22 Equity
Share capital
As at 31 December 2023, the share capital of Swiss Life Holding consisted of 29 517 887 fully-paid shares with a par value of CHF 0.10 each (31.12.2022: 30 825 887 fully-paid shares with a par value of CHF 0.10 each). In exercising voting rights, no shareholder can collect more than 10% of the total share capital directly or indirectly in respect of own shares or shares they represent. Conditional share capital was CHF 385 794.80 as at 31 December 2023 (31.12.2022: CHF 385 794.80).
Share premium
Share premium comprises additional paid-in capital in excess of the par value (net of transaction costs), gains/losses on own equity instruments and equity compensation benefits.
Share buyback programme
As announced on 6 September 2023, Swiss Life started a CHF 300 million share buyback programme in October 2023. By 31 December 2023, 261 800 shares had been purchased for CHF 150 million at an average price of CHF 573.46 per share. The programme will be completed in March 2024.
As announced during the Investor Day on 25 November 2021, Swiss Life started a CHF 1 billion share buyback programme in December 2021. By 30 May 2023, 1 876 368 shares had been purchased at an average price of CHF 532.94 per share, of which 472 487 shares for CHF 262 million were purchased in 2023, 1 335 881 shares for CHF 701 million in 2022 and 68 000 shares for CHF 38 million in 2021. The programme was completed in May 2023.
1 308 000 of the repurchased shares were cancelled in June 2023 and 702 680 shares in July 2022.
Number of shares
The following table shows the development of Swiss Life Holding shares issued and treasury shares held by the Swiss Life Group during the period.
| Number of shares | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Shares issued | ||||
| Balance as at 1 January | 30 825 887 | 31 528 567 | ||
| Cancellation of treasury shares | –1 308 000 | –702 680 | ||
| Balance as at end of period | 29 517 887 | 30 825 887 | ||
| Treasury shares | ||||
| Balance as at 1 January | 1 262 131 | 620 842 | ||
| Purchases of treasury shares | 54 000 | 50 000 | ||
| Share buyback | 734 287 | 1 335 881 | ||
| Allocation under equity compensation plans | –43 298 | –41 912 | ||
| Cancellation of treasury shares | –1 308 000 | –702 680 | ||
| Balance as at end of period | 699 120 | 1 262 131 | ||
Accumulated other comprehensive income
Accumulated other comprehensive income comprises items of income and expense that are recognised outside of profit or loss, as required or permitted by certain IFRS Accounting Standards.
Items presented in other comprehensive income are grouped on the basis of whether they will be reclassified subsequently to profit or loss when specific conditions are met, and those that will not be reclassified.
The amounts are presented net of deferred income taxes and non-controlling interests.
Items that may be reclassified to profit or loss comprise:
- Foreign currency translation differences arising on the translation of assets, liabilities, income and expenses of Group entities denominated in foreign currencies into Swiss francs.
- Effective portion of gains and losses on hedging instruments of net investments in a foreign operation.
- Gains and losses from fair value changes of debt instruments measured at FVOCI (2022: gains and losses from financial assets available for sale and reclassified debt instruments).
- Effective portion of gains and losses on hedging instruments in qualifying cash flow hedges.
- Cost of hedging related to hedges of equity instruments measured at FVOCI.
- Net financial income/expenses from insurance contracts and reinsurance contracts held for which the OCI option has been chosen.
Items that will not be reclassified to profit or loss comprise:
- Revaluation surplus on the transfer of owner-occupied property to investment property following a change in use evidenced by the end of owner-occupation.
- Remeasurements of the net defined benefit liability relating to employee benefit plans.
- Gains and losses from fair value changes of equity instruments measured at FVOCI.
- Gains and losses from fair value hedges of equity instruments measured at FVOCI.
The following table provides information relating to amounts recognised in accumulated other comprehensive income.
