Swiss Life Holding AG · SIX:SLHN
Swiss Life — Baader Helvea Swiss Equities Conference 2022
30 slides from Swiss Life's conference presentation, Jan 13, 2022
Slide 1: Baader Helvea Swiss Equities Conference
Baader Helvea Swiss Equities Conference Swiss Life Matthias Aellig, Group CFO 13 January 2022
Slide 2: Key messages
Key messages 1 Attractive starting • Excellent market positions and advisory networks position with • Resilient business model based on strong earnings quality Swiss Life 2021 • Disciplined local execution targets to be • Successfully executed three strategic programmes in a row and achieved or abou
Slide 3: Swiss Life has a unique and strong position
1 Attractive starting Swiss Life has a unique and strong position position Swiss Life business model Unique life insurance company in Europe Leading financial Top European asset manager with advisory networks strong position in real assets Savings result Risk result Cost result Fee result Strong qua
Slide 4: Since 2012, we have substantially improved the earnings quality by growing the fee result
1 Attractive starting Since 2012, we have substantially improved position the earnings quality by growing the fee result, … Fee result1) 601 553 488 442 396 342 309 269 190 121 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 HY 2021 11% 16% 22% 25% 27% 29% 30% 31% 36% % Fee r
Slide 5: More than quadrupled the dividend per share and implemented two share buybacks
1 Attractive starting … more than quadrupled the dividend per position share and implemented two share buybacks Dividend and share buybacks Plus share buybacks CHF 1 bn1) CHF 400 m2) 2.6 PS3) 27.9 PS3) 0.9 PS3) 11.7 PS3) 20.00 21.00 16.50 13.50 11.00 8.50 5.50 6.50 4.50 FY 2012 FY 2013 FY 2014 FY 20
Slide 6: Successfully executed three programmes in a row and about to deliver on Swiss Life 2021
1 Attractive starting Successfully executed three programmes in position a row and about to deliver on Swiss Life 2021 MILESTONE Swiss Life 2015 Swiss Life 2018 Swiss Life 2021 Business Continued Enhance earnings Turnaround program: transformation: transformation quality and “Getting basics right” “
Slide 7: Swiss Life 2021 financial targets
1 Attractive starting Swiss Life 2021 financial targets … position RoE1) Ahead Fee result Ahead CHF m 9.3% 9.4% 8-10% 600-650 601 442 FY 2017 FY 2020 Target 2021 FY 2017 FY 2020 Target 2021 Risk result On track VNB Ahead CHF m CHF m > 1 200 400-450 1 278 (2019-2021) 389 407 252 465 561 FY 2017 FY 20
Slide 8: To be achieved or exceeded
1 Attractive starting … to be achieved or exceeded position SST ratio Ahead Cash to Holding Ahead CHF bn 2-2.25 197% 2.33 (2019-2021) 140-190% 170% 0.80 0.78 0.75 FY 2017 FY 2020 Target 2021 FY 2019 FY 2020 HY 2021 Target 2021 Payout ratio, DPS On track Efficiency On track Life efficiency ratio Dist
Slide 9: Swiss Life well positioned to be on top of long-term trends and to seize opportunities
2 Swiss Life 2024 Swiss Life well positioned to be on top of long-term trends and to seize opportunities Long-term trends Swiss Life’s position Increasing pension and • Swiss Life provides life, pensions and financial solutions for protection gaps the long run to address growing pension and protecti
Slide 10: Swiss Life 2024 strategic actions contribute to future financial results
2 Swiss Life 2024 Swiss Life 2024 strategic actions contribute to future financial results 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 scalabil
Slide 11: Sustainability is anchored in our business and at the heart of what we do
2 Swiss Life 2024 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 & adv
Slide 12: Sustainability actions and targets will support further stakeholder value creation
2 Swiss Life 2024 Sustainability actions and targets will support further stakeholder value creation Our sustainability targets Business behaviour Asset owner & manager Insurance products Advice Reduce CO2 emissions per FTE by 35% by 20241) and Reduce CO2 emission compensate emissions to intensity f
Slide 13: With Swiss Life 2024, we are building on proven strengths and success factors
2 Swiss Life 2024 With Swiss Life 2024, we are building on proven strengths and success factors What remains key • Continued focus on growing fee result and on return on equity Quality of • Disciplined ALM and capital-efficient investments earnings • Active margin management on back-book and new bus
Slide 14: Ambitious 2024 financial targets for Swiss Life Group
2 Swiss Life 2024 Ambitious 2024 financial targets for Swiss Life Group 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 • Dividen
Slide 15: Fee result as key driver of earnings quality and resilience of business model
2 Swiss Life 2024 Fee result as key driver of earnings quality and resilience of business model Long-term profit by source development Importance of fee result to Swiss Life CHF m, share of profit contribution in % CAGR • Strong contributor to profit growth 1 660 +6% 601 • Low capital intensity, no
