Swiss Life Holding Ag · SIX:SLHN
Swiss Life — H1 2022 Earnings Presentation
71 slides from Swiss Life's earnings presentation, Aug 17, 2022
Slide 1: Half-year results 2022 Investor presentation
Half-year results 2022 Investor presentation 17 August 2022
Slide 2: Agenda
Agenda Overview Patrick Frost, Group CEO Financial results and strategy update Matthias Aellig, Group CFO 2 | Investor presentation | Half-year results 2022
Slide 3: Swiss Life HY 2022: Strong set of results
Swiss Life HY 2022: Strong set of results Net profit, RoE1) Fee result CHF m, % CHF m Net profit 850-900 +4% RoE 642 +17% 618 349 11.3% 11.8% 10-12% 297 HY 2021 HY 2022 Target 2022-2024 HY 20212) HY 20222) Target 2024 Cash to Holding SST ratio CHF m % 2.8-3.0 bn 223% ~215% 140-190% +22% 972 798 HY 2
Slide 4: Agenda
Agenda Overview Patrick Frost, Group CEO Financial results and strategy update Matthias Aellig, Group CFO 4 | Investor presentation | Half-year results 2022
Slide 5: Key figures HY 2022 results
Key figures HY 2022 results Net profit increased by 4% to CHF 642 m Adjusted profit from operations up by 6% to CHF 922 m Fee and commission income grew by 13% in local currency to CHF 1 169 m Fee result increased by 17% to CHF 349 m Premiums up by 2% in local currency to CHF 10.8 bn Resilient direc
Slide 6: Selected P&L figures
Selected P&L figures CHF million (IFRS basis) HY 2021 HY 2022 Gross written premiums, fees and deposits received 10 876 10 801 Fee and commission income 1 081 1 169 Net investment result insurance portfolio for own risk 2 181 2 787 Net insurance benefits and claims -7 712 -7 212 Policyholder partici
Slide 7: Adjusted profit from operations
Adjusted profit from operations CHF million (IFRS basis, adjusted) +6% 889 907 +15 922 876 +13 867 -22 Profit Finance Adjusted FX translation Adjusted Profit from Finance Adjusted from trans- profit from effect profit from operations trans- profit from operations formation operations operations form
Slide 8: Business review Switzerland
Business review Switzerland CHF million (IFRS basis, VNB) HY 2021 HY 2022 Change GWP incl. PHD 5 878 5 907 0% • GL: +1% (market -2%), driven by single premiums; AuM in semi-autonomous business increased to CHF 6.0 bn (FY 21: CHF 5.6 bn) • IL: -2% (market +1%), higher periodic premiums from UL produc
Slide 9: Business review France
Business review France EUR million (IFRS basis, VNB) HY 2021 HY 2022 Change GWP incl. PHD 3 470 3 547 +2% • Life: +2% (market +1%); UL share of 62% (market 41%) • Health & protection: +3% (market +5%) • P&C: -2% (market +4%) Fee and commission 183 210 +15% • Higher UL fee income due to strong net in
Slide 10: Business review Germany
Business review Germany EUR million (IFRS basis, VNB) HY 2021 HY 2022 Change GWP incl. PHD 661 695 +5% • Higher premiums with modern, modern-traditional and disability products (market +1%) Fee and commission 295 321 +9% • Continued strong financial advisor activity; income1) number of financial adv
Slide 11: Business review International
Business review International EUR million (IFRS basis, VNB) HY 2021 HY 2022 Change GWP incl. PHD 451 522 +16% • Higher premiums with private and corporate clients Fee and commission 151 166 +10% • Increased revenues from owned IFAs in all locations; income1) higher revenues also with private clients
Slide 12: Business review Asset Managers (1/2)
Business review Asset Managers (1/2) CHF million (IFRS basis) HY 2021 HY 2022 Change Commission and 445 505 +14% • PAM: Higher income from real estate business offset by other net income1) lower securities related income PAM 183 184 +1% • TPAM: Strong growth of recurring income mostly based 262 322
Slide 13: Business review Asset Managers (2/2)
