Swiss Life Holding Ag · SIX:SLHN
Swiss Life — Investor Day (January 2025)
32 slides from Swiss Life's investor day presentation, Jan 10, 2025
Slide 1: Raising financial ambitions with Swiss Life 2027
Raising financial ambitions with Swiss Life 2027 Marco Gerussi, Group CFO The Octavian Seminar, 10 January 2025
Slide 2: Swiss Life 2027 to step up earnings and cash returns to shareholders
Swiss Life 2027 to step up earnings and cash returns to shareholders • Disciplined and successful execution of all our strategic programmes Excellent track • Growing fee result in changing interest rate environment and despite FX headwinds record • Attractive cash returns to shareholders • Unique bu
Slide 3: Well on track to achieve or exceed all Swiss Life 2024 Group financial targets
Well on track to achieve or exceed all Swiss Life 2024 Group financial targets 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 Ex
Slide 4: We have an excellent track record in delivering on our strategic programmes
We have an excellent track record in delivering on our strategic programmes Well on track Exceeded Exceeded Exceeded to achieve or exceed Swiss Life Swiss Life Swiss Life Swiss Life 2015 2018 2021 2024 Disciplined local execution driving attractive cash returns to shareholders 4 | Swiss Life 2027 |
Slide 5: Growing fee result in changing interest rate environment and despite FX headwinds
Growing fee result in changing interest rate environment and despite FX headwinds… Fee result Yield and FX environment1) CHF million %, EUR/CHF Investor Day 2021 4.0 1.3 850-900 756 699 3.0 1.2 664 601 553 488 2.0 1.1 442 396 342 269 1.0 1.0 190 0.0 0.9 FY FY FY FY FY FY FY FY FY FY FY Target 2013 2
Slide 6: Significant increase in cash remittance to Holding
…supported, together with insurance business, a significant increase in cash remittance to Holding… Cash remittance to Holding CHF million Cumulative 2022-20241) CHF 3.4 bn 1 263 • Increase in cash remittance due to higher 1 150 contributions from insurance business and 1 009 growing fee result 834
Slide 7: Leading to substantially higher cash returns and value creation
…leading to substantially higher cash returns and value creation Cash returns to shareholders Total shareholder returns2) CHF, per share CHF, indexed, % Total cash returns to shareholders of around CHF 9 bn 1000 thereof share buybacks of CHF 2.7 bn 900 33.00 800 30.00 700 25.00 600 20.00 21.00 500 1
Slide 8: Swiss Life 2027 strategic actions to drive business growth
Swiss Life 2027 strategic actions to drive business growth We enable people to lead a financially self-determined life Strategic actions Financial ambitions Customer Expanding customer base and relationships Earnings Enhanced quality and growth Advisor Growing advisor base and productivity Capital a
Slide 9: Our purpose is at the heart of what we do
Our purpose is at the heart of what we do We enable people to lead a financially self-determined life Only 79% 47% • We enable our customers to shape their financial future through our commitment, our comprehensive life, pensions would like to shape their already feel financially and financial solut
Slide 10: Sustainability goals are anchored in our business
Sustainability goals are anchored in our business Business behaviour Asset manager & owner Offering Swiss Life 2024 On track On track On track Expand offering with sustainability Reduce CO2 emissions Reduce CO2 intensity for directly solutions and integrate sustainability per FTE by 35% by 20241) ow
Slide 11: Swiss Life well positioned to seize significant market opportunities
Swiss Life well positioned to seize significant market opportunities… Market trends Swiss Life’s position Pension and • Leading European specialist for life, pensions, financial solutions and advice protection gaps • Proven strength of quickly responding to financial market changes and customer need
Slide 12: By harnessing a strong business model
…by harnessing a strong business model Swiss Life offers life, pensions, financial solutions and advice Leading Growing Strong life insurer asset advisory in Europe manager networks Focus on earnings quality and growth and attractive cash returns to shareholders Our highly engaged employees are key
Slide 13: Ambitious Swiss Life 2027 financial targets
Ambitious Swiss Life 2027 financial targets Swiss Life 2027 financial ambitions and targets Fee result > CHF 1 bn Enhanced earnings FY 2027 quality and earnings growth RoE 17 - 19% 2025-2027 Cash to Holding CHF 3.6 - 3.8 bn Cumulative 2025-2027 Attractive cash Dividend payout ratio > 75% Ambition to
Slide 14: We aim for the fee result to exceed one billion Swiss francs by 2027
Earnings quality We aim for the fee result to exceed and growth one billion Swiss francs by 2027 Fee result Fee result by business line CHF billion Contribution in % of total fee result > 1.0 0.85 - 0.90 ~25% 0.66 2027 ~50% ~25% AM Owned IFAs Own and third-party FY 2023 Target 2024 Target 2027 produ
Slide 15: Each division to deliver a higher fee result
Earnings quality Each division to deliver a higher fee result and growth Fee result targets Main drivers CHF m 55 ~70 • Leverage customer base and advisory power along with CH investments in wealth solutions FY 2023 Target 2027 EUR m 161 > 200 • Further grow UL / banking businesses by expanding cust
Slide 16: Operational efficiency and scalability in fee businesses
