Q2 2026 Swiss Life Holding AG Earnings Call

September 1, 2026

Operator: Ladies and gentlemen, welcome to the Swiss Life presentation of the H1 2026 conference call and live webcast. I am Moira, the conference call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. Webcast viewers may submit their questions or comments in writing via the relative field. Kindly note that webcast questions will be answered after the call. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Matthias Aellig, Group CEO of Swiss Life. Please go ahead, sir.

Operator: Ladies and gentlemen, welcome to the Swiss Life presentation of the half-year results 2026 conference call and live webcast. I am Moira, the Chorus Call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. Webcast viewers may submit their questions or comments in writing via the relative field. Kindly note that webcast questions will be answered after the call. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Matthias Aellig, Group CEO of Swiss Life. Please go ahead, sir.

Speaker #1: Ladies and gentlemen, welcome to the Swiss Life presentation of the half-year results 2026 conference call and live webcast. I am Moira DiCarus, your call operator.

Speaker #1: I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session.

Speaker #1: You can register for questions at any time by pressing the star and 1 on your telephone. Webcast viewers may submit their questions or comments in writing via the relevant field.

Speaker #1: Kindly note that webcast questions will be answered after the call. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast.

Speaker #1: At this time, it's my pleasure to hand over to Matthias Aellig, Group CEO of Swiss Life. Please go ahead, sir.

Speaker #2: Dear analysts and investors, good morning. Thank you for joining us, and welcome to our half-year 2026 conference call. I will give you a brief overview before handing over to our CFO, Marco Gerussi.

Matthias Aellig: CEO, analysts and investors, good morning. Thank you for joining us, and welcome to our H1 2026 conference call. I will give you a brief overview before handing over to our CFO, Marco Gerussi. I am pleased with the operational performance and with what we have achieved in the H1 of the year. We grew the fee income and the fee result across all businesses, meaning Asset Managers, IFAs, and the unit-linked business. We grew the insurance business, its operating result, and the contractual service margin. Our strong results show the great commitment of our employees and advisors. I would like to thank all of them for their strong engagement and our customers for their continued trust and loyalty. Let me provide some more color on our performance in the H1 of 2026. The fee result amounted to CHF 430 million, 11% above the prior year period.

Matthias Aellig: CEO, analysts and investors, good morning. Thank you for joining us, and welcome to our half-year 2026 conference call. I will give you a brief overview before handing over to our CFO, Marco Gerussi. I am pleased with the operational performance, and with what we have achieved in H1 of the year. We grew the fee income and the fee result across all businesses, meaning Asset Managers, IFAs, and the unit-linked business. We grew the insurance business, its operating result, and the contractual service margin.

Speaker #2: I'm pleased with the operational performance and with what we have achieved in the first half of the year. We grew the fee income and the fee result across all businesses.

Speaker #2: Meaning asset managers, IFAs, and the unit-linked business. We grew the insurance business, its operating result, and the contractual service margin. Our strong results show the great commitment of our employees and advisors.

Matthias Aellig: Our strong results show the great commitment of our employees and advisors. I would like to thank all of them for their strong engagement and our customers for their continued trust and loyalty. Let me provide some more color on our performance in the H1 of 2026. The fee result amounted to CHF 430 million, 11% above the prior year period.

Speaker #2: I would like to thank all of them for their strong engagement, and our customers for their continued trust and loyalty. Let me provide some more color on our performance in the first half of 2026.

Speaker #2: The fee result amounted to $430 million, 11% above the prior-year period. The growth has broad pace and includes a gain from the transfer of the international network to a partner earlier this year.

Matthias Aellig: The growth is broad-based and includes a gain from the transfer of the international network to a partner earlier this year. Profit from operations increased by 8% in local currency to CHF 967 million. Net profit was also up 8% to CHF 649 million despite a higher tax rate. Return on equity was at 20.2%. Cash remittance to the holding company was CHF 1.2 billion, up 5% year on year. As previously announced, the acquisition of the Thales Group was successfully completed on 1 July 2026. This means that Thales will be reflected in the figures starting in the H2 of the year. Let me move on to Swiss Life 2027. We are in the middle of our three-year strategic program and are highly committed to execute it with discipline. We are well on track to deliver all our strategic actions and achieve all our financial ambitions.

Speaker #2: Profit from operations increased by 8% in local currency to CHF 967 million. Net profit was also up 8% to CHF 649 million, despite a higher tax rate.

Speaker #2: The return on equity was at 20.2%. Cash remittance to the holding company was CHF 1.2 billion, up 5% year on year. As previously announced, the acquisition of the Taylor's Group was successfully completed on 1 July 2026.

Matthias Aellig: As previously announced, the acquisition of the Thales Group was successfully completed on 1 July 2026. This means that Thales will be reflected in the figures starting in the H2 of the year. Let me move on to Swiss Life 2027. We are in the middle of our three-year strategic program and are highly committed to execute it with discipline. We are well on track to deliver all our strategic actions and achieve all our financial ambitions.

Speaker #2: This means that Taylor's will be reflected in the figures starting in the second half of the year. Let me move on to Swiss Life 2027.

Speaker #2: We are in the middle of our three-year strategic program and are highly committed to executing with discipline. We are well on track to deliver all our strategic actions and achieve all our financial ambitions.

Speaker #2: In May 2026, we completed our $750 million share buyback. We are pleased to announce today a new buyback of $250 million, which runs from October 2026 to March 2027.

Matthias Aellig: In May 2026, we completed our CHF 750 million share buyback, and we are pleased to announce today a new buyback of CHF 250 million, which runs from October 2026 to March 2027. Looking beyond our 2027 program. We aim to further expand our business profitably, exploit market opportunities, and increase operational efficiency, among others, by leveraging the advancing digitalization. This also includes a reduction of around 600 positions by the end of 2028, largely through natural attrition. Roughly half of the positions are at Swiss Life in Switzerland and half at Swiss Life Asset Managers, mainly abroad. This measure is expected to generate annual cost savings of around CHF 150 million in 2029 and beyond. With that, I hand over to Marco, who will provide more details on the half-year financial results and the Swiss Life 2027 progress reporting.

Speaker #2: Looking beyond our 2027 program, we aim to further expand our business profitably, exploit market opportunities, and increase operational efficiency, among others, by leveraging the advancing digitalization.

Speaker #2: This also includes a reduction of around 600 positions by the end of 2028, largely through natural attrition. Roughly half of the positions are at Swiss Life in Switzerland, and half at Swiss Life Asset Managers, mainly abroad.

Matthias Aellig: Roughly half of the positions are at Swiss Life in Switzerland and half at Swiss Life Asset Managers, mainly abroad. This measure is expected to generate annual cost savings of around CHF 150 million in 2029 and beyond. With that, I hand over to Marco, who will provide more details on the half-year financial results and the Swiss Life 2027 progress reporting.

Speaker #2: This measure is expected to generate annual cost savings of around $150 million in 2029 and beyond. With that, I hand over to Marco, who will provide more details on the half-year financial results and the Swiss Life 2027 progress reporting.

Speaker #3: Thank you, Matthias, and good morning, ladies and gentlemen. Let me continue today's presentation by taking a closer look at our 2026 half-year results. We begin with the selected P&L figures shown on slide 6.

Marco Gerussi: Thank you, Matthias, and good morning, ladies and gentlemen. Let me continue today's presentation by taking a closer look at our 2026 H1 results. We begin with the selected P&L figures shown on slide 6. Insurance revenue was stable at CHF 4.5 billion. Higher CSM release of CHF 617 million and high revenue contributions from Switzerland and Germany were largely offset by FX translation effects. Insurance service expenses were stable at CHF 3.8 billion. Higher expenses in line with business growth were offset by favorable FX effects. The net investment result increased to CHF 290 million. As a reminder, this is an IFRS 17 accounting figure, which includes various items. In view of our investment performance, we continue to focus on the net investment income, which we will discuss later.

