On Wednesday, CFRA maintained its Sell rating for Swiss Life Holding (SLHN:SW) (OTC: SZLMY) with a steady price target of CHF560.00. The firm's assessment is based on a comprehensive equity multiple of 0.8x and a price-to-earnings (P/E) ratio expectation of 12x by 2025, aligning with industry peers. Swiss Life's earnings per share (EPS) forecasts remain unchanged.
Swiss Life provided a brief trading update, revealing a modest year-over-year gross written premium (GWP) increase of 2% in the first quarter of 2024, a slowdown from the 11% growth seen in the same period of 2023. Last year's growth benefited from the integration of elipsLife.
The French market displayed relative strength with a 9% growth in GWP, however, other key markets showed lackluster performance; Germany saw a 4% increase, while the Swiss and International markets experienced a decline of 1%.
The company's Swiss Solvency Test (SST) ratio remains robust at approximately 210%, which is comfortably above the strategic target range of 140%-190%. Despite the slow GWP growth, Swiss Life continues to aim for its financial goals outlined in the Swiss Life 2024 strategy. The insurer highlighted that reaching its fee result target of CHF850 million to CHF900 million in 2024 is contingent on a recovery in the European real estate market.
InvestingPro Insights
Swiss Life Holding's commitment to shareholder returns is evident from its impressive track record of raising dividends for 11 consecutive years and maintaining dividend payments for 20 years. The company's financial resilience is further highlighted by its liquid assets, which exceed short-term obligations. This is crucial for investors looking for stability and reliability in their investments. With a market capitalization of $19.47 billion and a P/E ratio of 16.61, Swiss Life Holding appears to be maintaining a solid position in the market.
InvestingPro Tips suggest that Swiss Life is expected to remain profitable this year, continuing its profitability streak from the last twelve months. The company's long-term performance has also been noteworthy, with a high return over the last decade. These factors, combined with a dividend yield of 3.29% as of the latest data, may offer investors a blend of growth potential and income generation.
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