Financial firm Oddo BHF has begun coverage of Swiss Life (SWSDF, Financial), assigning the company an Outperform rating. Additionally, the firm has set a price target of CHF 900 for the stock, indicating a positive outlook on its future performance.
SWSDF Key Business Developments
Release Date: March 14, 2025
- Fee Result: Up by 33% to CHF875 million.
- Profit from Operations: Increased by 20% to CHF1.78 billion.
- Net Profit: Grew by 13% to CHF1.26 billion.
- Return on Equity: Increased to 16.6%, up 3 percentage points.
- Cash Remittance: Grew by 14% to CHF1.3 billion.
- Dividend Proposal: Increase by 6% to CHF35 per share, payout ratio of 81%.
- Revenue: Decreased by 1% to CHF8.7 billion.
- Gross Written Premiums, Fees, and Deposits: Increased by 3% in local currency to CHF20.3 billion.
- Net Investment Income: Increased significantly to CHF3.7 billion.
- Asset Managers Total Income: Up by 22% to CHF1.2 billion.
- Net New Assets in TPAM Business: CHF9.5 billion.
- Direct Investment Yield: Increased from 2.8% to 2.9%.
- SST Ratio: Estimated around 200% as of December 31, 2024.
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.
