Financial Data and Key Metrics Changes - Fee result increased by 17% to CHF 395 million, driven by higher contributions from asset managers and France [1][2] - Cash remittance grew by 19% to over CHF 1.2 billion, exceeding the cumulative target of CHF 2.8 billion to CHF 3 billion [2] - Annualized return on equity was at 17.8%, well above the target range of 10% to 12% [2] - Net profit for the half year was stable at CHF 632 million, with an adjusted increase of 7% year-on-year [2][5] - SST ratio remained well above the ambition range at around 205% [2][20] Business Line Data and Key Metrics Changes - Insurance revenue increased by 1% to CHF 4.5 billion, with higher DIA revenues from France and International [4] - Gross written premiums, fees, and deposits received increased by 3% in local currency to CHF 11.7 billion, mainly driven by France [5] - In Switzerland, premiums increased by 1% to CHF 6.1 billion, with individual life premiums up by 10% [6] - In France, premiums increased by 11% to EUR 3.8 billion, with life business premiums up by 12% [8] - In Germany, premiums were up by 3% to EUR 739 million, driven by modern and disability products [10] - International segment premiums decreased by 6% to EUR 1.3 billion, with lower premiums from private clients [11] Market Data and Key Metrics Changes - The life insurance market in Switzerland was up by 1%, while the market in France was up by 12% [6][8] - The unit-linked share in French life premiums was 66%, significantly higher than the market average of 38% [8] - Health and protection premiums in France grew by 6%, driven by price increases [8] - The German market was down by 3%, driven by lower single premiums [10] Company Strategy and Development Direction - The company is on track with the Swiss Life 2024 program to achieve or exceed all group financial targets, including cash remittance and share buyback targets [3][23] - The company aims to increase dividends per share and expects to exceed the return on equity and dividend payout ratio targets [3][23] - The target achievement for fee results remains reliant on the further normalization of the real estate markets in Germany and France [3][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the lower end of the fee result target range of CHF 850 million to CHF 900 million [3][23] - The company noted that the real estate market dynamics in Germany are better than in France, with expectations of around 30% nonrecurring income for the full year [55] - Management acknowledged the challenges in forecasting due to market volatility but remains optimistic about the growth trajectory [31][32] Other Important Information - The value of new business decreased by 4% to CHF 266 million, attributed to lower interest rates and business mix effects [19] - Shareholders' equity decreased by 7% to CHF 7 billion, largely due to dividend payments and share buybacks [19] - The company reported a stable vacancy rate of 3.1% for real estate investments [17] Q&A Session Summary Question: Reserve releases in individual life - Management confirmed reserve releases of about CHF 0.15 billion for the first half of 2024, consistent with prior year [25] Question: Cash implications of real estate asset transfer - Management indicated a positive contribution from the transfer of real estate assets, noting it was not a special transaction [26] Question: Economic variances in CSM - The negative effect of CHF 0.3 billion in economic variances was mainly driven by interest rate developments [27] Question: Sustainability of French non-life results - Management stated it is too early to determine sustainability but confirmed ongoing improvements in the French non-life business [30][34] Question: Cash position at holding level - Management confirmed that the cash position is at the upper end of the target range and will continue to assess the situation [52][55] Question: Future cash remittances - Management indicated that the one-off effects should be considered when thinking about future cash remittances [64][66]
Swiss Life(SZLMY) - 2024 Q2 - Earnings Call Transcript