Slide 16: Fee result target to grow significantly by about 40% to CHF 850-900 m
2 Swiss Life 2024 Fee result target to grow significantly by about 40% to CHF 850-900 m Fee result Fee result by business line CHF m Contribution in % of total fee result 850-900 21% ~20% ~25% 600-650 35% 601 2020 2024 P 21% ~25% ~30% 23% FY 2020 Target 2021 Target 2024 PAM TPAM IFAs UL / other 16 |
Slide 17: Each business division to contribute to a growing fee result
2 Swiss Life 2024 Each business division to contribute to a growing fee result Fee result targets by business division Main drivers / initiatives CHF m CH 26 25-30 ~30 • Increase in fee result while investing in growth initiatives FY 2020 Target 2021 Target 2024 EUR m 85-95 125-135 • Lever private i
Slide 18: Savings, risk and cost results remain important profit sources
2 Swiss Life 2024 Savings, risk and cost results remain important profit sources Expected development until 20241) • Important profit and cash contributor; savings result expected to grow from FY 2020 level, which was negatively impacted by Covid-19 market volatility • Continues to be managed in a c
Slide 19: Operational scalability to be further increased across businesses
2 Swiss Life 2024 Operational scalability to be further increased across businesses Scalability in fee businesses1) Main drivers / initiatives Fee income2) growth Fee result growth • Investments for expansion in affluent / digitally savvy CH CAGR 2020-2024 + 4-6% CAGR 2020-2024 + ~4% customer segmen
Slide 20: Strong capitalisation and confirmation of the SST ambition range
2 Swiss Life 2024 Strong capitalisation and confirmation of the SST ambition range Group SST development SST ambition range In % ~210% 204% 197% Capital management actions 190% 185% 170% Ambition Dividend payout ratio according 161% range to plan ~140% 140% Comprehensive ALM measures before level re
Slide 21: Significantly increase cash remittance to Holding by about 35%
2 Swiss Life 2024 Significantly increase cash remittance to Holding by about 35% … Cash remittance to Holding Drivers of cash remittance CHF bn • Increase in cash remittance primarily due to 2.8-3.0 growing fee result 2.23 2-2.25 • Additional increase in cash remittance driven by other profit source
Slide 22: With a growing contribution from every business division
2 Swiss Life 2024 … with a growing contribution from every business division Cumulative cash remittance1) targets Main drivers / initiatives CHF m 1 176 1 350 - 1 400 • Strong growth of savings result CH • Positive contributions also from other profit sources 2018-2020 Target 2024 EUR m 360-410 290
Slide 23: Attractive dividend payout ratio while maintaining capital management flexibility
2 Swiss Life 2024 Attractive dividend payout ratio while maintaining capital management flexibility Cash remittance and dividend Growth initiatives Capital management flexibility 100% ~ 15-20% < 5% ~ 10-15% > 60% IFRS net profit Non-cash1) Cash retained at Cash retained at Dividend to business divis
Slide 24: Additional cash return to shareholders with share buyback of CHF 1 bn
2 Swiss Life 2024 Additional cash return to shareholders with share buyback of CHF 1 bn Shareholders’ equity Share buyback CHF bn Additional details Amount • CHF 1 bn 16.7 15.9 Timing • Dec 2021 – May 2023 • Purchases on 2nd trading line delegated to partner bank Execution • Cancellation of repurcha
Slide 25: Swiss Life 2024 to further improve the return on equity
2 Swiss Life 2024 Swiss Life 2024 to further improve the return on equity Return on equity (RoE)1) 2) Key drivers of RoE development % • Improved quality of earnings from growing 10-12% fee businesses 8-10% • Operational scalability and efficiency at 9.4% business division level • Healthy interest r
Slide 26: With Swiss Life 2024, we again raise our ambitions
2 Swiss Life 2024 With Swiss Life 2024, we again raise our ambitions Fee result RoE1) 2) CHF m 850-900 10-12% 8-10% 8-10% + 2 ppts 600-650 + ~40% 400-450 Swiss Life 2018 Swiss Life 2021 Swiss Life 2024 Swiss Life 2018 Swiss Life 2021 Swiss Life 2024 Cash remittance Dividend payout ratio2) CHF bn, th
Slide 27: Key messages
Key messages 1 Attractive starting • Excellent market positions and advisory networks position with • Resilient business model based on strong earnings quality Swiss Life 2021 • Disciplined local execution targets to be • Successfully executed three strategic programmes in a row and achieved or abou
Slide 28: 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 29: 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 30: We enable people to lead a self-determined life.
We enable people to lead a self-determined life.
Swiss Life — Baader Helvea Swiss Equities Conference 2022 on 6ix