Foreword

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

In 2024, compenswiss achieved a positive investment result of 7.33%, compared to 4.98% in the previous year. The year 2024 was marked by the ongoing conflict between Russia and Ukraine and the threat of an escalation of military conflicts in the Middle East. However, the global financial markets were little affected by these geopolitical tensions and the associated economic uncertainties.

Key fact

Steering towards the future

In 2024, several ambitious projects were continued to keep pace with the latest technological advances and respond to changing needs. Some of these projects, particularly those relating to IT changes, will have a direct impact on all our employees and pave the way for new ways of working and collaborating.

The figure

Total costs «all in»

84.9 million

Ressources humaines

Change management

A survey carried out in the spring of 2024 measured how employees perceive their professional situation in the context of the changes underway. The results showed a high level of general satisfaction, strong support for the projects and motivation to contribute actively to these changes.

Our team

48.7 years

Average age (excluding trainees), reflecting the senior nature and experience of most of our staff.

Investments

Market Situation

Not only was a recession avoided, but economic growth turned out to be stronger than expected.

In 2024, global growth was robust, driven by the expansion of several major economies, particularly the United States. According to OECD estimates, global GDP growth should be around 3.2%, supported by lower inflation and more accommodative monetary policies.

The first half of the year was characterised by positive economic data and the beginning of a new cycle of interest rate cuts, initiated by the SNB, followed by the Fed and then the ECB, in response to lower-than-expected inflation. This period was also marked by the strong performance of technology stocks, particularly those companies considered most likely to benefit from the rise of artificial intelligence.

Changes in 10-year interest rates

CHF 10 years
USD 10 years
EUR 10 years

Overview

Strategic asset allocation

The investment policy for the social security funds must guarantee the solvency of the three social insurance schemes (OASI, InvI, LEC) at all times. To this end, the governing and executive bodies of compenswiss have set the target of a real return over the long term, i.e. above the rate of inflation and in line with market conditions.

Risk management programmes

As investments are broadly diversified across asset classes, segments and markets, risk management is undertaken centrally through hedging and risk control programmes that use derivative instruments. This approach significantly reduces transaction costs and enables consolidated control and monitoring of risks.

Accounts

A positive allocation result

Overall, insurance-related income exceeded charges by CHF 3 219 million.

Contributions by the insured, amounting to CHF 47 147 million, represent 71.0% of income.

In 2024, the net result from investments of CHF 2 889 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.

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

Result from insurance activities

3 219 153 318

Result of insurance activities

2 889 282 662

Aggregate result for the year

6 108 435 980

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

OASI capital increased by 10.1% (or CHF 5.2 billion) following the year’s gain of CHF 5 553 million.

Income rose by 5.0% or CHF 2 536 million.

Expenses rose by 2.0% or CHF 988 million.

The insurance activities generated an operating result of CHF 2 778 million, making a positive contribution to the result. Investment activities generated a gain of CHF 2 559 million and contributed to the comprehensive result.

Interest of CHF 216 million from the InvI completes this result. This brings the total result for the OASI fund to CHF 5 553 million.

The figures

Performance 2024

7.21 %

Total result for the year

CHF 5.55 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 decreased by 3.9% or CHF 235 million. No debt repayment was possible.

Insurance-related income rose by CHF 322 million or 3.2%.

Total expenses rose by CHF 390 million or 3.9%.

The share of investment performance was positive at CHF 254 million, producing an operating result of CHF 235 million.

The figures

Performance 2024

7.13 %

Total result for the year

CHF 235 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, social insurance capital rose by 17.3% or CHF 321 million, reflecting an increase in the insurance reserves.

Income rose by CHF 71 million or 3.3%. Expenses rose by 2.4% or CHF 48 million.

This resulted in a positive operating result of CHF 196 million, which complements the positive share of investment performance of CHF 125 million to give a comprehensive result of CHF 321 million.