Swiss Life: encouraging operational progress

The company published results that were at first glance disappointing. However, corrected for exceptional items, the figures show that the group has made encouraging operational progress. Swiss Life’s net profit was down -13% compared to 2019, but this decline is due to a provision of CHF 70 million in anticipation of the settlement of a dispute with the Department of Justice in the USA regarding the former portfolio of American clients, as well as a tax effect of CHF 49 million following the Swiss corporate tax reform. As far as commission income is concerned, it grew by + 11% and assets under management recorded a net increase of CHF 7.5 billion. The group has a solvency ratio of around 195% and the board of directors will propose to the general meeting an increase in the dividend from CHF 20 to 21 per share. The group is therefore on the right track and confirms its objectives for 2021.