 | 0.86 % | 2.24 % |
| Raiffeisen | IEP | 111'346 | 13'071 | 124'417 | 1.08 % | 2.21 % |
| Helvetia | EP | 110'451 | 12'966 | 123'417 | 1.00 % | 2.13 % |
| Allianz | Mixed | 110'792 | 12'472 | 123'264 | 1.03 % | 2.11 % |
| PAX | GE | 109'265 | 13'983 | 123'248 | 0.89 % | 2.11 % |
| Swiss Life | Harvest | 109'416 | 13'676 | 123'092 | 0.90 % | 2.10 % |
| Axa Winterthur | Dynamix U | 111'468 | 11'043 | 122'511 | 1.09 % | 2.05 % |
| Forces Vives | Harmony | 109'480 | 12'598 | 122'078 | 0.91 % | 2.01 % |
| Mutuel | MPU | 109'357 | 9'901 | 119'258 | 0.90 % | 1.78 % |
Source: Schweizer Versicherung, February 2008
G = Guaranteed; NG = Non guaranteed; APY = Average per year
Calculation basis: Male, 50 years old, 10 years investment period, single premium CHF 100’000
Fee indication: One time fee of 5 % (0.5 % average annual fee for a 10 years period)
Swiss annuities market overview – variable strategy - January 1, 2008
| Company | Variable Fund linked Strategy | Insured value in death case | Insured survival value (G) | Total maturity value (NG) | Net APY (NG) |
|---|---|---|---|---|---|
| Vaudoise | Fund Valor P | 124'755 | 90 % HVG | 151'020 | 4.21 % |
| PAX | Fundinvest | 119'280 | HVG | 150'679 | 4.19 % |
| Zurich | Capital Fund | 120'540 | HVG | 150'383 | 4.16 % |
| Allianz | FGLV | 114'989 | 0 | 150'039 | 4.14 % |
| Axa Winterthur | WinLifeVari | 112'869 | 100'000 | 149'900 | 4.13 % |
| Basler | Flexifonds | 150'147 | 0 | 149'772 | 4.12 % |
| Axa Winterthur | WinLifeFund | 121'349 | 0 | 149'300 | 0.09 % |
| Swisscanto | Life Invest | 146'203 | 0 | 148'997 | 4.07 % |
| Helvetia | Fondsanlage | 123'000 | 0 | 148'893 | 3.88 % |
| Allianz | FGLV | 114'989 | HVG | 148'514 | 4.03 % |
| Nationale | Vary Funds | 152'560 | 0 | 147'730 | 3.98 % |
| Skandia | Life Plan | 144'125 | 0 | 147'414 | 3.96 % |
| Mobi Life | Invest Fund | 143'025 | 0 | 147'082 | 3.93 % |
| Aspecta | T4OE | 146'071 | 0 | 146'549 | 3.90 % |
| Generali | GAE01 | 133'957 | 0 | 143'989 | 3.71 % |
| Swiss Life | SL Vitality | 137'746 | 0 | 143'618 | 3.69 % |
| Mutuel | Global FPU | 142'313 | 78'049 | 143'038 | 3.64 % |
Source: Schweizer Versicherung, February 2008
G = Guaranteed ; NG = Non guaranteed ; APY = Average per year ; HVG = Highest value guarantee
Calculation basis: Male, 50 years old, 10 years investment period, single premium CHF 100’000
Simulation based on the forecasted (non guaranteed) 5 % fund’s net asset value growth per year
Fee indication: One time 5 % + 2 % yearly management/admin. fees (2 % – 2.5 % apy for 10 years)
Market momentum - facts & figures
The swissannuities.com quarterly market momentum are the most relevant facts and figures coming out from the Swiss insurance market, representing the traditional-fixed-guaranteed as well as the modern-variable-fund-linked-non-guaranteed strategy. It’s a transparent overview of market possibilities according to investor’s need, goal and risk profile.
