Swiss Life (SLHN) H1 2024 earnings summary

Executive summary

• Fee result rose 17% to CHF 395 million, led by asset managers and France.

• Cash remittance increased 19% to CHF 1.26 billion, with cumulative remittance since 2022 at CHF 3.4 billion, surpassing targets.

• Annualized return on equity reached 17.8%, up from 15.8% prior year and above the 10%-12% target range.

• Net profit stable at CHF 632 million; adjusted profit from operations up 7% year-on-year.

• All key 2024 programme targets are on track or exceeded, including fee result, RoE, cash to Holding, and dividend payout.

Financial highlights

• Insurance revenue up 1% to CHF 4.54 billion; insurance service expenses rose in line to CHF 3.8 billion.

• Net investment income reached CHF 1.86 billion; profit from operations increased to CHF 883 million.

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

• Fee and commission income up 7% in local currency to CHF 1.3 billion.

• Operating expenses increased to CHF 1 billion, reflecting investments in growth.

Outlook and guidance

• On track to achieve or exceed all Swiss Life 2024 program financial targets, including fee result, RoE, and cash remittance.

• Expect to reach the lower end of the CHF 850–900 million fee result target range, contingent on real estate market normalization in Germany and France.

• Anticipate exceeding return on equity and dividend payout ratio targets; ambition to increase dividends per share.

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

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