Speaker #3: Insurance revenue was stable at $4.5 billion. Higher CSM release of $617 million and higher revenue contributions from Switzerland and Germany were largely offset by FX translation effects.

Speaker #3: Insurance service expenses were stable at $3.8 billion. Higher expenses in line with business growth were offset by favorable FX effects. The net investment result increased to $290 million, as a reminder.

Speaker #3: This is an IFRS 17 accounting figure, which includes various items. In view of our investment performance, we continue to focus on net investment income, which we will discuss later.

Speaker #3: Profit from operations increased by 8% in local currency to $967 million, driven by both a higher fee result and higher business. Borrowing costs decreased to $75 million, primarily due to some double carry expenses in the prior year period.

Marco Gerussi: Profit from operations increased by 8% in local currency to CHF 967 million, driven by both a higher fee result and a higher operating result from insurance business. Borrowing costs decreased to CHF 75 million, primarily due to some double carry expenses in the prior year period. Income tax expense increased to CHF 243 million, mainly due to the step-up in the corporate tax rate for large corporates in France and a higher taxable profit base. Net profit increased to CHF 649 million, up 9% in local currency despite the higher tax rate. As shown on the slide, profit from operations and net profit include a gain from the transfer of the network business in international to a partner earlier this year, amounting to CHF 29 million and CHF 23 million, respectively. Turning now to further selected figures.

Speaker #3: Income tax expense increased to $243 million, mainly due to the step-up in the corporate tax rate for large corporates in France and a higher taxable profit base.

Speaker #3: Net profit increased to $649 million, up 9% in local currency despite a higher tax rate. As shown on the slide, profit from operations and net profit include a gain from the transfer of the network business in International to a partner earlier this year, amounting to $29 million and $23 million, respectively.

Speaker #3: Turning now to further selected figures. Gross written premiums, fees, and deposits received increased by 3% in local currency to $12.3 billion, supported by strong growth in Switzerland.

Marco Gerussi: Gross written premiums, fees, and deposits received increased by 3% in local currency to CHF 12.3 billion, supported by strong growth in Switzerland. Fee and commission income increased by 7% in local currency to CHF 1.3 billion. Growth was achieved across all businesses, meaning Asset Managers, owned IFAs, and owned and third-party products and services. The net investment income of the insurance portfolio for own risk strongly increased from CHF 1.6 billion to CHF 2.4 billion, driven by equities, infrastructure, and FX hedging effects. Operating expenses, excluding variable expenses, slightly increased to CHF 1 billion, including investments in growing fee businesses and expenses related to efficiency measures. I will now move on to our segment reporting, starting with Switzerland. Premiums increased by 7% to CHF 6.8 billion, whereas the life insurance market was flat. Premiums in group life increased by 7%, while the market was down by 2%.

Speaker #3: Fee and commission income increased by 7% in local currency to $1.3 billion. Growth was achieved across all businesses—meaning asset managers, owned IFAs, and own and third-party products and services.

Speaker #3: The net investment income of the insurance portfolio for own risk strongly increased from $1.6 billion to $2.4 billion, driven by equities, infrastructure, and FX hedging effects.

Speaker #3: Operating expenses excluding variable expenses slightly increased to $1 billion, including investments in growing fee businesses and expenses related to efficiency measures. I will now move on to our segment reporting, starting with Switzerland.

Marco Gerussi: Operating expenses, excluding variable expenses, slightly increased to CHF 1 billion, including investments in growing fee businesses and expenses related to efficiency measures. I will now move on to our segment reporting, starting with Switzerland. Premiums increased by 7% to CHF 6.8 billion, whereas the life insurance market was flat. Premiums in group life increased by 7%, while the market was down by 2%.

Speaker #3: Premiums increased by 7% to $6.8 billion, whereas the life insurance market was flat. Premiums in group life increased by 7%, while the market was down by 2%.

Speaker #3: Single premiums grew by 16%, driven by higher premiums from existing clients and new business. Periodic premiums decreased by 1%. Assets under management in our semi-autonomous foundations increased to $8.6 billion from $8.4 billion at year-end 2025.

Marco Gerussi: Single premiums grew by 16%, driven by higher premiums from existing clients and new business. Periodic premiums decreased by 1%. Assets under management in our semi-autonomous foundations increased to CHF 8.6 billion from CHF 8.4 billion at year-end 2025. Premiums in individual life increased by 7%. The market increased by 5%. Our growth is the result of higher unit-linked single premiums up 20% year-on-year, while periodic premiums were down 1%. Fee and commission income was up by 11% to CHF 196 million, mainly due to higher income from unit-linked business and from investment solutions for private clients. The segment result increased by 2% to CHF 469 million due to a higher operating result from insurance business. A higher CSM release in the individual life business is partly offset by lower income from assets not backing insurance liabilities. The fee result was flat at CHF 27 million.

Speaker #3: Premiums in individual life increased by 7%. The market increased by 5%. Our growth is the result of higher unit-linked single premiums, up 20% year on year, while periodic premiums were down 1%.

Speaker #3: Fee and commission income was up by 11% to $196 million, mainly due to higher income from unit-linked business and from investment solutions for private clients.

Marco Gerussi: Fee and commission income was up by 11% to CHF 196 million, mainly due to higher income from unit-linked business and from investment solutions for private clients. The segment result increased by 2% to CHF 469 million due to a higher operating result from insurance business. A higher CSM release in the individual life business is partly offset by lower income from assets not backing insurance liabilities. The fee result was flat at CHF 27 million.

Speaker #3: The segment result increased by 2% to $469 million due to a higher operating result from the insurance business. A higher CSM release in the individual life business was partly offset by lower income from assets not backing insurance liabilities.

Speaker #3: The fee result was flat at $27 million. Higher income was offset by investments in continued growth initiatives, such as investment solutions for private clients, which we mentioned in previous disclosures.

Marco Gerussi: Higher income was offset by investments in continuous growth initiatives, such as investment solutions for private clients, which we mentioned in previous disclosures. Cash remittance was slightly lower at CHF 602 million, in line with the statutory profit in 2025. Turning now to France. Please note that all figures quoted are in euros for our French, German, and international segments. France premiums were flat at EUR 4 billion, while the total market was up by 9%. In our life business, premiums grew by 2%, driven by the pension and protection business. The overall market grew by 10%. Unit-linked share in our life premiums increased to 73% compared to the market average of 39%, reflecting our focus on unit-linked solutions. Overall, we generated life net inflows of EUR 1.2 billion. Total market net inflows were EUR 36.5 billion.

Speaker #3: Cash remittance was slightly lower at $602 million, in line with the statutory profit in 2025. Turning now to France, please note that all figures quoted are in euros for our French, German, and International segments.

Speaker #3: In France, premiums were flat at $4 billion, while the total market was up by 9%. In our life business, premiums grew by 2%, driven by the pension and protection business.

Speaker #3: The overall market grew by 10%. The unit-linked share in our life premiums increased to 73% compared to the market average of 39%, reflecting our focus on unit-linked solutions.

Speaker #3: Overall, we generated life net inflows of $1.2 billion. Total market net inflows were $36.5 billion. In Health and Protection, our focus on profitability before growth resulted in a 5% decline in premiums; the market was up by 6%.

