CHF million

 

Overall, insurance-related income exceeded charges by CHF 1 550 million.

Contributions by the insured, amounting to CHF 45 635 million, represent 71.9% of income.

In 2023, the net result from investments of CHF 1 758 million contributed to the insurance profits and the overall positive result. This resulted in an increase in total equity. The positive investment result reflects the recovery in financial markets towards the end of the year.

The investment result is allocated to the three social insurance schemes according to their respective commitments in the various asset classes.

 

Contribution to earnings

CHF million

 

Overview

CHF million

1 Income from insurance activities
2 Expenses from insurance activities
3 Result from insurance activities
4 Investment results
5 Administrative expenses related to investment activities
6 Investment result
7 Aggregated operating income

 

Since 2011, the share of funds invested by the LEC has been stable with a slight increase over time. The funds invested by the IV were also stable until 2017 due to the refund system linked to the temporary VAT increase in favour of the InvI. As a result of several years of operating losses, the capital of the InvI has been decreasing since 2019. Partly due to its size, the OASI is the social insurance with the most noticeable fluctuations.

 

CHF billion

 

At the end of 2023, liquidity and money market investments (excluding short-term borrowings) represented around 8% of assets under management. Liquidity management and its pivotal role in the Central Compensation Office are described on the "Liquidity" page of the Annual report.

Equities, bonds and fund units account for the largest proportion of investments at the end of 2023 with 85.8%, of which 21.2% in equities, 37.6% in bonds and 27% in fund units.

Derivatives, which are used largely in overlay mandates and for tactical allocation, are instruments whose value can be subject to significant volatility. They represent a net value of CHF 462 million, or 1.1% of net assets at the end of 2023.

Gold represented 2.6% of net assets.

Most of the loans are granted to municipalities and cantons. At the end of 2023, they represented 2.7% of net assets.

Debtors and creditors mainly originate from the social insurance activities. The positive and negative current accounts of the compensation funds amount to CHF 4 330 million.

The various services of the Swiss Confederation involved in social insurance activities represent a net balance of CHF 851 million.

The current and deferred accounts for unemployment insurance form a debt of CHF 1 162 million.

Other debtors (CHF 85 million) and payables (CHF 39 million) are due to social insurance activities and investments.

Most of the transitional assets in the amount of CHF 1 161 million come from insurance contributions. The remainder consists mainly of accrued interest.

The real estate properties are used partly as investments and partly as administrative buildings for own use.

The accrued liabilities arise from the delimitation of the investment portion.

The contribution loss provisions form part of the net assets related to social insurance activities.

The InvI debt to the OASI scheme does not appear in the aggregated financial statements. However, this is accounted for in detail for each insurance scheme as well as in the allocation of equity. As the share of the InvI's stock of liquid assets and investments in 2023 is not sufficient to meet the condition pursuant to Art. 22 para. 1 of the Social Security Funds Act, no reimbursement was made.

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