Resilient Real Estate Continues To Drive Swiss Life’s Fee and Commission Income

Swiss Life has reported a nice set of results for the first half of 2022, and there are a number of metrics that show the business to be in good health. One of the most important for Swiss Life is its fee and commission income, due to the makeup of its business operations. This has risen by 12.6% over the same period last year. For 2024, Swiss Life has a fee result target of CHF 850 million to CHF 900 million. The higher fee and commission income during this half was driven by a combination of factors across Swiss Life’s five businesses. In its home market, the business benefited from higher revenues from its owned independent financial advisors, or IFAs, and unit linked solutions. High unit-linked reserves and net flows also helped the fee and commission income in France, and there was a strong contribution from that business’ banking. Strong financial adviser numbers helped support a fee and commission income rise in Germany and better revenue from the owned IFAs business also aided the international division. The real estate business helped both the proprietary and third-party asset management businesses. Alongside the strong fee and commission growth, the business has exercised good expense discipline. We raise our fair value estimate to CHF 610 per share from CHF 585, and we maintain our no-moat rating.