Earnings quality Operational efficiency and scalability in and growth fee businesses Growth of fee income vs. fee result Drivers CAGR 2023-2027, % SL Group: fee result to outgrow fee income at Group level, driven by Asset Managers and International > 11% • CH: further investments in growth initiativ
Slide 17: Growth ambitions for the operating result insurance business
Earnings quality Growth ambitions for the operating result and growth insurance business • Increase CSM from FY 2023 level through operating growth CSM operating growth • Disciplined management of new business and back-book • Foster operational efficiency through process automation and digitalisatio
Slide 18: CSM to be increased through operating growth
Earnings quality CSM to be increased through and growth operating growth CSM (pre-tax, gross) Key levers CHF billion • Expected business contribution − Disciplined ALM and capital-efficient investments Grow securing healthy interest rate margin 15.4 • New business – Disciplined margin management inc
Slide 19: Life absolute costs to be stable at three quarters of a billion Swiss francs
Earnings quality Life absolute costs to be stable and growth at three quarters of a billion Swiss francs Life absolute costs1) Disciplined cost management CHF billion • Continuous process standardisation and optimisation across business divisions 0.74 Stable • Outweighing investments such as in busi
Slide 20: Operating result in the insurance business to grow
Earnings quality Operating result in the insurance business and growth to grow Operating result insurance business Drivers CHF million • CSM – Higher new business contributions Grow – Disciplined back-book management 929 • Additional contributions from insurance business – Rebound of FR non-life bus
Slide 21: Higher return on equity based on increasing earnings and cash returns
Earnings quality Higher return on equity based on increasing and growth earnings and cash returns to shareholders Return on equity (RoE) Drivers of RoE development % • Earnings growth in fee and insurance businesses 17 - 19% • Enhanced operational efficiency and scalability 13.7% • Higher dividend p
Slide 22: Strong SST ratio well above the ambition range of 140 - 190%
Cash returns to Strong SST ratio well above the ambition shareholders range of 140 - 190% Group SST development Group SST ambition range % 223% 215% 212% ~205% 197% Capital management actions 190% Ambition Dividend payout ratio according range to plan 140% Comprehensive ALM measures before level rea
Slide 23: Cash remittance target raised to CHF 3.6 - 3.8 bn
Cash returns to Cash remittance target raised to shareholders CHF 3.6 - 3.8 bn Cash remittance to Holding Drivers of cash remittance CHF billion • Increased contribution from insurance and fee 3.6 - 3.8 businesses 3.4 One-offs 2.8 - 3.0 • Cumulative 2022-20241) cash remittance included one-off effec
Slide 24: Higher cash remittance from each business division
Cash returns to Higher cash remittance from each shareholders business division Cumulative cash remittance targets1) Main drivers CHF m 1 441 1 870 -1 930 CH • Insurance business; in addition, contributions from reserve releases 2021-2023 Target 2025-2027 EUR m 520 - 560 382 FR • Insurance and fee b
Slide 25: Dividend payout ratio target raised to > 75% and ambition to increase DPS
Cash returns to Dividend payout ratio target raised shareholders to > 75% and continued ambition to increase DPS Dividend per share and payout ratio CHF, % > 75% > 60%1) 50 - 60%1) 33.00 Ambition to increase DPS 35.00 30.00 25.00 20.00 21.00 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 2025-2027
Slide 26: Disciplined allocation of cash to drive attractive cash returns to shareholders
Cash returns to Disciplined allocation of cash to drive shareholders attractive cash returns to shareholders Use of cash at Holding and divisional level Attractive dividend to shareholders • Payout ratio > 75% • Ambition to increase DPS Share buyback Swiss Life Holding • Additional capital managemen
Slide 27: Additional cash return with CHF 750 million share buyback
Cash returns to Additional cash return to shareholders with shareholders CHF 750 million share buyback Financing Share buyback CHF million 750 Amount • CHF 750 m Future cash Timing • Dec 2024 – May 2026 remittance to Holding • Purchases on 2nd trading line delegated to partner bank Execution • Cance
Slide 28: With Swiss Life 2027, we are raising the bar for our financial targets
With Swiss Life 2027, we are raising the bar for our financial targets Fee result Cash remittance to Holding CHF bn CHF bn, three years cumulative > 1.0 3.6 - 3.8 0.85 - 0.90 > ~15% 2.8 - 3.0 + ~25% Swiss Life 2024 Swiss Life 2027 Swiss Life 2024 Swiss Life 2027 In addition, share buyback RoE Divide
Slide 29: Swiss Life 2027 to step up earnings and cash returns to shareholders
Swiss Life 2027 to step up earnings and cash returns to shareholders • Disciplined and successful execution of all our strategic programmes Excellent track • Growing fee result in changing interest rate environment and despite FX headwinds record • Attractive cash returns to shareholders • Unique bu
Slide 30: 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 31: 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 32: We enable people to lead a financially self-determined life.
We enable people to lead a financially self-determined life.