On Monday, CFRA took a bearish stance on Swiss Life Holding (SLHN:SW) (OTC: SZLMY), downgrading the stock from Hold to Sell, while slightly increasing the price target to CHF560.00 from CHF550.00. The new price target by the firm is based on a comprehensive equity multiple of 0.8x, reflecting a 2025 price-to-earnings (P/E) ratio of 12x, which aligns with the average of Swiss Life's peers.
Swiss Life's adjusted profit from operations for the year 2023 was reported at CHF1.50 billion, marking a modest 1% increase. This performance was in line with most of the insurer's Swiss Life 2024 targets. However, the fee result fell by 13%, coming in 22% below the 2024 goal, primarily due to weaknesses in the real estate market.
The growth in gross written premiums (GWP) for 2023 stood at 1%, bolstered by a significant 33% increase in the International segment. This was attributed to the integration of elipsLife, which helped to counterbalance the sluggish growth in Swiss Life's core markets, which saw Swiss premiums rise by 0.2%, French by 1%, and German by 3%.
Swiss Life's solvency ratio for the fourth quarter of 2023 was reported at 210%, comfortably exceeding its target range of 140%-190%. Looking forward, the company aims to achieve the lower end of its CHF850-900 million fee result target in 2024. However, the firm noted that reaching this goal is contingent upon a recovery in the European real estate market.
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