Insurance Swiss Life sets itself ambitious financial targets for 2027
Swiss Life wants to further expand its fee-based business and thus increase its profitability. Under the leadership of Matthias Aellig, the Group has set itself new, ambitious financial targets for the period up to 2027. At the same time, dividends are to remain high.
03.12.2024, 08:03
03.12.2024, 08:04
SDA
The new targets of the "Swiss Life 2027" program are based on those of the three-year program that ends this year, although the Group is increasing some of them significantly. In future, a return on equity in the range of 17 to 19 percent is being targeted, as announced on Tuesday ahead of an investor meeting. Previously, a return of 10 to 12 percent was set as the target and this was clearly exceeded in some cases.
"With 'Swiss Life 2027', we are further increasing our financial ambitions", Aellig is quoted as saying in the press release. The Group is focusing on expanding and deepening customer relationships, strengthening its advisory power and operational efficiency. "We are thus building specifically on our strengths in order to drive our profitable growth," continued the CEO, who has been in office since spring 2024.
Higher distributions
Swiss Life wants to make further gains in the fee-based business with financial advice and asset management. The fee result is expected to climb above the billion-euro mark by 2027. In the current year, however, the result is likely to be "only" at the lower end of the old target range of 850 to 900 million. According to earlier statements, the reason for this is the faltering real estate business in Germany and France.
Swiss Life intends to pay out even larger portions of the profit to shareholders. To this end, the Group is raising the dividend payout ratio to over 75 percent from the previous level of over 60 percent. The money for this will be generated from cash transfers from the operating units to the holding company, which are expected to total CHF 3.6 to 3.8 billion over three years. In addition, the Group is launching a share buyback program worth 750 million francs.
