The year of its 10th anniversary turned out to be the most successful year for elipsLife since its establishment. In the 2018 financial year, gross premiums earned exceeded the one billion mark for the first time and improved by 17% from USD 952.7 million in the previous year to USD 1115.3 million. At the same time elipsLife posted a record profit of USD 12.2 million. Like the previous years, 2018 was dominated by strong growth and further expansion into new markets.
The pronounced premium increase from USD 952.7 million in the previous year to USD 1115.3 million in the reporting year, now based on US GAAP, was primarily driven by the strong growth experienced in the two core markets of Switzerland/Liechtenstein and Benelux. Ireland and Italy also contributed to this growth. In the core business, premium volume rose from USD 323.0 million last year to USD 411.7 million, which represents an increase of 27 %. The health insurance business in Ireland, which elipsLife operates with its partner Laya Healthcare, also performed very well in the reporting year and improved from USD 629.7 million to USD 703.6 million. Boosted by this positive performance, consolidated total assets rose from USD 1603.2 million to USD 1859.2 million. Thanks to the excellent results for Ireland and the core business and the fact that costs only increased moderately in spite of big investments, the profit improved massively from USD 0.1 million in 2017 to an encouraging USD 12.2 million in the reporting year.
elipsLife is still in the middle of an intensive investment phase with the ongoing expansion of the Italian and German markets and the costly and time-intensive development of the US business. In spite of strong portfolio growth, the expansion into new markets and big investments in the digitisation of business processes, the cost ratio for the core business only increased marginally from 17.3% in 2017 to 17.7%. For Reto Toscan, CEO of elipsLife Group, this is proof that elipsLife has its costs under control, even in phases of expansion and further development: "Thanks to its strength, elipsLife today can make big investments while still posting impressive profits. This is made possible by excellent cost control, the associated low cost ratio and a solid underwriting process. We're particularly proud of the fact that we can mostly finance our expansion ourselves."
The current year will again be dominated by growth, and not only by expanding its market share in Europe. The success on the old continent strengthened elipsLife's determination to expand into other markets. The choice fell on the US because its biometric business is similar to Europe and the US is the world's biggest market for biometric risks. After focusing on preliminary preparations in the reporting year, elipsLife USA with its headquarters in Schaumburg, Illinois is now ready to underwrite new business.
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Business report 2018
Note for the editorial offices:
elipsLife is an international insurance company serving institutional customers (B2B business). It focuses on all biometric insurance products covering the financial consequences of illness, accident and loss, in particular occupational and private pension provision for the risks of death and disability. elipsLife operates in Europe and the US. In Europe, elipsLife has a market presence in Switzerland (Zurich), Liechtenstein (Triesen), Benelux (Amstelveen), Germany (Cologne), Italy (Milan) and Ireland (Dublin). The US market is serviced from Schaumburg, Illinois. elipsLife is a wholly-owned subsidiary of Swiss Re, the leading global reinsurer in the Life & Health insurance segment.
This document contains forward-looking statements that are based on current assumptions and reflect opinions on the developments targeted by the company as well as interpretations of the general state of the economy and the development of the markets. Such statements should be approached with the necessary care, as they depend on a number of fast-changing factors and therefore harbour much uncertainty. Actual results can deviate substantially from these forward-looking statements. elipsLife is not obliged to update forward-looking statements to take account of changed circumstances. This document does not constitute an offer or solicitation to buy or sell products or securities. It does not serve as the basis for any agreement and may not be used in any such context.