Swiss Life (SLHN) H1 2024 earnings summary

Executive summary

• Fee result increased 17% to CHF 395 million, driven by asset managers and France, with cash remittance up 19% to CHF 1.26 billion, both exceeding targets.

• Net profit was CHF 632 million, stable year-over-year, with a 7% rise in adjusted profit from operations to CHF 883 million.

• Return on equity improved to 17.8%, well above the 10%-12% target range.

• The Swiss Life 2024 programme is on track or ahead for all key financial targets, including fee result, RoE, cash to holding, and dividend payout.

• Extraordinary tax provision release of CHF 32 million and FX effects of -5 million CHF impacted net profit.

Financial highlights

• Insurance revenue rose 1% to CHF 4.54 billion; insurance service expenses matched at CHF 3.8 billion.

• Net investment income increased to CHF 1.86 billion; direct investment income reached CHF 2.13 billion with a non-annualized yield of 1.5%.

• Gross written premiums, fees, and deposits up 3% in local currency to CHF 11.7 billion.

• Operating expenses rose to CHF 1 billion, up 8% in local currency, reflecting investments in growth.

• Adjusted profit from operations grew 7% to CHF 883 million.

Outlook and guidance

• On track to achieve or exceed all Swiss Life 2024 program financial targets, with fee result for FY 2024 targeted at CHF 850–900 million.

• Expects to exceed return on equity and dividend payout ratio targets.

• Target achievement depends on normalization of real estate markets in Germany and France.

• New strategic targets to be announced at Investor Day on 3 December 2024.