Business cost reductions fuel Swiss Life's profit gains

Companies across the globe have endeavored to achieve business cost reductions in the wake of the recession. According to a published report, Swiss Life Holding AG's most recent fiscal quarterly earnings were boosted by the firm's commitment to strategic sourcing and efficiency improvements.

Bloomberg reports that Swiss Life Holding, Switzerland's largest life insurer, reported Wednesday its first quarter profit surged 50 percent compared to the same period in 2010. The uptick in its profit, according to company officials, was prompted by a cost-reduction program the insurance company put in place a year ago.

Swiss Life also said its net income rose to roughly $500 million, up significantly from the year prior. Company officials affirmed in a conference call with investors that job cuts helped to shave roughly half a billion dollars off its bottom line.

"The Milestone program is successful," Vontobel Holding analyst Stefan Schuermann said in an interview. Earnings were "driven by a solid segment result from Switzerland and an upbeat contribution from France," he added.

Swiss Life plans to continue cutting costs through the second half of this year, and into 2012, chief financial officer Thomas Buess asserted.