Swiss Life in 2024: fee result up 33% and net profit up 13% |
14.03.2025
| from Swiss Life
14.03.2025, Net profit: CHF 1.26 billion (+13%); adjusted profit from operations: CHF 1.78 billion (+20%). Fee result: CHF 875 million (+33%). Return on equity: 16.6% (previous year: 13.7%). Cash remittance to the holding company: CHF 1.31 billion (+14%). SST ratio as at 31 December 2024: around 200% (previous year: 212%). The Board of Directors proposes to the Annual General Meeting a dividend of CHF 35.00 per share (previous year: CHF 33.00). Successful conclusion of the “Swiss Life 2024” Group-wide programme.
“I am pleased with the strong 2024 financial year, in which we increased the fee result, profit from operations and net profit as well as the cash remittance to the holding company. With these annual results, we can bring our ‘Swiss Life 2024’ Group-wide programme to a successful conclusion in every respect. I am proud that we have continued to develop very well strategically as a Group, have achieved our fee result target and exceeded our other financial targets,” says Matthias Aellig, Group CEO of Swiss Life. “This is the result of the excellent performance of our employees and advisors, whose commitment and expertise are key to our company’s success. I would like to thank them all most sincerely for this.”
Significant increase in fee result drives earnings growth
In the 2024 financial year, the Swiss Life Group increased its income from the fee business by 5% in local currency compared to the previous year to CHF 2.49 billion. The fee result increased significantly in local currency, by 33% to CHF 875 million, due in particular to the very strong performance of Swiss Life Asset Managers.
Adjusted profit from operations rose by 20% to CHF 1.78 billion, the main contributors to this increase being the fee result and the positive development of the insurance business in France. Net profit increased by 13% to CHF 1.26 billion.
Premiums came to CHF 20.3 billion – a rise of 3% in local currency.
“Swiss Life 2024” Group-wide programme successfully concluded
Swiss Life has successfully concluded the “Swiss Life 2024” Group-wide programme and not only met, but largely exceeded, the Group’s financial targets. The fee result was in the middle of the defined target range of CHF 850–900 million. At 16.6%, the return on equity in 2024 was clearly above the target range of 10–12%, and the dividend payout ratio of 81% also significantly exceeded the target (over 60%).
The cumulative cash remittance to the holding company in the three-year programme amounted to CHF 3.5 billion and was thus well above the target range of CHF 2.8–3 billion. At CHF 1.3 billion, the share buyback also clearly exceeded the CHF 1 billion figure communicated at the start of the programme.
Group CEO Matthias Aellig: “With ‘Swiss Life 2024’, we have successfully concluded the fifth Group-wide programme in a row. I am now looking forward to implementing the new ‘Swiss Life 2027’ Group-wide programme together with all colleagues with the same commitment, diligence and discipline.”
All divisions contributed to the strong 2024 results
In Switzerland, Swiss Life premiums essentially remained stable at CHF 9.91 billion (previous year: CHF 9.94 billion). The assets under management in semi-autonomous business increased to CHF 7.78 billion as at the end of 2024 (previous year: CHF 7.11 billion). The fee result remained unchanged at CHF 55 million and the segment result increased by 2% to CHF 854 million. The cash remittance to the holding company increased significantly in 2024, by 31% to CHF 741 million, based on the statutory profit development for the two previous years. The Swiss division therefore contributed more than half of the cash remittance to the Group and the vast majority of cash remittance growth.
In France, Swiss Life posted premiums of EUR 7.77 billion, an increase of 11%. Premiums in the life business rose by 14%. At 67% (previous year: 63%), the share of unit-linked solutions remained well above the market (38%). The fee result rose by 13% to EUR 182 million. The segment result strongly increased by 64% to EUR 335 million mainly as a result of repricing in the health and protection business. The division contributed EUR 186 million to the cash remittance to the holding company, 16% more than in the previous year.
At Swiss Life in Germany, premiums were up 3% in line with the market to EUR 1.51 billion. The fee result increased by 5% to EUR 120 million and the segment result remained stable at EUR 193 million. The cash remittance amounted to EUR 104 million, the 30% decrease being attributable to an extraordinary dividend in the previous year.
In the International market unit, premiums fell by 4% to EUR 1.72 billion. The fee result rose by 26% to EUR 90 million and the segment result increased by 18% to EUR 118 million. At EUR 67 million, the cash remittance to the holding company was 5% higher than in the previous year.
