Swiss Life (SLHN) H2 2024 earnings summary

Executive summary

• Achieved strong full-year 2024 results, with net profit up 13% to CHF 1,261 million and return on equity at 16.6%, exceeding all key financial targets and completing the Swiss Life 2024 program.

• Fee result rose 33% to CHF 875 million, within the target range; profit from operations up 20% to CHF 1,783 million.

• Cash remittance to holding increased 14% to CHF 1.31 billion, with a payout ratio of 81% and a proposed dividend per share of CHF 35.00.

• New CHF 750 million share buyback program launched in December 2024, following completion of prior buybacks.

• Swiss Life 2027 program launched, focusing on customer and advisor 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% to CHF 2.5 billion.

• Profit from operations increased 20% to CHF 1,783 million; net investment income rose to CHF 3,727 million, with direct investment yield at 2.9%.

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

• Operating expenses (excluding variable costs) rose to CHF 2.1 billion; borrowing costs increased to CHF 146 million.

• Extraordinary tax provision release of CHF 33 million positively impacted net profit.

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.

• Focus on expanding customer and advisor base, operational efficiency, and sustainability integration.

• CSM release ratio expected to remain at or above 2024 levels; fair value changes in real estate anticipated to be higher in 2025.

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

• Normalized growth expected in French non-life after a one-time rebound in 2024; real estate portfolio mix optimization to continue.