• The Swiss Life Group generated fee income of CHF 453 million, an increase of 11% in local currency compared to the previous year.
  • Premiums came to CHF 7.82 billion. The decline of 20% in local currency and the associated normalisation of premiums are – as announced a number of times previously – due to extraordinarily high single premiums in the prior year following the withdrawal of a competitor from the full insurance business in Switzerland. Taking this extraordinary effect into account, premiums in the first quarter of 2020 in Switzerland were 4% higher year on year.
  • Swiss Life Asset Managers acquired net new assets of CHF 13 million in its third-party asset management. Third-party assets under management amounted to CHF 79.3 billion (year-end 2019: CHF 83.0 billion) as at the end of March.
  • Swiss Life achieved direct investment income of CHF 1.01 billion (previous year: CHF 1.07 billion). The non-annualised direct investment yield was 0.6% (previous year: 0.7%); the non-annualised net investment yield stood at 0.4% (previous year: 0.6%).
  • The Swiss Life Group had an SST ratio of 204% as of 1 January 2020. Swiss Life currently estimates its SST ratio at about 180%. The solvency ratio is thus in the top third of the strategic ambition range of 140 to 190%.
  • Swiss Life confirms the financial targets of the "Swiss Life 2021" Group-wide programme, even in the current Covid-19 pandemic environment.

"The Covid-19 pandemic with the financial market turmoil and reduced business activities also poses challenges for Swiss Life. In the figures published today for the first quarter, however, these effects are limited. We have introduced measures to keep the effects within limits over the rest of the year", says Patrick Frost, Group CEO of Swiss Life. "Swiss Life's solvency is strong and our business model is sustainable and resilient. Accordingly, we confirm our targets for the "Swiss Life 2021" Group-wide programme.”

Diversified growth in fee income
The Swiss Life Group generated fee income in the first quarter of 2020 totalling CHF 453 million (previous year: CHF 429 million). The growth of 11% in local currency is due to Swiss Life Asset Managers (+11%), to own and third-party products and services (+8%) and to owned IFAs (+7%). The Group generated premiums of CHF 7.82 billion in the first three months (previous year: CHF 9.94 billion). The decline of 20% in local currency was as expected: this normalisation is due to the extraordinarily high single premiums written by Swiss Life in the previous year due to the withdrawal of a competitor from the full insurance business in Switzerland. Insurance reserves to the benefit of the company's policyholders remained stable in local currency.

In its home market of Switzerland, Swiss Life achieved premiums of CHF 5.63 billion (previous year: CHF 7.77 billion). The decline (-28%) stems from the extraordinarily high premiums in the previous year due to the withdrawal of a competitor from the full insurance business. Single premiums in group life business fell accordingly by 45%, while periodic premiums were slightly increased (+1%). Taking this extraordinary effect into account, premiums in the first quarter of 2020 in Switzerland were 4% higher in total than in the previous year. In fee business, income was up 10% to CHF 74 million. Swiss Life in France posted premiums of CHF 1.54 billion, 18% growth in local currency. The life business posted an increase of 25%, with the share of unit-linked solutions at 58% (previous year: 45%) well above the market. Fee income rose by 7% in local currency to CHF 78 million. In Germany premiums were up 4% in local currency to CHF 364 million. Fee income was up 8% in local currency to CHF 126 million due to growth in owned IFAs. The International market unit recorded premiums of CHF 291 million (previous year: CHF 420 million). In fee business, income came to CHF 75 million (previous year: CHF 79 million).

Swiss Life Asset Managers achieved net new assets in its third-party business of CHF 13 million in the first three months of 2020 (previous year: CHF 4.6 billion). Adjusted for money market funds, net new assets came to CHF 1.1 billion (previous year: CHF 2.8 billion). Third-party assets under management as at the end of March 2020 amounted to CHF 79.3 billion (year-end 2019: CHF 83.0 billion). In total, Swiss Life Asset Managers achieved fee income of CHF 190 million in the first three months of 2020, an increase of 11% over the previous year.

SST ratio currently at around 180%
Swiss Life generated direct investment income of CHF 1.01 billion in the first quarter of 2020 (previous year: CHF 1.07 billion). The non-annualised direct investment yield was 0.6% as of 31 March 2020 (previous year: 0.7%). The non-annualised net investment yield came to 0.4% (previous year: 0.6%), due to negative financial market developments. The Swiss Life Group had an SST ratio of 204% as of 1 January 2020. The Group's solvency remains strong: Swiss Life currently estimates its SST ratio at around 180%. The solvency ratio is thus in the top third of the strategic ambition range of 140 to 190%.

