May 22, 2024 06:54 GMT
Swiss Life: Solid Solvency, Slightly Weak Revenues.
FINANCIALS
Swiss Life (SLHNVX: A-) 1Q24 trading statement looks a little weak on operating metrics but solvency, the only direct credit read here, is solid and well above the target range. Spreads have broadly tracked the €IG insurance peers in the last month and this statement doesn’t appear a credit mover.
- Key credit stats: Swiss solvency is c.210%, down marginally in the quarter but still well above the top end of the 140-190% “ambition range”. There are no other balance sheet stats available.
- Gross written premiums (GWP) are up 2% in constant currency but flat in real terms – FY24 consensus is looking for 3.8% growth, so this is marginally behind the run-rate. Fee income is up 8%, consensus is looking for 12.3% so this tallies with the low-end of fee result comment in the statement. France and Germany are leading the geographic splits – a minor positive for Allianz, Axa and the smaller local peers.
- Outlook: the fee result is seen at the lower end of previous guidance and, whilst asset mgmt performance is seen as good, this remains reliant on “the expected normalisation of the real estate markets in Germany and France”. This is hardly the most positive comment, we feel.
Conf call is 0800 (London time) at: https://bit.ly/4bEfHoS
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