Swiss Life Holding AG · SIX:SLHN
Swiss Life — Investor Day (November 2018)
138 slides from Swiss Life's investor day presentation, Nov 29, 2018
Slide 1: Swiss Life Group Investor Day 2018
Swiss Life Group Investor Day 2018 29 November 2018
Slide 2: Agenda
Agenda 10.30 Start of Investor Day 2018 10.30 – 11.00 Swiss Life 2021 Patrick Frost Group CEO 11.00 – 11.30 Swiss Life 2021 – Financial aspirations Thomas Buess Group CFO 11.30 – 11.50 Solvency, ALM and capital efficiency Matthias Aellig Group CRO 11.50 – 12.10 Swiss Life Asset Managers Stefan Mächl
Slide 3: Disclaimer and cautionary statement
Disclaimer and cautionary statement This presentation is made by Swiss Life and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Swiss Life. Although all reasonable effort has been made to ensure the facts stated herein ar
Slide 4: Swiss Life 2021
Investor Day 2018 Swiss Life 2021 Patrick Frost, Group CEO Zurich, 29 November 2018
Slide 5: Swiss Life will reward shareholders by further enhancing earnings quality and payout
Swiss Life will reward shareholders by further enhancing earnings quality and payout Swiss Life • We have significantly improved our profitability and the quality of earnings, 2018 strengthened our solvency, increased cash remittance and payout to shareholders • We expect to achieve or exceed our Sw
Slide 6: Swiss Life to achieve or even exceed the 2018 financial targets
Swiss Life to achieve or even exceed the 2018 financial targets Swiss Life 2018 financial targets Current assessment Ahead • Fee result FY 2018: CHF 400-450 m Quality of earnings and • Risk result FY 2018: CHF 350-400 m On track earnings growth • Cumulative value of new business (2016-2018): > CHF 7
Slide 7: Swiss Life has a unique position
Swiss Life has a unique position Unique life Growing Broad Strong insurance asset distribution quality of footprint manager networks earnings • Market leader in CH • Strong ALM and risk • Strong network of • Diversified profit life insurance management expertise owned IFAs sources: Savings, • Attrac
Slide 8: Swiss Life will address market trends and capitalise on market opportunities
Swiss Life will address market trends and capitalise on market opportunities Economy Workforce Era of financial repression with Cultural, organisational and only slowly rising interest rates leadership transformation Technology Market trends Competition Financial industry digitalisation and opportun
Slide 9: We will successfully navigate through a continuously low interest rate environment
We will successfully navigate through Economy a continuously low interest rate environment Yields on government bonds (in %) Our current view 4.0 Swiss Life is well positioned to face still low, but slightly German government bond (10 years) higher interest rates until 2021 Swiss government bond (10
Slide 10: We see digitalisation as an opportunity
We see digitalisation as an opportunity Technology Digital becomes “phygital” We regard digitalisation as an opportunity to improve our business processes, to transform the servicing of our customers and to further develop our distribution model by combining digital tools with our people-centric adv
Slide 11: We are well positioned in a growing pension market as demographic change continues
We are well positioned in a growing Customers pension market as demographic change continues Projected population structure in 2050 … … with fundamental impact on all dimensions of our society 29% 3 in 4 52% 65+ 0-14 +9.0 -0.8 ppts ppts in Europe will be see themselves as of Millennials believe that
Slide 12: As a leading specialist, we enable people to lead a self-determined life
As a leading specialist, we enable people Customers to lead a self-determined life People feel stressed about not having enough money in old age1) Swiss Life is a preferred partner Financial 89% resources 42% see independence and are afraid of not having Swiss Life is a leading European self-determi
Slide 13: Swiss Life 2021: Clear strategic and financial objectives
Swiss Life 2021: Clear strategic and financial objectives Purpose Strategic thrusts Financial thrusts Focus on preferred segments Quality of earnings and earnings growth Promote attractive propositions We enable people to lead a self- Operational efficiency determined life Make customer relationship
Slide 14: Making the most of opportunities
Making the most of opportunities Swiss Life 2021 objectives Trends addressed Supported financial targets Focus on Refine our customer segmentation as a Fee & risk result / cash preferred basis for offering tailored solutions and advice VNB segments Promote Offer comprehensive and capital-efficient F
Slide 15: Each division to contribute to Swiss Life 2021
Each division to contribute to Swiss Life 2021 Cash remittance Focus points by business division CHF m • Ensure growth and sustainability of cash remittance CH • Increase risk result and double fee result • Increase fee result in the unit-linked business FR • Grow risk result in the personal protect
Slide 16: New Swiss Life 2021 financial targets
New Swiss Life 2021 financial targets CHF Quality of earnings Operational efficiency Capital, cash and payout and earnings growth Fee result 600-650 m Life efficiency ratio < 40 bps SST ambition range 140-190% FY 2021 FY 2021 2019-2021 Risk result 400-450 m Distribution operating < 25% Cash to Holdi
Slide 17: Since 2012, we have tripled our dividend payment and doubled our payout ratio
Since 2012, we have tripled our dividend payment and doubled our payout ratio Dividend history, CHF 46% 38% 31% 13.50 25% 11.00 23% 21% 8.50 6.50 5.50 4.50 Payout ratio Dividend per share FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 17 | Investor Day, 29 November 2018 | Swiss Life 2021
Slide 18: We will enhance shareholder return: Share buyback and higher dividend
