Swiss Life Holding Ag · SIX:SLHN
Swiss Life — Investors Day, St.Galler Kantonalbank 2016
24 slides from Swiss Life's conference presentation, Sep 7, 2016
Slide 1: Swiss Life Investors Day, St.Galler Kantonalbank
Swiss Life Investors Day, St.Galler Kantonalbank 07. September 2016
Slide 2: Agenda
Agenda Swiss Life Group: Overview Swiss Life 2018: Strategy update 2 | Swiss Life | Investors Day, St.Galler Kantonalbank
Slide 3: Swiss Life Group is a leading provider of life, pensions and financial solutions
Swiss Life Group is a leading provider of life, pensions and financial solutions … Swiss Life Group: Facts and figures Market presence • GWP incl. PHD1): CHF 18.9 bn (FY 2015) • Net profit: CHF 878 m (FY 2015) • Assets under Management: CHF 202.2 bn, thereof CHF 44.4 bn with third parties (HY 2016)
Slide 4: An attractive and diversified portfolio based on strong market positions
… with an attractive and diversified portfolio based on strong market positions FY 2015, in CHF (IFRS basis) Insurance GWP & PHD Adjusted profit Business reserves from operations4) Market position divisions 144.9 bn 18.9 bn 1 323 m • Market leader in life insurance (group life and individual life) S
Slide 5: Development of key figures: increased profitability and improved financial strength
Development of key figures: Swiss Life increased its profitability and improved its financial strength +45% -13% 878 1 231 Operating 818 Operating 1 169 1 072 expense Net profit 606 Net profit expense, insurance segments and RoE 9.6% 9.7% RoE efficiency 0.75% 7.3% 0.62% 0.60% Efficiency (CHF m, %) r
Slide 6: Profit by source: How does Swiss Life generate profits?
Profit by source: How does Swiss Life generate profits? Capital Key contributor to Source Description intensity profit source in 20151) • Investment spread (net investment result, technical • High • Switzerland (65%), Savings interest, reserve changes) France (23%), result Germany (12%) • After poli
Slide 7: Profit by source showing improved quality of earnings
Profit by source showing improved quality of earnings CHF million (IFRS basis) FY 2014 FY 2015 HY 2016 adjusted adjusted not annualised Savings result 656 55% 773 56% Risk result 380 32% 395 28% Fee result 252 21% 342 25% CHF 194 m Cost result -109 -9% -132 -9% - Thereof admin cost result gross1) 99
Slide 8: Swiss Life 2018: Continue on the successful path of MILESTONE and Swiss Life 2015
Swiss Life 2018: Continue on the successful path of MILESTONE and Swiss Life 2015 MILESTONE Swiss Life 2015 Swiss Life 2018 Turnaround program: Ongoing business transformation: Continued transformation of “getting basics right” “sharpening the pencil” business model • Balance sheet significantly • D
Slide 9: Agenda
Agenda Swiss Life Group: Overview Swiss Life 2018: Strategy update 9 | Swiss Life | Investors Day, St.Galler Kantonalbank
Slide 10: Key financial targets of Swiss Life 2018
Key financial targets of Swiss Life 2018 Customer centricity and advice Quality of earnings Operational efficiency Capital, cash and dividend and earnings growth • Fee result FY 2018: • Cost savings FY 2018: • Cumulative cash remittance CHF 400-450 m CHF 100 m to Holding (2016-2018): > CHF 1.5 bn •
Slide 11: Fee result further improved
Quality of earnings Fee result further improved and earnings growth Fee result, CHF million (IFRS basis) HY 2016 Swiss Life 2018 not annualised +36% 342 CHF 194 m CHF 400-450 m (+16%) thereof 252 thereof Asset 229 Managers Asset 187 Managers 113 Insurance Insurance segments 65 segments FY 2014 FY 20
Slide 12: Investment portfolio in an ALM context
Quality of earnings Investment portfolio in an ALM context and earnings growth CHF million (fair value basis), insurance portfolio for own risk 146 413 157 337 Equities & equity funds 3.9% 4.4% Alternative investments 0.9% 0.9% 15.8% 15.3% Real estate Mortgages 5.2% 5.2% Loans 6.6% 6.2% Government &