The traditional-fixed-guaranteed strategy (various types of fixed annuities and life insurance endowment policies) is one of the safest and lowest risk investments in the world. It’s based on the Swiss Franc interest rates, which for many years were and still are, relatively low, thus reflecting the historically low inflation rates. Consequently, this lowest risk strategy leads to respective low yields. Thanks to the solid Swiss insurance company results, their extra dividends and a generally stronger CHF the final past yields were improved:
Swiss Francs interest rates – Source: Swiss National Bank - December 2006
| 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Short term | 1.87 | 1.50 | 1.40 | 1.84 | 3.37 | 1.83 | 0.61 | 0.26 | 0.71 | 1.00 | 1.95 |
| Long term | 4.37 | 3.70 | 3.07 | 3.01 | 3.88 | 3.36 | 3.22 | 2.63 | 2.73 | 2.11 | 2.34 |
Indicative historical fixed annuity average yields in Swiss Francs – various 10 year capital accumulation periods
| Period | average annual yield (currency influence not included) |
|---|---|
| 1991 – 2001 | 5.11 % |
| 1992 – 2002 | 4.83 % |
| 1993 – 2003 | 3.86 % |
| 1994 – 2004 | 3.44 % |
| 1995 – 2005 | 3.33 % |
| 1996 – 2006 | 3.25 % |
The currency rate has constantly been influencing the final yield (positively/negatively). The following historical currency table shows the ups and downs in the past 16 years:
Monthly average inter-banking exchange rates, since January 1991 - USD/CHF
| Jan | Feb | March | April | May | June | July | Aug | Sep | Oct | Nov | Dec | Y.A. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1991 | 1.27 | 1.26 | 1.39 | 1.44 | 1.46 | 1.53 | 1.55 | 1.52 | 1.48 | 1.48 | 1.44 | 1.38 | 1.43 |
| 1992 | 1.40 | 1.45 | 1.51 | 1.52 | 1.49 | 1.42 | 1.33 | 1.30 | 1.28 | 1.32 | 1.43 | 1.42 | 1.40 |
| 1993 | 1.48 | 1.51 | 1.52 | 1.46 | 1.45 | 1.48 | 1.51 | 1.49 | 1.42 | 1.44 | 1.50 | 1.46 | 1.47 |
| 1994 | 1.47 | 1.45 | 1.43 | 1.44 | 1.41 | 1.37 | 1.32 | 1.31 | 1.29 | 1.26 | 1.29 | 1.33 | 1.36 |
| 1995 | 1.28 | 1.27 | 1.17 | 1.13 | 1.17 | 1.16 | 1.15 | 1.19 | 1.18 | 1.14 | 1.14 | 1.16 | 1.18 |
| 1996 | 1.18 | 1.20 | 1.19 | 1.21 | 1.25 | 1.26 | 1.23 | 1.20 | 1.23 | 1.26 | 1.27 | 1.33 | 1.23 |
| 1997 | 1.39 | 1.45 | 1.46 | 1.46 | 1.43 | 1.44 | 1.48 | 1.51 | 1.47 | 1.45 | 1.40 | 1.44 | 1.45 |
| 1998 | 1.47 | 1.46 | 1.49 | 1.50 | 1.48 | 1.49 | 1.51 | 1.49 | 1.40 | 1.33 | 1.38 | 1.36 | 1.45 |
| 1999 | 1.38 | 1.42 | 1.46 | 1.50 | 1.51 | 1.53 | 1.54 | 1.51 | 1.52 | 1.49 | 1.55 | 1.58 | 1.50 |
| 2000 | 1.59 | 1.63 | 1.66 | 1.67 | 1.72 | 1.64 | 1.65 | 1.71 | 1.76 | 1.77 | 1.78 | 1.68 | 1.69 |
| 2001 | 1.63 | 1.67 | 1.68 | 1.71 | 1.75 | 1.78 | 1.80 | 1.68 | 1.63 | 1.63 | 1.65 | 1.67 | 1.70 |
| 2002 | 1.67 | 1.70 | 1.67 | 1.65 | 1.59 | 1.54 | 1.47 | 1.50 | 1.50 | 1.49 | 1.46 | 1.44 | 1.56 |
| 2003 | 1.37 | 1.36 | 1.36 | 1.38 | 1.31 | 1.32 | 1.36 | 1.38 | 1.37 | 1.32 | 1.33 | 1.26 | 1.34 |
| 2004 | 1.24 | 1.25 | 1.28 | 1.30 | 1.28 | 1.25 | 1.24 | 1.26 | 1.26 | 1.23 | 1.17 | 1.14 | 1.24 |
| 2005 | 1.18 | 1.19 | 1.17 | 1.19 | 1.21 | 1.26 | 1.29 | 1.26 | 1.26 | 1.28 | 1.31 | 1.30 | 1.25 |
| 2006 | 1.30 | 1.30 | 1.30 | 1.28 | 1.22 | 1.23 | 1.23 | 1.23 | 1.24 | 1.26 | 1.23 | 1.21 | 1.26 |
| 2007 | 1.24 | 1.24 | 1.21 | 1.21 | 1.22 | 1.23 | 1.21 | 1.20 | 1.19 | 1.17 | 1.12 | 1.14 | 1.20 |
| 2008 | 1.10 | 1.09 |
Source: Federal Reserve, 2008
1971-2006: 35 years currency performance USD/CHF = Loss 70.76 % (from 4.31 to 1.26)
1991-2006: 15 years currency performance USD/CHF = Loss 10.64 % (from 1.43 to 1.26)
1996-2006: 10 years currency performance USD/CHF = Gain 2.44 % (from 1.23 to 1.26)
2001-2006: 5 years currency performance USD/CHF = Loss 25.88 % (from 1.70 to 1.26)