We will enhance shareholder return: Share buyback and higher dividend based on strong cash remittance Increasing cash remittance, CHF bn Growing payout Targets as communicated Targets as communicated 2-2.25 50-60% > 1.50 30-50% 20-40% Plus share buyback of CHF 1 bn Swiss Life 2018 Swiss Life 2021 Sw
Slide 19: We are fully committed to achieving our Swiss Life 2021 ambitions
We are fully committed to achieving our Swiss Life 2021 strategic and financial ambitions Swiss Life • We have significantly improved our profitability and the quality of earnings, 2018 strengthened our solvency, increased cash remittance and payout to shareholders • We expect to achieve or exceed o
Slide 20: Swiss Life 2021 – Financial aspirations
Investor Day 2018 Swiss Life 2021 – Financial aspirations Thomas Buess, Group CFO Zurich, 29 November 2018
Slide 21: We plan to enhance our earnings quality and shareholder return
We plan to enhance our earnings quality and shareholder return Swiss Life We have significantly improved our profitability and the quality of earnings, 2018 strengthened our solvency, increased cash remittance and payout to shareholders We expect to achieve or exceed our Swiss Life 2018 financial ta
Slide 22: Swiss Life has increased profitability and earnings quality
Swiss Life has increased profitability and earnings quality … Net profit strongly increased; RoE at upper end of range Fee result substantially increased in all business divisions ahead +24% +64% 1 013 442 400-450 Net profit, 818 on track Fee RoE 269 9.6% 9.3% result (CHF m) 8-10% (CHF m) FY 2014 FY
Slide 23: … which resulted in a substantial increase of cash remittance and dividend
… which resulted in a substantial increase of cash remittance and dividend Interest margin protected through disciplined ALM Stable cost base supporting improved efficiency ratio on track Interest 4% Operating 0% rate 2% expense, 1 104 1 105 Stable margin efficiency 0.62% 0.56% (in % of 0% technical
Slide 24: All business divisions expected to achieve their 2018 targets
All business divisions expected to achieve their 2018 targets +162% Cash Cash remittance Segment result CH 131 343 300-400 remittance CHF m in % +100% Fee result Asset Managers FR 30 60 55-65 growth EUR m Switzerland France +81% Fee & risk DE 47 85 75-85 result growth EUR m Germany Internation
Slide 25: Focus points of Swiss Life 2021
Focus points of Swiss Life 2021 What remains key Increased focus on Quality of • Protect savings result through • Substantial increase in ambition for fee result, earnings and disciplined ALM risk result and value of new business earnings growth • Further leverage digitalisation to increase Operatio
Slide 26: New Swiss Life 2021 financial targets
New Swiss Life 2021 financial targets CHF Quality of earnings Operational efficiency Capital, cash and payout and earnings growth Fee result 600-650 m Life efficiency ratio < 40 bps SST ambition range 140-190% FY 2021 FY 2021 2019-2021 Risk result 400-450 m Distribution operating < 25% Cash to Holdi
Slide 27: We will pursue higher quality of earnings
We will pursue higher quality of earnings Capital Capital market Policyholder Expected development Source1) Description intensity2) dependency2) participation until 2021 Net investment result less 53% Savings Protect through technical interest and Yes result policyholder participation disciplined AL
Slide 28: Savings result will remain an important profit contributor
Savings result will remain an important profit contributor Profit by source Savings result by division Savings result managed in a capital-efficient way FY 2017 adjusted1) (CHF m) DE IN • Resilient yields due to a long asset duration and optimised portfolio structure 7% FR 2% Savings 24% • Reserve s
Slide 29: Disciplined ALM to safeguard savings result going forward
Disciplined ALM to safeguard savings result going forward Structurally healthy interest rate margin Statutory basis PROJECTION Interest rate margin 3.0% before policyholder sharing • Resilient for more than three decades even if rates stay low • Reserve strengthening from current income has positive
Slide 30: Every division will play its part in Swiss Life 2021
Every division will play its part in Swiss Life 2021 343 > 400 Cash remittance Cash remittance Segment result CH CHF m CHF m 151 180-200 FR Fee & risk result EUR m Switzerland 85 100-110 Fee & risk result Asset Managers DE EUR m France 73-82 Fee & risk result IN 21 IN 38 EUR m Germany International
Slide 31: We aim to further grow the fee result
We aim to further grow the fee result Quality of earnings and earnings growth Growth Fee result, CHF m Main drivers contribution 600-650 • Further develop existing offerings, e.g CH investment solutions for private customers and pension consulting CH ~4% FR 442 ~17% • Further grow in UL business abo
Slide 32: We will increase the risk result despite competitive pressure
We will increase the risk result despite Quality of earnings and earnings growth competitive pressure Growth Risk result, CHF m Main drivers contribution 400-450 CH • Exploit market opportunities in GL 389 DE IN • Enhance positioning in health and protection ~9% FR • Further develop credit life and
Slide 33: We will grow the value of new business
We will grow the value of new business Quality of earnings and earnings growth Growth Value of new business, CHF m Main drivers contribution > 1 200 • Further develop full-range offering in GL CH • Continue capital-light strategy and modern traditional offering for private customers IN > 750 ~10% •
Slide 34: Our goal is to further improve the life efficiency ratio
Our goal is to further improve the life Operational efficiency efficiency ratio ... Life Main drivers Efficiency ratio1), in bps 41 • Enhance administration and self-service platforms < 40 CH • Digitalise customer processes • Foster digital transformation to increase process automation FR • Promote
Slide 35: ... and reduce cost ratios at our owned IFAs and in our TPAM business
