“Swiss Life has made a good start to the 2023 financial year”, says Patrick Frost, Group CEO of Swiss Life. “Our fee business is broadly based: The massive decline in real estate transactions throughout the European market led to lower income at Asset Managers. This was more than offset by other business areas, such as financial advice in Germany and good business development in France and at International. With our ‘Swiss Life 2024’ Group-wide programme, we remain well on track to achieve or exceed the Group’s financial targets by 2024.”
Fee income and premiums increased
The Swiss Life Group further expanded its fee business in the first quarter of 2023 and generated fee income totalling CHF 595 million (previous year: CHF 579 million). Growth of 7% in local currency is mainly attributable to own and third-party products and services, while Asset Managers was exposed to a challenging market environment. The Group generated premiums of CHF 7.5 billion in the first three months (previous year: CHF 6.9 billion), an increase of 11% in local currency.
In its home market of Switzerland, Swiss Life achieved premiums of CHF 4.4 billion, which corresponds to growth of 2%. The assets under management in semi-autonomous business increased to CHF 6.8 billion as at the end of March 2023 (year-end 2022: CHF 6.2 billion); this business is largely not reported as premiums. In fee business, the Switzerland Division generated revenues of CHF 78 million (previous year: CHF 83 million). Swiss Life in France generated premiums of EUR 1.7 billion, a decrease of 6%. Premiums in life business fell by 9% following growth well above the market average since 2019. The share of unit-linked solutions was 65% (previous year: 61%). Fee income increased by 14% to EUR 122 million. In Germany, premiums were up 3% to EUR 386 million. Fee income increased by 17% to EUR 180 million. Amongst other things, the further expansion of the advisor base helped here. The International market unit posted a strong increase in premiums to EUR 1.1 billion (previous year: EUR 262 million), and fee income increased by 19% to EUR 100 million. Both are due in particular to the integration of elipsLife.
Swiss Life Asset Managers achieved net new assets in TPAM business of CHF 2.5 billion in the first three months of 2023 (previous year: CHF 1.2 billion). Assets under management as at the end of March 2023 amounted to CHF 108 billion (year-end 2022: CHF 105 billion). Swiss Life Asset Managers achieved fee income totalling CHF 212 million in the first three months of 2023. The 12% decline is mainly due to the sale of Livit FM Services Ltd in the fourth quarter of 2022, negative currency translation effects and a subdued real estate transaction market. TPAM business contributed CHF 133 million (-11%).
Stable direct investment yield
Swiss Life generated a non-annualised direct investment yield of 0.6% in the first quarter of 2023 (previous year: 0.6%). Direct investment income came to CHF 0.94 billion (previous year: CHF 0.97 billion). Higher contributions from bonds and real estate did not compensate for a low distribution from investment funds within our insurance portfolio. The CHF 1 billion share buyback programme, which has been running since the beginning of December 2021, is close to completion as planned. As communicated previously with the publication of the financial condition report, the Swiss Life Group reported an SST ratio of 215% as at 1 January 2023 (1 January 2022: 223%). Swiss Life currently estimates its SST ratio at roughly the same level as at the beginning of the year. The solvency ratio is thus above the strategic ambition range of 140-190%.
Telephone conference for analysts and investors
Matthias Aellig, Group CFO, will hold a telephone conference in English for financial analysts and investors today at 9 a.m. (CET). There is also an audio webcast on the website. All the documents relating to the financial statements are available online at www.swisslife.com.
Dial-in number for Europe: +41 (0) 58 310 50 00
Dial-in number for the UK: +44 (0) 207 107 06 13
Dial-in number for the USA: +1 (1) 631 570 56 13
Key figures as at 31 March 2023
|
IFRS basis, unaudited
|
Q1 2023
|
Q1 2022
|
Change
(in percent)
|
Change
(in local currency)
|
Total1 (CHF m)
|
|
|
|
|
- Gross written premiums, policy fees and deposits received
|
7 532
|
6 858
|
+10%
|
+11%
|
|
595
|
579
|
+3%
|
+7%
|
Business units
|
Switzerland (CHF m)
|
|
|
|
|
- Gross written premiums, policy fees and deposits received
|
4 416
|
4 324
|
+2%
|
|
|
78
|
83
|
-6%
|
|
France (EUR m)
|
|
|
|
|
- Gross written premiums, policy fees and deposits received
|
1 700
|
1 812
|
-6%
|
|
|
122
|
107
|
+14%
|
|
Germany (EUR m)
|
|
|
|
|
- Gross written premiums, policy fees and deposits received
|
386
|
376
|
+3%
|
|
|
180
|
154
|
+17%
|
|
International (EUR m)
|
|
|
|
|
- Gross written premiums, policy fees and deposits received
|
1 062
|
262
|
n/a
|
|
|
100
|
84
|
+19%
|
|
Asset Managers (CHF m)
|
|
|
|
|
|
212
|
241
|
-12%
|
|
|
2 539
|
1 233
|
+106%
|
|
- Assets under management TPAM
|
107 905
|
105 3792
|
+2%
|
|
1 Gross written premiums, policy fees and deposits received: total includes intersegment eliminations of CHF -10 m in Q1 2023 and -6 m in Q1 2022; fee income: total includes Other segment and intersegment eliminations of CHF -94 m in Q1 2023 and CHF -102 m in Q1 2022
2 As at 31 December 2022