Business review Asset Managers (2/2) TPAM net new assets, NNA PAM and TPAM assets under management, AuM (CHF billion, fair value basis) (CHF billion, fair value basis) 4.6 269.7 274.4 276.3 249.9 3.0 2.0 91.6 98.9 102.8 0.7 99.7 TPAM 0.4 1.0 Real estate 0.3 Balanced mandates 0.2 Equity 1.5 Infrastru
Slide 14: Expense development
Expense development CHF million (IFRS basis) HY 2021 HY 2022 Change Total operating expense 1 786 1 881 +5% Commissions and DAC amortisation -890 -948 Operating expense (before FX) 896 933 +4% Restructuring costs and one-offs -13 9 Finance transformation -16 -18 Scope changes -2 -15 FX translation e
Slide 15: Investment result
Investment result CHF million (IFRS basis), insurance portfolio for own risk HY 2021 HY 2022 Direct investment income 1 970 1 981 Direct investment income in % 1.1% 1.2% Expense -212 -212 Net capital gains/losses on investments and impairments1) 422 1 018 Net investment result 2 181 2 787 Net invest
Slide 16: Investment portfolio
Investment portfolio CHF million (fair value basis), insurance portfolio for own risk1) 175 459 152 964 Equities & equity funds 8.7% 8.9% Alternative investments 1.6% 1.9% Real estate 23.6% 27.4% Mortgages Loans 6.6% 3.8% 6.8% 3.2% Government & supranational bonds 29.8% 26.3% 53.7% 49.4% Corporate b
Slide 17: Insurance reserves excluding policyholder participation liabilities
Insurance reserves excluding policyholder participation liabilities CHF billion (IFRS basis) -3% +9.7 175.1 172.6 +0.8 168.0 -2.5 -10.0 -5.1 31.12.2021 FX translation 31.12.2021 Premiums/ Withdrawals/ Interest Market 30.06.2022 effect excl. FX deposits benefits accrued movements received incurred an
Slide 18: Shareholders’ equity
Shareholders’ equity CHF million (IFRS basis) 15 727 -36% 10 086 -4 970 -173 -764 -346 -24 636 31.12.2021 Change in Change in Dividend Share Interest on Profit 30.06.2022 unrealised foreign buyback hybrid equity attributable gains/losses currency and other to share- net translation holders 18 | Inve
Slide 19: Capital structure
Capital structure Capital structure1) (IFRS basis) 4 696 9% Senior & Carrying value (CHF m) 25-35% 1 444 Senior hybrid 21% Shareholders’ 65-75% 70% 3 253 Hybrid equity2) Reference level HY 2022 HY 2022 Maturities (senior) and next optional call dates (hybrid); nominal value, CHF million CHF Hybrid 2
Slide 20: Swiss Life 2024 financial targets
Swiss Life 2024 financial targets Swiss Life 2024 financial ambitions and targets • Fee result CHF 850-900 m FY 2024 Quality of earnings and earnings growth • RoE1) 2) 10-12% 2022-2024 • Cash to Holding CHF 2.8-3.0 bn Cumulative 2022-2024 Capital, cash • Dividend payout ratio2) > 60% and payout 2022
Slide 21: Strong fee and commission income
Quality of earnings Strong fee and commission income and earnings growth Fee and commission income1), CHF million (IFRS basis) +8% +13% LC Local 1 169 1 081 currency Swiss Life Asset 490 +14% +16% Managers • Higher recurring TPAM income 431 0% +5% Owned IFA channels • Positive contribution from CH,
Slide 22: Fee result significantly improved
Quality of earnings Fee result significantly improved and earnings growth Fee result, CHF million (IFRS basis) +17% 349 thereof 297 thereof 157 Asset Asset Managers 138 Managers 192 Insurance 159 Insurance segments segments HY 20211) HY 20221) 1) Adjusted as outlined on slide 7 22 | Investor present
Slide 23: Yield development
Quality of earnings Yield development and earnings growth Direct and net investment yield (IFRS basis, in %, yields not annualised) 4.0 3.5 3.0 2.7% 2.4% 2.5 1.9% 1.9% 2.0% 2.0 2.1% 1.8% 1.7% 1.6% 1.7% 1.4% 1.9% 1.5% 1.7% 1.5 1.2% 1.3% 1.8% 1.7% 1.5% 1.5% 1.4% 1.5% 1.2% 1.0 1.3% 1.1% 1.1% 0.5 0.0 -0
Slide 24: Declining average technical interest rate
