Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Swiss Life Holding AG (SWSDF, Financial) delivered a strong set of full-year results for 2024, with a 20% growth in profit from operations to CHF1.78 billion.
- The company successfully completed its Swiss Life 2024 program, exceeding all group financial targets, including return on equity, cash remittance, dividend payout ratio, and share buyback.
- Net profit increased by 13% to CHF1.26 billion, with a return on equity of 16.6%, well above the target range of 10% to 12%.
- Cash remittance grew by 14% to CHF1.3 billion, supported by positive timing effects and one-off contributions.
- The company announced an ambitious new program, Swiss Life 2027, focusing on more customers, more advisors, and more efficiency to drive business growth and shareholder returns.
Negative Points
- Revenues decreased by 1% to CHF8.7 billion due to lower CSM release and FX effects.
- The value of new business decreased by 19% to CHF189 million, mainly due to lower volumes and business mix effects.
- Operating expenses increased by 6% in local currency to CHF2.1 billion due to business growth and investments in growth initiatives.
- The net investment result was impacted by lower income from alternative investments, despite higher contributions from bonds, equities, and real estate.
- Shareholder equity decreased by 3% to CHF7.3 billion, largely due to dividend payments, changes in other OCI, and share buybacks.
Q & A Highlights
Q: Can you explain the difference between the reported cost income ratio of 85% for TPAM and the one recalculated based on your P&L disclosure?
A: The reported cost income ratio does not include certain elements like real estate project development and other net income, which are after variable commission expenses. This might be the reason for the discrepancy in your calculations. - Marco Gerussi, CFO
Q: What is the outlook for the CSM release ratio in 2025?
A: We expect the CSM release ratio to be at the full-year 2024 level, possibly a bit higher, although many factors can influence this ratio. - Matthias Aellig, CEO
Q: Can you discuss the sustainability of the return on surplus assets and the asset management profit, particularly the non-recurring elements?
A: The return on surplus assets, driven by real estate, is seen as sustainable. The non-recurring elements in asset management, mainly from project developments, were higher than expected, contributing significantly to the fee result. - Marco Gerussi, CFO
Q: How do you view the competitive environment in asset management given the current interest rate levels?
A: We see competitive pressure across all markets but believe we are well-positioned to seize opportunities, particularly in real assets like real estate and infrastructure equity. - Matthias Aellig, CEO
Q: What is the outlook for the French non-life operating results in 2025?
A: After a significant improvement from 2023 to 2024, we expect a more normalized growth level in the coming years. - Marco Gerussi, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
