Swiss Life
Note: This is a daily stock update and the information stands true as of 03/12/24, 09:00 CET.
Company Update:
Expert Opinion:
New targets are strong and confirm the good momentum of Swiss Life. The company has a strong track record and there is no reason to believe they will not meet their targets. With a PE of 17.3x for 24, 16x for 2025 and 15x for 2026, valuation is more demanding than it historically was. Yet this is justified in my opinion by the track record of the company in terms of delivering targets. Please also note that the boost in terms of ROE (17-19% vs 10-12%) is in large part due to change in accounting as under IFRS 17 the Equity base is reduced, hence boosting the ROE.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
Company Update:
Swiss life will hold its CMD today and the company released its 25-27 targets :
Increase the fee result to over CHF1bn in 2027 (“Swiss Life 2024”: CHF850–900m)
Raise the return on equity to 17–19% (“Swiss Life 2024”: 10–12%)
Grow the cumulative cash remittance to the holding company from 2025 to 2027 to a total of CHF3.6–3.8bn (“Swiss Life 2024”: CHF2.8–3.0bn)
Raise the dividend payout ratio to over 75% from 2025 (“Swiss Life 2024”: over 60%); ambition to increase the dividend per share
CHF750m share buyback program from December 2024 to May 2026 (“Swiss Life 2024”: CHF1.0bn)
Expert Opinion:
New targets are strong and confirm the good momentum of Swiss Life. The company has a strong track record and there is no reason to believe they will not meet their targets. With a PE of 17.3x for 24, 16x for 2025 and 15x for 2026, valuation is more demanding than it historically was. Yet this is justified in my opinion by the track record of the company in terms of delivering targets. Please also note that the boost in terms of ROE (17-19% vs 10-12%) is in large part due to change in accounting as under IFRS 17 the Equity base is reduced, hence boosting the ROE.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
Subscribe to our blog
Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.