Marco Gerussi: In health and protection, our focus on profitability before growth resulted in 5% decline in premiums. The market was up by 6%. P&C premiums were flat. Fee and commission income rose significantly by 14% to EUR 336 million due to a higher unit-linked fee income based on higher average unit-linked reserves. The contribution from structured products also increased. The segment results grew by 9% to EUR 228 million. Fee result was up by 10% to EUR 117 million due to the unit-linked business. As mentioned in previous disclosures, the segment results contribution from structured products continues to be largely reflected in our operating results in insurance business, where it emerges over time. The operating result from insurance business was up by 8% to EUR 111 million, supported by the contribution from the health and protection business.

Speaker #3: P&C premiums were flat. Fee and commission income rose significantly by 14% to $336 million, due to higher unit-linked fee income based on higher average unit-linked reserves.

Speaker #3: The contribution from structured products also increased. The segment result grew by 9% to $228 million. The fee result was up by 10% to $117 million, due to the unit-linked business.

Speaker #3: As mentioned in previous disclosures, the segment result contribution from structured products continues to be largely reflected in our operating result in the insurance business, where it emerges over time.

Speaker #3: The operating result from insurance business was up by 8% to $111 million, supported by the contribution from the health and protection business. Cash remittance decreased by 12% to $160 million due to the step-up in the corporate tax rate in France impacting the 2025 statutory profit.

Marco Gerussi: Cash remittance decreased by 12% to EUR 160 million due to the step-up in the corporate tax rate in France impacting the 2025 statutory profit. Moving on to Germany. Premiums were up by 3% to EUR 777 million, driven by higher periodic and single premiums. The market was down by 4% due to lower single premiums. Fee and commission income increased by 10% to EUR 465 million driven by our own IFAs. The number of financial advisors increased to around 6,300, 5% higher compared to the prior year period. Our insurance business also contributed positively. The segment result was up by 4% to EUR 125 million. The fee result increased by 6% to EUR 85 million, driven by owned IFAs despite an increase of the commission ratio and continued investments in the back office digitalization. Operating results from insurance business was stable.

Speaker #3: Moving on to Germany. Premiums are up by 3% to $777 million, driven by higher periodic and single premiums. The market was down by 4% due to lower single premiums.

Speaker #3: Fee and commission income increased by 10% to $465 million, driven by our owned IFAs. The number of financial advisors increased to around 6,300, which is 5% higher compared to the prior-year period.

Speaker #3: Our insurance business also contributed positively. The segment result was up by 4% to $125 million. The fee result increased by 6% to $85 million, driven by owned IFAs, despite an increase in the commission ratio and continued investments in back-office digitalization.

Marco Gerussi: Our insurance business also contributed positively. The segment result was up by 4% to EUR 125 million. The fee result increased by 6% to EUR 85 million, driven by owned IFAs despite an increase of the commission ratio and continued investments in the back office digitalization. Operating results from insurance business was stable.

Speaker #3: Operating result from the insurance business was stable. Cash remittance increased to $166 million and includes a special dividend of $60 million, resulting from a legal structure optimization.

Marco Gerussi: Cash remittance increased to EUR 166 million and includes a special dividend of EUR 60 million resulting from a legal structure optimization. As previously announced, the closing of the acquisition of the Thales Group was successfully completed on 1 July 2026, and Thales is therefore not reflected in the 2026 H1 figures. Turning now to the international segment. Premiums decreased by 8% to EUR 1.3 billion. Premiums from corporate clients increased by 3%, more than offset by lower premiums from the private client business. Fee and commission income was stable at EUR 190 million. Higher income from owned IFAs, mainly in the UK, was offset by the network business transferred to Generali earlier this year. The segment result rose by 43% to EUR 92 million. This is largely due to a gain of EUR 32 million in the fee result from the mentioned transfer. Please note that the gain is a non-cash item.

Speaker #3: As previously announced, the closing of the acquisition of the Taylor's group was successfully completed on 1 July 2026, and Taylor's is therefore not reflected in the 2026 half-year figures.

Speaker #3: Turning now to the international segment. Premiums decreased by 8% to $1.3 billion. Premiums from corporate clients increased by 3%, more than offset by lower premiums from the private client business.

Speaker #3: Fee and commission income was stable at $190 million. Higher income from owned IFAs, mainly in the UK, was offset by the network business transferred to Generali earlier this year.

Marco Gerussi: Fee and commission income was stable at EUR 190 million. Higher income from owned IFAs, mainly in the UK, was offset by the network business transferred to Generali earlier this year. The segment result rose by 43% to EUR 92 million. This is largely due to a gain of EUR 32 million in the fee result from the mentioned transfer. Please note that the gain is a non-cash item.

Speaker #3: The segment result rose by 43% to $92 billion. This is largely due to a gain of $32 million in the fee result from the mentioned transfer.

Speaker #3: Please note that the gain is a non-cash item. The related cash proceeds are expected over the coming years, starting from 2027. The operating result for the insurance business increased by 11% to $20 million, driven by corporate clients.

Marco Gerussi: The related cash proceeds are expected over the coming years, starting from 2027. The operating result insurance business increased by 11% to CHF 20 million, driven by corporate clients. Cash remittance was up by 16% to CHF 70 million due to the 2025 statutory profit. Let's move on now to our Asset Managers, which reports in Swiss francs. Asset Managers total income increased by 5% to CHF 519 million, driven by both PAM and TPAM. In PAM, total income grew by 5%, mainly reflecting higher non-recurring income from real estate transactions. In the TPAM business, total income increased by 4% to CHF 339 million. Recurring income across all asset classes grew strongly by 7%. Non-recurring commission income also increased. This is partly offset by lower other net income from real estate project developments.

Speaker #3: Cash remittance was up by 16% to $70 million due to the 2025 statutory profit. Let's move on now to our asset managers, which report in Swiss francs.

Speaker #3: Asset managers' total income increased by 5% to $519 million, driven by both PAM and TPAM. In PAM, total income grew by 5%, mainly reflecting higher non-recurring income from real estate transactions.

Speaker #3: In the TPAM business, total income increased by 4% to $339 million. Recurring income across all asset classes grew strongly by 7%. Non-recurring commission income also increased.

Speaker #3: This is partly offset by lower other net income from real estate project developments. The total non-recurring income had essentially zero non-cash items compared to a share of three-quarters non-cash components in the prior year.

Marco Gerussi: The total non-recurring income had essentially zero non-cash items compared to a share of three quarters non-cash components in the prior year. The share of total non-recurring income for TPAM, meaning commission income and net income from real estate project development was 11% compared to 14% in the prior year period. As mentioned at our full year result disclosure, for each year, 2026 and 2027, we expect to achieve a share of around 25%, which is in line with our Swiss Life 2027 targets. The segment results increased by 4% to CHF 152 million. The contribution from PAM increased by 6% to CHF 101 million, driven by the higher income. The TPAM contribution increased by 2% to CHF 51 million. Higher commission income was partly offset by lower income from real estate project development and expenses related to efficiency measures.

Speaker #3: The share of total non-recurring income for TPAM, meaning commission income and net income from real estate project development, was 11% compared to 14% in the prior year period.

Speaker #3: As mentioned in our full-year result disclosure, for each year 2026 and 2027, we expect to achieve a share of around 25%, which is in line with our Swiss Life 2027 targets.

Speaker #3: The segment result increased by 4% to $152 million. The contribution from PAM increased by 6% to $101 million, driven by higher income. The TPAM contribution increased by 2% to $51 million.

Marco Gerussi: The segment results increased by 4% to CHF 152 million. The contribution from PAM increased by 6% to CHF 101 million, driven by the higher income. The TPAM contribution increased by 2% to CHF 51 million. Higher commission income was partly offset by lower income from real estate project development and expenses related to efficiency measures.

Speaker #3: Higher commission income was partly offset by lower income from real estate project development and expenses related to efficiency measures. The TPAM cost income ratio stands at 72%, compared to 82% in the prior year period, driven by higher commission income.

