Chairman and CEO 2011 Review

Transcription

1 ANNUAL REVIEW 2011

2 PRIVATE OFFICE SOLUTIONS Chairman and CEO 2011 Review Record assets under management and strong results in 2011 Lombard s assets under management increased to almost 21 billion as at 31 December 2011, the highest level to date. This was driven primarily by new business of 2.75 billion. Lombard continued its trajectory of strong profit growth with IFRS operating profit up by 15% to 43m (2010: 38m). This growth was achieved notwithstanding the very difficult market environment prevalent throughout the period under review. Accordingly, the level of new business is lower than the record level reached in 2010 but reflects an increase in Lombard s market share amongst Luxembourg cross-border players from 16% to 19%. In previous years, Lombard has benefitted from geographical diversity and again this has proved effective in Although some Northern European markets slowed, this was compensated somewhat by the relative strength of our performance in Scandinavia, Southern Europe and Asia. Ongoing investment in compliant solutions Historically, Lombard has provided compliant solutions for the European markets of Belgium, Finland, France, Germany, Italy, Spain, Sweden and the UK, together with offering international solutions for use in certain Asian and Latin American markets. During 2011, Lombard developed compliant offerings for residents of Luxembourg and other international solutions, in recognition of the demands of its partners. Lombard s ongoing investment reflects its commitment to remaining the leader and innovator in compliant estate and succession planning solutions. Wealth planning expertise driving innovation for partners and clients Lombard houses a centre of excellence dedicated to providing privatbancassurance solutions exclusively to HNW and UHNW individuals through a limited number of leading private banks, independent financial advisers and family offices. More than fifty wealth planners, actuaries, lawyers, accountants and other professionals are dedicated to estate and succession planning solutions. Lombard s considerable investment in this area demonstrates its ability and commitment to providing a leading service to partners and their clients. This in-house expertise is supported by Lombard s extensive network of leading external advisers in each of its core markets.

3 Lombard s concentration of expertise under one roof encourages collaboration and innovation allowing it to assess the potential for new solutions across different markets. In-house professionals are complemented by Luxembourg s reputation in asset management, custody and the ability to facilitate a broad range of asset classes. This combination has helped develop Lombard s offering to include expertise for both the acquisition and on-going maintenance of multiple asset classes including private equity and unquoted assets, for which it also has a dedicated team of specialists. Feedback and insight is a key ingredient that has guided how Lombard prioritises its specialist expertise to best match partner and client interests, both now and in the future. Portability - matching partner and client needs An increasing trend is the demand from partners for solutions to support internationally mobile individuals whose planning needs are often, by nature, complex and require solutions that are portable from one jurisdiction to another and can manage assets in multiple jurisdictions. Luxembourg s unparalleled protection and security Clients benefit from Lombard s ability to market its services within the framework of the EU single market directive as a Luxembourg-regulated entity. This provides several key advantages including what is recognised as the strongest policyholder protection regime in Europe. The uncertain global economic climate in recent years has underlined the importance of this benefit. Commissariat aux Assurances (CAA) Lombard International Assurance S.A. Approved Custodian Bank

4 Compliant solutions from a large and robust global financial services group Lombard s strong financial performance and growing equity share capital low debt, no guarantees and no direct exposure to the sovereign debt assets most affected by the continuing crisis offers peace of mind to both partners and clients. As all of Lombard s policies are unit-linked, the assets and liabilities are evenly matched. Being part of a FTSE 100 listed financial services company as a full subsidiary within the Friends Life group, the operating business of Resolution Ltd, further strengthens Lombard s position in the market. The Friends Life group is strongly capitalised and well rated by international ratings agencies and Lombard benefits from being part of this group. Resolution Ltd has current market capitalisation in excess of 4 billion. Investing to meet future regulatory requirements In addition to the ongoing investment in the wealth planning team, Lombard has also strongly committed to ensuring compliance with ever-increasing regulatory requirements. Amongst other areas, Lombard is strongly focussed on Solvency II, the new European insurance sector standard, recognising that early compliance with these rules will leave us best placed to serve both partners and clients in this ever more complex environment. Management succession We both wish to once again thank John Stone, our founding Chairman, and David Steinegger, our CEO for more than 10 years, for their vision and leadership in creating the vibrant Lombard, which we are proud and privileged to lead into the future. Their greatest legacy is the talented team they have developed from John Stone s original concept over 20 years ago. This has enabled succession to come from within and we look forward to continuing the success of Lombard and building upon the achievements to date. We would also like to take this opportunity to thank our people for their contribution over the past year. Outlook We are confident in Lombard s future. The rapidly changing environment, coupled with the end of banking secrecy, plays to our strengths. The continuing turmoil in markets ensures that the need for secure and compliant estate and succession planning solutions is becoming ever more important. With the shifts in demographic patterns across the globe, this need will continue to grow. We will invest to secure and enhance Lombard s position as a leader in Europe and key international markets. And finally, the entire Lombard team look forward to working with you, our partners and clients, in the coming year and beyond. Norbert Becker Chairman Matt Moran

5 Funds under management Continuous growth over 10 years Board of Directors Norbert Becker Chairman Lombard International Assurance S.A. Evelyn Bourke Chief Commercial Officer Friends Life Group plc Andy Briggs Friends Life Group plc Emer Daly Non-Executive Director Robert Deed Executive Director Lombard International Assurance S.A. New business by region 2011 Jerry F. Linehan Non-Executive Director Friends Provident International Matt Moran Lombard International Assurance S.A. Martin Naville Swiss-American Chamber of Commerce John Van Der Wielen Managing Director International Friends Life Information as at 30 April 2012

6 LOMBARD INTERNATIONAL ASSURANCE S.A. Société Anonyme Head office 4, rue Lou Hemmer L-1748 Luxembourg Grand-Duché de Luxembourg Tel Fax R.C.S. Luxembourg n o B37604 IBLC LU Zurich branch Rämistrasse 8 CH-8001 Zürich Schweiz Tel Fax Geneva office Place du Molard 5 CH-1204 Genève Suisse Tel Fax Member of the Friends Life group AR EN 0512