FINANCIALS: Swiss Life Results; Credit Positive But Already Highly Rated

Swiss Life (SLHNVX: A-) results headlines look ahead of expectations with revenues an 8% beat and net profit 15% ahead. SST (solvency) is c.205%, still well ahead of the top end of mgmt’s “ambition range” (of 140-190%). Spreads have tracked the index more recently and this is a welcome return to positive results (after FY24 results disappointed). These figures do look mildly credit positive but against an issuer that’s already relatively highly rated.

• “*Swiss Life 1H Net Pft CHF632M… Expected CHF546.1M
• By geography, the Swiss business looks in line (at best) with the bumper performance seemingly from France and International (positive for Axa in France). New business margin is 20bp lower y/y, driven by lower rates and weaker business in the domestic market (perhaps negative for Baloise).
• Net new assets in the asset managers business were meaningfully lower y/y with outflows in the equity business but still positive figures for real estate investments. Unrealised losses have, however, dragged the investment yield to around zero for the period.

Conf call is at 0800 at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=XaSs1enO