Notes to the Financial Statements

Accounting Rules

The 2023 Financial Statements were prepared in accordance with the provisions of Swiss accounting law (Title 32 of the Swiss Code of Obligations). Swiss Life Holding’s Financial Statements are presented in millions of Swiss francs (CHF), which is the presentation currency. Figures may not add up exactly due to rounding.

Explanations on the balance sheet and statement of income

Participations

Loans to Group companies

CHF 847 million (previous year: CHF 815 million) of the loans to Group companies is classified as subordinated.

Major shareholders

BlackRock Inc., 55 East 52^nd Street, New York 10055, USA, reported in a publication of 1 June 2021 that it held through various companies a total of 5.3% of the voting rights for Swiss Life Holding. At the same time, BlackRock Inc. held sales positions in the amount of 0.002% of the voting rights.

Share capital

As at 31 December 2023, the share capital of Swiss Life Holding (SLH) consisted of 29 517 887 fully-paid registered shares. (previous year: 30 825 887 registered shares) with a par value of CHF 0.10 each. Conditional share capital remained unchanged at CHF 385 794.80 as at 31 December 2023. In exercising voting rights, no shareholder can collect more than 10% of the total share capital directly or indirectly in respect of his own shares and those he represents.

Statutory capital reserve

The statutory capital reserve consists of the capital contribution reserve. As at 31 December 2023, the capital contribution reserve came to CHF 177 million. Regarding the compliance of this balance sheet item with commercial law, the Federal Tax Administration has not recognised it under tax law in respect of the capital contribution principle.

Statutory retained earnings

Statutory retained earnings comprise the general reserves.

Voluntary retained earnings

This item comprises accumulated retained earnings which have not been distributed to the shareholders. In the year under review, CHF 20 million was taken from voluntary retained earnings. In addition, voluntary retained earnings were reduced by CHF 676 million due to the cancellation of 1 308 000 shares, which took place on 15 June 2023.

Issue of senior bonds

Two senior bonds for a total amount of CHF 425 million were issued on 21 June 2013, split into a tranche of CHF 225 million with a tenor of six years which was repaid on 21 June 2019 (coupon of 1.125%) and a tranche of CHF 200 million with a tenor of ten years until 2023 (coupon of 1.875%), which was repaid on 21 June 2023.

On 6 December 2019, Swiss Life Holding placed three senior green bond tranches totalling CHF 600 million: a tranche of CHF 200 million with a tenor of two years and variable coupon (floor at 0.00%, cap at 0.05%) which was repaid on 6 December 2021, a tranche of CHF 250 million with a tenor of 5.5 years and a coupon of 0% and a tranche of CHF 150 million with a tenor of 9.25 years and a coupon of 0.35% p.a.

On 13 March 2019, Swiss Life Holding placed a senior bond amounting to CHF 250 million. The bond has a maturity of 4.6 years and a coupon of 0.25% p.a. and was redeemed on 11 December 2023.

On 26 January 2023, Swiss Life Holding placed three senior bond tranches totalling CHF 600 million: a tranche of CHF 200 million with a tenor of three years and a coupon of 2.04% p.a., a tranche of CHF 200 million with a tenor of 5.5 years and a coupon of 2.2588% and a tranche of CHF 200 million with a tenor of nine years and a coupon of 2.61% p.a.

Treasury shares

As part of the share buyback programme (2021-2023), Swiss Life Holding purchased a total of 734 287 treasury shares in the year under review at an average price of CHF 561.17. In the same period, 1 308 000 shares were cancelled.

Outside the share buyback programme, the companies in the Swiss Life Group purchased 54 000 treasury shares at an average price of CHF 560.13 in the year under review. As at 31 December 2023, the Swiss Life Group held 149 033 treasury shares that are not part of the share buyback programme.

As at 31 December 2023, the Swiss Life Group held a total of 699 120 treasury shares.

Contingent liabilities

As at the balance sheet date, Swiss Life Holding acts as warrantor for all liabilities of Swiss Life Ltd in the amount of CHF 3.1 billion, which include the various tranches of the subordinated perpetual step-up loans (hybrid debt). The guarantees are classified as subordinated at Swiss Life Holding.

Swiss Life Holding further provides capital guarantees for a maximum net asset value of CHF 1.1 billion to Swiss Life Ltd, CHF 1.2 billion to Swiss Life Finance I, CHF 121 million to Swiss Life Products, CHF 52 million to ElipsLife Ltd and CHF 6 million to Swiss Life Liechtenstein.

In addition, under drawn credit lines Swiss Life Holding held liabilities totalling CHF 19 million for Corpus Sireo companies.

Financial assets pledged as collateral

As at 31 December 2023, debt securities totalling CHF 66 million were reserved for the liquidity-shortage financing facility (SNB EFF).

Statement of changes in equity for the years ended 31 December

Number of full-time positions

As in the previous year, the number of full-time positions is not above 50 employees on average over the year.