... and reduce cost ratios at our owned IFAs Operational efficiency and in our TPAM business Distribution Main drivers Operating expense ratio1) • Further develop scalable platform 27% DE < 25% • Improve self-service functionalities • Realise operational synergies in Central Eastern Europe IN 2017 2
Slide 36: We will strive for more attractive shareholder return
We will strive for more attractive Capital, cash and payout shareholder return Starting point New / increased focus on • Solid capitalisation • Improved quality of earnings • SST ambition range Attractive • Attractive new business mix • Enhance cash remittance shareholder return • Clarity on SST mod
Slide 37: We are introducing an SST ambition range
We are introducing an SST ambition range Capital, cash and payout Regulatory Solvency Model Business steering • Capital management actions 190-195%1) 190% Focus on Continuous monitoring and ALM Ambition range internal 140-190% economic Ambition model range • Dividend payout ratio according to plan 1
Slide 38: We plan to increase cash remittance
We plan to increase cash remittance … Capital, cash and payout Cash remittance to Holding, CHF bn 2-2.25 1.88 by division by business mix AM Life ~25% ~40% ~5% ~50% CH ~60% IN ~5% DE AM, ~15% distribution, FR health, P&C 2016-20181) 2019-2021 P 1) FY 2016, FY 2017 and HY 2018 38 | Investor Day, 29 N
Slide 39: … with the majority of cash being returned to shareholders
… with the majority of cash being returned Capital, cash and payout to shareholders • Statutory capital • Capital management flexibility requirements for growth • Bolt-on acquisitions 100% ~20% ~80% ~10% ~10-20% 50-60% IFRS net profit Non-cash1) Cash generated Retained at Retained at Dividend to bus
Slide 40: CHF 1 bn share buyback to more than offset dilution by convertible bond
CHF 1 bn share buyback to more than Capital, cash and payout offset dilution by convertible bond Development of shareholders’ equity1), CHF bn • CHF 1 bn planned share buyback 11.2 9.2 2015 FX, treasury Retained Convertible 2017 Share buyback shares earnings bond conversion 1) Adjusted for unrealise
Slide 41: Share buyback to be completed by the end of 2019
Share buyback to be completed by the end Capital, cash and payout of 2019 Swiss Life share buyback programme • CHF 1 bn (corresponds to approx. 2.6 million1) shares) Conditions • Purchases at market price • Purchases on 2nd trading line Execution • Execution delegated to partner bank • Cancellation
Slide 42: Swiss Life 2021: Raising our ambitions
Swiss Life 2021: Raising our ambitions Fee result Cash remittance SST ambition range CHF m 3 years cumulative, CHF bn Strong cash remittance based on growing fee result 600-650 2-2.25 and healthy solvency lead to attractive shareholder return 140-190% under Swiss Life 2021 400-450 > 1.5 • Dividend p
Slide 43: We plan to enhance our earnings quality and shareholder return
We plan to enhance our earnings quality and shareholder return Swiss Life We have significantly improved our profitability and the quality of earnings, 2018 strengthened our solvency, increased cash remittance and payout to shareholders We expect to achieve or exceed our Swiss Life 2018 financial ta
Slide 44: Solvency, ALM and capital efficiency
Investor Day 2018 Solvency, ALM and capital efficiency Matthias Aellig, Group CRO Zurich, 29 November 2018
Slide 45: Capital-efficient value creation in back-book and new business
Capital-efficient value creation in back-book and new business Swiss Life • Cumulative VNB and new business margin above ambition 2018 • Technical reserves strengthened by around CHF 7 bn since 2012 • Healthy SST capitalisation of > 175% as of Q3 2018 (Solvency II > 200%) • New solvency model effect
Slide 46: New regulatory model focused on one-year solvency monitoring
New regulatory model focused on one-year Solvency solvency monitoring New solvency model 01.01.2019 • Short projection of BVG business Valuation • Future PH bonus recognised as capital • Deterministic valuation • Market risk based on limited number of risk factors Target • Credit risk factor-based (
Slide 47: New solvency model with higher capitalisation
New solvency model with higher Solvency capitalisation ... SST Swiss Life Group (in %) 190-195 ~5 • New solvency model to become effective 185-190 01.01.2019 based on standard model • At the same time, Swiss Life will move to ~20 Solvency II valuation basis for EU units 170 ~-5-0 01.01.2018 Impact o
Slide 48: ... and with higher sensitivities
... and with higher sensitivities Solvency SST Swiss Life Group (in %) Sensitivities Old New solvency model 190-195 solvency effective 01.01.2019 ~ -7 ~180-185 model ~ -2 01.01.2018 01.01.2018 30.06.2018 Impact of ~ -9 ppts Real estate -10% -14 ppts -17 ppts -18 ppts as of 01.01.2019 Credit spreads1
Slide 49: Internal economic model for business steering enables long-term value creation
Internal economic model for business Solvency steering enables long-term value creation New solvency model 01.01.2019 Internal economic model • Short projection of BVG business • Long-term projection of BVG business Valuation • Future PH bonus recognised as capital • Future PH bonus recognised as ri
Slide 50: Focus on economic view in ambition range
Focus on economic view in ambition range Solvency Regulatory Solvency Model Business steering • Capital management actions 190% Focus on Continuous monitoring and ALM Ambition range internal 140-190% economic Ambition model range • Dividend payout ratio according to plan 140% Focus on • Comprehensiv
Slide 51: Disciplined ALM with narrow duration gap results in resilient yield
Disciplined ALM with narrow duration gap ALM results in resilient yield Duration management 9.5 8.3 9.3 8.2 8.2 7.7 • Dynamic duration management on Asset duration economic basis to keep narrow gap • Efficient economic capital consumption maintained 0.9 0.8 0.7 0.7 Total weighted 0.4 duration gap 0.
