Swiss Life Reports In-Line Results for Full Year 2021

Swiss Life has reported net profit of CHF 1,257 million for the full year 2021. The results have mainly been driven by a higher fee result across all divisions but in particular within France and Swiss Life’s third-party asset management division. The business continues to orientate toward semi-autonomous group life solutions within its home market, and contribution from its owned network of independent financial advisors, or IFAs, continues to help drive fees and commission. Unit-linked and real estate brokerage have also performed well. Within its second largest market of France the business is taking its foot off the gas in life insurance sales, but driving unit-linked sales through its higher quality distribution network. There is also a strong emphasis on the sale of health and protection. Germany is the second market where the fee result dominates the risk result, again as a result of the owned IFA network. There has been further digitalization of this offering. Within its third party asset management offering the business is growing in real estate and infrastructure and paring back in equity and bonds. We maintain our fair value estimate of CHF 585 and our no-moat rating.