Marco Gerussi: The TPAM cost income ratio stands at 72% compared to 82% in the prior year period, driven by a higher commission income. Cash remittance decreased by 3% to CHF 232 million, in line with the lower 2025 statutory profit. Net new assets in our TPAM business amounted to CHF 7.2 billion in the H1 2026, compared to CHF 13.2 billion in the prior year period. We saw continued strong inflows with real assets contributing CHF 1.4 billion. The rest of inflows are mainly driven by equity and money markets. Assets under management in our TPAM business increased from CHF 146 billion at year-end 2025 to CHF 158 billion, driven by positive net inflows and performance. Let's move back to the group. Operating expenses increased by 2% in local currency to CHF 1 billion, reflecting growth, continued investments in business growth, and expenses related to efficiency measures.

Speaker #3: Cash remittance decreased by 3% to $232 million, in line with the lower 2025 statutory profits. Net new assets in our TPAM business amounted to $7.2 billion in the first half of 2026, compared to $13.2 billion in the prior year period.

Speaker #3: We saw continued strong inflows, with real assets contributing $1.4 billion. The rest of the inflows were mainly driven by equity and money markets. Assets under management in our TPAM business increased from $146 billion at year-end 2025 to $158 billion, driven by positive net inflows and performance.

Marco Gerussi: Assets under management in our TPAM business increased from CHF 146 billion at year-end 2025 to CHF 158 billion, driven by positive net inflows and performance. Let's move back to the group. Operating expenses increased by 2% in local currency to CHF 1 billion, reflecting growth, continued investments in business growth, and expenses related to efficiency measures.

Speaker #3: Let's move back to the group. Operating expenses increased by 2% in local currency to $1 billion, reflecting continued investments in business growth and expenses related to efficiency measures.

Speaker #3: As outlined at our Investor Day 2024, we aim to keep Life absolute costs stable by 2027 at three-quarters of a billion. For the half-year 2026, Life absolute costs amounted to $355 million and were slightly below the prior-year level.

Marco Gerussi: As outlined at our Investor Day 2024, we aim to keep Life absolute costs stable by 2027 at three-quarter of a billion. For the H1 2026, Life absolute cost amounted to CHF 355 million and were slightly below the prior year level. With that, we are well on track with our 2027 target. Coming to the investment income. Direct investment income was at CHF 2 billion. The reduction was due to lower income from infrastructure and FX rate movements, and real estate income was down primarily due to a lower asset base. The non-annualized direct investment yield was at 1.4% compared to 1.5% in the prior year period. The net investment income strongly increased to CHF 2.4 billion due to net capital gains driven by equities, infrastructure, and FX hedging effects. The net investment yield was up to 1.7% compared to 1.2% in the prior year period.

Speaker #3: With that, we are well on track with our 2027 target. Coming to the investment income, direct investment income was at $2 billion. The reduction was due to lower income from infrastructure and FX rate movements.

Speaker #3: And real estate income was down primarily due to a lower asset base. The non-annualized direct investment yield was at 1.4% compared to 1.5% in the prior year period.

Marco Gerussi: The non-annualized direct investment yield was at 1.4% compared to 1.5% in the prior year period. The net investment income strongly increased to CHF 2.4 billion due to net capital gains driven by equities, infrastructure, and FX hedging effects. The net investment yield was up to 1.7% compared to 1.2% in the prior year period.

Speaker #3: The net investment income strongly increased to $2.4 billion due to net capital gains driven by equities, infrastructure, and FX hedging effects. The net investment yield was up to 1.7%, compared to 1.2% in the prior-year period.

Speaker #3: Let us continue with our insurance investment portfolio on slide 15. Assets under management remain stable at $143 billion compared to year-end 2025. Real estate fair value changes were positive at around 0.4%, driven by our Swiss real estate portfolio, partly offset by lower fair values outside of Switzerland.

Marco Gerussi: Let us continue with our insurance investment portfolio on slide 15. Assets under management remain stable at CHF 143 billion compared to year-end 2025. Real estate fair value changes were positive at around 0.4%, driven by our Swiss real estate portfolio, partly offset by lower fair values outside of Switzerland. For the full year, we expect overall positive fair value changes to double compared to the current level. Real estate continues to be an attractive and important asset class for backing our long-dated liabilities in the context of our disciplined asset and liability management. We hold real estate because of the regular rental income it provides and not because of appreciation. Vacancy rates were lower at 2.8% compared to 3.1% at year-end 2025. Moving on to insurance reserves on slide 16. Insurance reserves increased 1% in local currency to CHF 183 billion compared to year-end 2025.

Speaker #3: For the full year, we expect overall positive fair value changes to double compared to the current level. Real estate continues to be an attractive and important asset class for backing our long-dated liabilities in the context of our disciplined asset and liability management.

Speaker #3: We hold real estate because of the regular rental income it provides and not because of appreciation. Vacancy rates were lower at 2.8%, compared to 3.1% at year-end 2025.

Marco Gerussi: We hold real estate because of the regular rental income it provides and not because of appreciation. Vacancy rates were lower at 2.8% compared to 3.1% at year-end 2025. Moving on to insurance reserves on slide 16. Insurance reserves increased 1% in local currency to CHF 183 billion compared to year-end 2025.

Speaker #3: Moving on to insurance reserves on slide 16. Insurance reserves increased 1% in local currency to $183 billion compared to year-end 2025. On a statutory basis, in total, we released about $0.15 billion of statutory reserves in the Swiss group and individual life businesses, as we did in the previous years.

Marco Gerussi: On a statutory basis, in total, we released about CHF 0.15 billion of statutory reserves in the Swiss group and individual Life businesses as we did in the previous years. Moving on to the CSM development. As outlined at our Investor Day 2024, our ambition is to increase the CSM through operating growth. In H1 2026, this growth amounted to CHF 0.2 billion. Expected business contribution and new business together amounted to CHF 0.7 billion. We generated another CHF 0.1 billion in experience adjustments, mainly from work on our portfolio. CSM release increased to CHF 0.1 billion. The pre-tax CSM release ratio was at 7.6% and therefore slightly lower than in the prior year period. In total, the CSM after release, representing future shareholder profit contribution, grew from CHF 15.3 billion at year-end 2025 to CHF 15.6 billion at H1 2026.

Speaker #3: Moving on to the CSM development. As outlined at our Investor Day 2024, our ambition is to increase the CSM through operating growth. In the first half of 2026, this growth amounted to $0.2 billion.

Speaker #3: Expected business contribution and new business together amounted to $0.7 billion. We generated another $0.1 billion in experience adjustments, mainly from work on our portfolio.

Marco Gerussi: We generated another CHF 0.1 billion in experience adjustments, mainly from work on our portfolio. CSM release increased to CHF 0.1 billion. The pre-tax CSM release ratio was at 7.6% and therefore slightly lower than in the prior year period. In total, the CSM after release, representing future shareholder profit contribution, grew from CHF 15.3 billion at year-end 2025 to CHF 15.6 billion at H1 2026.

Speaker #3: CSM release increased to $0.1 billion. The pre-tax CSM release ratio was at 7.6%, and therefore slightly lower than in the prior-year period. In total, the CSM after release, representing future shareholder profit contribution, grew from $15.3 billion at year-end 2025 to $15.6 billion at half-year 2026.

Speaker #3: Shareholders' equity decreased to $6.3 billion, largely due to the dividend payments and the completed share buyback, partly offset by the profit for the first half of the year.

