With the consistent and successful implementation of its multi-year strategy programmes, Swiss Life ensures that the long-term value propositions made to its customers are guaranteed and that it creates sustainable value for its shareholders and stakeholder groups.
The Swiss Life Group is one of Europe’s leading comprehensive life and pensions and financial solutions providers. Swiss Life’s success is due to a clear strategy, the disciplined implementation of Group-wide programmes, a sound purpose and a charismatic brand.
Swiss Life addresses a fundamental need
With its commitment, advisory services and comprehensive life, pensions and investment solutions, Swiss Life enables people to lead a financially self-determined life. In doing so, the company builds financial confidence and addresses the fundamental human need for self-determination and independence. Results of market research carried out by Swiss Life confirm this, showing that being able to lead a self-determined life and decide freely leads to greater satisfaction and confidence.
The results also show that most people are aware that when it comes to pension provision, they are largely responsible for their own financial security.
Self-determination remains stable
Despite challenging economic times, people are once again more optimistic about the future. Self-determination, meanwhile, remains stable, as shown by the results of Swiss Life’s latest self-determination barometer.
Demographics make pension provision a growth market
The impact of an increasingly ageing population coupled with high levels of debt in the pension systems of many countries is generally underestimated. Consequently, pension and insurance shortfalls are on the rise worldwide. As a result, people have to take more responsibility for their own pension-related provisions.
Pension solutions and advice are therefore a growth market. People depend on support and advice to address pension gaps and risks in a self-determined manner. In this environment, Swiss Life’s work, advice and products will continue to grow in importance. Swiss Life therefore sees growth opportunities and differentiation potential in the market for pension solutions and advice.
Unique market position
The company’s unique positioning is fundamental to its further development: Swiss Life has a strong foothold as a provider of pension solutions in attractive European markets. The expertise of some 17 000 advisors distinguishes the company from its competitors. In recent years, Swiss Life has emphatically demonstrated that it can achieve resilient returns and improve results despite a challenging backdrop and has adapted its product portfolio to the market environment.
In addition, Swiss Life Asset Managers provides Swiss Life with a fast-growing asset management business with particular strengths in the area of real assets. The result is a business model with multiple profit sources.
Swiss Life 2024
n terms of the “Swiss Life 2024” Group-wide programme, Swiss Life is well on track to achieve or exceed all of the Group’s financial targets. At 13.7% in 2023 (previous year: 12.1% on a comparable basis), the return on equity was again above the target range of 10–12%; Swiss Life also expects to be above the range in 2024. The cash remittance to the holding company increased by 14% last year to CHF 1.15 billion, meaning the Group-wide programme’s target of a cumulative cash remittance of CHF 2.8–3.0 billion is likely to be significantly exceeded. With respect to the dividend payout ratio of over 60%, Swiss Life is also ahead of its programme target.
The CHF 1 billion share buyback programme under “Swiss Life 2024” was successfully completed at the end of May 2023, while the additional share buyback programme of CHF 300 million announced on 6 September 2023 will be completed as planned at the end of March 2024. In terms of the fee result, Swiss Life expects to reach the lower end of the CHF 850–900 million target range, this being reliant on the expected normalisation of the real estate markets in Germany and France.
With “Swiss Life 2024,” Swiss Life is also setting itself ambitious financial targets and significantly increasing the corresponding targets compared to the previous programme:
- Increase in the fee result to CHF 850 to 900 million in 2024 (“Swiss Life 2021”: CHF 600 to 650 million).
- Adjusted return on equity of 10 to 12 percent (“Swiss Life 2021”: 8 to 10 percent).
- Cumulative cash remittance to the holding company from 2022 to 2024 of CHF 2.8 to 3.0 billion (“Swiss Life 2021”: CHF 2.0 to 2.25 billion).
- Dividend payout ratio of over 60 percent from 2022 (“Swiss Life 2021”: 50 to 60 percent).
- Target range for the SST ratio of 140 to 190 percent (unchanged).
- CHF 1 billion share buyback programme from December 2021 to May 2023.
In terms of the “Swiss Life 2024” Group-wide programme, Swiss Life is well on track to achieve or exceed all of the Group’s financial targets. At 13.7% in 2023 (previous year: 12.1% on a comparable basis), the return on equity was again above the target range of 10–12%; Swiss Life also expects to be above the range in 2024. The cash remittance to the holding company increased by 14% last year to CHF 1.15 billion, meaning the Group-wide programme’s target of a cumulative cash remittance of CHF 2.8–3.0 billion is likely to be significantly exceeded.
With respect to the dividend payout ratio of over 60%, Swiss Life is also ahead of its programme target. The CHF 1 billion share buyback programme under “Swiss Life 2024” was successfully completed at the end of May 2023, while the additional share buyback programme of CHF 300 million announced on 6 September 2023 will be completed as planned at the end of March 2024. In terms of the fee result, Swiss Life expects to reach the lower end of the CHF 850–900 million target range, this being reliant on the expected normalisation of the real estate markets in Germany and France.