Slide 52: Capital efficiency considerations key in investing new money
Capital efficiency considerations key in ALM investing new money Marginal investment Swiss portfolio • Risk / return considerations to optimise asset return in view of required economic capital • Other considerations also important Efficiency line – IFRS accounting Infrastructure – Local statutory a
Slide 53: Swiss Life’s interest rate margin resilient in low interest rate environment
Swiss Life’s interest rate margin resilient in ALM low interest rate environment Structurally healthy interest rate margin Statutory basis PROJECTION Interest rate margin 3.0% before policyholder sharing • Resilient for more than three decades even if rates stay low • Reserve strengthening from curr
Slide 54: Back-book development implies moderate capital relief in the medium term
Back-book development implies moderate ALM capital relief in the medium term Projection excluding new business Statutory reserves bearing technical interest rate, CHF bn 150 Non-BVG1) reserves: 125 CHF -13 bn until 2025 • The Group’s reserve development is driven by persistent Swiss BVG business 100
Slide 55: Swiss Life with strong track record on investment yields in BVG business
Swiss Life with strong track record on ALM investment yields in BVG business Annual direct investment yield Annual net investment yield Average 2010-20171) Average 2008-2017 ~3.5% ~3.0% ~2.9% ~2.5% ~ +60 bps ~ +50 bps Swiss Life Peers2) Swiss Life Peers2) Total annual investment yield Unrealised gai
Slide 56: Swiss Life has an above-average reserving position in BVG business
Swiss Life has an above-average reserving ALM position in BVG business Conversion rate reserves Additional reserves group life1) in % of old-age savings accounts in % of old-age savings accounts + reserve for annuities in payment 7.5% 15.0% 5.0% 12.5% 2.5% 10.0% 0% 7.5% 2013 2014 2015 2016 2017 2013
Slide 57: BVG new business maximises incremental net profit and VNB
BVG new business maximises incremental New business management net profit and VNB; capital efficiency as prerequisite BVG Semi-autonomous Comprehensive Strategy with comprehensive offering pursued new business business only offering incl. full insurance • Incremental net profit higher for ~3x compre
Slide 58: New business margin substantially above ambition level
New business margin substantially above New business management ambition level New business margin development VNB as % of PVNBP Challenging capital markets compensated for by 0.4% 2.6% capital-efficiency-focused new business and continued margin management 0.1% • CH: Comprehensive offering in group
Slide 59: Further grow value of new business
Further grow value of new business New business management Value of new business CHF m Capital efficiency remains guiding principle > 1 200 • Aspiration to generate a cumulative VNB in excess 915 of CHF 1.2 bn in the low interest rate environment • New business margin ambition of 1.5% and minimum hu
Slide 60: Capital-efficient value creation in back-book and new business
Capital-efficient value creation in back-book and new business Swiss Life • Cumulative VNB and new business margin above ambition 2018 • Technical reserves strengthened by around CHF 7 bn since 2012 • Healthy SST capitalisation of > 175% as of Q3 2018 (Solvency II > 200%) • New solvency model effect
Slide 61: Swiss Life Asset Managers
Investor Day 2018 Swiss Life Asset Managers Stefan Mächler, Group CIO Zurich, 29 November 2018
Slide 62: Key messages Swiss Life Asset Managers
Key messages Swiss Life Asset Managers • We are a leading institutional asset manager Where we are – Top 3 institutional asset manager in Switzerland1) today – # 1 asset manager in European real estate2) – > 1 750 employees (> 80% in real estate) – Strong ALM investment expertise for pension schemes
Slide 63: Expect successful completion of Swiss Life 2018 with strong performance and growth
Expect successful completion of Swiss Life 2018 with strong performance and growth Strong • Proven investment capabilities and resilient investment income even in a low interest rate performance environment and business • Diversification of asset classes into equities, multi-asset, infrastructure an
Slide 64: Swiss Life Asset Managers grows faster than the European market
Swiss Life Asset Managers grows faster than the European market at industry profitability level Industry growth1) and cost / income ratio2) Comments USD tn, CAGR in % 2004 2016 2025 E • Investments in asset management products are North America 19.9 7% 46.9 5% 71.2 sizeable and expected to grow subs
Slide 65: Leveraging the captive asset management capabilities key for further growth
Leveraging the captive asset management capabilities key for further growth Products / services Performance • TPAM credibility due to PAM investment • PAM investment / ALM results know-how • TPAM performance (3-year)1): • Diversification of TPAM product offering • High maturity level of the real est
Slide 66: We put client needs at the centre of our attention
We put client needs at the centre of our attention and provide relevant solutions Captive clients (PAM) Third-party clients (TPAM) • Asset protection • Access to European real estate • Stable returns / margins • ALM services market incl. large transactions Client needs • Capital efficiency • Cost ef
Slide 67: We offer captive clients a resilient investment performance
We offer captive clients a resilient Captive clients (PAM) investment performance despite low interest rates Long-term ALM expertise for insurance BS Resilience of investment income despite low interest rates Swiss portfolio, 5.0 4.8% 3.9% 3.8% 3.7% marginal investment 4.0 3.3% 2.8% 3.0 3.6% 3.4% 3.
