Swiss Life Earnings: Fee Income Remains Strong; Shares Undervalued

Swiss Life has reported fairly decent key indicators for the first 9 months of 2023. Generation of the all-important fee income has come in at CHF 1.79 billion, which is ahead of the CHF 1.72 billion we had forecast for the full year. We think some of this growth has come from sales of unit-linked products in France, but more importantly, the advisory business is doing well in Germany. There has also been a decrease in fee income within the asset management business and this has likely alarmed markets due to Swiss Life’s steady real estate asset management business. However, much of this asset management fee income decline is due to the sale of Livit FM Services in Switzerland during fourth-quarter 2022.