Quality of earnings Declining average technical interest rate and earnings growth Statutory basis 01.01.2010 – 30.06.2022: • FX translation effect -5 bps • Reserve strengthening -74 bps 01.01.2022 – 30.06.2022: • Mandatory GL CH -15 bps • FX translation effect -1 bps • Non-mandatory GL CH -19 bps •
Slide 25: New business margin development
Quality of earnings New business margin development and earnings growth New business margin (NBM) development (VNB in % PVNBP) 0.4% 0.0% 3.8% Economic variances 0.5% • Positive development of interest rates 3.1% 2.9% Volume, business mix and pricing variances Continued focus on margin management Amb
Slide 26: Group SST ratio as of 30 June 2022 estimated to be around 215%
Capital, cash and Group SST ratio as of 30 June 2022 payout estimated to be around 215% Swiss Life Group Swiss Life Group SST sensitivities SST standard model (as of 01.01.2022) 223% as of 1.1.22 Real estate -10% -20 ppts ~215% as of 30.6.22 Capital management actions 190% Credit spreads1) +100 bps
Slide 27: Increased cash remittance to Holding; share buyback on track
Capital, cash and Increased cash remittance to Holding; payout share buyback on track Cash remittance to Holding Share buyback programme (CHF million) (additional details) +22% 972 • CHF 1 bn Amount (Dec 2021 – May 2023) 798 Current • Shares repurchased in the amount of 58% Life status CHF 463 m unt
Slide 28: Good start to Swiss Life 2024 financial programme
Good start to Swiss Life 2024 financial programme Swiss Life 2024 financial ambitions and targets Current assessment • Fee result CHF 850-900 m On track FY 2024 Quality of earnings and earnings growth • RoE1) 2) 10-12% On track 2022-2024 • Cash to Holding CHF 2.8-3.0 bn Slightly ahead Cumulative 202
Slide 29: Supplementary information
Half-year results 2022 Investor presentation Supplementary information
Slide 30: Supplementary information
Supplementary information Profit and loss Balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 30 | Investor presentation | Half-year results 2022
Slide 31: Adjusted net profit
Adjusted net profit CHF million (IFRS basis, adjusted) +7% 642 +12 654 618 +9 627 613 -14 Net profit Finance Adjusted FX translation Adjusted Net profit Finance Adjusted trans- net profit effect net profit trans- net profit formation comparable formation basis HY 2021 HY 2022 31 | Investor presentat
Slide 32: Premium development
Premium development CHF million (IFRS basis); GWP, fees and deposits Local currency 5 907 Switzerland 0% 0% 5 878 3 662 France -4% +2% 3 798 718 Germany -1% +5% 724 540 International +9% +14% 494 10 801 Total1) -1% +2% 10 876 HY 2022 HY 2021 1) Total includes intersegment eliminations of CHF -26 m i
Slide 33: Fee and commission income development
Fee and commission income development CHF million (IFRS basis) Local currency 163 Switzerland +3% +3% 157 217 France +8% +15% 201 331 Germany +2% +9% 323 171 International +4% +7% 165 Asset 490 Managers +14% +16% 431 1 169 Total1) +8% +13% 1 081 HY 2022 HY 2021 1) Total includes Other and intersegme
Slide 34: Switzerland: Premium development
Switzerland: Premium development CHF million (IFRS basis) HY 2021 HY 2022 Change Total life GWP incl. PHD 5 878 5 907 0% Single premiums 2 339 2 388 +2% Periodic premiums 3 539 3 519 -1% Group life 5 189 5 232 +1% Single premiums 2 181 2 253 +3% Periodic premiums 3 008 2 979 -1% Individual life 689
Slide 35: Details of net investment result
Details of net investment result CHF million (IFRS basis), insurance portfolio for own risk HY 2022 Direct Net Gains and losses through investment Impairments investment income statement income result On On Net underlying derivatives Bonds 1 045 -20 -112 -40 -152 872 Equities 245 -312 75 631 706 639
