Swiss Life Holding Ag · SIX:SLHN
Swiss Life — H1 2024 Earnings Presentation
67 slides from Swiss Life's earnings presentation, Sep 3, 2024
Slide 1: Half-year results 2024 Investor presentation
Half-year results 2024 Investor presentation 3 September 2024
Slide 2: Agenda
Agenda Overview Matthias Aellig, Group CEO Financial results and strategy update Marco Gerussi, Group CFO 2 | Investor presentation | Half-year results 2024
Slide 3: HY 2024: substantially higher fee result, cash to Holding and RoE
HY 2024: substantially higher fee result, cash to Holding and RoE Net profit, RoE Fee result CHF m, % Net profit CHF m 0% RoE 850-900 630 632 321) +17% 10-12% 395 338 15.8% 17.8% HY 2023 HY 2024 Target 2022-2024 HY 20232) HY 2024 Target 2024 Cash to Holding SST ratio CHF m % 2.8-3.0 bn 212% ~205% 14
Slide 4: Agenda
Agenda Overview Matthias Aellig, Group CEO Financial results and strategy update Marco Gerussi, Group CFO 4 | Investor presentation | Half-year results 2024
Slide 5: Selected P&L and other figures
Selected P&L and other figures Selected P&L figures CHF million (IFRS basis) HY 2023 HY 2024 Insurance revenue 4 495 4 539 thereof CSM release 666 618 Insurance service expenses -3 695 -3 793 thereof claims and benefits -2 840 -2 884 Net investment result 70 491 Profit from operations 836 883 Borrow
Slide 6: Adjusted profit from operations
Adjusted profit from operations Profit from operations Adjusted profit from operations CHF million (IFRS basis) CHF million (IFRS basis) FX translation effect: CHF -8 m +6% +7% 883 883 836 828 HY 2023 HY 2024 HY 2023 HY 2024 6 | Investor presentation | Half-year results 2024
Slide 7: Business review Switzerland
Business review Switzerland CHF million HY 2023 HY 2024 Change GWP incl. PHD 6 044 6 086 +1% • GL: -1% (market 0%), lower premiums in the full insurance business; AuM in semi-autonomous business increased to CHF 7.6 bn (FY 23: CHF 7.1 bn) • IL: +10% (market +3%) driven by higher single premiums Fee
Slide 8: Business review France
Business review France EUR million HY 2023 HY 2024 Change GWP incl. PHD 3 417 3 784 +11% • Life: +12% (market +13%); UL share of 66% (market 38%) • Health & protection: +6% (market +9%) • P&C: +7% Fee and commission 229 295 +29% • Strong net inflows and positive market effects in UL income1) busines
Slide 9: Business review Germany
Business review Germany EUR million HY 2023 HY 2024 Change GWP incl. PHD 719 739 +3% • Higher premiums with modern, modern-traditional and disability products (market -3%) Fee and commission 379 400 +5% • Driven by owned IFAs based on higher productivity and income1) increased revenues due to specif
Slide 10: Business review International
Business review International EUR million HY 2023 HY 2024 Change GWP incl. PHD 1 391 1 306 -6% • Higher premiums from business with corporate clients, in particular due to elipsLife; lower premiums with private clients Fee and commission 198 192 -3% • Shift from fee income to risk premiums in corpor
Slide 11: Business review Asset Managers (1/2)
Business review Asset Managers (1/2) CHF million HY 2023 HY 2024 Change Commission and 441 506 +15% • PAM: higher recurring fee income and higher real estate other net income1) transaction income PAM 154 177 +15% • TPAM: substantially higher other net income from real 288 329 +14% estate project dev
Slide 12: Business review Asset Managers (2/2)
Business review Asset Managers (2/2) TPAM net new assets, NNA TPAM assets under management, AuM CHF billion (fair value basis) CHF billion (fair value basis) 6.9 116.7 111.8 102.8 105.4 1.3 1.0 0.4 0.2 Real estate 1.2 Infrastructure 3.3 Balanced mandates 0.7 Equity 0.2 Bonds 0.4 Money market funds 0
