Swiss Life said its solvency remains strong despite the latest upheavals in the financial markets. As a Group, Swiss Life noted it is subject to the strictly calibrated Swiss Solvency Test (SST). As of 1 January 2020, the Swiss Life Group estimated its SST ratio at slightly above 200% (previous year: 185%). The SST ratio currently stands at around 175% and thus in the upper third of the target range of 140 to 190%.
Swiss Life said it manages financial market risks by means of its continuous asset liability processes, adding that it has a well-diversified investment portfolio with high creditworthiness. The equity portfolio is hedged, the net equity holding as of 31 December 2019 amounted to 4.1% and has since been halved to about 2%, the company said.
Concerning the insured risks, Swiss Life said it has a balanced portfolio of mortality and longevity risks.
“The resulting risks for Swiss Life are therefore manageable. The main effects for Swiss Life arise from the impacts as a result of the turmoils in financial markets,” the company said.
Swiss Life CEO Patrick Frost said, “Supported by our disciplined asset liability management, our solvency remains strong even after the latest capital market upheavals. In line with all other major listed banks and insurance companies in Switzerland, we will suspend our share buyback programme and not buy back any more shares for the time being.”
The Annual General Meeting will take place without shareholders being present on 28 April 2020 as planned, the company said, adding that as previously announced, the Board of Directors proposes to the Annual General Meeting a dividend of CHF 20.00 per share for the 2019 financial year.