Swiss Life Holding AG Half-Year Results 2024

Swiss Life Holding AG (SLHN.SW), a leading provider of life insurance and pension solutions, has reported its 2024 half-year results, demonstrating a robust financial performance with significant increases in fee results and cash remittance. The annualized return on equity exceeded the target range, while net profit remained stable.

Key Takeaways

• Fee results increased by 17% to CHF 395 million.
• Cash remittance grew by 19% to over CHF 1.2 billion.
• Annualized return on equity reached 17.8%, above the target of 10-12%.
• Stable net profit at CHF 632 million; adjusted net profit rose by 7%.
• Total income and segment results saw double-digit percentage growth.
• Assets under management in TPAM business grew, with net new assets of CHF 1.2 billion.
• Operating expenses rose by 8%; direct investment income increased to CHF 2.1 billion.
• Shareholders’ equity decreased by 7%; SST ratio was around 205%.
• Fee and commission income rose by 7% to CHF 1.3 billion.

Company Outlook

• Swiss Life expects to meet or exceed all group financial targets for the Swiss Life 2024 program.
• The company anticipates reaching the fee result target range of CHF 850 million to CHF 900 million.
• Positive impact from policyholder asset transfers to TPAM and real estate assets offered to third-party clients.
• Growth in France driven by private insurer model and unit-linked business.

Bearish Highlights

• Shareholders’ equity decreased by 7%.
• The company will not pursue further capital distributions or buybacks currently.
• No specific guidance for future cash remittances or net income from PAM business.

Bullish Highlights

• Stable net profit with an upward trend in adjusted net profit.
• Increased fee and commission income and cash remittance to holding company.
• Decent growth in new business sales in Swiss operations.
• TPAM expects to double net new assets by year-end.

Misses

• Vacancy rate for TPAM not disclosed.
• Lack of guidance on the sustainability of net income growth from PAM.

Q&A Highlights

Marco Gerussi confirmed half of PAM’s growth is recurring; Matthias Aellig mentioned one-off effects in cash remittance.

Swiss Life’s half-year report indicates financial resilience and strategic progress. With robust fee results and cash remittance, the performance promises a strong outlook for the rest of the year. The commitment to 2024 financial targets showcases confidence in their business operations and growth potential in target markets.

Full transcript – None (SWSDF) Q2 2024:
Matthias Aellig: Good morning. Thank you for joining us today, and welcome to our conference call on the 2024 half-year results…

Marco Gerussi: Thank you, Matthias…