Slide 13: Operating expense
Operating expense Operating expense (excl. variable expense) CHF million (IFRS basis) +6% +8% LC 1 005 945 • CH: investments in growth 220 CH 206 • FR: business growth 193 FR 183 • DE: investments in growth 131 DE • IN: efficiency gains related to elipsLife 131 89 IN 95 • AM: investments in growth i
Slide 14: Investment income
Investment income Insurance portfolio for own risk (PAM AuM) CHF million, non-annualised yields in % (IFRS basis) HY 2023 HY 2024 Direct investment income 2 052 2 133 Direct investment yield 1.4% 1.5% Expense -208 -224 Net capital gains and losses1) -96 -46 Net investment income 1 747 1 862 Net inve
Slide 15: Investment portfolio
Investment portfolio Insurance portfolio for own risk (PAM AuM) CHF million (fair value basis) 143 957 145 442 Equities & equity funds 7.8% 8.8% Alternative investments 3.0% 3.3% Real estate 27.7% 27.3% Mortgages 7.4% 7.4% Loans 2.9% 2.8% Government & supranational bonds 23.6% 23.3% 50.0% 48.5% Corp
Slide 16: Insurance reserves per component and division
Insurance reserves per component and division Insurance reserves per component Insurance reserves per division CHF billion (IFRS basis) CHF billion (IFRS basis) +1% +1% 0% LC 0% LC 178.0 179.9 178.0 179.9 CH (-2% LC) FR (+3% LC) 101.8 DE (-1% LC) 104.1 IN (+3% LC) 144.1 145.4 BEL1) CSM 36.2 38.7 RA
Slide 17: CSM development
CSM development CSM development (pre-tax, gross) CHF billion (IFRS basis) +0.1 +0.4 15.9 +0.3 -0.3 15.4 15.3 +0.7 -0.6 CSM Expected New business Experience Economic CSM before Release CSM 31.12.20231) business adjustments and other release to P&L 30.06.20242) contribution and updates non-operating o
Slide 18: New business margin development
New business margin development New business margin (NBM) (VNB in % PVNBP) Economic variances 4.0% 4.0% 0.0% 3.8% • Lower CHF interest rates -0.1% -0.1% Volume, business mix and pricing variances • CH: business mix and pricing effects • FR: improved business mix with higher UL Ambition share; lower
Slide 19: Shareholders’ equity
Shareholders’ equity Shareholders’ equity CHF million (IFRS basis) +333 7 499 -347 +619 6 997 -945 -150 -12 01.01.2024 Change in Change in Dividend Share buyback Interest on Profit 30.06.2024 foreign other OCI hybrid equity attributable currency and other to share- translation holders 19 | Investor
Slide 20: Capital structure
Capital structure Capital structure1) (IFRS basis) CHF 24.6 bn 5 568 Senior & 12% 20-30% Carrying value (CHF m) hybrid 11% 2 838 Senior CSM (post-tax)2) 49% 70-80% Shareholders’ 2 730 Hybrid 28% equity Reference level HY 2024 HY 2024 Maturities (senior) and next optional call dates (hybrid) (nominal
Slide 21: Group SST ratio as of 30 June 2024
Group SST ratio as of 30 June 2024 Swiss Life Group Swiss Life Group SST sensitivities SST standard model (as of 30.06.2024) 212% as of 01.01.2024 Real estate -10% -23 ppts ~205% as of 30.06.2024 Capital management actions 190% Credit spreads1) +100 bps -10 ppts Ambition Dividend payout ratio accord
Slide 22: Swiss Life 2024 programme: financial targets
Swiss Life 2024 programme: financial targets Financial ambitions and targets, as disclosed at Investor Day in November 2021 • Fee result CHF 850-900 m FY 2024 Quality of earnings and earnings growth • RoE 10-12%1) 2) 2022-2024 • Cash to Holding CHF 2.8-3.0 bn Cumulative 2022-2024 Capital, cash • Div
Slide 23: Fee and commission income