Slide 13: Continued strong returns in a low interest rate environment
Quality of earnings Continued strong returns in a low interest and earnings growth rate environment Direct and net investment yield (IFRS basis, in %) 5.0 HY 2016 4.8% not annualised 4.1% 3.9% 4.0 3.8% 3.8% 3.7% 3.8% 1.6% 3.7% 3.5% 3.4% 3.0 3.3% 1.5% 3.0% 2.0 1.0 0.0 -1.0 30.06.10 31.12.10 30.06.11
Slide 14: Average technical interest rate decreased further
Quality of earnings Average technical interest rate and earnings growth decreased further Statutory basis • FX translation effect -0 bps 2.60% • Reserve strengthening -2 bps 2.55% • Business mix -3 bps 2.35% Total -6 bps 2.12% 2.04% 1.93% 1.64% 1.58% 01.01.2010 – 30.06.2016: • FX translation effect
Slide 15: Disciplined ALM has safeguarded the interest rate margin
Quality of earnings Disciplined ALM has safeguarded the and earnings growth interest rate margin Aggregated view, IFRS basis, in % of technical reserves 4.0 Net investment yield excl. net gains/ 3.0 losses, after FX hedging costs 2.0 Guarantees incl. conversion rate expenses 1.0 Interest rate margin
Slide 16: New business mix with higher share of non-traditional products
Quality of earnings New business mix with higher share of and earnings growth non-traditional products New business production (NBP) 25% 27% 24% 25% 31% 39% 35% 34% 33% 30% Risk, health and P&C 12% 18% 21% 26% Modern 28% Modern-traditional 24% 20% 21% 16% 11% Traditional FY 2012 FY 2013 FY 2014 FY 2
Slide 17: Continued margin management
Quality of earnings Continued margin management and earnings growth New business margin (NBM) development (VNB in % PVNBP) 1.7% 1.7% +0.6% 1.5% -0.1% -0.8% HY 2015 FY 2015 Economic Volume, Expense and HY 2016 variances business mix other variances and pricing variances 145 268 VNB (value of new busi
Slide 18: Further improved efficiency
Further improved efficiency Operational efficiency Insurance reserves (excl. PHP liabilities) Operating expense insurance segments CHF billion CHF million +18% -13% 144.5 144.9 1 231 1 169 122.9 1 072 HY 2016 HY 2016 not annualised CHF 147.4 bn CHF 517 m FY 2011 FY 2014 FY 2015 FY 2011 FY 2014 FY 20
Slide 19: Healthy solvency ratios
Healthy solvency ratios Capital, cash and dividend Swiss Life Group: Economic solvency SST sensitivities (as of 01.01.2016) (as of 01.01.2016) Real estate -10% -12 ppts SST internal model approved with 146% conditions, as filed with FINMA Credit spreads1) +100 bps -8 ppts Interest rates2) -50 bps -8
Slide 20: Increased cash remittance to Holding and dividends to shareholders
Increased cash remittance to Holding Capital, cash and dividend and dividends to shareholders Cash remittance to Holding Dividend per share (CHF million, remittance in % of previous year’s (CHF, payout ratio in % of IFRS net profit) IFRS net profit) 38% 50% 25% 31% 30-50% 557 > CHF 1.5 bn 8.5 (cumul
Slide 21: Swiss Life 2018 off to a good start
Swiss Life 2018 off to a good start Swiss Life 2018 financial targets Current assessment • Fee result FY 2018: CHF 400-450 m On track (slightly ahead) Quality of earnings and • Risk result FY 2018: CHF 350-400 m On track earnings growth • Cumulative value of new business (2016-2018): > CHF 750 m Cha
Slide 22: Cautionary statement regarding forward-looking information
Cautionary statement regarding forward-looking information 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
Slide 23: 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 Financial calendar Interim Statement Q3 20
Slide 24: The future starts here.
E SwissLife The future starts here.
Swiss Life — Investors Day, St.Galler Kantonalbank 2016 on 6ix