Financial Data and Key Metrics Changes - Fee and commission income grew by 15% to CHF 1.6 billion, with all sources contributing positively [3] - Gross written premiums, fees, and deposits received decreased by 2% to CHF 15.2 billion [3] - Direct investment income was CHF 2.95 billion, with a non-annualized net investment yield of 2.0%, up from 1.4% in Q3 2020 [5][23] - SST ratio as of September 30, 2021, was around 210%, above the target range of 140% to 190% [27] Business Line Data and Key Metrics Changes - In Switzerland, premiums decreased by 15% to CHF 7.7 billion, primarily due to group life [6] - In France, premiums increased by 25% to CHF 5.6 billion, with life business premiums up by 34% [10] - In Germany, premiums grew by 5% to CHF 1.1 billion, with fee and commission income rising by 20% to CHF 478 million [12] - International unit premiums decreased by 16% to CHF 810 million, while fee and commission income increased by 17% to CHF 249 million [14] Market Data and Key Metrics Changes - The life insurance market in Switzerland was down by 9%, while individual lines were up by 4% [6] - The French life market grew by 35%, compared to a weak prior year [10] - The German market decreased by 2%, driven by single premiums [12] - The overall market net inflows in France were CHF 17.2 billion, with Swiss Life's life net inflows at CHF 2.1 billion [11] Company Strategy and Development Direction - The company focuses on disciplined underwriting to protect and improve the quality of its insurance book [8] - The shift to semiautonomous solutions results in lower reported premiums, aligning with the strategy of quality before growth [8] - The company aims to achieve or exceed the Swiss Life 2021 financial targets and will report new targets for the next strategic program on November 25 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the strong performance in 2021, particularly in fee businesses [28] - There is good momentum in the fee businesses, with a 15% top line growth observed [36] - The international business has seen an uptick in premiums in the Asian private client business despite ongoing lockdowns [78] Other Important Information - The company achieved net new assets of CHF 6.3 billion in third-party asset management, reaching a total of CHF 100.1 billion in assets under management [4][20] - The vacancy rate was at 4.2% at the end of Q3, with expectations for a marginal increase by year-end [26] Q&A Session Summary Question: Cash holding and its changes - Management confirmed a cash holding of CHF 1 billion, with CHF 200 million earmarked for reinvestment over time [35][82] Question: Trends in financial advisers and asset management pipeline - There is still good momentum in the fee businesses, with a 20% growth in the number of financial advisers [36][37] Question: SST ratio and its relevance - SST ratio is still relevant, with no alternative considerations, and management expects a pickup in nonrecurring income [36][38] Question: Net investment yield impact on savings result - Higher net investment yield could positively impact the savings result, but policyholder sharing must be considered [55] Question: Vacancy rate expectations - The vacancy rate is expected to be slightly higher than the current level by year-end [56] Question: International business performance - The international business has seen growth in fee and commission income, particularly in the IFA business in the U.K. and CEE [80]
Swiss Life(SZLMY) - 2021 Q3 - Earnings Call Transcript