Quality of earnings Fee and commission income and earnings growth Fee and commission income1) CHF million (IFRS basis) +5% +7% LC Local 1 261 currency 1 202 Swiss Life Asset 456 +4% • Higher PAM commission income 439 Managers 561 +2% Owned IFA channels • Higher revenues from CH, DE and IN 560 Own an
Slide 24: Profit from operations and fee result
Quality of earnings Profit from operations and fee result and earnings growth Adjusted profit from operations Components of fee result CHF million (IFRS basis) CHF million (IFRS basis) +7% +17% 883 395 828 338 395 Fee result 154 AM 338 119 100 Owned IFAs 99 Operating result 549 553 Own and third-par
Slide 25: Operating result insurance business
Quality of earnings Operating result insurance business and earnings growth Components of HY 2024 operating result insurance business CHF million (IFRS basis) • RA release of CHF +9 m • FR non-life operating result of CHF +58 m • Further contributions, incl. from assets not backing life insurance li
Slide 26: Return on equity
Capital, cash Return on equity and payout Return on equity, annualised HY 2024 calculation % (IFRS basis) 17.8% 15.8% Shareholders’ • 01.01.2024: CHF 7.5 bn equity • 30.06.2024: CHF 7.0 bn • HY 2024: CHF 619 m Net profit (profit attributable to shareholders, excl. minorities) • HY 2024: 17.8% (based
Slide 27: Cash remittance to Holding
Capital, cash Cash remittance to Holding and payout Cash remittance to Holding Cumulative cash remittance to Holding CHF million CHF billion 1.3 3.4 +19% 2.8-3.0 1 263 1.2 1 061 1.0 69% Life 66% FY 2022 FY 2023 HY 2024 Cumulative Cumulative 2022-20241) target 2022-2024 14% 12% Owned IFAs, non-life C
Slide 28: Swiss Life 2024 programme well on track
Swiss Life 2024 programme well on track Financial ambitions and targets • Fee result On track CHF 850-900 m FY 2024 To reach lower end of range3) Quality of earnings and earnings growth • RoE 10-12%1) 2) Ahead 2022-2024 • Cash to Holding CHF 2.8-3.0 bn Exceeded Cumulative 2022-2024 Capital, cash • D
Slide 29: Supplementary information
Half-year results 2024 Investor presentation Supplementary information
Slide 30: Supplementary information
Supplementary information Profit & loss and balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 30 | Investor presentation | Half-year results 2024
Slide 31: Adjusted net profit
Adjusted net profit Net profit Adjusted net profit CHF million (IFRS basis) CHF million (IFRS basis) Extraordinary tax provision release: CHF -32 m FX translation effect: CHF -5 m +0% +7% 630 632 632 593 HY 2023 HY 2024 HY 2023 HY 2024 31 | Investor presentation | Half-year results 2024
Slide 32: Premiums and fee and commission income
Premiums and fee and commission income GWP incl. PHD Fee and commission income1) CHF million CHF million (IFRS basis) +2% +5% +3% LC +7% LC 11 462 11 664 1 261 1 202 167 156 CH CH 225 284 6 044 6 086 FR FR DE DE 374 385 IN IN Eliminations 185 AM 195 Other & 3 368 3 640 eliminations 439 456 709 711 1
Slide 33: Details of net investment income
Details of net investment income HY 2024 insurance portfolio for own risk (PAM AuM) CHF million (IFRS basis) Direct Impairments Net Gains and losses through investment incl. change investment income statement income in ECL income On On Total underlying derivatives Bonds 1 198 -16 3 0 3 1 185 Equitie
Slide 34: Additional CSM details
Additional CSM details CSM per business division CSM per component CSM sensitivities CHF billion (IFRS basis) CHF billion (IFRS basis) (as of 30.06.2024) -1% -1% -2% LC -2% LC 15.4 15.3 15.4 15.3 Real estate -10% -6% 10.8 10.3 12.4 12.3 Interest rates -50 bps -2% Equities -30% -7% 2.9 3.2 1.7 3.0 3.