Swiss Life Asset Managers increased its total income by 22% to CHF 1.16 billion in 2024, with the TPAM business contributing CHF 802 million (previous year: CHF 621 million). Assets under management in the TPAM business came to CHF 125 billion as at the end of 2024 (31 December 2023: CHF 112 billion), while net new assets stood at CHF 9.5 billion (previous year: CHF 9.8 billion). The segment result rose significantly by 64% to CHF 446 million thanks to the very strong performance of the TPAM business, particularly in the area of real estate project developments. The cash remittance to the holding company increased by 6% to CHF 242 million.
Higher net investment yield – solvency remains robust
Direct investment income increased to CHF 4.13 billion (previous year: CHF 3.99 billion), with the direct investment yield standing at 2.9% (previous year: 2.8%). Net investment income also rose accordingly to CHF 3.73 billion (previous year: CHF 2.61 billion) and the net investment yield increased to 2.6% (previous year: 1.8%).
The contractual service margin (CSM), a balance sheet item that indicates the level of future, as yet unearned profit contributions from existing insurance business, came to CHF 14.4 billion as at 31 December 2024 (31 December 2023: CHF 15.4 billion). In the 2024 financial year, the CSM release to the income statement amounted to CHF 1.13 billion (previous year: CHF 1.28 billion).
As at 31 December 2024, the Swiss Life Group had an SST ratio of around 200% (previous year: 212%). The solvency ratio is thus above the strategic ambition range of 140–190%.
As part of the ongoing CHF 750 million share buyback programme, which started on 9 December 2024, shares in the amount of CHF 133 million had been repurchased by Friday, 7 March 2025. As announced, the programme will run until the end of May 2026.
Proposals to the Annual General Meeting
In light of the successful business performance, the Board of Directors will propose a dividend of CHF 35.00 per share (previous year: CHF 33.00) to the shareholders at the Annual General Meeting on 14 May 2025. The dividend will be distributed on 20 May 2025.
All members of the Board of Directors will be put forward for re-election.
Telephone conference call for analysts, investors and media representatives Matthias Aellig, Group CEO, and Marco Gerussi, Group CFO, will hold a telephone conference in English for financial analysts and investors today at 9 a.m. (CET).
Contact:
Media Relations
Phone +41 43 284 77 77
media.relations@swisslife.ch
Investor Relations
Phone +41 43 284 52 76
investor.relations@swisslife.ch
--- END press release Swiss Life in 2024: fee result up 33% and net profit up 13% ---
Significant increase in fee result drives earnings growth
In the 2024 financial year, the Swiss Life Group increased its income from the fee business by 5% in local currency compared to the previous year to CHF 2.49 billion. The fee result increased significantly in local currency, by 33% to CHF 875 million, due in particular to the very strong performance of Swiss Life Asset Managers.
Adjusted profit from operations rose by 20% to CHF 1.78 billion, the main contributors to this increase being the fee result and the positive development of the insurance business in France. Net profit increased by 13% to CHF 1.26 billion.
Premiums came to CHF 20.3 billion – a rise of 3% in local currency.
“Swiss Life 2024” Group-wide programme successfully concluded
Swiss Life has successfully concluded the “Swiss Life 2024” Group-wide programme and not only met, but largely exceeded, the Group’s financial targets. The fee result was in the middle of the defined target range of CHF 850–900 million. At 16.6%, the return on equity in 2024 was clearly above the target range of 10–12%, and the dividend payout ratio of 81% also significantly exceeded the target (over 60%).
The cumulative cash remittance to the holding company in the three-year programme amounted to CHF 3.5 billion and was thus well above the target range of CHF 2.8–3 billion. At CHF 1.3 billion, the share buyback also clearly exceeded the CHF 1 billion figure communicated at the start of the programme.
Group CEO Matthias Aellig: “With ‘Swiss Life 2024’, we have successfully concluded the fifth Group-wide programme in a row. I am now looking forward to implementing the new ‘Swiss Life 2027’ Group-wide programme together with all colleagues with the same commitment, diligence and discipline.”
