Gross premium receipts fell to 19.6 billion francs, after 20.2 billion francs, according to the press release published on Wednesday. Adjusted operating profit rose 17% to 2.06 billion francs. The result linked to fees and commissions increased by 13% to 756 million francs, “an increase to which the Asset Managers, France and International divisions contributed in particular”.
Net profit amounted to 1.46 billion francs (+16%). In the context of rising interest rates, the savings result increased to 1.14 billion francs (vs. 880 million), while the risk result fell to 377 million francs (409 million previously) ” due to an increase in claims in our French activities”.
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Better numbers than expected
These figures are better than expected compared to the forecasts of analysts interviewed by the AWP agency, except for premiums which are below the most pessimistic forecasts.
“Swiss Life performed very well during a difficult year economically. I am particularly satisfied with the growth trajectory of the result linked to fees and commissions and the transfer of cash to the holding company, which allows a further increase in the dividend” , said Patrick Frost, general manager of the Zurich group, quoted in the document.
The proposed dividend corresponds to a distribution share of 60.5%, after 61.3%. The payment will take place on May 5.
Ready to exceed 2024 targets
In Switzerland, premium income amounted to CHF 9.92 billion, the same level as the previous year. The semi-autonomous business, which is for the most part not represented in the premium income, was able to expand to CHF 6.20 billion in assets under management (end of 2021: 5.62 billion). Income from fees and commissions fell slightly to CHF 322 million.
The boss said he was convinced “to reach, or even exceed, the group’s financial objectives set” by 2024. The result linked to costs and commissions of 756 million francs is “thus considerably closer to the target range of 850-900 million francs”. The adjusted return on equity of 12.8% exceeded the target of 10-12%. In addition, the transfer of cash to the holding company was increased by 21% to 1.01 billion francs. “We therefore have good hopes of exceeding the target set for a cumulative cash transfer to the holding company of 2.8-3.0 billion francs by 2024,” added the boss.
As part of the CHF 1 billion share buyback program announced in 2021, Swiss Life bought back CHF 819 million of shares between the beginning of December of that year and February 24. The program will end at the end of May.
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