Groupe Mutuel Holding

Activity Report 2023

Editorial

How can you sum up a year at Groupe Mutuel in a few words? Groupe Mutuel is delighted with its commercial success and the overall positive outcome of 2023.

“With more than 63,000 new policyholders having signed up in 2023 for basic insurance (AOS/OKP), the commercial results are very satisfactory for the second year running”, said Karin Perraudin, President of the Board of Groupe Mutuel.

This success is all the more satisfying given that the context for our industry, and for the economy as a whole, remains very tense. With health costs rising sharply by 3.7% (the biggest increase in 10 years), premiums are also rising sharply. In 2023, more than 63,000 new customers decided to take out insurance with Groupe Mutuel. After welcoming some 67,500 new insured members the year before, this is a second consecutive success that confirms the choices made by the Board and Executive Board.

“In terms of sales and turnover, we are on the right track in all sectors of the business, which is extremely satisfying. I would like to congratulate all the Groupe Mutuel teams who contributed to this major new success”, said Thomas Boyer, CEO of Groupe Mutuel.

Many business indicators are therefore positive, which means that 2023 was a good year. In the life insurance sector, for example, net new assets reached almost CHF 250 million, that is up more than 40% on the previous year. The Corporate Sector continued to grow, with almost 30,000 corporate customers (+1,500), consolidating our position as Switzerland's fifth-largest insurer, even though some restructuring measures were made necessary by the higher number of claims (more absenteeism, and a sharp rise in psychological disorders).

“This growth in all areas of the business is a confirmation of our diversification strategy. We are therefore going to pursue this path and continue to offer a full range of new health and pension products that meet the needs of our customers and the expectations of the market. We are the only company in Switzerland that can do this for both private customers and companies. This is one of our strengths, and we intend to pursue this development and growth, particularly in German-speaking Switzerland, thanks to our solid and innovative LPP/BVG second pillar pension solutions. These solutions are proving highly successful, with premium income in this sector exceeding CHF 200 million for the first time”, said the CEO.

However, despite this good news, and as is often the case in life, finding the perfect balance is never easy. While the news on the commercial front is excellent, it is a little more contrasted in terms of financial results. This year's financial loss and last year's are forcing us to be more cautious, to tighten our budgets and to keep a tighter grip on our profitability.

“The higher-than-expected rise in health costs, combined with still-volatile stock markets, means that certain financial indicators will require our attention”, explained Karin Perraudin.

The regulatory and political pressure to contain premium increases and limit the levels of reserves is understandable. However, this must not be to the detriment of policyholders. Our reserves have fallen sharply to the point where some of our health insurance providers are in a more vulnerable situation. This is mainly due to the sharp rise in health costs. In short, insurance premiums have not been covering costs for some time now.

Action is therefore urgently needed to prevent further increases in health costs. The Swiss healthcare system is resilient and strong. This was demonstrated during the Covid crisis. But its funding is not sustainable. “All partners must act together. For this reason, Groupe Mutuel is calling for the creation of a Task Force to bring all stakeholders together around the same table to put forward strong and effective measures, as from 1 January 2025, in order to stabilise costs. This is not a fantasy or a new idea. Switzerland is capable of doing this and has proved so in the past”, argued Thomas Boyer, CEO of Groupe Mutuel.

Decisions can be taken immediately on the price of medicines, on encouraging the use of more generics, on false incentives and unnecessary medical procedures, and on the general requirement to have an electronic patient file. “I am convinced that we must do this, and insurers obviously have their share of responsibility for finding the best solutions that are acceptable to as many people as possible. We cannot let things slide and just hope that everything will change without changing our methods”, said Thomas Boyer.

The challenges for 2024 are numerous and stimulating. The political stakes are also high, with major referendums and heated debates. “We urgently need to find effective solutions that can be applied quickly. Therefore, I am calling for a little less discussion and more decision-making to truly find a way to help our citizens”, said Karin Perraudin. Groupe Mutuel will also be stepping up its efforts to make the customer experience more simple and more efficient. “We will be there to support, advise and help our policyholders every step of the way”, said Thomas Boyer.

Karin Perraudin
President

Thomas Boyer
CEO

Key figures

Groupe Mutuel Holding SA

The number of private customers in all areas of activity rose to 1.420 million in 2023, up from 1.340 million in 2022.

Health private customers

Increase in turnover
The turnover in the Health sector amounted to CHF 5.854 billion (5.326 billion in 2022). This sharp rise however conceals another reality. The technical losses are significant, as the premiums collected do not cover by far the invoices to be paid. For the entire industry, the shortfall is estimated by the umbrella association santésuisse at several billion Swiss francs.

Increase in LAMal/KVG turnover
The volume of gross premiums under LAMAL/KVG has risen to CHF 4.49 billion (4.14 billion in 2022).

On the other hand, insurance benefits increased significantly to CHF 4.469 billion (4.113 billion in 2022). The insurance underwriting result reached CHF -278 million in 2023 (-163 million in 2022).

Private supplemental insurance (LCA/VVG)
The private supplemental plans offered by Groupe Mutuel Assurances GMA SA ended the 2023 financial year with a loss of CHF -11 million (compared with a loss of CHF 121 million in 2022).

