Swiss Life Holding AG

Ladies and gentlemen, welcome to the Swiss Life Q3 2025 Trading Update conference call and live webcast. I am Sandra, the course call operator. I would like to remind you that all participants have been listened only mode and the conference has been recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. Webcast viewers may submit their questions or comments in writing by the relative field. Kindly note that the webcast question will be answered after the call. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Matthias Ehrlich, Group CEO of Swiss Life. Please go ahead, sir.

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 nine months of 2025. I will provide an overview of today's key messages and our group CFO, Marco Terussi, will give you more details. The first nine months of 2025, Swiss Life increased its fee and commission income by 3% in local currency to 1.9 billion. Gross written premiums, fees and deposits received increased by 3% in local currency to 16.3 billion. Direct investment income grew to 3.1 billion, which corresponds to a non-annualized direct investment yield of 2.2%. Swiss Life Asset Managers reported very strong net new asset inflows of 15 billion in the third-party asset management compared to 3.4 billion in the prior year period. The SST ratio was estimated to be around 205% at the end of September 2025. I am pleased with the business development in the nine months of 2025, which reflects the continuation of our operational performance in the first half of the year. We grew both the insurance and the fee businesses, with asset managers posting a strong growth of recurring fee income in TPM, next to strong net new assets. With that, I hand over to Marco.

Thank you, Matthias. Good morning, ladies and gentlemen. I'm pleased to walk you through our nine-month 2025 trading update. As usual, all figures are unaudited. Figures for the group are reported in Swiss francs and for each business division in local currency. Growth rates are also stated in local currency. Let me start with our segment Switzerland. Premiums increased by 2% to 8.2 billion. the life insurance market was flat. Premiums in group life grew by 2% to 6.8 billion, while the market decreased by 2%. Periodic premiums declined by 2%, single premiums increased by 6%, driven by higher premiums from existing clients and new business. Assets on the management in our semi-autonomous foundations were at 8.1 billion, compared to 7.8 billion at year-end 2024. Premiums in individualized grew by 2%. The overall market was up by 4%. Periodic premiums increased by 1%. Single premiums grew by 4%. PM commission income was up by 5% to 265 million, mainly due to higher income from unit-linked and mortgage businesses, as well as investment solutions for private clients. Turning to our French, German and international segments that all report in Euro. Let me begin with France. Premiums grew by 4% to 5.9 billion. In our live business, premiums increased by 6%, the overall market rose by 9%. Unitlink chair in our live premiums remained at the high level of 66% compared to the market average of 38%. We generated life net inflows of 1.9 billion. Total market net inflows were at 39.4 billion. Health and protection premiums grew by 1%, driven by price increases. The market increased by 5%. P&C premiums declined by 1%. Fee and commission income rose by 5% to 439 million. Unit-linked fee income grew based on higher average unit-linked reserves. Income contribution from structured products remained at the pleasing, somehow lower level compared to the very strong prior years. I continue with Germany. Premiums grew by 2% to 1.1 billion, driven by modern, modern traditional and disability products. The market increased by 9%, driven by higher single premiums. Fee and commission income rose by 5% to $634 million, driven by both a higher productivity at owned IFAs with a marginally lower number of financial advisors and by a higher contribution from the insurance business. As a reminder, the prior year fee income included benefits from a specific market opportunity in the context of governmental inflation compensation amounting to around $25 million. Turning now to international. Premiums increased by 8% to 1.6 billion due to higher premiums with private clients. Premiums from corporate clients slightly decreased. P&C income declined by 1% to 282 million. Higher income from owned IFAs was more than offset by lower income with corporate clients, in particular from elite life. Let's move on to asset managers, which 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 rose by 3% to 719 million. In our PAM business, commission income increased by 1% to 264 million. Higher recurring income was partly offset by lower non-recurring income. In our TPAM business, commission income grew by 4% to $455 million. This was driven by a strong increase of 6% in recurring income due to a higher average asset base. Non-recurring commission income was below the prior year period. To make figures comparable to half- and full-year disclosures, the share of total non-recurring income for TPM, meaning commission income and other net income from real estate project development, was 11% of total TPM income. This compares to a very high share of 31% in the prior year period. As mentioned at the 2024 Investor Day, we expect to achieve a share of non-recurring TPM income of, on average, around 25%, over the period from 2025 to 2027. For the full year 2025, we confirm to expect this share to be also around 25%, and this expectation is based on progress we have achieved in our project development pipeline. Net new assets in our TPM business increased to 15 billion compared to 3.4 billion in the first nine months of 2024. We saw continuous strong inflows with a share of about 60% driven by our equity and bond-related index business, similar to what we have seen at half-year. Inflows in real assets grow to 1.3 billion. Reminder came from active mandates in bonds, money markets and multi-assets. Assets under management in our deep-end business are at 142 billion, compared to 125 billion at year end of 2024, driven by the positive net inflows and performance. Turning to our investment result. Direct investment income increased by 49 million to 3.13 billion, compared to 3.08 billion in the prior year period, driven by higher income from infrastructure, real estate, and equity investments, which was partly offset by lower income from bonds, including negative ethics translation effects. The non-annualized direct investment yield was stable at 2.2%. And as you know, real estate continues to be an attractive and important asset class for backing our long-dated liabilities. We hold real estate because of the regular rental income it provides and not because of appreciations. real estate fair value changes were positive at 1.0%. This is a non-annualized figure. For the full year 2025, we expect further positive real estate fair value changes driven by our Swiss real estate portfolio. Vacancy rates remained unchanged at 3.1% compared to year end 2024. Moving to solvency, capital, and cash. At the end of the third quarter of 2025, the SST ratio was estimated to be around 205% and therefore at June 2025 level. In Q3, we had positive contributions from equity and real estate market developments and the issuance of 250 million of Swiss francs hybrid debt. This was largely offset by lower interest rates in Switzerland and the widening of interest rate differentials at longer maturities. With a ratio of around 205%, we are well above our ambition range of 140 to 190%. Liquidity at holding at the end of September 2025 amounted to around 0.85 billion. Our 750 million share buyback is well on track. We repurchased shares worth 466 million as of the 7th of November 2025. The program will run until May 2026. Let me sum up. We are pleased with the performance of Swiss Life in the first nine months of 2025. We expanded both our insurance and fee businesses. Moreover, net new assets in our third-party asset management business were very strong. And finally, our SST ratio also remained at the strong level. With regard to our Swiss Life 2027 program, We continue to see ourselves to be on track to achieve all of our group financial targets. With this, I hand back to you, Matthias.