Slide 68: We are a preferred partner for outsourcing the investment function
We are a preferred partner for outsourcing Third-party clients (TPAM) the investment function Total contracting services – modular outsourcing offering Example for a health insurer Outsourced services • Securities asset management mandate • ALM advisory and services • Investment and risk monitoring
Slide 69: Project development is an important pillar for our real estate business
Project development is an important pillar Real estate for our real estate business In a nutshell Examples of real estate project development • Project development constitutes an important value driver with solid fee income and investment returns for Berlin, Adlershof Swiss Life Asset Managers • ~62
Slide 70: Total income quality expected to increase
Total income quality expected to increase, Real estate however non-recurring fees remain important Based on TPAM total income Non-recurring income from real estate project development (AM balance sheet) 5-10% – Profit from sale 15-20% Non-recurring income from fund business and asset management serv
Slide 71: Initiatives to further leverage our strengths
Initiatives to further leverage our strengths Focus on • Expanding captive and third-party distribution preferred • Launching real estate access for international clients segments • Implementing and reporting of sustainability1) related activities Promote • Ongoing implementation of ALM driven asset
Slide 72: Significant AuM growth in TPAM based on a strong product portfolio
Significant AuM growth in TPAM based on a strong product portfolio and targeted initiatives Total AuM development TPAM AuM development CHF bn, CAGR in % CHF bn, CAGR in % ~ +4% 250 - 260 100 +13% 224 61 11% 35% 18% 36% 2017 PAM TPAM 2021 P 2017 2021 P EQ / Infra FI / MM Balanced RE Note: BEOS includ
Slide 73: Focus on higher margin products and economies of scale drives TPAM profitability
Focus on higher margin products and economies of scale drives TPAM profitability increase Total income development Segment result development CHF m, CAGR in % CHF m, CAGR in % ~ +9% ~ +9% 950 - 970 340 - 360 689 258 2017 PAM TPAM 2021 P 2017 PAM TPAM 2021 P CIR TPAM CIR TPAM 88% ~75%1) 1) Excl. Livi
Slide 74: Key messages Swiss Life Asset Managers
Key messages Swiss Life Asset Managers • We are a leading institutional asset manager Where we are – Top 3 institutional asset manager in Switzerland1) today – # 1 asset manager in European real estate2) – > 1 750 employees (> 80% in real estate) – Strong ALM investment expertise for pension schemes
Slide 75: 1st Q&A session
Swiss Life 2021 1st Q&A session
Slide 76: Lunch break until 1.50 pm
Swiss Life 2021 Lunch break until 1.50 pm
Slide 77: Swiss Life Switzerland
Investor Day 2018 Swiss Life Switzerland Markus Leibundgut, CEO Switzerland Zurich, 29 November 2018
Slide 78: Key messages Swiss Life Switzerland
Key messages Swiss Life Switzerland Where we are • We are the market leading provider of comprehensive life, pension and financial solutions today • We enable people to lead a self-determined life with expert advice • We are delivering on our Swiss Life 2018 shareholder promise, including cash remit
Slide 79: Swiss Life Switzerland builds on strong and leading market position
Swiss Life Switzerland builds on strong and leading market position Market position in CH Customer base Market access • # 1 provider of comprehensive • > 1.4 million insured persons • 1 300 advisors at 60 locations Strong positioning life and pension solutions • > 40 000 companies with • Collaborati
Slide 80: Swiss Life 2021 leverages key strengths
Swiss Life 2021 leverages key strengths Private customers Corporate customers Leverage market access in attractive segments: Build on strong position Focus on • Young families and couples (DINKs1)) • SME: Product offering with / without guarantees preferred • Best agers2) • Large corporates / pensio
Slide 81: Swiss Life poised to seize market potential
Swiss Life poised to seize market potential Average individual buys ~70 financial contracts throughout life to strive for financial confidence Life event Birth Move out Get a job & save money Buy property Become self-employed Retire Last will Death Age 0 10 20 30 40 50 60 70 80 90 Products & Private
Slide 82: Advisory model makes relationships more rewarding and increases share of wallet
Advisory model makes relationships more rewarding and increases the share of wallet Advisory model Life events • Phygital advisory model building on digital technologies, Private and corporate customer enhancing customer experience and advisory effectiveness leading to more business Customer process
Slide 83: Focus on capital efficiency in broad product range
Focus on capital efficiency in broad Private customers product range Our broad product offering to fulfil customer needs Grow share of capital-light production in % of total individual life new business Continue capital-light strategy and modern traditional offering • Expanding offering of guarantee
Slide 84: Deep dive: Private wealth for retail and affluent customers
Deep dive: Private wealth for retail and Private customers affluent customers Deep dive: Investment package solutions Assets under management and net new assets (NNA) CHF bn Fulfil customer demand for more flexibility and ultimately grow fee business • Provide solutions for expiring insurance contra
Slide 85: Swiss Life seizing opportunity to grow in 2nd pillar market
Swiss Life seizing opportunity to grow in Corporate customers 2nd pillar market The 2nd pillar market in Switzerland Total assets in the 2nd pillar • Totals around CHF 1 028 bn of which around CHF bn 20% are in insurance books 1 028 • 48% growth between 2009 - 2017 driven by ~20% – Intrinsic reserve
Slide 86: Swiss Life market leader with decade-long outperformance of peers
