Swiss Life Increases Profit and Pays Higher Dividends

Swiss Life Increases Profit and Pays Higher Dividends

Thu, Mar 14th 2024

Swiss Life announces an 8% profit increase and a dividend hike, financial health and on track with strategic targets for 2024.


Swiss Life earned more in 2023 and intends to pay shareholders a higher dividend. The outgoing Group CEO Patrick Frost believes the insurer is well on track to achieve or even exceed the targets set for the end of 2024.

Swiss Life’s net profit rose by 8% to CHF 1.11 billion last year, as the insurance group announced on Thursday. Analysts had expected this increase. Meanwhile, operating profit remained roughly at the previous year’s level, CHF 1.50 billion.

This is the first time that Swiss Life has presented an annual report in accordance with the new IFRS 17/9 accounting standards. Essentially, the aim is for insurers to report income and cash flows more realistically. One new addition is the contractual service margin (CSM), the way in which future profits are recognised. At the end of December 2023, this amounted to CHF 15.4 billion.

Declining Fee Business

Swiss Life was only able to slightly expand its fee business. Fee income from financial advisory services, asset management and the sale of investment-linked pension products rose by 1% to CHF 2.40 billion.

The real estate market environment with rising interest rates has become more challenging, the report continued. In Germany and France, less money flowed into the coffers from project developments and real estate transactions.

Premium income in the insurance business rose by 1% to CHF 19.8 billion. In the Swiss domestic market, premium income remained stable at CHF 9.94 billion.

The changed interest rate environment is also reflected in the valuation of real estate. Swiss Life recorded negative changes in value of CHF 1 billion. In addition, higher currency hedging costs of CHF 1.1 billion had a negative impact on the investment side. The net investment yield fell by 0.9% points to 1.8%.

Higher Dividends

Overall, Swiss Life remains well on track with the targets set for the end of 2024. At 13.7%, the return on equity in 2023 was above the target of 10% to 12%, which the Group also expects for 2024. In contrast, the fee result is likely to be at the lower end of the targeted CHF 850 to 900 million.

In view of the increase in profit and the solid capital base with an SST ratio of around 210%, the Board of Directors will propose a dividend increase of CHF 3 to CHF 33 per share at the Annual General Meeting in mid-May.


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