Marco Gerussi: Shareholders' equity decreased to CHF 6.3 billion, largely due to the dividend payments and the completed share buyback, partly offset by the profit for H1 of the year. Our total outstanding financing instruments amounted to CHF 6.2 billion. The leverage ratio stood at 25% for H1 2026 at the midpoint of our reverence level of 20% to 30%. The SST ratio is estimated to be around 215% at the end of June 2026, and with that well above the ambition range of 140% to 190%. Compared with the SST ratio at 213% at the end of 2025, the ratio increased, reflecting the positive performance of equity and real estate markets, partly offset by the widening of the interest rate differential between Swiss franc and the USD. That brings me to our Swiss Life 2027 program and the progress reporting.

Speaker #3: Our total outstanding financing instruments amounted to $6.2 billion. The leverage ratio stood at 25% for the half-year 2026, at the midpoint of our reference level of 20 to 30%.

Speaker #3: The SST ratio was estimated to be around 215% at the end of June 2026, and with that, well above the ambition range of 140% to 190%.

Speaker #3: Compared with the SST ratio at 213% at the end of 2025, the ratio increased, reflecting the positive performance of equity and real estate markets, partly offset by the widening of the interest rate differential between the Swiss franc and the US dollar.

Marco Gerussi: Compared with the SST ratio at 213% at the end of 2025, the ratio increased, reflecting the positive performance of equity and real estate markets, partly offset by the widening of the interest rate differential between Swiss franc and the USD. That brings me to our Swiss Life 2027 program and the progress reporting.

Speaker #3: That brings me to our Swiss Life 2027 program and the progress reporting. As mentioned by Matthias, we are well on track to achieve all our 2027 financial targets.

Marco Gerussi: As mentioned by Matthias, we are well on track to achieve all our 2027 financial targets. Let's go through the details, and we will start with the fee income on slide 22. Fee and commission income increased by 7% in local currency to EUR 1.3 billion. Own and third-party products and services were up 9%, and both our owned IFAs, as well as asset managers, grew by 8%. Profit from operations was up by 8% in local currency to EUR 967 million as a result of growth in both the fee result and the operating result insurance business. The fee result includes the gain from the transfer network business in our international division. The operating results from insurance business increased by 4% in local currency to EUR 600 million. The main drivers were the higher CSM release, as well as higher additional contributions, primarily driven by the French health and protection business.

Speaker #3: Let's go through the details, and we will start with the fee income on slide 22. Fee and commission income increased by 7% in local currency to $1.3 billion.

Speaker #3: Own and third-party products and services were up 9%, and both our owned IFAs as well as asset managers grew by 8%. Profit from operations was up by 8% in local currency to $967 million as a result of growth in both the fee result and the operating result insurance business.

Speaker #3: The fee result includes the gain from the transferred network business in our International division. The operating result from the insurance business increased by 4% in local currency to $600 million.

Marco Gerussi: The fee result includes the gain from the transfer network business in our international division. The operating results from insurance business increased by 4% in local currency to EUR 600 million. The main drivers were the higher CSM release, as well as higher additional contributions, primarily driven by the French health and protection business.

Speaker #3: The main drivers were the higher CSM release, as well as higher additional contributions, primarily driven by the French Health and Protection business. The return on equity was at 20.2% on an annualized basis, compared to 17.6% in the prior year period.

Marco Gerussi: The return on equity was at 20.2% on an annualized basis compared to 17.6% in the prior year period. Turning to capital and cash. Cash remittance to the holding company increased by 5% to CHF 1.2 billion, which includes a special dividend in Germany. At the end of June 2026, liquidity at holding amounted to around CHF 1.1 billion. Today, liquidity at holding stands at around CHF 0.65 billion, reflecting the EUR 500 million senior bonds issued for the tecis purchase price payment and business growth. Our share buyback, which we started in December 2024, was completed in May 2026. The repurchased shares were CHF 750 million. We are pleased to announce today a new share buyback program of CHF 250 million. We will start repurchasing shares on 1 October 2026 and expect to complete the share buyback by the end of March 2027.

Speaker #3: Turning to capital and cash. Cash remittance to the holding company increased by 5% to $1.2 billion, which includes the mentioned special dividend in Germany.

Speaker #3: At the end of June 2026, liquidity at holding amounted to around $1.1 billion. Today, liquidity at holding stands at around $0.65 billion, reflecting the $500 million euro senior bond issued for the Telis purchase price payment and business growth.

Speaker #3: Our share buyback, which we started in December 2024, was completed in May 2026. We repurchased shares worth $750 million, and we are pleased to announce today a new share buyback program of $250 million.

Marco Gerussi: Our share buyback, which we started in December 2024, was completed in May 2026. The repurchased shares were CHF 750 million. We are pleased to announce today a new share buyback program of CHF 250 million. We will start repurchasing shares on 1 October 2026 and expect to complete the share buyback by the end of March 2027.

Speaker #3: We will start repurchasing shares on the 1st of October 2026 and expect to complete the share buyback by the end of March 2027. The buyback will be executed by a partner bank through a second trading line over the course of six months.

Marco Gerussi: The buyback will be executed by a partner bank through a second trading line over the course of six months. Shares repurchased under this program will be proposed for cancellation to the upcoming AGM. Now to the financing. More than half of the share buyback will be financed from cash at holding. The remaining part is financed from repatriations. Let me summarize. In the H1 2026, we achieved strong growth in premiums as well as in fee and commission income. Fee result, operating profits from insurance and our net profits all increased significantly. Return on equity is on a high level, cash remittance is on track, and our SST ratio is well above our ambition level. Looking at our Swiss Life 2027 program, all our financial targets are well on track. Today, we announced a new share buyback.

Speaker #3: Shares repurchased under this program will be proposed for cancellation at the upcoming AGM. Now, to the financing. More than half of the share buyback will be financed from cash at holding.

Speaker #3: The remaining part is financed from repatriations. Let me summarize. In the first half of 2026, we achieved strong growth in premiums as well as in fee and commission income.

Speaker #3: Fee result, operating profit from insurance, and our net profit all increased significantly. Return on equities is at a high level. Cash remittances are on track, and our SST ratio is well above our ambition level.

Marco Gerussi: Fee result, operating profits from insurance and our net profits all increased significantly. Return on equity is on a high level, cash remittance is on track, and our SST ratio is well above our ambition level. Looking at our Swiss Life 2027 program, all our financial targets are well on track. Today, we announced a new share buyback. We are convinced that with our determination, our diligence, and our discipline, we will achieve all our group financial targets. With that, I'm handing back to you, Matthias.

Speaker #3: Looking at our Swiss Life 2027 program, all our financial targets are well on track, and today we announced the new share buyback. We are convinced that, with our determination, our diligence, and our discipline, we will achieve all our group financial targets.

Marco Gerussi: We are convinced that with our determination, our diligence, and our discipline, we will achieve all our group financial targets. With that, I'm handing back to you, Matthias.

Speaker #3: And with that, I'm handing back to you, Matthias.

Speaker #1: Thank you, Marco. We will now open the Q&A session. Who would like to start?

Matthias Aellig: Thank you, Marco. We will now open the Q&A session. Who would like to start?

Speaker #2: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to mute all the handsets and eventually turn off the volume for the webcast. Webcast viewers may submit their questions or comments in writing via the relative field. Kindly note that webcast questions will be answered after the call. Anyone who has a question may press star and one at this time. The first question comes from the line of Michael Huttner from Berenberg. Please go ahead.

Speaker #2: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two.

Speaker #2: Questioners on the phone are requested to use only the handset and to eventually turn off the volume from the webcast. Webcast viewers may submit their questions or comments in writing via the relevant field.

Speaker #2: Kindly note that webcast questions will be answered after the call. Anyone who has a question may press star and one at this time. The first question comes from the line of Michael Hutner from Berenberg.