Swiss Life market leader with decade-long Corporate customers outperformance of peers Swiss Life a true full-range provider … … with a strong performance Swiss Life attractive to customers due to Annual direct investment yield Annual net investment yield • Outperforming peers’ investment results Ave
Slide 87: BVG business key and stable contributor to Swiss Life
BVG business key and stable contributor Corporate customers to Swiss Life Optimised new business Contribution of BVG portfolio to Swiss Life Group Balanced mix of guaranteed and non-guaranteed business FY 2017 • Incremental net profit • ~25% contribution to risk result • VNB • Capital efficiency • ~
Slide 88: Swiss Life deepens 2nd pillar coverage
Swiss Life deepens 2nd pillar coverage Corporate customers Solution Best of peers Swiss Life Further ambitions of Swiss Life until 2021 Selective, capital-efficient growth with positive impact on entire Full insurance profit by source Semi-autonomous solutions • pooled on foundation level Gr
Slide 89: Swiss Life Switzerland well positioned to achieve our financial 2021 targets
Swiss Life Switzerland well positioned to achieve our financial 2021 targets Double the fee result Increase the risk result CHF m CHF m 25-30 260-270 251 14 2017 Running Initiatives 2021 P 2017 Running Initiatives 2021 P business business Improve an already strong life efficiency ratio Enhance the v
Slide 90: Solid savings result with more growth in the fee and risk results
Solid savings result with more growth in the fee and risk results seen by 2021 Profit by source CHF 833 m Trend 2018-2021 Comments • Savings result Stable savings result despite ongoing low interest rate environment 550 Savings • Risk result Enhance risk result • Fee result Strong increase in fee re
Slide 91: Key messages Swiss Life Switzerland
Key messages Swiss Life Switzerland Where we are • We are the market leading provider of comprehensive life, pension and financial solutions today • We enable people to lead a self-determined life with expert advice • We are delivering on our Swiss Life 2018 shareholder promise, including cash remit
Slide 92: Swiss Life France
Investor Day 2018 Swiss Life France Charles Relecom, CEO France Zurich, 29 November 2018
Slide 93: Key messages Swiss Life France
Key messages Swiss Life France Where we are • We are a unique private insurer for HNWI and affluent customers with an integrated “pensions & savings – private banking – asset management” model today • We offer strong expertise in personal protection in individual and group businesses • We expect to
Slide 94: Swiss Life France – a unique business model with a strong brand
Swiss Life France – a unique business model with a strong brand ... Positioning Customer base Diversification Attractive insurance • Successful private insurer for • ~1.5 m insured persons GWP EUR 4.8 bn portfolio with strong HNWI and affluent customers FY 2017 • ~135 000 companies with multi-distri
Slide 95: ... that will be even more developed by 2021
... that will be even more developed by 2021 Private insurer Personal protection (Wealth management) (Health & protection, credit life, P&C) • Further develop our positioning towards • Increase penetration rate with SMEs and self- Focus on HNWI and affluent clients employed preferred segments • Leve
Slide 96: Customer and market opportunities to be exploited in both lines of business
Customer and market opportunities to be exploited in both our lines of business Our preferred customer segments understand challenges and are willing to act Customer • 94% see independence and self-determination as a fundamental part of their longer life opportunities1) • Only 57% feel confident abo
Slide 97: Support self-determination by providing relevant advice and tailored solutions
Support self-determination by providing relevant advice and tailored solutions Individual customers Corporate customers Focus on HNWIs and affluents Focus on SMEs and self-employed Customised offerings Customised offerings • Protect individuals / families • Protect employees / families (protection a
Slide 98: We will leverage our multi-distribution model
We will leverage our multi-distribution model focusing on our target customer segments Distribution strategy Swiss Life France multi-distribution target model Corporate customers Maintain investments in our HNWI / Affluent Mass affluent and VSE SME LE 1 proprietary channels customers retail customer
Slide 99: Strong market position and successful private insurer model
Strong market position and successful Private insurer private insurer model Our strengths as private insurer Swiss Life outperformed the French life market1) Life GWP growth Market share pensions products • Strong, successful private insurer model EUR bn, CAGR 11-17 • Recognised and legitimate brand
Slide 100: Private insurer model to be leveraged through Swiss Life 2021 initiatives
Private insurer model to be leveraged Private insurer through our Swiss Life 2021 initiatives Strategic initiatives for 2021 Fee result benefits from high quality of production EUR m • Focus on target customer segments – Unique private insurer set-up, also covering cross-border needs – Grow and impr
Slide 101: We are a recognised expert in health & protection
We are a recognised expert in health & Personal protection protection Our strengths in health & protection Swiss Life successfully dealt with health reform, defended volumes French health market1) Swiss Life France health & protection GWP EUR bn, CAGR 12-17 EUR bn, CAGR 12-17 • Well positioned playe
Slide 102: We will reinforce our positioning in the health & protection market
We will reinforce our positioning in the Personal protection health & protection market Strategic initiatives for 2021 Grow risk result in a competitive market EUR m • Focus on target segments of clients – Grow in group health business both on standard products for SMEs and business with large broke
Slide 103: We use technology to increase operational efficiency
We use technology to increase operational efficiency and make the customer journey more rewarding Strategic initiatives for 2021 Improve life efficiency ratio bps • Implement our phygital approach – Combine digital and physical interaction between customers, distributors, back office 48 – Invest in
