Friday, 15 March 2024 Reading time : 2 minutes

Swiss Life shares came under pressure on Thursday after Switzerland's largest life insurer failed to impress with its annual results. The stock closed 5.3% lower, making it the worst performing blue chip on the day, but showing signs of recovery on Friday morning.

Overall, earnings were in-line with analysts' forecasts. However, the fee result, which includes fees from project developments and real estate transactions, was unexpectedly weak, falling by 13% in local currency to CHF 664 million compared to the previous year. According to Swiss Life's press release, this was mainly due to the subdued real estate market in Germany and France. For the current year, however, the group is on track to meet or exceed all its financial targets.

Thus, shareholders will benefit from a dividend increase: the Board of Directors is proposing an increase of CHF 3.00 to CHF 33.00 per share. Swiss Life is thus reinforcing the reputation of Swiss insurers as stable and generous dividend payers. Previously, Zurich Insurance and Swiss Re already increased their payouts to shareholders. 

Investment solutions
With yield enhancement products on Swiss Life, investors benefit from a guaranteed coupon, while price losses can be partially cushioned.

Reverse Convertible on Swiss Life
Coupon: 8.75% p.a.
Strike: 95%
Tenot: 6 months
Valor: 132 911 670
Termsheet

Barrier Reverse Convertible auf Zurich, Swiss Life, Swiss Re
Coupon: 7.50% p.a.
Barrier: 64%
Tenor: 18 months
Valor: 132 911 671
Termsheet

Indicative terms

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements.
The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document.
If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen.