Half-year results 2024: Swiss Life increases operating profit by 7% – significantly higher fee result

“I am very satisfied with our half-year results for 2024,” says Matthias Aellig, Group CEO of Swiss Life. “We have further expanded our fee business and were able to increase the fee result by 17% thanks to the positive development of Swiss Life Asset Managers and Swiss Life France. Thanks to the great commitment of our employees, we are well on track with the group program ‘Swiss Life 2024’: With the increase in cash outflow to the holding company by 19% in the first half of the year, we have already exceeded our target for cumulative cash outflow, as well as for share buybacks. We continue to expect to exceed our targets for return on equity and the payout ratio and to reach the lower end of our ambitious target range of CHF 850-900 million for the fee result.”

Adjusted operating profit increased by 7% – commission income increased by 17%
The Swiss Life Group generated an adjusted operating profit of CHF 883 million in the first half of 2024. This corresponds to an increase of 7%. Net profit amounted to CHF 632 million (HY 23: CHF 630 million). Adjusted for one-off effects in the first half of 2023, net profit also increased by 7%.

Swiss Life further expanded its fee business in the first half of 2024 and increased fee income in local currency by 7% to CHF 1.26 billion. Thanks to Swiss Life Asset Managers and Swiss Life France, the fee result increased by 17% to CHF 395 million in local currency compared to the first half of 2023.

Direct investment income increased to CHF 2.13 billion (HY 23: CHF 2.05 billion); the non-annualized direct investment return was 1.5% (HY 23: 1.4%). Net investment income amounted to CHF 1.86 billion and the non-annualized net investment return was 1.3% (HY 23: 1.2%).

Premiums rose by 3% in local currency to CHF 11.7 billion in the first half of 2024.

The balance sheet item Contractual Service Margin (CSM), which reflects future, not yet earned profit contributions from the existing insurance business, amounted to CHF 15.3 billion as of June 30, 2024 (December 31, 2023: CHF 15.4 billion). In the first half of 2024, the CSM release in favor of the income statement amounted to CHF 618 million.

Further growth in fee-based business and cash transfer business
In SwitzerlandPremiums rose by 1% to CHF 6.1 billion. Assets under management in the semi-autonomous business increased to CHF 7.6 billion at the end of June 2024 (end of 2023: CHF 7.1 billion). The fee result amounted to CHF 26 million (HY 23: CHF 27 million) and the segment result to CHF 439 million (HY 23: CHF 448 million). The cash inflow to the holding company increased by 31% to CHF 699 million, based on the statutory profit development of the previous two years. The Swiss division thus contributed more than half of the cash inflow to the group and by far the largest part of the cash inflow growth.

In FranceSwiss Life increased premiums by 11% to EUR 3.8 billion. Premiums in the life business rose by 12%, with the share of unit-linked solutions (66%) remaining high. The fee result increased by 28% to EUR 102 million, thanks in particular to the unit-linked business. The segment result rose by 18% to EUR 192 million. The cash outflow to the holding company increased by 15% to EUR 178 million.

In GermanyPremiums rose by 3% to EUR 739 million. Net commission income increased by 2% to EUR 77 million. Segment earnings fell by 2% to EUR 113 million. Cash inflow increased by 7% to EUR 101 million.

In the International In the market area, premiums fell by 6% to EUR 1.31 billion. The commission result fell by 2% to EUR 44 million. The segment result, however, increased by 15% to EUR 63 million. The outflow of funds to the holding company rose by 4% to EUR 56 million.

Swiss Life Asset Managers increased total revenues by 15% to CHF 506 million in the first half of 2024. The TPAM business contributed CHF 329 million (+14%) due to higher net revenues from real estate project developments. Assets under management in the TPAM business increased to CHF 117 billion as of the end of June 2024 (December 31, 2023: CHF 112 billion), with net new money amounting to CHF 1.2 billion in the first half of 2024 (HY 23: CHF 6.9 billion). The segment result increased by 30% to CHF 154 million due to the growth in total revenues. Cash inflow increased by 9% to CHF 239 million.

«Swiss Life 2024» on the right track
As part of the “Swiss Life 2024” group program, Swiss Life is well on track to achieve or exceed all of the group’s financial targets. Swiss Life has already exceeded its targets for cumulative cash inflow to the holding company and share buybacks. The cumulative cash inflow to the holding company over the past two and a half years amounts to CHF 3.4 billion, well above the target range of CHF 2.8–3.0 billion. In addition, Swiss Life has bought back its own shares worth CHF 1.3 billion since December 2021. The annualized return on equity in the first half of 2024 was 17.8%, well above the target range of 10–12%. Swiss Life has also exceeded its target for the payout ratio. And for the fee result, Swiss Life continues to expect to reach the lower end of the target range of CHF 850–900 million, provided that this occurs under the assumption of further normalization of the real estate markets in Germany and France.