Slide 104: We will use a phygital approach along the value chain
We will use a phygital approach along the value chain both for advisors and customers Wealth management Health & protection P&C (Life, private bank, asset management) Transversal Increase the use of digital tools for a better user experience needs Pre-sales Redesign of CRM sales tools, improve monit
Slide 105: We will significantly increase our contribution to key 2021 financial targets
We will significantly increase our contribution to key Swiss Life 2021 financial targets Grow the fee result by 50% Grow risk result in a competitive market EUR m EUR m 85-95 95-105 60 91 2017 Unit-linked Private Distribution 2021 P 2017 Running Initiatives 2021 P business banking business Improve l
Slide 106: Deliver strong and diversified earnings growth, mainly driven by fee and risk result
Deliver strong and diversified earnings growth, mainly driven by fee and risk result Profit by source EUR 236 m Trend 2018-2021 Comments • Savings result Stable life financial margin in a low interest rate 178 Savings environment, supported by a decrease in served rates • Risk result Increase in a c
Slide 107: Key messages Swiss Life France
Key messages Swiss Life France Where we are • We are a unique private insurer for HNWI and affluent customers with an integrated “pensions & savings – private banking – asset management” model today • We offer strong expertise in personal protection in individual and group businesses • We expect to
Slide 108: Swiss Life Germany
Investor Day 2018 Swiss Life Germany Jörg Arnold, CEO Germany Zurich, 29 November 2018
Slide 109: Key messages Swiss Life Germany
Key messages Swiss Life Germany Where we are • We are the second-largest IFA in Germany with our owned IFAs fulfilling customer needs today • We successfully promote profitable risk and modern-traditional products as a niche provider in a large but competitive insurance market • Owned IFAs: What we
Slide 110: Unique business model and successful track record
Unique business model and successful track record Owned IFAs: Specialised life insurance: Unique • ~1.2 m customers • ~900 000 contracts in force 2017 positioning • ~515 000 new contracts in 2017 • 8 branches • 524 offices in 2018 • Second-largest and growing IFA in • Successful push of risk and mod
Slide 111: Profitable growth and higher productivity by 2021
Profitable growth and higher productivity by 2021 Owned IFAs Insurance • Intensify established solutions for specific Focus on • Become the “financial home” for mass to industry sectors and initiate new cooperations preferred mass-affluent customers • Offer tailored services and phygital support to
Slide 112: German industry trends offer promising opportunities
German industry trends offer promising opportunities Industry trends Swiss Life opportunities • Pension gap: Government supports private savings for retirement Well established specialist for risk Customer • Low interest rates: Customers accept lower guarantees and modern-traditional products • Prot
Slide 113: We allow for self-determination by addressing the needs of our customers
We allow for self-determination by addressing the needs of our customers Customer preferences 69% of Millennials believe that the measures Demand for taken will not lead to sufficient finances after retirement planning retirement1) 92% of young people between 16 and 25 believe Need for support they
Slide 114: We have grown our own network and gained market share
We have grown our own network and Owned IFAs gained market share We are in pole position for further growth Continuous growth of financial advisors Market average age Swiss Life average age Growing advisor network ~52 years ~37 years • Proven track record in advisor recruiting -7% +17% • Young netwo
Slide 115: Our IFA platform supports the full value chain and differentiates us from peers
Our IFA platform supports the full value Owned IFAs chain and differentiates us from peers Customer Advisor Back office Our product providers cover following market share 1) Update Life Centralized training courses Update Update Best-select software 67% Individual financial Interactive financial Con
Slide 116: We will become the “financial home” for the mass to mass-affluent market
We will become the “financial home” for Owned IFAs the mass to mass-affluent market Strategic initiatives by 2021 More financial advisors > 4 250 3 538 Grow the advisor network • Increase the number of advisors in our network • Open new offices in areas with high potential 2017 Existing New 2021 P •
Slide 117: On the insurance side, we have developed into a leading biometric specialist
On the insurance side, we have developed Insurance into a leading biometric specialist Core strengths established over recent years Growing risk products Growing market share disability % NBP Reputable specialist for risk & modern-traditional products 5% 109% • Successful product shift from traditio
Slide 118: We will further expand our biometric and specific industry sector solutions
We will further expand our biometric and Insurance specific industry sector solutions Strategic initiatives by 2021 Develop risk result EUR m 30-35 Secure profitability 28 • Accomplish our successful product range with innovations in biometric business & savings products with a unit-linked engine 20
Slide 119: Our strategic initiatives will lead to significant improvement of key financials by 2021
Our strategic initiatives will lead to significant improvement of key financials by 2021 Boost fee result Develop risk result EUR m EUR m 70-75 30-35 57 28 2017 Existing New initiatives 2021 P 2017 Back-book New initiatives 2021 P initiatives Decrease distribution operating expense ratio Grow value
Slide 120: Overall, earnings growth will be accompanied by an even higher quality of earnings