Slide 36: Profit from operations
Profit from operations CHF million (IFRS basis), segment result (reported vs. adjusted) HY 2021 HY 2022 Change Segments reported adjusted1) reported adjusted1) reported adjusted Switzerland 458 458 503 503 +10% +10% France 144 138 152 153 +6% +11% Germany 142 134 105 106 -26% -21% International 46 4
Slide 37: New business mix
New business mix New business production (NBP) 25% 27% 26% 28% 24% 33% 31% 31% 33% 33% 30% 40% 36% 46% 39% 42% Risk, health and P&C 26% 22% 28% 25% Modern 26% 27% 25% 28% Modern-traditional 16% 19% 9% 7% 11% Traditional 3% 2% 2% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 HY 2022 Shift e
Slide 38: Supplementary information
Supplementary information Profit and loss Balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 38 | Investor presentation | Half-year results 2022
Slide 39: Allocation of unrealised gains/losses on financial assets
Allocation of unrealised gains/losses on financial assets CHF million (IFRS basis), as of 30.06.2022 +169 0 + 1 651 +28 -764 -2 611 Unrealised Deferred Shadow Deferred Non-controlling Allocated to gains/losses policyholder DAC taxes interests shareholders’ on financial bonuses adjustment equity asse
Slide 40: Return on equity
Return on equity CHF million (IFRS basis) FY 2021 HY 2022 HY 2022 RoE calculation (annualised) Net profit HY 2022 Shareholders’ equity 15 727 10 086 636 (attributable to shareholders) Unrealised gains/losses on financial Average adjusted -4 380 764 11 099 assets allocated to shareholders’ equity sha
Slide 41: Insurance reserves excluding policyholder participation liabilities
Insurance reserves excluding policyholder participation liabilities CHF million (IFRS basis) Local currency 95 179 Switzerland -2% -2% 96 991 IN 12% 35 626 DE France -6% -2% 37 878 10% 16 726 57% Germany -4% -1% 21% 17 451 FR 20 566 International -10% -8% CH 22 894 167 975 Total1) -4% -3% 175 095 HY
Slide 42: Insurance reserves and borrowings
Insurance reserves and borrowings CHF million (IFRS basis) Local 31.12.2021 30.06.2022 currency Insurance reserves 192 496 175 598 -9% -7% Policyholder participation liabilities 17 401 7 623 -55% Insurance reserves w/o PHP liabilities 175 095 167 975 -4% -3% Insurance liabilities 130 258 128 329 0%
Slide 43: Swiss Life Group reserves subject to BVG minimum interest rates
Swiss Life Group reserves subject to BVG minimum interest rates CHF billion (IFRS basis) Breakdown of insurance reserves (incl. unit-linked) as of 30.06.2022 0.9 Non-life 56.4 Investment contracts & PH deposits Europe 25.6 Total Group Individual 175.6 18.8 Traditional Annuitised business & other Gua
Slide 44: Weighted duration gap
Weighted duration gap 1.3 1.2 1.2 0.7 0.7 0.6 0.4 31.12.2012 31.12.2014 31.12.2016 31.12.2018 31.12.2020 31.12.2021 30.06.2022 44 | Investor presentation | Half-year results 2022
Slide 45: Supplementary information
Supplementary information Profit and loss Balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 45 | Investor presentation | Half-year results 2022
Slide 46: Change analysis of assets under management
Change analysis of assets under management CHF billion (fair value basis) Assets under management HY 2021 HY 2022 Change (bn) Total beginning of period 269.7 276.3 6.6 Net new assets PAM -0.8 -3.4 TPAM 4.6 3.0 Market performance -0.6 -21.9 FX translation effects 1.5 -4.1 Other - - Total end of perio
Slide 47: Assets under management and administration
Assets under management and administration CHF billion, as of 30.06.2022 278.4 249.9 28.5 Total real estate under management and administration Real estate 116.5 88.0 under management (both PAM & TPAM) Share of real estate Share of real estate Share of real estate by managing country by managing cou
