Foreword

Report of the Chairman of the Board of Directors and of the Director

2021 was characterised on the one hand by strong economic growth with rising stock market prices and on the other hand by the ongoing pandemic. Against this background, compenswiss (compensation funds AHV/IV/EO) achieved a net return on investments of 5.28% (market portfolio after hedging - previous year: 5.22%).

Key fact

Pandemic

The intensity of the COVID crisis has highlighted the need to accelerate certain transformations, particularly in the areas of IT, communication and collaboration.

The figure

Total costs "all in"

76.3 Millionen

Ressources humaines

Equal pay

compenswiss is committed to gender equality. Thus, the Executive Committee has signed the Charter on equal pay in organisations within the public sector. compenswiss regularly evaluates its pay practice and asks its suppliers and service providers to do the same. The result of the analysis carried out in 2021 shows that salaries are in line with this principle.

Our team

30%

Proportion of women in the Executive Committee and in a management position. A number that is constantly increasing throughout the institution.

Investments

Market situation

The economic environment as well as financial market developments were largely dominated by the massive support provided by monetary and fiscal policies following the outbreak of the COVID-19 pandemic.

The unprecedented joint actions of central banks and governments around the world have fuelled a powerful rebound in economic activity over the course of 2021. A virtuous economic circle emerged, with rising household consumption, higher corporate profits, an improved job market and, as a result, increased investment. However, the strong recovery in global growth reached its peak in mid-year, with divergences between the major economies. Indeed, while the rebound in growth peaked in the fourth quarter of 2020 in China, the United States reached its height in the second quarter of this year, followed by Europe in the summer.

Changes in 10-year interest rates

Overview

Strategic allocation

It is decided by the Board of Directors and is intended to define the long-term structure of the market portfolio. It is based on estimated risk premiums and statistical relationships in terms of return and risk between the different asset classes.

Risk management programmes

As investments are broadly diversified across asset classes, segments and markets, risk management is carried out centrally through hedging and risk control programmes using derivative instruments. This significantly reduces transaction costs and allows risks to be controlled and monitored on a consolidated basis.

Accounts

A very special year

Overall, insurance-related income exceeded charges by CHF 775 million.

The OASI showed a profit of CHF 2 583 million, the InvI a loss of CHF 207 million and the LEC a profit of CHF 231 million. Contributions from insured persons, at CHF 42 846 million, accounted for 72.1% of total income. In 2021, net investment income of CHF 1 832 million complemented the positive overall result on insurance activities. Both contributed to an increase in accumulated equity. The positive investment result was due to a good market performance after a difficult start to the year.

Overview of the aggregated accounts

CHF millions

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

Risk management programmes

CHF

Income statement

Revenues from insurance activities

774 621 053

Result of insurance activities

1 832 087 129

Aggregate result for the year

2 606 708 182

OASI

Old -Age and Survivors' Insurance

Old-age and survivors' insurance (OASI) is the main pillar of the Swiss social security system. The old-age pension is intended to enable the insured person to retire from working life at the planned age and, together with the professional pension scheme, to guarantee material security during retirement. The survivors' pension is intended to prevent the death of a parent or spouse from causing undue financial hardship.

Overview

The OASI capital increased by 5.5% (or CHF 2.6 billion), thanks to the profit for the year of CHF 2 583 million.

Revenues increased by 3% or CHF 1 351 million.

Expenses increased by 2.3 % or CHF 1 050 million.

The insurance activity generated a distributable profit of CHF 880 million and made a positive contribution to the result. Investment management contributed a positive result of CHF 1 652 million. Interest from InvI of CHF 51 million rounds out the income statement, resulting in a total result of CHF 2 583 million for the OASI Fund.

The figures

Return in 2021

4.94 %

Total result for the year

CHF 2.58 billion

Assets on the balance sheet

(in CHF billion)

InvI

Invalidity insurance

As is the case with Old-age and survivors' insurance (AVS), disability insurance (AI) is a compulsory insurance. It aims to guarantee the means of subsistence for insured persons who have become disabled, either through benefits in kind (rehabilitation measures) or cash benefits (pensions or allowances).

Overview

Social insurance capital fell by 3.6% or CHF 207 million. As a result, no debt repayment was possible.

Revenue increased by CHF 303 million or 3.3%.

Total expenses increased by CHF 237 million or 2.5%. The annual loss is thus lower than the previous year's loss, but the insurance activity remains in the red.

The share of investments can only mitigate the distribution loss. The operating result was again negative at CHF 207 million.

The figures

Return in 2021

4.1%

Total result for the year

CHF -207 million

Assets on the balance sheet

(in CHF billion)

LEC

This insurance compensates for part of the loss of earnings suffered by people who perform military service, civilian service or serve in civil defence. Since 2005, it has also compensated for loss of income due to maternity (maternity allowance) and, since 2021, for loss of income due to paternity leave. It is compulsory and all persons subject to OASI/InvI contribute to it.

Overview

Overall, the social insurance capital increased by 17.1% or CHF 231 million, indicating an increase in the social insurance reserves.

This inflow is due to an increase in contributions of 14.5% or CHF 258 million. It should be noted that the increase in the contribution percentage explains most of this difference.

Expenses increased by 13.9% or CHF 227 million.

The distribution result is therefore positive by CHF 165 million and is improved by the investment result to reach an operating result of CHF 231 million.

The figures

Return in 2021

5.05 %

Total result for the year

CHF 231 million

Assets on the balance sheet

(in CHF billion)