Overall, earnings growth will be accompanied by an even higher quality of earnings Profit by source EUR 121 m Trend 2018-2021 Comments • Savings result 51 Savings Decrease due to lower expected realised gains • Risk result Increase as a result of the growing biometric portfolio; 28 Risk long-term po
Slide 121: Key messages Swiss Life Germany
Key messages Swiss Life Germany Where we are • We are the second-largest IFA in Germany with our owned IFAs fulfilling customer needs today • We successfully promote profitable risk and modern-traditional products as a niche provider in a large but competitive insurance market • Owned IFAs: What we
Slide 122: Swiss Life International
Investor Day 2018 Swiss Life International Nils Frowein, CEO International Zurich, 29 November 2018
Slide 123: Key messages Swiss Life International
Key messages Swiss Life International • Global Solutions: We are a leading player in cross-border insurance solutions for Where we are U/ HNWIs and corporates today • International IFAs: We provide financial planning services for retail and affluent clients in UK and CEE • Leverage cross-border weal
Slide 124: Swiss Life International as an important contributor to a growing fee and risk result
Swiss Life International as an important contributor to a growing fee and risk result Global Solutions: International IFAs: Two lines of • 250 global experts with insurance carriers in • Among the leading UK IFAs for almost 50 years business: Luxembourg, Liechtenstein and Singapore • Number 1 IFA in
Slide 125: Sustainable growth of high-quality fee and risk result by 2021
Sustainable growth of high-quality fee and risk result by 2021 Global Solutions International IFAs Leading brand and business partner Leading IFA platform for cross-border insurance solutions in UK and Central Eastern Europe servicing U/ HNWIs and corporates Focus on • U/ HNWI • Retail clients prefe
Slide 126: Leveraging brand and cross-border expertise
Leveraging brand and cross-border Global Solutions expertise Private wealth offering Employee benefits offering • Leverage wealth transfer solutions • Tailored solutions for local & mobile employees: Client • Support succession & estate planning Life insurance, health & pension offering U/ HNWIs • M
Slide 127: Leading business partner for cross-border insurance solutions
Leading business partner for Global Solutions cross-border insurance solutions Market opportunities Initiatives Target state UHNWIs expected to transfer Leading brand & business partner USD 3.9 tn to next generation Leverage cross-border within next decade (equal to 13% of wealth transfer solutions
Slide 128: Major initiatives to capture growth opportunities
Major initiatives to capture growth Global Solutions opportunities Assets under control Cross-border EUR bn • Grow footprint in Asia wealth 22-25 • Increase penetration of European markets 19 solutions 2017 2021 P • Leverage high death cover solutions for U/ HNWIs in Europe and Asia Innovative Fee i
Slide 129: Offering comprehensive financial advice
Offering comprehensive financial advice International IFAs Financial planning for affluent and retail clients based on face-to-face advice combined with digital tools covering: Investment Pension Insurance Financing Leading IFA in UK and CEE Trusted advisor for a self-determined life Self-determined
Slide 130: Dedicated strategies for both leading IFA platforms
Dedicated strategies for both leading International IFAs IFA platforms Among the leading UK IFAs for almost 50 years Comprehensive financial advice Current number of financial advisors: > 250 with focus on investment and UK pension and with specialist Strategic approach advice for medical profession
Slide 131: Leading IFA platform in UK and CEE
Leading IFA platform in UK and CEE International IFAs Market opportunities Initiatives Target state Financial assets of private Strengthen affinity business Trusted advisor for a households grow in all our markets and our CEE markets self-determined life • Wealth accumulation, Further develop innova
Slide 132: Major initiatives to capture growth opportunities
Major initiatives to capture growth International IFAs opportunities Number of financial advisors Affinity • Leverage business with affinity groups (e.g. professional associations) 1 500-1 600 business and CEE markets • Strengthen CEE markets through harmonised set-up 792 Innovative • Leverage discr
Slide 133: Significant growth contribution from both Global Solutions and International IFAs by 2021
Significant growth contribution from both Global Solutions and International IFAs by 2021 Double fee result Increase risk result by ~50% EUR m EUR m 65-70 8-12 6 32 2017 Global International 2021 P 2017 Global Solutions 2021 P Solutions IFAs Life efficiency ratio improving by growing portfolio Doubl
Slide 134: Double fee result and increase risk result by ~50%
Double fee result and increase risk result by ~50% Profit by source EUR 46 m Trend 2018-2021 Comments • Savings result: Protect savings result 10 Savings • Risk result Growth driven by Global Solutions: 6 Risk – High death cover solutions for U/ HNWI – Risk plan offering for corporates in Europe • F
Slide 135: Key messages Swiss Life International
Key messages Swiss Life International • Global Solutions: We are a leading player in cross-border insurance solutions for Where we are U/ HNWIs and corporates today • International IFAs: We provide financial planning services for retail and affluent clients in UK and CEE • Leverage cross-border weal
Slide 136: 2nd Q&A session and closing remarks
Swiss Life 2021 2nd Q&A session and closing remarks
Slide 137: Contact details and financial calendar
Contact details and financial calendar Contact Heidi Hinterhuber Phone +41 (43) 284 67 67 Head of Investor Relations E-mail [email protected] Rolf Winter Phone +41 (43) 284 49 19 Senior Investor Relations Manager E-mail [email protected] Olga Schmidtberger Phone +41 (43) 284 49 7
Slide 138: SwissLife
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