All divisions contributed to the strong 2024 results
In Switzerland, Swiss Life premiums essentially remained stable at CHF 9.91 billion (previous year: CHF 9.94 billion). The assets under management in semi-autonomous business increased to CHF 7.78 billion as at the end of 2024 (previous year: CHF 7.11 billion). The fee result remained unchanged at CHF 55 million and the segment result increased by 2% to CHF 854 million. The cash remittance to the holding company increased significantly in 2024, by 31% to CHF 741 million, based on the statutory profit development for the two previous years. The Swiss division therefore contributed more than half of the cash remittance to the Group and the vast majority of cash remittance growth.
In France, Swiss Life posted premiums of EUR 7.77 billion, an increase of 11%. Premiums in the life business rose by 14%. At 67% (previous year: 63%), the share of unit-linked solutions remained well above the market (38%). The fee result rose by 13% to EUR 182 million. The segment result strongly increased by 64% to EUR 335 million mainly as a result of repricing in the health and protection business. The division contributed EUR 186 million to the cash remittance to the holding company, 16% more than in the previous year.
At Swiss Life in Germany, premiums were up 3% in line with the market to EUR 1.51 billion. The fee result increased by 5% to EUR 120 million and the segment result remained stable at EUR 193 million. The cash remittance amounted to EUR 104 million, the 30% decrease being attributable to an extraordinary dividend in the previous year.
In the International market unit, premiums fell by 4% to EUR 1.72 billion. The fee result rose by 26% to EUR 90 million and the segment result increased by 18% to EUR 118 million. At EUR 67 million, the cash remittance to the holding company was 5% higher than in the previous year.
Swiss Life Asset Managers increased its total income by 22% to CHF 1.16 billion in 2024, with the TPAM business contributing CHF 802 million (previous year: CHF 621 million). Assets under management in the TPAM business came to CHF 125 billion as at the end of 2024 (31 December 2023: CHF 112 billion), while net new assets stood at CHF 9.5 billion (previous year: CHF 9.8 billion). The segment result rose significantly by 64% to CHF 446 million thanks to the very strong performance of the TPAM business, particularly in the area of real estate project developments. The cash remittance to the holding company increased by 6% to CHF 242 million.
Higher net investment yield – solvency remains robust
Direct investment income increased to CHF 4.13 billion (previous year: CHF 3.99 billion), with the direct investment yield standing at 2.9% (previous year: 2.8%). Net investment income also rose accordingly to CHF 3.73 billion (previous year: CHF 2.61 billion) and the net investment yield increased to 2.6% (previous year: 1.8%).
The contractual service margin (CSM), a balance sheet item that indicates the level of future, as yet unearned profit contributions from existing insurance business, came to CHF 14.4 billion as at 31 December 2024 (31 December 2023: CHF 15.4 billion). In the 2024 financial year, the CSM release to the income statement amounted to CHF 1.13 billion (previous year: CHF 1.28 billion).
As at 31 December 2024, the Swiss Life Group had an SST ratio of around 200% (previous year: 212%). The solvency ratio is thus above the strategic ambition range of 140–190%.
As part of the ongoing CHF 750 million share buyback programme, which started on 9 December 2024, shares in the amount of CHF 133 million had been repurchased by Friday, 7 March 2025. As announced, the programme will run until the end of May 2026.
Proposals to the Annual General Meeting
In light of the successful business performance, the Board of Directors will propose a dividend of CHF 35.00 per share (previous year: CHF 33.00) to the shareholders at the Annual General Meeting on 14 May 2025. The dividend will be distributed on 20 May 2025.
All members of the Board of Directors will be put forward for re-election.
Telephone conference call for analysts, investors and media representatives Matthias Aellig, Group CEO, and Marco Gerussi, Group CFO, will hold a telephone conference in English for financial analysts and investors today at 9 a.m. (CET).
Contact:
Media Relations
Phone +41 43 284 77 77
media.relations@swisslife.ch
Investor Relations
Phone +41 43 284 52 76
investor.relations@swisslife.ch
--- END press release Swiss Life in 2024: fee result up 33% and net profit up 13% ---
Source:
More information and links:
Swiss Life
(company entry)
Swiss Life im Jahr 2024: Fee-Ergebnis plus 33% und Reingewinn plus 13% (news article in german on swiss-press.com)
Swiss Life im Jahr 2024: Fee-Ergebnis plus 33% und Reingewinn plus 13% (news article in german on swiss-press.com)
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