Q & A Highlights

Q: Can you provide details on the TELIS acquisition's expected contribution to revenue and operating profit, and how should we factor in the financing costs? Additionally, can you give background on the reduction of around 600 positions, including whether restructuring costs have been booked, and provide a sense of the math behind the fee result relative to the CHF1 billion target? A: Matthias Aellig (CEO) and Marco Gerussi (CFO) explained that TELIS will add 1,800 advisers and contribute an operating result of CHF25-30 million for a full year, with only half of that recognized in H2 2026. The acquisition was financed largely by a CHF500 million bond with a coupon around 3.5%, offsetting some of the contribution. Regarding the 600 position reductions, roughly half are in Switzerland and half at Swiss Life Asset Managers, with about 100 already reduced through natural attrition. Restructuring costs so far are in the high single-digit millions, expected to more than double for the full year, with aggregate costs in 2027-2028 offsetting the ramp-up of savings. The CHF150 million annual cost savings will be realized in 2029 and beyond, with less than half in Switzerland (subject to policyholder sharing) and more than half in Asset Management. For the fee result, the 11% growth in H1 includes a one-off gain from the network transfer, and the full-year nonrecurring income guidance of around 25% for Asset Managers implies a significant second-half contribution.

Q: What is the current cash position at the holding company, and can you explain the timing and phasing of the new CHF250 million share buyback? Also, what drove the significant jump in French non-life profit, and how much of the nonrecurring TPAM commission income in H2 is likely to be cash? A: Marco Gerussi (CFO) clarified that cash at holding was CHF1.1 billion at half-year, now CHF0.65 billion after the CHF500 million bond issuance for TELIS. Matthias Aellig (CEO) explained the buyback framework remains unchanged, with the CHF250 million program running from October 2026 to March 2027, financed more than half from cash at holding and the rest from repatriations. The French non-life profit improvement reflects a successful turnaround in health and protection, with technical profitability improving from a low base, though this level of increase should not be expected to continue at the same pace. For TPAM nonrecurring income, the H1 amount was fully cash, while the remainder of the year is expected to be more balanced between cash and non-cash components.

Q: With CHF0.65 billion cash at holding post-TELIS and the CHF250 million buyback, will cash fall to around CHF500 million, and is that a comfortable level? Also, is there any one-off in H2 remittances, and with the CHF150 million cost savings, should we expect operating expenses to be flat or slightly down by 2029? A: Marco Gerussi (CFO) stated the comfort range for cash at holding is CHF0.5-0.7 billion, and the company aims to put cash to work. H2 remittances are expected to be in line with historical averages of CHF60-70 million with no one-offs flagged. Matthias Aellig (CEO) added that repatriations differ from cash remittances, referring to maturing internal loans. On operating expenses, the CHF150 million savings will impact the operating expense line, but due to policyholder sharing in Switzerland, only a portion will show up in the result. The company maintains a clear goal of keeping life absolute costs flat by 2027.

Q: What is the cash component of the network business transfer, and when will it be received? Is the French health tax impact fully reflected in H1 results? Also, with the Vita Foundation going independent, what is Swiss Life's position and earnings contribution from its foundation business? A: Marco Gerussi (CFO) noted the network business gain is an IFRS accounting item, with cash proceeds expected over the next few years starting in 2027. Matthias Aellig (CEO) addressed the French health business, stating the company has been repricing and prioritizing profit over growth, with the combined ratio improving from mid-90s to lower levels. On the Vita Foundation, Swiss Life does not comment on competitors, but the CEO highlighted the company's full range of BVG offerings, including full insurance, semiautonomous foundations, and risk coverage, positioning it well regardless of market changes.

Q: Can you provide color on TPAM net new asset inflows since June and expectations for the remainder of the year? Also, what is the reasonable run rate for direct investment income in H2 given the decline? A: Marco Gerussi (CFO) reported TPAM inflows of CHF7.2 billion in H1, with CHF1.4 billion from real assets. While not guiding on H2 details, the company has a strong pipeline and is well on track to reach the CHF170 billion AUM target for 2027. On direct investment income, the decline reflects a lower real estate asset base, a prior-year positive exit in infrastructure, and FX effects from the US dollar. The company is positive on H2, expecting the number to move closer to prior-year levels, with some timing and volatility factors.

Q: What tax rate should we use going forward given the increase due to France? Also, can you clarify the real estate portfolio reduction versus your positive stance on the asset class, and what benefits do you expect from the German pension reform? A: Marco Gerussi (CFO) indicated the full-year 2026 tax rate is expected to be between 25% and the current rate, with the French tax rate step-up likely to persist into 2027. Matthias Aellig (CEO) explained that real estate remains attractive, but the company actively manages the portfolio, selling smaller objects and acquiring larger, more efficient ones, with H1 seeing a net outflow. On the German pension reform, the CEO noted the market reshuffles in January 2027, presenting opportunities for Swiss Life's 8,000 IFAs, though H2 2026 may be quieter as clients wait for clarity. The IFA business is diversified across product lines, making it resilient to pension-specific changes.

Q: Can you clarify the funding of the CHF250 million buyback, specifically the capacity for repatriations from internal loans? Also, is the strong "other result" in the insurance operating result a good run rate going forward? A: Matthias Aellig (CEO) clarified that more than half of the buyback is funded from existing cash at holding (CHF

For the complete transcript of the earnings call, please refer to the full earnings call transcript .