Swiss Life (SLHN) H2 2024 earnings summary

Executive summary

• Net profit increased 13% to CHF 1,261 million in 2024, with return on equity at 16.6%, exceeding targets and driven by higher insurance revenue and investment income.

• Fee result rose 33% to CHF 875 million, within or above the CHF 850–900 million target range.

• Profit from operations grew 20% to CHF 1,783 million, and basic earnings per share increased to CHF 42.41.

• Cash remittance to holding increased 14% to CHF 1.31 billion, with a proposed dividend up 6% to CHF 35 per share and an 81% payout ratio.

• Swiss Life 2024 program completed, Swiss Life 2027 launched with a focus on growth, efficiency, and sustainability.

Financial highlights

• Gross written premiums, fees, and deposits up 3% in local currency to CHF 20.3 billion; fee and commission income up 5% in local currency to CHF 2.5 billion.

• Net investment income increased to CHF 3,727 million, mainly from real estate fair value changes; direct investment yield at 2.9%.

• Profit from operations reached CHF 1,783 million, up from CHF 1,497 million year-over-year.

• Value of new business declined to CHF 460 million, with a new business margin at 3.6%.

• Operating expenses (excluding variable costs) rose to CHF 2.1 billion.

Outlook and guidance

• Swiss Life 2027 targets fee result above CHF 1 billion, RoE 17–19%, cash to holding CHF 3.6–3.8 billion, payout ratio above 75%, and ambition to increase DPS.

• Non-recurring income in asset management expected to average 25% of TPAM income from 2025–2027.

• Positive outlook for fair value changes in real estate and continued strong momentum in the Index Business.

• CSM release ratio expected to remain at or slightly above 2024 levels.

• Ongoing focus on capital management, regulatory compliance, and risk-adjusted returns.