Slide 48: TPAM: AuM and NNA
TPAM: AuM and NNA TPAM TPAM AuM: CHF 99.7 bn as of 30.06.2022 TPAM NNA: CHF 3.0 bn as of 30.06.2022 (fair value basis) (fair value basis) Breakdown by asset class Breakdown by asset class Infrastructure Equity 5% 25% 8% Real estate 2% Bonds 34% Balanced mandates 21% 46% Real estate Balanced mandates
Slide 49: Bond portfolio: Ratings and classification
Bond portfolio: Ratings and classification PAM Insurance portfolio for own risk (fair value basis) Breakdown by rating CHF million BB B 152 964 5% BBB 2% AAA 20% 35% 12% A 26% AA Breakdown by classification Bonds 49.4% Corporate bonds1) 47% 53% Governments & supranationals 30.06.2022 1) Including se
Slide 50: Government & supranational bonds: Ratings and currency
Government & supranational bonds: PAM Ratings and currency Insurance portfolio for own risk (fair value basis) Breakdown by rating CHF million BBB BB 152 964 A 1% 5% 4% 47% AAA 43% AA Breakdown by currency Government & GBP CAD supranational 26.3% USD bonds 13% 1% 3% EUR 42% 41% 30.06.2022 CHF 50 | I
Slide 51: Government & supranational bonds: Country split
Government & supranational bonds: PAM Country split Government and supranational bond portfolio (fair value basis), as of 30.06.2022, 26.3% of insurance portfolio for own risk (CHF 40.2 bn) % of total government and supranational bond portfolio Switzerland 32% France 12% Netherlands 9% Germany 9% Au
Slide 52: Corporate bond portfolio: Ratings and currency
Corporate bond portfolio: PAM Ratings and currency Insurance portfolio for own risk (fair value basis) Breakdown by rating B CHF million BB AAA 152 964 5% 10% 21% 5% AA 38% A 21% BBB Breakdown by currency GBP 2% USD EUR 34% 38% Corporate 23.1% bonds1) 30.06.2022 26% 1) Including senior secured loan
Slide 53: Corporate bond portfolio: Industry split
Corporate bond portfolio: Industry split PAM Corporate bond portfolio1) (fair value basis), as of 30.06.2022, 23.1% of insurance portfolio for own risk (CHF 35.3 bn) Breakdown by rating Breakdown by industry % of total corporate bond portfolio BBB Banks 34% 24% Other financials 6% 55% AAA Utilities
Slide 54: Loan and mortgage portfolio
Loan and mortgage portfolio PAM Insurance portfolio for own risk (fair value basis) Breakdown by country CHF million 152 964 Germany 31% 2% 67% France Switzerland Mortgages 6.8% Loans 3.2% Breakdown by type Other loans 3% Purchased loans 29% 68% 30.06.2022 Mortgages Average loan to value ratio < 60%
Slide 55: Real estate portfolio
Real estate portfolio PAM Insurance portfolio for own risk (fair value basis) Breakdown by country CHF million Other 152 964 Germany 11% 3% France 11% Real estate 27.4% 75% Switzerland Breakdown by type Other 12% Residential Retail 15% 43% 30.06.2022 30% Office 55 | Investor presentation | Half-year
Slide 56: Equities and alternative investments: Gross exposure
Equities and alternative investments: PAM Gross exposure Insurance portfolio for own risk (fair value basis) Breakdown by currency CHF million Other CHF 152 964 GBP 4% Equity & 9% 13% 8.9% equity funds 1.9% Alternative USD investments 25% 49% EUR Breakdown by investment type Private equity Hedge fun
Slide 57: Forex and interest rates
Forex and interest rates Foreign currency exchange rates 30.06.21 31.12.21 30.06.22 01.01. – 30.06.21 01.01. – 30.06.22 EUR 1.0965 1.0377 0.9998 1.0947 1.0327 GBP 1.2772 1.2335 1.1614 1.2616 1.2265 USD 0.9255 0.9114 0.9538 0.9084 0.9448 Interest rates (10-year government bond) 30.06.21 31.12.21 30.0
Slide 58: Supplementary information
Supplementary information Profit and loss Balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 58 | Investor presentation | Half-year results 2022
