Swiss Life Holding generated a profit of CHF 880 million in the 2022 financial year (previous year CHF 784 million).
The annual profit mainly consisted of dividends, investment income and revenues from guaranteed benefits and commissions. Dividend income from subsidiaries increased to CHF 939 million (previous year: CHF 764 million), income from guaranteed benefits and commissions increased to CHF 44 million (previous year: CHF 42 million) and investment income rose slightly from CHF 51 million to CHF 54 million.
As at the end of the year, Swiss Life Holding had liquid assets (liquid funds, current account receivables from Group companies, debt securities, equities and investment funds) of CHF 675 million (previous year: CHF 1.3 billion). Cash on hand decreased to CHF 7 million (previous year: CHF 52 million) and short-term receivables from Group companies fell to CHF 57 million (previous year: CHF 260 million). Debt securities, investment funds and equities amounted to CHF 634 million at year-end (previous year: CHF 976 million). Receivables from third parties totalled CHF 80 million, of which one receivable of CHF 77 million resulted from short-term transactions with banks.
Capital assets increased overall. Under the share buyback programme (2021–2023) announced at the 2021 Investor Day in the amount of CHF 1 billion, a total of 1 403 881 shares worth CHF 739 million were repurchased by the balance sheet date. A total of 702 680 repurchased shares were cancelled during the year under review. The shares issued as at the end of 2022, amounted to 30 825 887, of which 4.09% are held by Swiss Life Holding.
Loans and payments under lines of credit granted to Group companies increased to CHF 2.0 billion (previous year: CHF 1.6 billion). New loans totalling CHF 636 million were awarded to Group units to finance acquisitions and to repay an expiring subordinated loan at Swiss Life Ltd.
Swiss Life Holding’s total distribution to shareholders was made as an ordinary dividend and amounted to CHF 764 million, or CHF 25.00 per share. Swiss Life Holding’s nominal share capital remained practically unchanged at CHF 3 million.
Long-term debt capital increased to CHF 2.1 billion (previous year: CHF 1.5 billion). The increase is due to an internal loan of EUR 700 million granted by Swiss Life Finance I, a financial company held as a subsidiary. The funds come from a successfully placed seven-year bond. Interest on long-term debt capital totalled CHF 26 million (previous year CHF 7 million) in the year under review. Swiss Life Holding generated interest income of CHF 1 million (previous year: CHF 1 million) from short-term transactions with banks.
Interest income rose to CHF 35 million (previous year: CHF 30 million) and earnings from investments in bonds and fund units decreased slightly to CHF 18 million (previous year: CHF 20 million). Both loans granted internally and external investments in foreign currencies are almost fully hedged with currency futures. The cost of hedging during the reporting period was CHF 9 million (previous year: CHF 5 million). The portfolio composition was adjusted slightly due to the higher cost of currency futures involving US dollars against Swiss francs. These reallocations resulted in a loss of CHF 15 million (previous year: CHF 0 million). The adjusted investment allocation will enable growth in future investment income.
Staff costs and operating expenses rose to CHF 24 million (previous year: CHF 20 million), while tax expenses decreased to CHF 7 million (previous year: CHF 10 million).