Speaker #2: Please go ahead.

Speaker #1: Fantastic. Thank you very much. And thank you, for—I spoke to some investors and I was thinking, okay, a solid plus result. So I was always hoping for more.

Michael Huttner: Fantastic. Thank you very much. Thank you for. I spoke to some investors, and I was thinking they are okay. A solid plus result, so I was always hoping for more. Three questions. One on tecis, one on the 600 and the other one on the fee and commission results. On tecis, can you remind us what the contribution will be in terms of revenues, in terms of operating profit? How do we factor in that in the earnings? You are also paying more interest on debt. The second question is on the 600 SG or position reduction. Can you give us a little bit of background on this? To me, it feels like you grew impatient and I am laughing, but it is not funny. I mean, these are real people, with the progress of the non-recurring outside of Switzerland.

Speaker #1: Three questions: one on Telis, one on the $600 million, and the other on the fee and commission results. On Telis, could you remind us what the contribution will be in terms of operating profit, and how we should factor that into the earnings, considering you are also paying more interest on debt?

Michael Huttner: The second question is on the 600 SG or position reduction. Can you give us a little bit of background on this? To me, it feels like you grew impatient and I am laughing, but it is not funny. I mean, these are real people, with the progress of the non-recurring outside of Switzerland.

Speaker #1: The second question is on the 600 FTE, or position reduction. Can you give us a little bit of background on this? To me, it feels like you grew impatient—and I'm laughing, but it's not funny.

Speaker #1: I mean you know these are real people with a progress of the non-recurring outside of Switzerland and you kind of said well if that's all you can do you know few of you can do it but I don't know it feels but and also the more precise question is have you already booked the restructuring costs and then the final on the fee result the $430 million now doing lots of maths and it's complete probably completely wrong I get to a run rate of $1.2 billion now you're going to say well this is nice so what I've done is I've taken the 11% off then doubled that and then added 25% now obviously I'm very optimistic but I just wondered whether you can give us the feel for the math compared to your one over $1 billion target.

Michael Huttner: You kind of said, "Well, if that is all you can do, a few of you can do it." I do not know. It feels. Also the more precise question is, have you already booked the restructuring cost? The final on the fee result, the EUR 430 million. Now, doing lots of math and it is probably completely wrong. I get to a run rate of EUR 1.2 billion there. You are going to say, "Well, this is nice." So what I have done is I have taken the 11% off, then doubled that and then added 25%. Obviously I am very optimistic. I just wondered whether you can give us the feel for the math, compared to your over EUR 1 billion target. Thank you.

Speaker #1: Thank you.

Speaker #3: Thank you. Michael, I hand over to Marco for the Telis question, and I will take the other two.

Matthias Aellig: Thank you, Michael. I hand over to Marco for the tecis question, and I will take the other twos.

Speaker #4: Good morning. On the Telis acquisition, overall, from a topline view—that’s what we said on the last call—we will add 1,800 advisors to our operating unit.

Marco Gerussi: Good morning. On the tecis acquisition overall, more from a top-line view. That is what we said at the last call. We will add 1,800 advisors to our operating unit. I think that is one part of the answer. From a result point of view, so the operating result, we said that it will be somewhere between EUR 25 million and EUR 30 million for an entire year. If we now account for that in the H2 of the year, obviously it is not the full number. It is more half of it.

Speaker #4: I think that's one part of the answer, and from a result point of view—so, the operating result—we said that it will be somewhere between 25 and 30 million for the entire year.

Speaker #4: So, if we now account for that in the second half of the year, obviously it's not the full number—it's more half of it.

Speaker #1: Excellent. Thank you.

Michael Huttner: Excellent. Thank you.

Speaker #3: And maybe adding on that, you know, that's clearly the positive. As we mentioned in Q1, we said that the purchase of Telis was financed largely by the $500 million bond that we issued, and there are obviously some financing costs to be taken against that fee result contribution that Marco just mentioned. In Q1, it was somewhere around 3.5% or something like that, to help you a bit on that.

Matthias Aellig: Maybe adding in that is clearly the positive. As we mentioned the Q1, we said that the purchase of tecis was financed largely by the EUR 500 million bond that we issued, and there are obviously some financing costs to be taken against that fee result contribution that Marco Gerussi just mentioned. The coupon was somewhere around 3.5% or something like that to help you based on that. On the 600 positions, to give you some background, and I think I mentioned it in my speech in the beginning. You have heard it from me, you have heard it from Marco Gerussi. We are well on the way with the current programs, Swiss Life 2027. We look today already beyond 2027, and we want to continue our success beyond 2027. That is why we want to continue to pursue growth opportunities, profitable growth opportunities. We want to increase our efficiency.

Speaker #3: Now, on the 600 positions—to give you some background, and I think I mentioned it in my speech in the beginning—I mean, you've heard it from me, you've heard it from Marco. We are well on the way with the current program, Swiss Life 2027. But we look today already beyond 2027, and we want to continue our success path beyond 2027, and that's why we want to continue to pursue growth opportunities, profitable growth opportunities. We want to increase our efficiency, and that's why we have now undertaken this cut. Most of that—and I think that's also important—of that reduction will be achieved by natural attrition. And out of those 600, we have until today already reduced 100 by using this natural attrition, by selective refilling of positions, and there will be another 100 positions that will be reduced until the end of 2026. And those that are affected by that, we will support on an individual basis to help them find new positions.

Matthias Aellig: On the 600 positions, to give you some background, and I think I mentioned it in my speech in the beginning. You have heard it from me, you have heard it from Marco Gerussi. We are well on the way with the current programs, Swiss Life 2027. We look today already beyond 2027, and we want to continue our success beyond 2027. That is why we want to continue to pursue growth opportunities, profitable growth opportunities. We want to increase our efficiency.

Matthias Aellig: That is why we have now undertaken this cut. Most of that, and I think that is also important, of that reduction will be achieved by natural attrition. Out of those 600, we have until today already reduced 100 by using this natural attrition by selective refilling of positions. There will be another 100 positions that will be reduced until the end of 2026. Those that are affected by that, we will support on an individual basis to help them find new positions. I think that is the background of it. In terms of restructuring costs, I think Marco Gerussi mentioned that in the half year we have incurred some efficiency-related expenses. I would say that is a high single-digit amount that we have incurred so far.

Speaker #3: So I think that's the background of it. In terms of restructuring costs I think Marco mentioned that in the half year we have incurred some efficiency related expenses I would say that's a high single digit amount that we have incurred so far for the full year we expect probably a bit more than doubling this amount and clearly there will be more to come relating to those efficiency gains in 2027 and 2028 and maybe to already give some indication there if we look now at 2027 and 2028 in aggregate say in aggregate the ramp up of the cost savings will essentially be as I said in aggregate be offset by expenses that are related to achieving those efficiencies.

Matthias Aellig: For the full year, we expect probably a bit more than doubling this amount, and clearly there will be more to come relating to those efficiency gains in 2027 and 2028. Maybe to already give some indication there, if we look now at 2027 and 2028 in aggregate. Say in aggregate, the ramp-up of the cost savings will essentially be, as I said, in aggregate, offset by expenses that are related to achieving those efficiencies. So expect this amount that I've also mentioned in the 150 million to be incurred as cost savings in 2029 and beyond on a recurring basis. To also expand on that, if we think about those 150, maybe a bit less than half of that will be incurred in Switzerland, subject to the policyholder sharing, and a bit more than half will be in the asset management division.

Speaker #3: So we expect this amount that I've also mentioned, and the $150 million, to be incurred as cost savings in 2029 and beyond on a recurring basis.

