Swiss Life increases fee income by 11% in the first quarter of 2024

“Swiss Life has made a good start to the 2024 financial year,” says Matthias Aellig, Group CEO of Swiss Life. “We achieved a substantial increase in fee income in the first quarter of 2024. With our ‘Swiss Life 2024’ programme, we continue to be well on track to achieve or exceed all the Group’s financial targets by the end of the year. In terms of the fee result, we expect to reach the lower end of our ambitious target range of CHF 850–900 million by the end of 2024. The developments at Asset Managers give us confidence in this respect, while the target achievement remains reliant on the expected normalisation of the real estate markets in Germany and France. I would like to thank our employees and advisors for their excellent work, which has contributed to these pleasing results.”

The Swiss Life Group further expanded its fee business in the first quarter of 2024 and generated fee income totalling CHF 639 million (prior-year period: CHF 595 million). The 11% growth in local currency is mainly due to the advisory business as well as to own and third-party products and services. The Group generated premiums of CHF 7.5 billion in the first quarter, an increase of 2% in local currency.

In its home market of Switzerland, Swiss Life achieved premiums of CHF 4.4 billion, a decline of 1% compared to the same period in the previous year. The assets under management in the semi-autonomous business amounted to CHF 7.5 billion as at the end of March 2024 (year-end 2023: CHF 7.1 billion). In the fee business, the market unit generated revenues of CHF 82 million, which represents an increase of 5%. Swiss Life in France increased premiums by 9% to EUR 1.8 billion. In the life business, premiums rose by 10%, with the share of unit-linked solutions remaining significantly above the market at 65% (prior-year period: 65%). Fee income increased by 19% to EUR 144 million. In Germany, premiums amounted to EUR 402 million, an increase of 4%. Fee income was up 20% to EUR 216 million, mainly due to further growth in the advisory business. The International market unit posted premiums of EUR 1054 million, 1% below the first quarter of 2023. In the fee business, income came to EUR 97 million, a decline of 3%.

At Swiss Life Asset Managers, third-party assets under management (TPAM) at the end of March 2024 amounted to CHF 117.1 billion (31 December 2023: CHF 111.8 billion). The increase is primarily attributable to positive financial market developments and positive currency effects. Net new assets in TPAM business were CHF 0.7 billion in the first quarter of 2024 (prior-year period: CHF 2.5 billion). Swiss Life Asset Managers generated fee income of CHF 220 million (prior-year period: CHF 212 million). TPAM business contributed CHF 137 million (+3%) to this. In addition, TPAM generated net income from real estate project developments. The share of all non-recurring income in the TPAM total income increased significantly to 31% (prior-year period: 7%).

Swiss Life generated direct investment income of CHF 1024 million in the first quarter of 2024 (prior-year period: CHF 937 million). The non-annualised direct investment yield was 0.7% (prior-year period: 0.6%). As communicated previously with the publication of the financial condition report, the Swiss Life Group reported an SST ratio of 212% as at 1 January 2024 (1 January 2023: 215%). Swiss Life estimates its SST ratio at around 210% as at the end of March 2024. The solvency ratio is thus above the strategic ambition range of 140–190%.

Telephone conference for analysts and investors
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). There is also an audio webcast on the website. All the documents relating to the financial statements are available online at www.swisslife.com.

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