Slide 59: Value of new business per segment
Value of new business per segment CHF million (MCEV basis) Switzerland France Germany International Total 252 254 116 103 88 82 41 35 21 21 PVNBP 2 024 1 946 4 383 3 470 1 213 852 437 428 8 056 6 696 APE 132 135 520 456 61 56 38 71 751 719 NBM in % PVNBP 4.4% 6.0% 2.3% 2.4% 3.4% 4.1% 4.7% 4.9% 3.1%
Slide 60: Supplementary information
Supplementary information Profit and loss Balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 60 | Investor presentation | Half-year results 2022
Slide 61: Swiss Life 2024 strategic actions set direction for profitable growth path
Swiss Life 2024 strategic actions set direction for profitable growth path We enable people to lead a self-determined life Strategic actions Financial ambitions Deepen customer relationships Quality of earnings and earnings growth Strengthen advisory power Expand operational scalability Capital, cas
Slide 62: Sustainability is anchored in our business and at the heart of what we do
Sustainability is anchored in our business and at the heart of what we do Sustainability is an integral part of our business and at the heart of what we do Our actions Our contribution in business behaviour to society as an asset owner & manager to people’s lives in insurance & advisory to the envir
Slide 63: Sustainability actions and targets will support further stakeholder value creation
Sustainability actions and targets will support further stakeholder value creation Our sustainability targets within “Swiss Life 2024” Business behaviour Asset owner & manager Insurance products Advice Reduce CO2 emissions per FTE by 35% by 20241) and Reduce CO2 emission compensate emissions to inte
Slide 64: Swiss Life contributes to transparency and comparability through its reporting
Swiss Life contributes to transparency and comparability through its reporting Sustainability reporting • Swiss Life’s Sustainability Report is in accordance with the major standards for sustainability reporting such as: − the standards of the Global Reporting Initiative (GRI) − the standards for th
Slide 65: Swiss Life is an active member of many sustainability initiatives and networks
Swiss Life is an active member of many sustainability initiatives and networks 65 | Investor presentation | Half-year results 2022
Slide 66: Supplementary information
Supplementary information Profit and loss Balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 66 | Investor presentation | Half-year results 2022
Slide 67: Abbreviations
Abbreviations ALM Asset and liability management IL Individual Life AM Business division Asset Managers IN Business division International APE Annual premium equivalent LC Local currency AuM Assets under management M Million bn Billion MCEV Market consistent embedded value bps Basis points NBM New b
Slide 68: Disclaimer and cautionary statement
Disclaimer and cautionary statement This presentation is made by Swiss Life and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Swiss Life. Although all reasonable effort has been made to ensure the facts stated herein ar
Slide 69: Supplementary information
Supplementary information Profit and loss Balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 69 | Investor presentation | Half-year results 2022
Slide 70: Contact details and financial calendar
Contact details and financial calendar Contact Heidi Hinterhuber Phone +41 (43) 284 67 67 Head of Investor Relations E-mail heidi.hinterhuber@swisslife.ch Rolf Winter Phone +41 (43) 284 49 19 Senior Investor Relations Manager E-mail rolf.winter@swisslife.ch Martina Bihr Phone +41 (43) 284 49 74 Inve
Slide 71: We enable people to lead a self-determined life.
We enable people to lead a self-determined life.