FRANKFURT, Jan 6 (Reuters) - Swiss Life’s German advisory unit AWD, which was recently rebranded Swiss Life Select, has missed its 2012 profit targets, a German magazine said, citing sources close to Swiss Life.
AWD failed to deliver even 10 percent of a targeted 50-60 million euros in profit in 2012 because of legal provisions and staff defections, German weekly magazine Focus said according to an advance copy.
Swiss Life spokesman Christian Pfister declined to comment on the figure given in the report. “You have to look at the fundamental performance of the company. The provisions are linked to the past,” he said.
The life insurer said in November it was writing down 576 million Swiss francs ($622 million) on AWD after buying it for 1.2 billion euros in 2008.
AWD has been beset by problems since, with several client advisers leaving and claims it improperly pushed products in Germany and Austria. ($1=0.9263 Swiss francs) (Reporting by Edward Taylor, additional reporting by Silke Koltrowitz in Zurich; Editing by Mike Nesbit)