Accumulated OCI for the year 2023
| In CHF million | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Items that may be reclassified to the income statement | Items that will not be reclassified to the income statement | Total | ||||||||||||||||||||||||||||
| Foreign currency translation differences | Net investment hedges | Gains/ losses of financial assets available for sale and reclassified | Gains/ losses of debt instruments at FVOCI | Cash flow hedges | Cost of hedging | Net finance income/ expenses from insurance contracts and investment contracts with DPF issued | Net finance income/ expenses from reinsurance contracts held | Total | Revaluation surplus investment property | Remeasure-ments net defined benefit liability | Gains/ losses equity instruments at FVOCI | Fair value hedges of equity instruments at FVOCI | Total | |||||||||||||||||
| Balance as at 1 January | –1 987 | 408 | –5 127 | – | –45 | – | 6 308 | –43 | –486 | 21 | –239 | – | – | –219 | –705 | |||||||||||||||
| Adjustment on initial application of IFRS 9 | – | – | 5 127 | –6 180 | – | – | 870 | – | –183 | – | – | 5 | – | 5 | –179 | |||||||||||||||
| Balance as at 1 January restated | –1 987 | 408 | – | –6 180 | –45 | – | 7 178 | –43 | –669 | 21 | –239 | 5 | – | –213 | –883 | |||||||||||||||
| Transfer to retained earnings | – | – | – | – | – | – | – | – | – | – | – | –26 | 25 | –1 | –1 | |||||||||||||||
| Net other comprehensive income | –948 | 447 | – | 3 978 | 81 | 0 | –4 171 | 40 | –572 | –3 | –219 | 59 | –19 | –181 | –753 | |||||||||||||||
| Non-controlling interests | 5 | – | – | 0 | 0 | – | 0 | 0 | 5 | 0 | 0 | 0 | – | 0 | 5 | |||||||||||||||
| Net balance as at end of period | –2 930 | 856 | – | –2 202 | 36 | 0 | 3 008 | –3 | –1 235 | 18 | –457 | 38 | 6 | –395 | –1 632 | |||||||||||||||
|
Net other comprehensive income is composed of the following:
|
||||||||||||||||||||||||||||||
| Revaluation – gross | –875 | 558 | – | 4 601 | 118 | –1 | –5 085 | 74 | –610 | 0 | –271 | 76 | –23 | –219 | –829 | |||||||||||||||
| Reclassification to profit or loss – gross | – | –26 | – | 114 | –138 | 1 | – | – | –49 | – | – | – | – | – | –49 | |||||||||||||||
| Effects of | ||||||||||||||||||||||||||||||
| income tax | –73 | –85 | – | –876 | 82 | 0 | 1 051 | –35 | 66 | –2 | 49 | –16 | 4 | 36 | 101 | |||||||||||||||
| disposals of subsidiaries | 0 | – | – | – | – | – | – | – | 0 | – | – | – | – | – | 0 | |||||||||||||||
| foreign currency translation differences | – | – | – | 139 | 19 | – | –137 | 2 | 22 | –1 | 3 | 0 | – | 1 | 23 | |||||||||||||||
| Net other compre-hensive income | –948 | 447 | – | 3 978 | 81 | 0 | –4 171 | 40 | –572 | –3 | –219 | 59 | –19 | –181 | –753 | |||||||||||||||
Accumulated OCI for the year 2022
| In CHF million | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Items that may be reclassified to the income statement | Items that will not be reclassified to the income statement | Total | ||||||||||||||||||||||
| Foreign currency translation differences | Net investment hedges | Gains/ losses of financial assets available for sale | Gains/ losses of debt securities reclassified to loans and receivables | Cash flow hedges | Net finance income/ expenses from insurance contracts and investment contracts with DPF | Net finance income/ expenses from reinsurance contracts held | Total | Revaluation surplus investment property | Remeasure-ments net defined benefit liability | Total | ||||||||||||||
| Balance as at 1 January | –1 520 | 169 | 4 066 | –9 | 314 | – | – | 3 020 | 45 | –261 | –216 | 2 804 | ||||||||||||
| Adjustment on initial application of IFRS 17, net of tax | –156 | 156 | 8 547 | –9 | 471 | –12 120 | 50 | –3 062 | 10 | –490 | –480 | –3 542 | ||||||||||||
| Balance as at 1 January restated | –1 677 | 325 | 12 613 | –18 | 784 | –12 120 | 50 | –42 | 55 | –751 | –696 | –738 | ||||||||||||
| Transfer to retained earnings | – | – | – | – | – | – | – | – | –46 | –3 | –50 | –50 | ||||||||||||
| Net other comprehensive income | –314 | 83 | –17 728 | 4 | –829 | 18 429 | –93 | –448 | 12 | 515 | 528 | 80 | ||||||||||||
| Non-controlling interests | 4 | – | 0 | – | 0 | –1 | 0 | 4 | 0 | 0 | 0 | 4 | ||||||||||||
| Net balance as at end of period | –1 987 | 408 | –5 113 | –14 | –45 | 6 308 | –43 | –486 | 21 | –239 | –219 | –705 | ||||||||||||
|
Net other comprehensive income is composed of the following:
|
||||||||||||||||||||||||
| Revaluation – gross | –321 | 89 | –23 206 | – | –792 | 23 493 | –90 | –826 | – | 632 | 632 | –194 | ||||||||||||
| Reclassification to profit or loss – gross | – | 1 | 597 | 6 | –289 | – | – | 315 | – | – | – | 315 | ||||||||||||
| Effects of | ||||||||||||||||||||||||
| income tax | 6 | –7 | 4 957 | –1 | 258 | –5 156 | –8 | 50 | 15 | –120 | –106 | –56 | ||||||||||||
| disposals of subsidiaries | – | – | – | – | – | – | 5 | 5 | – | – | – | 5 | ||||||||||||
| foreign currency translation differences | – | – | –77 | – | –6 | 92 | 0 | 9 | –2 | 4 | 2 | 10 | ||||||||||||
| Net other compre-hensive income | –314 | 83 | –17 728 | 4 | –829 | 18 429 | –93 | –448 | 12 | 515 | 528 | 80 | ||||||||||||
The reconciliation below shows the movements in accumulated other comprehensive income for the underlying investment assets that relate to the groups of insurance contracts to which the modified retrospective approach was applied on transition.