Slide 35: Swiss Life Group reserves subject to BVG minimum interest rates
Swiss Life Group reserves subject to BVG minimum interest rates Breakdown of insurance reserves (incl. unit-linked) CHF billion (statutory basis), as of 30.06.2024 0.9 Non-life 43.8 Unit-linked business Europe 39.9 Total Group Individual 178.2 19.5 Traditional business Annuitised 133.5 Guaranteed ra
Slide 36: Average technical interest rate
Average technical interest rate Development since 2010 % (statutory basis) 01.01.2010 – 30.06.2024: • FX translation effect -5 bps • Reserve strengthening / release -71 bps 2.60% • Mandatory GL CH -11 bps 01.01.2024 – 30.06.2024: • Non-mandatory GL CH -15 bps • FX translation effect +1 bps 2.12% • B
Slide 37: Yield development
Yield development Direct and net investment yield Non-annualised yields in % (IFRS basis) 3.0 2.5 1.9% 2.0% 2.0 1.6% 1.7% 1.7% 1.5% 1.4% 1.4% 1.5% 1.2% 1.3% 1.5 1.7% 1.5% 1.5% 1.4% 1.5% 1.3% 1.3% 1.0 1.1% 1.1% 1.2% 1.2% 0.5 0.0 -0.5 -1.0 30.06.14 30.06.15 30.06.16 30.06.17 30.06.18 30.06.19 30.06.20
Slide 38: Profit from operations
Profit from operations Segment results (reported vs. adjusted) CHF million (IFRS basis) HY 2023 HY 2024 Change Segments reported adjusted1) reported reported adjusted Switzerland 448 448 439 -2% -2% France 160 157 185 +15% +18% Germany 114 111 108 -5% -2% International 54 53 61 +12% +15% Asset Manag
Slide 39: Composition of segment results
Composition of segment results HY 2024, based on segment results (IFRS basis) Asset Switzerland France Germany International Managers CHF m EUR m EUR m EUR m CHF m 448 439 192 115 113 63 154 27 26 163 55 119 102 Fee result 76 44 80 77 44 421 413 Operating result 83 90 insurance business 39 36 20 11
Slide 40: Supplementary information
Supplementary information Profit & loss and balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 40 | Investor presentation | Half-year results 2024
Slide 41: Assets under management and administration
Assets under management and administration CHF billion (fair value basis), as of 30.06.2024 283.0 262.2 20.8 108.5 Total real estate under Real estate 87.7 management and administration under management (both PAM & TPAM) Share of real estate Share of real estate Share of real estate by managing coun
Slide 42: TPAM: change analysis of AuM
TPAM TPAM: change analysis of AuM TPAM assets under management (AuM) CHF billion (fair value basis), as of 30.06.2024 HY 2023 HY 2024 Change (bn) Total beginning of period 105.4 111.8 +6.4 Net new assets 6.9 1.2 Market performance 0.7 2.1 FX translation effects -0.8 2.2 Scope change - -0.6 Total end
Slide 43: TPAM: AuM and NNA
TPAM TPAM: AuM and NNA TPAM AuM: CHF 116.7 bn as of 30.06.2024 TPAM NNA: CHF 1.2 bn, HY 2024 (fair value basis) (fair value basis) Breakdown by asset class Breakdown by asset class Real estate 54% Real estate 39% Infrastructure Infrastructure 17% Balanced mandates Balanced mandates 8% 29% Equity Equ
Slide 44: Bond portfolio: ratings and classification
PAM Bond portfolio: ratings and classification Total bond portfolio (fair value basis) 48.5% of insurance portfolio for own risk (CHF 70.5 bn) Insurance portfolio for own risk CHF 145.4 bn Breakdown by rating Breakdown by classification BB B 3% 6% AAA BBB 36% 21% 51% 49% Bonds 48.5% 13% A 21% Govern
Slide 45: Government & supranational bonds: ratings and currency
PAM Government & supranational bonds: ratings and currency Government and supranational bond portfolio (fair value basis) 23.3% of insurance portfolio for own risk (CHF 33.9 bn) Insurance portfolio for own risk CHF 145.4 bn Breakdown by rating Breakdown by currency BBB A 4% 6% 37% CHF 46% Government
Slide 46: Corporate bond portfolio: ratings and currency
PAM Corporate bond portfolio: ratings and currency Corporate bond portfolio1) (fair value basis) 25.2% of insurance portfolio for own risk (CHF 36.7 bn) Insurance portfolio for own risk CHF 145.4 bn Breakdown by rating Breakdown by currency B BB AAA 5% 12% 19% 24% EUR 37% CHF 5% AA 38% 21% 1% A 1% B
Slide 47: Corporate bond portfolio: industry split
PAM Corporate bond portfolio: industry split Corporate bond portfolio1) (fair value basis), as of 30.06.2024 25.2% of insurance portfolio for own risk (CHF 36.7 bn) Breakdown by industry (in % of total corporate bond portfolio) Banks 38% Breakdown by rating Breakdown by structure Other financials 3%
Slide 48: Loan and mortgage portfolio
PAM Loan and mortgage portfolio Loan and mortgage portfolio (fair value basis) 10.2% of insurance portfolio for own risk (CHF 14.8 bn) Insurance portfolio for own risk CHF 145.4 bn Breakdown by country Breakdown by type Purchased loans Germany 23% 22% Mortgages 7.4% Loans 2.8% Other 6% France 6% loa
Slide 49: Real estate portfolio
