Swiss Life sets itself ambitious financial targets for 2027
Published: Tuesday, Dec 3rd 2024, 08:40
Updated At: Wednesday, Dec 4th 2024, 00:59
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Swiss Life intends to further expand its fee-based business in the coming years and thus significantly increase its profitability. The financial group has set itself new, ambitious financial targets for the period up to 2027 under the leadership of Matthias Aellig. Shareholders should continue to receive high dividend payments in the future.
The new targets of the "Swiss Life 2027" program are based on those of the three-year program that ends this year, although the Group is increasing them significantly in some cases. In future, a return on equity in the range of 17 to 19 percent will be targeted, as announced on Tuesday in the run-up to its investor meeting. Previously, a return of 10 to 12 percent was set as the target and this was clearly exceeded in some cases.
"With Swiss Life 2027> we are further increasing our financial ambitions", Aellig is quoted as saying in the press release. The Group is focusing on expanding and deepening customer relationships, strengthening its advisory power and operational efficiency. "We are thus building specifically on our strengths in order to drive our profitable growth," continued the CEO, who has been in office since spring 2024.
Higher distributions
Swiss Life aims to achieve further growth in the fee-based business with financial advice and asset management. The fee result is expected to climb above the billion mark by 2027. In the current year, however, the result is likely to be "only" at the lower end of the old target range of 850 to 900 million. According to earlier statements, the reason for this is the faltering real estate business in Germany and France.
Swiss Life intends to pay out even larger portions of its profit to shareholders. To this end, the Group is raising the profit distribution ratio to over 75% from the previous level of over 60%. The money for this will be generated from cash transfers from the operating units to the holding company, which are expected to total CHF 3.6 to 3.8 billion over three years. In addition, the Group is launching a share buyback program worth 750 million francs.
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