The Swiss Life Group estimates that its SST ratio will be around 205% as of June 30, 2024 (January 1, 2024: 212%). The solvency ratio is thus above the strategic ambition range of 140–190%.

Change of leadership at Swiss Life Asset Managers
Per Erikson (54) will be appointed as the new Group Chief Investment Officer (CIO) and CEO of Swiss Life Asset Managers as of April 1, 2025, and will thus become a member of the Group Executive Board. He succeeds Stefan Mächler (64), who will concentrate on various projects and functions outside of Swiss Life after his regular retirement at the end of May 2025. Per Erikson joined Swiss Life in 2007 and has been a member of the Executive Board of Swiss Life Asset Managers since 2015. During this time, he held various key positions in the division’s key business areas: In addition to heading the Fixed Income division, he took on the role of CIO in Germany and France and CEO of Swiss Life Asset Managers Germany. He is currently responsible for the important real estate business. “Per Erikson knows Swiss Life Asset Managers’ business areas very well: This includes managing assets in the insurance balance sheet as well as managing assets for third parties. I am delighted that we have been able to recruit Per, a proven expert from our own ranks,” says Group CEO Matthias Aellig.

“Stefan Mächler has very successfully driven the Asset Managers division forward over the last ten years,” continued Matthias Aellig. “In particular, he has significantly expanded the third-party business and the business with investments in tangible assets. Thanks to his strong business acumen and innovative strength, he has also succeeded in opening up new business areas. He has established our asset management business, which is a strategic focus for the entire group, as a major player in the market. On behalf of the Board of Directors and the Group Management, I would like to thank Stefan for his impressive performance and his continued tireless commitment.”

Photo Per Erikson
Biography of Per Erikson

Investor Day on December 3, 2024
As previously communicated, Swiss Life will announce the new strategic objectives for its next Group-wide program at its Investor Day on 3 December 2024.

Conference call for analysts, investors and media representatives
Matthias Aellig, Group CEO, and Marco Gerussi, Group CFO, will hold a conference call in English for financial analysts and investors today at 9:00 a.m. (CET). Participation via audio webcast is also possible.

Dial-in number for Europe: +41 (0) 58 310 50 00
UK dial-in number: +44 (0) 207 107 06 13
Dial-in number for the USA: +1 (1) 631 570 56 13

At 11 a.m. (CET), Matthias Aellig, Group CEO, and Marco Gerussi, Group CFO, will also hold a virtual media conference in German for media representatives (participation link). All documents relating to the half-year results are available online at www.swisslife.com.

SwissLife
The Swiss Life Group is one of the leading European providers of comprehensive pension and financial solutions. In the core markets of Switzerland, France and Germany, Swiss Life offers its private and corporate customers comprehensive and individual advice as well as a wide range of its own and partner products through its own agents and sales partners such as brokers and banks.

The advisors at Swiss Life Select, Tecis, Horbach, Proventus and Chase de Vere select suitable products on the market for their clients using the Best Select approach. Swiss Life Asset Managers offers institutional and private investors access to investment and asset management solutions. Swiss Life supports multinational corporations with employee benefit solutions and wealthy private clients with structured pension products.

Swiss Life Holding AG, based in Zurich, was founded in 1857 as Schweizerische Rentenanstalt. Swiss Life Holding AG shares are listed on the SIX Swiss Exchange (SLHN). The Swiss Life Group also includes various subsidiaries. The group employs around 10,000 people and has a sales network of around 17,000 advisors.

Swiss Life corporate film

Cautionary note regarding forward-looking information
This publication contains specific forward-looking statements, such as statements containing the terms “believe”, “assume”, “expect” or similar expressions. Such forward-looking statements may, by their nature, involve known and unknown risks, uncertainties and other important factors. These may cause the actual results, developments and expectations of Swiss Life to differ materially from those explicitly or implicitly described in these forward-looking statements. In view of these uncertainties, the reader is cautioned that these statements are only forecasts that should not be overestimated. Neither Swiss Life nor its Board of Directors, Managing Directors, senior management, employees or external advisors or any other person associated with Swiss Life or otherwise related to Swiss Life make any express or implicit representations or warranties regarding the accuracy or completeness of the information contained in this publication. Swiss Life and the persons named shall under no circumstances be liable for any direct or indirect damages arising from the further use of this information. Swiss Life also undertakes no obligation to publicly update or revise these forward-looking statements or to adapt them to new information, future events, developments or the like.