Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Swiss Life keeps targets, first-quarter fee income rises

Published 12/05/2020, 06:34
Updated 12/05/2020, 06:50
© Reuters. Logo of insurer Swiss Life is seen on the roof of its headquarters in Zurich

© Reuters. Logo of insurer Swiss Life is seen on the roof of its headquarters in Zurich

ZURICH (Reuters) - Swiss Life (S:SLHN) maintained its 2021 targets on Tuesday, saying its business model could weather the impact of the new coronavirus epidemic.

Its fee income rose 11% in local currency to 453 million Swiss francs ($465.7 million), while premiums fell by a fifth to 7.82 billion francs.

It had flagged a drop was coming after a spike a year ago when a competitor withdrew from business in Switzerland.

"The main effects of the COVID-19 pandemic for Swiss Life arise from the turmoil on the financial markets. In the 2020

financial year, this impacts fee business and also insurance business through investment income and the net investment result," it said.

Swiss Life manages the effects on its insurance business via asset liability processes, and said it has protected its interest rate margin for more than three decades, even in the current volatile environment, it said.

"Due to the balanced portfolio of mortality and longevity risks, the risks in the Swiss Life insurance book are also

manageable. Swiss Life's business model is sustainable and diversified. The company thus confirms its financial targets under the "Swiss Life 2021" group-wide programme."

Its financial objectives until 2021 feature improved earnings quality including increasing the fee result, generating operational efficiency, and maintaining capital strength.

Overall, it aims for an adjusted return on equity of 8 to 10%.

In February the company increased its dividend by more than a fifth to 20 Swiss francs a share and unveiled a share buyback worth up to 400 million Swiss francs as it reported a 12% rise in 2019 net profit.

© Reuters. Logo of insurer Swiss Life is seen on the roof of its headquarters in Zurich

(This story has been refiled to add missing comma in headline)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.