Effects of the Covid-19 pandemic – confirmation of the "Swiss Life 2021" targets
In recent years, Swiss Life has invested in customer advisory services, including digital platforms. This enables the company to support its customers even in this challenging time. The main effects of the Covid-19 pandemic for Swiss Life arise from the turmoil on the financial markets. In the 2020 financial year, this impacts fee business and also insurance business through investment income and the net investment result. Swiss Life manages the effects on its insurance business by means of its continuous asset liability processes, and the positive interest rate margin remains protected for more than three decades, even in the current volatile environment. Due to the balanced portfolio of mortality and longevity risks, the risks in the Swiss Life insurance book are also manageable. Swiss Life's business model is sustainable and diversified. The company thus confirms its financial targets under the "Swiss Life 2021" Group-wide programme.

Telephone conference for analysts and investors
Matthias Aellig, Group CFO, will hold a telephone conference in English for financial analysts and investors at 10 a.m. (CET) today. There is also an audio webcast on the web page. All the documents relating to the financial statements are available online at www.swisslife.com.

Dial-in number for Europe: +41 (0) 58 310 50 00
Dial-in number for the UK: +44 (0) 207 107 06 13
Dial-in number for the US: +1 (1) 631 570 56 13

Key figures as of 31.03.2020

       

CHF m
IFRS basis, unaudited

Q1 2020

Q1 2019

Change
(CHF)

Change
(in local currency)

Switzerland

       
  • Gross written premiums, policy fees and deposits received

5 630

7 771

-28%

-28%

  • Fee income

74

67

+10%

+10%

France

  • Gross written premiums, policy fees and deposits received

1 539

1 381

+11%

+18%

  • Fee income

78

77

+1%

+7%

Germany

  • Gross written premiums, policy fees and deposits received

364

371

-2%

+4%

  • Fee income

126

124

+2%

+8%

International

  • Gross written premiums, policy fees and deposits received

291

420

-31%

-27%

  • Fee income

75

79

-6%

-1%

Asset Managers

  • Fee income

190

174

+9%

+11%

  • Net new assets in third-party business

13

4 629

-100%

-97%

  • Assets under management TPAM

79 322

83 0462

-4%

-3%

Total1

  • Gross written premiums, policy fees and deposits received

7 818

9 939

-21%

-20%

  • Fee income

453

429

+6%

+11%

1 Gross written premiums, policy fees and deposits received: total includes intersegment eliminations of CHF -6 m in Q1 2020 and CHF -4 m in Q1 2019; fee income: total includes Other and intersegment eliminations of CHF -88 m in Q1 2020 and CHF -92 m in Q1 2019.

2 As of 31 December 2019

Information

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media.relations@swisslife.ch

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Further information
All our media releases can be found at swisslife.com/mediareleases

Swiss Life
The Swiss Life Group is one of Europe's leading comprehensive life and pensions and financial solutions providers. In its core markets of Switzerland, France and Germany, Swiss Life offers individuals and corporations comprehensive and individual advice plus a broad range of own and partner products through its sales force and distribution partners such as brokers and banks.

Swiss Life Select, Tecis, Horbach, Proventus, Fincentrum and Chase de Vere advisors choose suitable products for customers from the market according to the Best Select approach. Swiss Life Asset Managers offers institutional and private investors access to investment and asset management solutions. Swiss Life provides multinational corporations with employee benefits solutions and high net worth individuals with structured life and pensions products.

Swiss Life Holding Ltd, registered in Zurich, was founded in 1857 as Schweizerische Rentenanstalt. The shares of Swiss Life Holding Ltd are listed on the SIX Swiss Exchange (SLHN). The subsidiaries Livit, Corpus Sireo, Beos, Mayfair Capital and Fontavis are also part of the Swiss Life Group. The Group employs a workforce of around 9300 and has at its disposal a distribution network of some 14 000 advisors.

Cautionary statement regarding forward-looking information
This publication contains specific forward-looking statements, e.g. statements including terms like “believe”, “assume”, “expect” or similar expressions. Such forward-looking statements, by their nature, are subject to known and unknown risks, uncertainties and other important factors. These may result in a substantial divergence between the actual results, developments and expectations of Swiss Life and those explicitly or implicitly described in these forward-looking statements. Given these uncertainties, the reader is reminded that these statements are merely projections and should not be overvalued. Neither SwissLife nor its Members of the Board of Directors, executive managers, managers, employees or external advisors nor any other person associated with Swiss Life or with any other relationship to the company makes any express or implied representation or warranty as to the correctness or completeness of the information contained in this publication. SwissLife and the abovementioned persons shall not be liable under any circumstances for any direct or indirect loss resulting from the use of this information. Furthermore, Swiss Life undertakes no obligation to publicly update or change any of these forward-looking statements, or to adjust them to reflect new information, future events, developments or similar.