Speaker #3: And to also expand on that, if we think about those $150 million, maybe a bit less than half of that will be incurred in Switzerland, subject to the policyholder sharing, and a bit more than half will be in the Asset Management division.

Matthias Aellig: To also expand on that, if we think about those 150, maybe a bit less than half of that will be incurred in Switzerland, subject to the policyholder sharing, and a bit more than half will be in the asset management division.

Speaker #3: Maybe that's a kind of lengthy answer to the background of the $600 and the financial impact of that, and the question on the fee result that you've mentioned. Not sure whether I fully understood the math you have done, but I may offer kind of an alternative approach to think about it.

Matthias Aellig: Maybe that's a lengthy answer of the background of the 600 and the financial impact on that. The question on the fee result that you've mentioned, I'm not sure whether I fully understood the math you have done, but I may offer an alternative approach to think about it. Marco Gerussi said that we have had an 11% share in the H1 of non-recurring income. For the full year 2026, we confirm the guidance of a non-recurring income of around 25%. So that means for the full year, Asset Managers' segment result will obviously more than double, and that's something we have observed in prior years. Matthias Aellig, we talked about it, will also contribute in the H2. We also talked about international. This will obviously not double. We have had this one-off that is in there.

Speaker #3: You know, Marco said that we have had an 11% share in the half year of non-recurring income, and for the full year 2026 we confirm the guidance of a non-recurring income of around 25%.

Speaker #3: So, that means for the full year, the Asset Managers segment result will obviously more than double, and that's something we have observed in prior years.

Speaker #3: Telis, we talked about it—we also contribute in the second half of the year. We also talked about international; this will obviously not double. We have had this one-off that is in there, and as you know, in the other divisions we have some seasonality, so we would not expect full doubling, for example, in France or Germany. This may help you a bit going through the numbers for 2026.

Matthias Aellig: As you know, in the other divisions, we have some seasonality, so we would not expect a full doubling, for example, in France or Germany. This may help you a bit going through the numbers for 2026.

Speaker #1: Super. Thank you very, very much.

Michael Huttner: Super. Thank you very much.

Speaker #3: You're welcome.

Matthias Aellig: You are welcome.

Speaker #2: The next question comes from the line of Farouk Hanif from JP Morgan. Please go ahead.

Operator: The next question comes from the line of Farooq Hanif from JP Morgan. Please go ahead.

Speaker #1: Hi there, thanks for the opportunity. I just want to clarify my question for us. Did you say your cash at holding now post-June was 0.65 or 1.65?

Farooq Hanif: Hi there. Thanks for the opportunity. I just want to clarify before I ask my questions. Did you say your cash at holding now post-June was CHF 0.65 or CHF 1.65? I just wanted to check if I heard correctly. Then my question. Can you tell us a little bit more about the timing and phasing of buyback? Because normally in the past you have given us a longer period with a bigger buyback program, and you spread it over a longer period of time. This is obviously a six-month period that you are targeting for a 250 buyback. What is your expectation that you will come at full year with a new proposal and then at half year? Is that going to be the new mode? We are talking about the buyback. My second question is the really, really large jump in French non-life profit.

Speaker #1: I just wanted to check if I heard correctly, and then my question: can you tell us a little bit more about the timing and phasing of the buyback?

Speaker #1: Because normally in the past, you've given us a longer period with a bigger buyback program, and you spread it over a longer period of time.

Speaker #1: This is like a oh yeah obviously a six-month period. That you're targeting for a 250 buyback. What's your expectation that you will come at full year with a new proposal and then at half year?

Farooq Hanif: This is obviously a six-month period that you are targeting for a 250 buyback. What is your expectation that you will come at full year with a new proposal and then at half year? Is that going to be the new mode? We are talking about the buyback. My second question is the really, really large jump in French non-life profit.

Speaker #1: Is that going to be the new mode? We're talking about the buyback. My second question is the really, really large jump in French non-life profit.

Speaker #1: I mean, I think it's a record profit in H1 '26 compared to its history. So I just wanted to understand what's going on there, and whether there are any one-offs, or whether we're just seeing really good profit measures that you've put into place, which has obviously hit your premium.

Farooq Hanif: I think it is a record profit in H1 2026 compared to its history. I just wanted to understand what is going on there and whether there are any one-offs or whether we are just seeing really good profit measures that you have put into place, which has obviously hit your premium. My last question is, if we look at the non-recurring element of TPAM commission in H2, how much of this is likely to be cash? Thank you very much.

Speaker #1: And then my last question is, if we look at the non-recurring element of TPAM commission in the second half, how much of this is likely to be cash?

Speaker #1: Thank you very much.

Speaker #3: Thank you, Farouk. I think Marco will handle the cash question. I will take the buyback, and Marco will have the other two questions.

Matthias Aellig: Thank you, Farooq. I think Marco goes with the cash question. I will go for the buyback, and Marco will have the other two questions.

Speaker #1: So the first one, cash at holding level: I said 1.1 at half-year, and as of today, 0.65 after consideration of the €500 million Eurobond we issued.

Marco Gerussi: The first one, cash at holding level, I said 1.1 was at H1, and as of today, 0.65 after consideration of the EUR 500 million bond we issued. So EUR 0.65 cash is holding. Then on the French non-life business, I think here it is important to consider where we come from. This is, I would even call it now a turnaround situation we were in. Having really, let us say, weak results some years ago and putting a plan in place to get a recovery out of that. There is a lot of different measures on profitability to work on that. Over time, we are getting now better and better technical profitability, which now shows up in the result. That is a steep and a significant increase, which will be positive also for the way forward, but not to be expected just to continue like that.

Speaker #1: So, 0.65. Cash at holding. And then, on the French non-life business, I think here it is important to consider where we come from. So, this is—I would even call it now—a turnaround situation we were in.

Speaker #1: So, having really, let's say, weak results some years ago and putting a plan in place to get a recovery out of that—there are a lot of different measures on profitability to work on that. And over time, we're now getting better and better technical profitability, which now shows up in the result.

Marco Gerussi: Over time, we are getting now better and better technical profitability, which now shows up in the result. That is a steep and a significant increase, which will be positive also for the way forward, but not to be expected just to continue like that. This is basically the outcome of working on the profitability, technical profitability coming from a rather low level two or three years ago.

Speaker #1: I mean, that is a steep and significant increase, which will be positive also for the way forward, but it's not to be expected to just continue like that.

Speaker #1: But this is basically the outcome of working on the technical profitability, coming from a rather low level two or three years ago.

Marco Gerussi: This is basically the outcome of working on the profitability, technical profitability coming from a rather low level two or three years ago.

Speaker #3: You also went for the.

Matthias Aellig: You also on for the-

Speaker #1: I can on the first question. The non-recurring was full cash, so to say, compared to three-quarters non-cash in the full year 2025. And for the, let's say, remaining part of the year, we expect that to be, let's say, more balanced—more balanced between cash and non-cash components.

Marco Gerussi: Again, on the fourth question, the non-recurring income in H1. This was full cash, so to say, comparing to Q3 non-cash in the full year 2025. For the remaining part of the year, we expect it to be more balanced between cash and non-cash components. Should give you some of the items.

Speaker #1: That should give you some guidance.

Speaker #2: Can I ask one question on the French non-life? Is there a premium associated with this? I mean, is there a combined ratio or some metric that we can think about in terms of the margin that you're making there?

Farooq Hanif: Can I ask one question on the French non-life? Is there a premium associated with this? Is there a combined ratio or some metric that we can think about in terms of the margin that you are making there?

Speaker #1: Yeah, I mean, we have two businesses there, right? So, the P&C business there—we got a bit of a, let's say, increase of the ratio.

