Swiss Life Holding AG

Good morning, ladies and gentlemen. Thank you for dialing in and for your interest in Swiss life. Today, we are reporting on selected top line figures for the first quarter of 2025. We will focus, as usual, on fee income, premiums, and direct investment income. I will provide a quick overview of today's key messages, and our group CFO, Marco Gerussi, will walk you through the segments. We had a good start to the year. In the first three months of 2025, Swiss Life increased its fee and commission income by 3% to $659 million. Drivers were owned and third-party products and services, as well as asset managers. Cross-written premiums, fees and deposits received increased by 6% to $7.9 billion. All business divisions contributed to the growth. Direct investment income grew by 6 percent to 1.1 billion, which corresponds to a non-annualized direct investment yield of 0.8 percent. Swiss Life Asset Managers had a very strong net new asset inflow of 9.3 billion in third-party asset management compared to 0.7 billion in the prior year period. The SST ratio was estimated to be around 200% at the end of March 2025. With that, I hand over to Marco.

Thank you, Matthias, and also good morning from my side, dear ladies and gentlemen. I am pleased with our good start into the financial year 2025, and with that also the good beginning of our Swiss Life 2027 program. As usual, group figures are reported in Swiss francs and for each business division in local currency. Figures are unaudited and growth rates are mentioned in local currency. Let me start with our segment Switzerland. Premiums increased by 3% to 4.5 billion, while the life insurance market remained unchanged. Premiums in group life increased by 3% to 4.1 billion, while the market decreased by 1%. Periodic premiums declined by 4%, single premiums increased by 12%, mainly due to higher new business. Assets under management in our semi-autonomous foundations were at 7.8 billion, a similar level compared to year-end 2024. Premiums in individual life grew by 3%, essentially in line with the overall market, which was up by 4%. Periodic premiums increased by 2%. Single premiums grew by 6%, driven by a new unit-linked product. Premium commission income was up by 11% to 91 million, mainly due to higher income from unit-linked and mortgage businesses. Turning to our French. German, and international segments that all report in euro. Let me begin with France. Premiums increased by 11% to 2.1 billion. In our live business, premiums were up strongly by 14%. The overall market grew by 4%. The unit link share in our live premiums remained unchanged at the high level of 65% compared to the market average of 41%. We generated life net inflows of 0.7 billion. Total market net inflows were 14.4 billion. Health and protection premiums grew by 5%, driven by price increases. The market was up by 6%. P&C premiums decreased by 2%. Fee and commission income rose by 7% to 154 million, mainly due to higher unit-linked fee income based on higher average unit-linked reserves supported by the higher net inflows mentioned just before. We achieved strong growth despite the lower revenues from structured products. As mentioned on earlier occasions, it reflects a more normalized income contribution from structured products compared to very strong prior years. I continue with Germany. Premiums grew by 3% to 412 million due to modern and modern traditional products. The market increased by 16% driven by higher single premiums. PM commission income rose by 5% to 227 million due to the higher contribution from the insurance business. Income from owned IFAs was stable compared to a very strong prior year period. As a reminder, Q1 2024 included benefits from a specific market opportunity in the context of governmental inflation compensation. This one-off contributed around 25 million to the fee income in the prior year period. The number of financial advisors remained stable year on year. Turning now to international. Premiums increased by 7% to 1.1 billion, driven by both private and corporate clients. P&C income declined by 5% to 92 million. Higher income from owned IFAs was more than offset by corporate clients, in particular from elite life. Moving to asset managers with reports in Swiss francs. As usual, in Q1 and Q3, we report on commission income, which does not include other net income from real estate project development. Asset managers' commission income increased by 5% to 232 million. In our PAM business, commission income increased by 3% to 86 million, mainly due to higher recurring income. In our TPAM business, commission income was up by 6% to 146 million, driven by higher recurring income due to a higher average asset base. To make figures comparable to half and full year disclosures, the share of total non-recurring income for TPAM, meaning commission income and other net income from real estate project development, was 6% of total TPAM income. This compares to a high share of 31 percent in the prior year period, which was largely due to revaluation gains on an ongoing development project in Germany. We confirm our guidance from the 2024 investor day to achieve a share of non-recurring TPM income of, on average, around 25 percent over the period from 2025 to 2027. Also, for the full year 2025, we expect this share to be around 25% given our pipeline. Net new assets in our TPM business amounted to 9.3 billion compared to 0.7 billion in the first quarter of 2024. These very strong inflows are driven by our new index business as well as active mandates. Out of the 9.3 billion, two thirds were generated by our index offering mainly in equities and bonds. Inflows in real assets amounted to 0.3 billion. The remainder came from active mandates in bonds, money markets, and multi-assets. Assets under management in our deep-end business were at 135 billion compared to 125 billion at year-end of 2024, driven by net inflows and positive FX translation effects. Turning to our investment results. Direct investment income increased by 61 million to 1.1 billion, driven by higher income from infrastructure, real estate, and equities. The non-annualized direct investment yield was at 0.8% compared to 0.7% in the prior year period. Real estate continues to be an attractive and important asset class for backing our long-dated liabilities. Vacancy rates were unchanged at 3.1 percent compared to year-end 2024. Real estate fair value changes were positive at around 0.2 percent. This is a non-analyzed figure. For the full year 2025, we expect further positive real estate fair value changes driven by our Swiss real estate portfolio. Moving to solvency, cash, and payout. At the end of the first quarter of 2025, the SST ratio was estimated to be around 200%. As of today, we estimate our SST ratio to be at around 200% as well. Please note, the scheduled repayment of a 750 million hybrid in June 2025 will lower the SST ratio by around minus 4 percentage points. Also, when taking this into consideration, the SST ratio is above the ambition range of 140 to 190%. At the end of the first quarter of 2025, liquidity at holding amounted to around 1.4 billion. This is a temporary high figure related to the recent issuance of Swiss franc denominated senior bonds. It must be seen in the context of upcoming redemptions such as the 250 million senior bond in June 2025. Our 750 million chair buyback is on track. We repurchased chairs worth 230 million as of 16th of May 2025. The program will run until May 2026. With that, I hand back to Matthias for his remarks before going into the Q&A session. Thank you, Markov.

Let me sum up. We are pleased with the performance of Swiss Life in the first three months of 2025, which also marked the start of our Swiss Life 2027 program. We expanded both the insurance and fee businesses. Net new assets in our third-party asset management business were very strong. Thank you for listening. We are now ready to take your questions.