PAM Real estate portfolio Real estate portfolio (fair value basis) 27.3% of insurance portfolio for own risk (CHF 39.7 bn) Insurance portfolio for own risk CHF 145.4 bn Breakdown by country Breakdown by type Other Germany Real estate 27.3% 2% Residential 11% Office France 10% 33% 37% 77% 14% Switzer
Slide 50: Real estate portfolio (additional details)
PAM Real estate portfolio (additional details) Real estate exposure Real estate direct investment income1) Real estate direct investment yield1) CHF bn CHF m %, based on average exposure +2% +3% LC 41.8 39.8 39.7 529 540 1.26% 1.36% HY 2023 FY 2023 HY 2024 HY 2023 HY 2024 HY 2023 HY 2024 Vacancy rat
Slide 51: Equities and alternative investments: gross exposure
PAM Equities and alternative investments: gross exposure Equity & equity funds portfolio (fair value basis) Alternative investments portfolio (fair value basis) 8.8% of insurance portfolio for own risk (CHF 12.8 bn) 3.3% of insurance portfolio for own risk (CHF 4.8 bn) Insurance portfolio for own ri
Slide 52: Forex and interest rates
Forex and interest rates Foreign currency exchange rates 30.06.2023 31.12.2023 30.06.2024 01.01. – 30.06.2023 01.01. – 30.06.2024 EUR 0.9769 0.9285 0.9629 0.9858 0.9620 GBP 1.1378 1.0711 1.1360 1.1254 1.1257 USD 0.8948 0.8392 0.8986 0.9121 0.8899 Interest rates (10-year government bond) 30.06.2023 3
Slide 53: Supplementary information
Supplementary information Profit & loss and balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 53 | Investor presentation | Half-year results 2024
Slide 54: Value of new business per division
Value of new business per division Value of new business (VNB) CHF million (MCEV basis) Switzerland France Germany International Total 277 266 125 119 83 94 36 25 33 27 PVNBP 2 101 2 334 3 280 3 196 853 692 653 718 6 887 6 940 APE 165 189 469 414 60 49 135 271 829 923 NBM in % PVNBP 6.0% 5.1% 2.5% 3
Slide 55: VNB and new business CSM
VNB and new business CSM HY 2024 value of new business (VNB) / new business CSM CHF million (MCEV / IFRS basis) +45 389 +50 +73 266 221 -45 VNB Scope VNB Tax Non-allocated Other New business (comparable expenses measurement CSM scope to new differences business CSM) 55 | Investor presentation | Half
Slide 56: Supplementary information
Supplementary information Profit & loss and balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 56 | Investor presentation | Half-year results 2024
Slide 57: Swiss Life 2024 programme: strategic actions set direction for profitable growth path
Swiss Life 2024 programme: 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 C
Slide 58: 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 59: Sustainability actions and targets will support further stakeholder value creation
Sustainability actions and targets will support further stakeholder value creation Our sustainability targets within the Swiss Life 2024 programme Business behaviour Asset owner & manager Insurance products Advice Reduce CO2 emissions per FTE by 35% by 20241) and Reduce CO2 emission compensate emiss
Slide 60: 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 61: Swiss Life is an active member of many sustainability initiatives and networks
Swiss Life is an active member of many sustainability initiatives and networks 61 | Investor presentation | Half-year results 2024
Slide 62: Supplementary information
Supplementary information Profit & loss and balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 62 | Investor presentation | Half-year results 2024
Slide 63: Abbreviations
Abbreviations AGM Annual general meeting IFA Independent financial advisor ALM Asset and liability management IFRS International Financial Reporting Standards AM Business division Asset Managers IL Individual life APE Annual premium equivalent IN Business division International AuM Assets under mana
Slide 64: Disclaimer and cautionary statement
Disclaimer and cautionary statement This presentation does not constitute or form part of any advertising, offer, recommendation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities of Swiss Life, nor shall part or all of this presentation or i
Slide 65: Supplementary information
Supplementary information Profit & loss and balance sheet Investments Value of new business Sustainability Abbreviations and disclaimer Contact details and financial calendar 65 | Investor presentation | Half-year results 2024
Slide 66: Contact details and financial calendar
Contact details and financial calendar Contact Olga Schmidtberger Phone +41 (43) 284 67 67 Head of Investor Relations E-mail olga.schmidtberger@swisslife.ch Rolf Winter Phone +41 (43) 284 49 19 Senior Investor Relations Manager E-mail rolf.winter@swisslife.ch Dominik Gänsslen Phone +41 (43) 284 93 7
Slide 67: We enable people to lead a self-determined life.
We enable people to lead a self-determined life.