Cost control
Invoice verification reduced costs by 9.4%, with savings of CHF 600 million.

Number of persons insured with basic insurance (AOS/OKP)
Competition between insurers prompted a larger-than-usual number of policyholders to switch insurers or optimise their insurance. Groupe Mutuel ended the 2023 business year on a positive note. As a result, the number of persons insured with basic insurance (AOS/OKP) was 1,070,500 as of 1 January 2024, compared with 1,007,500 in 2023, that is a net gain of more than 63,000 insured persons.

This means that the one million mark has once again been comfortably passed and confirms the success of the new sales strategy for the second year running.

A further rise in health costs of around 3.7% in 2023
In 2023, health costs will rise by a further 3.7%, on top of the 6.38% surge in 2021 and the 3% increase in 2022, i.e. an increase of almost 14% in three years. Our estimates for 2023 are around 3.7%, as of the end of January 2024, i.e. with around 90% of 2023 invoices accounted for.

Individual pension provision

Continued success
The focus of Groupe Mutuel Vie is on the individual life insurance range with periodic premiums. Our flexible and competitive solutions meet the various needs of our customers, whether they are looking to fill gaps in their pension provision at retirement age or to protect themselves against life’s hazards. Launched in 2022, our VariaInvest savings insurance continues to win over our sales network and external partners thanks to its market-leading flexibility.

Groupe Mutuel Vie has positioned itself as an innovative player, active in both health and pension insurance. A new product offering launched in March 2024, combining health and pension cover, has confirmed this strategic direction. Thanks to this unique solution, our customers are able to save for their retirement while protecting their savings against unforeseen expenses resulting from extended hospitalisation and/or the birth of a child.

Business development
Groupe Mutuel Vie sells its insurance products through its own network (Groupe Mutuel general agencies) and through a network of external agents. Supported by the new VariaInvest savings solution, we recorded a 4% increase in new business.

Outlook for 2024
Following the approval by the Swiss people of the initiative for the 13^th AVS/AHV state pension “Mieux vivre à la retraite” (Living better in retirement), the need to save for retirement and to secure savings has increased. Thanks to its VariaInvest product, which combines secure savings, return prospects and great flexibility, Groupe Mutuel Vie is able to provide its customers with a solution to meet these needs in terms of individual retirement provision. In addition, Groupe Mutuel intends to develop innovative products to cover health-related needs in the context of private pension provision. Continuous training of our network and improved advice remain one of our priorities.

Health insurance for companies and occupational pension benefits

Continued growth
In 2023, corporate insurance continued its impressive growth, with the number of corporate clients increasing by 1,500 to reach 29,500 companies currently insured by Groupe Mutuel. This sector continued to grow and remains Groupe Mutuel’s second largest business sector in terms of revenue, ahead of supplemental health insurance for private customers (LCA/VVG).

The overall turnover for the corporate sector rose by CHF 146 million to reach 974 million in 2023, compared with 828 million in 2022, that is an increase of more than 17%. Loss of earnings for illness (daily benefits under LAMal/KVG + LCA/VVG), in particular, grew significantly, to reach CHF 609 million (CHF 504 million in 2022, that is an increase of CHF 105 million). In five years, this figure has increased by more than CHF 250 million.

In terms of loss of earnings insurance due to illness, Groupe Mutuel is now ranked fifth in Switzerland, ahead of most private insurers, which is an excellent achievement. In 2023, the turnover for accident insurance (premium volume of accident insurance for LAA/UVG and LAAC/ZUVG) continued to rise and amounted to CHF 161 million compared with 138 million in 2022, i.e. an additional CHF 23 million.

Success for Groupe Mutuel Prévoyance-GMP and further consolidation with Opsion
Groupe Mutuel Prévoyance-GMP also performed very well, with 2,882 affiliated companies and over 30,000 insured employees. The total LPP/BVG balance sheet is CHF 2.78 billion for a coverage ratio of 109%. For the first time, premium income exceeded CHF 200 million. The remuneration of LPP/BVG assets is 2% in 2024, which is among the best in the market. Since 2021, Opsion has also allowed us to offer a full range of pension products, thereby strengthening our presence in the market.

A human dimension to make services more accessible
Companies can find the entire range of insurance for their employees under one roof. With the Corporate xNet, policyholders can easily manage the administrative aspects of their company and focus on the essentials.

Win-win situations in terms of corporate health
As a significant added-value, our different specialists for the management of cases of incapacity for work, absences and corporate health, who represent over 150 experts and specialists, are available for companies to ensure that all parties involved (employee, employer, insurer) are able to enjoy win-win situations. Our Corporate Health Management (CHM) concept provides the framework and the toolbox to ensure the optimal management of all situations relating to employee health. It is in this area that we intend to demonstrate innovation by further strengthening our services over the coming years as a trusted partner to our corporate clients.

Governance

Groupe Mutuel is organised in the form of a holding company. The companies that make up the holding company are active in various insurance fields, such as health and pensions, both for private individuals and companies. Groupe Mutuel Holding SA is wholly owned by Fondation Groupe Mutuel, a non-profit foundation. The Foundation supports the well-being of people in Switzerland, as well as health promotion and prevention measures, through a number of activities.