Occupational pension plans: Marked premium growth at Pax
In the 2016 financial year, Pax achieved a strong operating result in the occupational pension business. In a market that contracted by 6.2 percent according to the Swiss Insurance Association (SIA), Pax grew gross premiums by 19.2 percent and generated a premium volume of CHF 518 million. Customers benefited from a sustainable surplus policy.
In 2016, Pax reported an "excellent operating performance" in the occupational pension business. Compared to 2015, new business almost doubled and reached a volume of CHF 14.6 million, the insurer reports. Pax was also up in terms of periodic policyholder premiums. Premium volume grew by 1.9 percent to CHF 229.7 million. With this result, Pax outperformed the market, which contracted by 6.2 percent. The company thus successfully held its ground and gained market share. According to Pax, this result is due to the high flexibility of its pension solutions, further optimization of its services and intensive dialog with its distribution partners. These measures ensure that production is also sustainable. After all, Pax does not focus on quantity when it comes to growth, but rather on quality, according to the media release.
Solidly financed
The operating expenses in the occupational pension plan increased slightly compared to the previous year and reached CHF 23.9 million (2015: CHF 23.3 million). At the same time, the number of pension plans affiliated to Pax increased from 8,533 to 8,741 contracts. Thanks to this increase in the portfolio, average administrative expenses fell slightly to CHF 449 per person. Financially, Pax Insurance is in a solid position. The equity capital in the area of occupational pension plans increased by 7.6 percent and reached CHF 40.6 million. In addition, the Swiss Solvency Test (SST) ratio is well above the 100 percent mark as of the end of 2016.
Policyholders benefit from sustainable business policy
As a cooperative, Pax is committed solely to the interests of its customers, who are also cooperative members. The profits remain in the company, from which the insured persons benefit in the form of a stable surplus participation. In 2016, CHF 4.4 million was paid out from the surplus fund to insured persons in the occupational pension plan. In addition, CHF 1 million was allocated to the surplus fund. This allocation, together with the remaining measures in favor of the insured, means that customers participate in the earnings at 97.8 percent via the "legal quota". This puts Pax well above the 90 percent required by law.
High security thanks to full insurance
In occupational pension provision, Pax builds on solutions in the full insurance model. For the affiliated companies, this means security and stability, because Pax bears the investment risk as well as the insurance risks for old age, death and disability. Flexible pension packages provide suitable protection during the various phases that a company may go through - from start-up to small business to large enterprise.
