Swiss Life Holding Ag · SIX:SLHN

Swiss Life — Debt Investor Presentation (September 2016)

29 slides from Swiss Life's debt investor presentation, September 2016

  1. Slide 1: Investor presentation: Swiss Life AG issuance of subordinated debt

    Investor presentation: Swiss Life AG issuance of subordinated debt September 2016

  2. Slide 2: Agenda

    Agenda  Swiss Life at a glance Resilience in low interest rate environment Credit considerations Proposed subordinated debt issuance Appendix 2

  3. 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 Business units • 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) U

  4. Slide 4: 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 segments 144.9 bn 18.9 bn 1 323 m • Market leader in life insurance (individual life and occupational S

  5. Slide 5: Swiss Life delivered strong FY 2015 results and strengthened the quality of earnings

    Swiss Life delivered strong FY 2015 results and strengthened the quality of earnings +45% 878 +110% 342 818 Net profit 606 Net profit 252 Fee result and RoE 9.6% 9.7% RoE 163 7.3% (CHF m) (CHF m, %) FY 2011 FY 2014 FY 2015 FY 2011 FY 2014 FY 2015 +8% -13% 395 1 231 Operating 367 380 Operating 1 169

  6. Slide 6: Key figures HY 2016 results

    Key figures HY 2016 results HY 2016 vs. HY 2015  Net profit increased by 1% to CHF 500 m Premiums decreased by 9% in local currency to CHF 10.1 bn  Fee result increased by 16% to CHF 194 m Strong direct investment income of CHF 2 235 m at 1.5% (HY 15: CHF 2 179 m at 1.5%);  yields not annualised

  7. Slide 7: 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 •

  8. Slide 8: Agenda

    Agenda Swiss Life at a glance  Resilience in low interest rate environment Credit considerations Proposed subordinated debt issuance Appendix 8

  9. Slide 9: Working on right levers in low interest rate environment

    Swiss Life: Working on right levers in low interest rate environment Ambition Levers Reduce dependency on Earnings: • Grow fee business 1 savings result by Strengthen quality • Defend risk result strengthening other profit of earnings • Improve cost efficiency sources Safeguard interest rate • Incre

  10. Slide 10: Profit by source: How does Swiss Life generate profits?

    Profit by source: How does Swiss Life 1 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 po

  11. Slide 11: Profit by source showing improved quality of earnings

    Profit by source showing improved quality of 1 earnings CHF million (IFRS basis) FY 2014 FY 2015 adjusted adjusted Savings result 656 55% 773 56% Risk result 380 32% 395 28% Fee result 252 21% 342 25% Cost result -109 -9% -132 -9% - Thereof admin cost result gross1) 99 8% 115 8% Others & elimination

  12. Slide 12: Asset allocation driven by capital efficiency and resilience of investment income

    Asset allocation driven by capital efficiency 2 and resilience of investment income CHF million (fair value basis), insurance portfolio for own risk1) Equities & equity funds 146 413 157 337 Alternative investments 3.9% 4.4% Real estate 0.9% 15.8% 15.3% 0.9% Mortgages 5.2% 5.2% Loans 6.6% 6.2% Gover

  13. Slide 13: Continued strong returns in a low interest rate environment

    Continued strong returns in a low interest 2 rate environment Direct and net investment yield, not annualised (IFRS basis, in %) 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% 1.9% 1.5 1.7% 1.5% 1.8% 1.5% 1.0 0.5 0.0 -0.5 -1.0 30.06.2010 30.06.2011 30.06.2012 30.06.2013 30.06.2014

  14. Slide 14: Average technical interest rate decreased further

    Average technical interest rate 2 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 -3 bps • Reserve strengthening -46 bps

  15. Slide 15: Disciplined ALM has safeguarded the interest rate margin

    Disciplined ALM has safeguarded the 2 interest rate margin Aggregated view, IFRS basis, in % of technical reserves 4.0 Interest rate margin remained stable Net investment as a result of disciplined ALM yield • Long asset duration supports yield excl. net gains/ 3.0 losses, after • Narrow duration ga

  16. Slide 16: New business mix shift into non-traditional products continues

    New business mix shift into non-traditional 3 products continues 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 2015 HY 2016 Shift excl. traditional 85

  17. Slide 17: Agenda

    Agenda Swiss Life at a glance Resilience in low interest rate environment  Credit considerations Proposed subordinated debt issuance Appendix 17

  18. Slide 18: Sound capitalisation

    Sound capitalisation Swiss Life Group: Economic solvency (as of 01.01.2016) SST sensitivities (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 ppts Solvency II Equities -30

  19. Slide 19: Well balanced capital structure in line with targets

    Well balanced capital structure in line with targets Capital structure1), IFRS basis Senior 0-5% 7% 6% 25% 22% 26% Hybrid Shareholders’ 70-75% 71% 68% equity2) Reference level FY 2015 HY 2016 Latest refinancing transaction Carrying value, CHF m 4 394 3 798 423 • In March 2016, Swiss Life AG 463 Seni

  20. Slide 20: Debt maturity profile and refinancing plan

    Debt maturity profile and refinancing plan Maturities (senior) and next optional call dates (hybrid) Nominal value, as per 30.06.2016, CHF million Next hybrid call to be New hybrid, refinanced: EUR 590m EUR 600m Already refinanced 812 Hybrid 638 208 500 500 471 Senior 450 300 225 Convertible 200 150

  21. Slide 21: Sustainable dividend backed by increasing remittance to Holding

    Sustainable dividend backed by increasing remittance to Holding 298 411 557 Cash remittance to Holding, CHF million 144 144 176 207 271 n.a. Total dividend paid, CHF million 8.50 Dividend per share, CHF 6.50 5.50 4.50 4.50 n.a. FY11 FY12 FY13 FY14 FY15 HY16 21

  22. Slide 22: Agenda

    Agenda Swiss Life at a glance Resilience in low interest rate environment Credit considerations  Proposed subordinated debt issuance Appendix 22

  23. Slide 23: Summary of the key terms and conditions (1)

    Summary of the key terms and conditions (1) Issuer ELM B.V. for Swiss Life AG Loan Notes Issuer Swiss Life AG (Loan Notes are guaranteed on a subordinated basis by Swiss Life Holding AG) Currency / Size EUR Benchmark Expected Rating BBB+ (S&P) Status The Loan Notes constitute direct, subordinated an

  24. Slide 24: Structural comparison to other instruments

    Structural comparison to other instruments Issuer Swiss Life through ELM Swiss Life through Demeter Swiss Life AG Swiss Re through ELM Zurich Ins. through Demeter Issue Date 27-Sept-2016 16-Jun-2015 02-Mar-2016 2-Apr-2015 24-May-2016 Amount EUR 600m EUR 750m CHF 450m EUR 750m EUR 750M Issue ratings

  25. Slide 25: Agenda

    Agenda Swiss Life at a glance Resilience in low interest rate environment Credit considerations Proposed subordinated debt issuance  Appendix 25

  26. Slide 26: Outstanding financing instruments

    Outstanding financing instruments Type Oustanding Issuer Issue Next Call Coupon Regulatory capital amount year /maturity Subordinated EUR 192 m Swiss Life AG 1999 2019/perp 6mE + 2.05%  Hybrid loan Hybrid bond EUR 590 m Swiss Life AG (via ELM BV) 2007 2017/perp 5.849%  Hybrid bond CHF 500 m Swiss

  27. Slide 27: 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

  28. Slide 28: 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

  29. Slide 29: The future starts here.

    E SwissLife The future starts here.

Swiss Life — Debt Investor Presentation (September 2016) on 6ix