Accumulated OCI for investments measured at FVOCI related to insurance contracts under the modified retrospective approach
| In CHF million | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Balance as at 1 January | –5 551 | 15 536 | ||
| Adjustment on initial application of IFRS 9 | 1 055 | – | ||
| Balance as at 1 January after adjustment | –4 495 | 15 536 | ||
| Net change in fair value | 2 713 | –21 144 | ||
| Net amount reclassified to profit or loss | 5 | 210 | ||
| Foreign currency translation | 157 | –153 | ||
| Balance as at end of period | –1 619 | –5 551 | ||
Retained earnings
Retained earnings comprise accumulated retained earnings of the Group entities which have not been distributed to the shareholders. The distribution of profit is subject to restrictions in the various jurisdictions where the Group entities are located.
The Group’s insurance subsidiaries are subject to regulatory restrictions on the amount of dividends, cash loans and advances which can be remitted to the Group. Certain foreign jurisdictions have restrictions that allow the payment of dividends but may cause a delay in their remittance. Dividends payable are not accrued until they have been ratified at the General Meeting.
In 2023, a dividend payment of CHF 877 million (CHF 30.00 per registered share) was made to the shareholders of Swiss Life Holding (2022: CHF 764 million or CHF 25.00 per registered share).
Hybrid equity
On 29 March 2021, Swiss Life Ltd placed subordinated perpetual callable bonds in the amount of CHF 250 million , presented in equity . The bonds are guaranteed by Swiss Life Holding and are first callable on 30 September 2026 or at each interest payment date thereafter at the option of the issuer, upon notice and subject to the consent of the Swiss Financial Market Supervisory Authority. The interest has been fixed at 1.75% p.a. until 30 September 2026. If the bonds are not redeemed on 30 September 2031, the interest resets at a rate fixed for the subsequent five years, consisting of the aggregate of the then-prevailing five-year CHF mid-market swap rate vs. SARON and the initial margin of 218.2 bps.
On 22 March 2018, Swiss Life Ltd issued subordinated perpetual callable bonds in the amount of CHF 425 million. The bonds are guaranteed by Swiss Life Holding, have no fixed maturity date and are first callable on 25 September 2024 or at each interest payment date thereafter at the option of the issuer, upon notice and subject to the consent of the Swiss Financial Market Supervisory Authority. The interest has been fixed at 2.00% p.a. until 25 September 2024. If the bonds are not redeemed on 25 September 2024, the interest resets at a rate fixed for the subsequent five years, consisting of the aggregate of the then-prevailing five-year CHF swap rate and the initial margin of 1.842% p.a.
The bonds are classified as equity instruments.
Interest payments for hybrid equity become mandatory depending on other transactions, which are themselves at the discretion of the Swiss Life Group, such as dividend payments. There is no accrual of interest to be recorded for the annual financial statements. The interest net of tax of CHF 11 million in 2023 (2022: CHF 11 million) is accounted for as a deduction from equity.
Non-controlling interests
Summarised financial information for subsidiaries with material non-controlling interests is as follows.
| In CHF million | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Swiss Life Banque Privée Paris | TECHNOPARK Real Estate LTD Zürich | Swiss Life Asset Managers Holding (Nordic) AS Oslo | ||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||
| Principal place of business | France | France | Switzerland | Switzerland | Norway | Norway | ||||||
| Ownership interests held by non-controlling interests | 40.0% | 40.0% | 33.3% | 33.3% | 10.0% | 10.0% | ||||||
| Voting rights held by non-controlling interests | 40.0% | 40.0% | 33.3% | 33.3% | 10.0% | 10.0% | ||||||
|
Summarised financial information before intragroup eliminations
|
||||||||||||
| Current assets | 2 360 | 2 405 | 18 | 16 | 17 | 23 | ||||||
| Non-current assets | 613 | 597 | 231 | 232 | 103 | 116 | ||||||
| Current liabilities | –2 483 | –2 606 | –69 | –69 | –13 | –17 | ||||||
| Non-current liabilities | –346 | –270 | –26 | –25 | –4 | –6 | ||||||
| Net assets | 144 | 126 | 154 | 154 | 103 | 116 | ||||||
| Accumulated non-controlling interests | 57 | 50 | 51 | 51 | 10 | 12 | ||||||
| Revenue | 244 | 161 | 9 | 11 | 27 | 27 | ||||||
| Profit or loss | 47 | 25 | 4 | 7 | 5 | 4 | ||||||
| Total comprehensive income | 47 | 25 | 4 | 7 | 5 | 4 | ||||||
| Profit or loss allocated to non-controlling interests | 19 | 10 | 1 | 2 | 0 | 0 | ||||||
| Net cash flows from operating activities | 190 | –408 | 5 | 7 | 0 | 3 | ||||||
| Net cash flows from investing activities | –1 | –1 | – | 0 | –3 | 0 | ||||||
| Net cash flows from financing activities | –23 | –6 | –2 | –1 | 3 | 0 | ||||||
| Net change in cash and cash equivalents | 166 | –415 | 3 | 6 | 0 | 3 | ||||||
| Dividends paid to non-controlling interests | –7 | –4 | –1 | –1 | – | – | ||||||