In the first half of the year, Swiss Life increased its operating profit by 7 percent to 883 million francs. Adjusted for special effects, net profit would have also grown by 7 percent, with the reported net profit amounting to 632 million francs, nearly matching the figure from the previous period. Additionally, a leadership change is on the horizon for the critical Asset Management division.

Swiss Life managed to increase fee income by 7 percent in local currency to  1.26 billion francs. Fee-related earnings grew by 17 percent in local currency to 395 million francs, driven by Swiss Life Asset Managers and Swiss Life France. Premium income rose by 3 percent to 11,7 billion francs.

The insurance group provides reports across various segments, including Switzerland, France, Germany, and International markets, as well as for Swiss Life Asset Managers, which are tracked and reported separately.

SST ratio significantly exceeds «strategic ambition»

According to the announcement, direct investment income increased to 2.13 billion francs up from 2,05 billion francs in the previous period, with a non-annualized direct investment return of 1,5 percent, compared to 1,4 percent previously. Net investment income amounted to 1,86 billion francs, with a net investment return of 1,3 percent (1,2 percent). Net investment income reached 1,86 billion francs, reflecting a net investment return of 1,3 percent, up from 1,2 percent.

As of June 30, the group's solvency ratio (SST ratio) stands at around 205 percent down slightly from 212 percent at the beginning of the year, but still above the «strategic ambition» range of 140 percent to 190 percent.

Real estate markets in Germany and France are crucial

The company believes it is on track to achieve or exceed the financial targets set in the «Swiss Life 2024» program. It has already surpassed targets for cash transfers to the holding company and share buybacks. Over the past two and a half years, the cumulative cash transfer amounted to 3,4 billion francs, exceeding the target range of 2,8 to 3 billion francs. 1,26 billion francs was transferred to the holding company in the first half of the year alone, representing a 19 percent increase.

Additionally, since December 2021, the company has repurchased its own shares worth 1,3 billion francs. The annualized return on equity for the first half of 2024 was 17,8 percent, significantly exceeding the target range of 10 percent to 12 percent. Swiss Life expects to reach the lower end of the target range of 850 million francs to 900 million francs in fee-related earnings. The further normalization of real estate markets in Germany and France will be key to achieving this goal.

Asset management in good shape, but lower net new money

Swiss Life Asset Managers increased total revenues by 15 percent to 506 million francs in the first half of the year. The third-party asset management (TPAM) segment contributed 329 million francs (+14 percent), driven by higher net revenues from real estate project developments. Assets under management in the third-party business rose to 117 billion francs as of the end of June 2024, up from 112 billion francs at the end of 2023. Net new money inflows in the first half of the year totaled 1,2 billion francs, compared to 6,9 billion francs in the previous period.

This division will undergo a leadership transition, with Stefan Mächler set to retire at the end of May 2025. Effective April 1, 2025, he will pass on his responsibilities as Group Chief Investment Officer (CIO) and CEO of Swiss Life Asset Managers, as well as his role on the Group Executive Board, to Per Erikson.

Per Erikson: An «in-house talent» with extensive fixed-income experience

Erikson is a seasoned «in-house talent,» having joined Swiss Life in 2007 and serving on the Executive Board of Swiss Life Asset Managers since 2015. During his tenure, he led the fixed-income division, served as CIO in Germany and France, and was CEO of Swiss Life Asset Managers Germany. Currently, he oversees the company's significant real estate business.

Erikson began his career in 1997 at Credit Suisse Asset Management, where he worked as a portfolio manager in the fixed-income area for four years. He then served as a relationship manager at Lombard Odier Darier Hentsch & Cie, and from 2002 to 2007, he worked at Winterthur Group Asset Management, most recently as Head of Fixed Income.

Swiss Life Group CEO Matthias Aellig commented on the personnel decision: «Per Erikson has an in-depth knowledge of Swiss Life Asset Managers' business areas, from managing assets on the insurance balance sheet to third-party asset management.»