Marco Gerussi: Well, we have two businesses there, right? The P&C business there, we got a bit of an increase of the ratio. It is slightly above 100 because of some claims. There is more volatility in that part of business. The P&C business, by the way, is a smaller part of our non-life business in France. In the health and protection area, we increased the ratio by around 2 percentage points from 94% to 92%, somewhat around those numbers.

Speaker #1: It's slightly above 100 because of some claims. So, this is more volatility in that part of the business, and the P&C business right away is a smaller part of our non-life business in France.

Speaker #1: And in the health and protection area, we increased the ratio by around 2%, from 94 to 92, somewhat around those numbers.

Speaker #2: Thank you very much.

Farooq Hanif: Thank you very much.

Speaker #3: And if I may come to your second question on the buyback. I mean, you may recall at Investors' Day, we put our, let's say, thinking around the framework on paper. We applied that framework, which is well established and has already been used in the past.

Matthias Aellig: And if I may come to your second question on the buyback. You may recall at Investor Day, we put our, let's say, thinking around the framework on paper. We applied that framework that is well-established and has already been used in the past. We continue to apply that, so there is no change in policy or thinking about the buybacks. So it means that we have, in addition to the payout ratio goal and the ambition to increase CPS, this perspective on buyback, and that we consider, and I stress, that we consider additional capital management actions on top of those two things mentioned. If the SST is above the ambition range, and if we have a comfortable cash situation at holding, there is no automatism, you know that. And we communicate such things generally at H1, full year, for example, at Investor Day.

Speaker #3: We continue to apply that, so there’s no change in policy or thinking about the buybacks. So it means that, in addition to the payout ratio goal and the ambition to increase TPS, there is perspective on buybacks that we consider, and then I want to stress that we consider additional capital management actions on top of those two things mentioned.

Speaker #3: If the SSD is above the ambition range and if we have a comfortable cash situation at holding, there's no automatism. You know that, and we communicate such things generally at half-year, full-year, or, for example, at Investors Day.

Matthias Aellig: If the SST is above the ambition range, and if we have a comfortable cash situation at holding, there is no automatism, you know that. And we communicate such things generally at H1, full year, for example, at Investor Day. So this is the framework that has been in place, that is applied, that continues to be applied. So no change in policy. And that will guide us forward. Just as a reminder, for example, in the last program, we had one large buyback that we announced with the Investor Day, and there was an additional, I think, a CHF 0.3 billion buyback that ran from October 2023 to March 2024. So you see also from looking back that this is nothing new that we have done here. Hope this gives you some answers to the questions.

Speaker #3: So, this is the framework that has been in place, that is applied, and that continues to be applied. So, no change in policy, and that's what will guide us forward.

Matthias Aellig: So this is the framework that has been in place, that is applied, that continues to be applied. So no change in policy. And that will guide us forward. Just as a reminder, for example, in the last program, we had one large buyback that we announced with the Investor Day, and there was an additional, I think, a CHF 0.3 billion buyback that ran from October 2023 to March 2024. So you see also from looking back that this is nothing new that we have done here. Hope this gives you some answers to the questions.

Speaker #3: And just as a reminder, for example, in the last program we had one large buyback that we announced with the Investors' Day, and there was an additional one, I think a CHF 0.3 billion buyback, that ran from October 2023 to March 2024.

Speaker #3: So, you see also from looking back that this is nothing new that we have done here. I hope this gives you some answer to the questions.

Farooq Hanif: Yeah. Thank you very much. Thank you.

Speaker #3: You're welcome.

Matthias Aellig: You are welcome.

Speaker #4: The next question comes from the line of Ian Pierce from BNP Paribas. Please go ahead.

Operator: The next question comes from the line of Iain Pearce from BNP Paribas. Please go ahead.

Speaker #5: Hi, good morning. Thank you for taking my questions. The first one was just a couple on cash. So, 0.65 post the Telus acquisition. You guided—well, obviously the 250 million share buyback to be completed end of March, and then half of that coming from remittances.

Iain Pearce: Hi. Morning. Thanks for taking my questions. The first one was just a couple on cash. So CHF 0.65 post the tecis acquisition. You guided, well, obviously the CHF 250 million share buybacks to be completed end of March, and then half of that coming from remittances. Is this sort of guidance that you expect to be at CHF 500 sort of post the completion of the buyback for cash at holding, and are you happy running at that level? I think that is sort of at the bottom end of your target range. The second part, I think you said half of the CHF 250 million share buyback to be funded from remittances in H2. That looks like quite a high remittance number for the second half versus what we have had in previous years. Is there anything one-off in the H2 remittance number that you want us to flag?

Speaker #5: So, is there sort of guidance that you expect to be at 500, sort of post the completion of the buyback for cash at holding?

Speaker #5: And are you happy running at that level? I think that's sort of the bottom end of your target range. And then the second part, I think you said half of the CHF 250 million share buyback to be funded from remittances in H2.

Iain Pearce: The second part, I think you said half of the CHF 250 million share buyback to be funded from remittances in H2. That looks like quite a high remittance number for the second half versus what we have had in previous years. Is there anything one-off in the H2 remittance number that you want us to flag?

Speaker #5: That looks like quite a high remittance number for the second half, versus what we've had in previous years. Is there anything one-off in the H2 remittance number that you want us to flag?

Speaker #5: And my second one was just on the operating expenses. So, just looking at the operating expense growth over the last few years, it's only been about $100 million over the last three years.

Iain Pearce: My second one was just on the operating expenses. Just looking at the operating expense growth over the last few years, it has only been about EUR 100 million over the last 3 years. Just trying to sort of think about the operating expenses X variable. With this EUR 150 million of cost savings, are you expecting that number to be sort of flat or even slightly down by 2029? Is that sort of what you are targeting with the EUR 150 million cost saving guide? Thank you.

Speaker #5: So, just trying to sort of think about the operating expenses 'X' variable—with this 150 million of cost savings, are you expecting that number to be sort of flat or even slightly down by 2029?

Speaker #5: Is that what you're targeting with the 150 million cost-saving guide? Thank you.

Speaker #3: With Marco, I think we'll take the three questions. I may jump in.

Matthias Aellig: Marco, I think we will take the 3 questions. I may jump in.

Speaker #1: I think the first one on the cash at holding—we've always, as I said and also elaborated on at Investor Day—we have a comfort level or comfort range at the holding level being CHF 0.5 to 0.7 billion.

Marco Gerussi: I think the first one on the cash at holding, we have always, and also elaborated on that at Investor Day, we have a comfort level or comfort range at holding level being CHF 0.5 to CHF 0.7 billion. This gives you a bit of guidance, but this is not a regulatory requirement or something like this. It is an internal range we take for some guidance. As ever possible, we try to put our money, our cash at work. That is basically the role of the holding company. We are here to give money to our opco to work. I think that is what we can say.

Speaker #1: So this gives you a bit of guidance, but this is not a regulatory requirement. So something like this is, let's say, an internal range we take for some guidance, and, as ever possible, we try to put our money, our cash, to work.

Speaker #1: So that's basically the role of the holding company. We are here to give money to our OpCos to work. I think that's what we can say.

Speaker #1: In terms of cash remittance and the second half of the year, in earlier years the number in the second half was always on average between 60 and 70 million, and there is nothing in view of any one-offs, as the name suggests, to be flagged.

Marco Gerussi: On terms of cash remittance in the H2, in earlier years, the number in the H2 was always around on average between 60 and 70 million, and there is nothing in view of any one-offs, as the name say, to be flagged on that. The third question on the operating expenses and the growth, I think basically that is part of our strategy. We aim on improving scalability and efficiency, operating efficiency. That is one part of our goal. We have a clear goal on scaling the fee business as part of our strategy, and we have a clear goal and related to that in the speech on the life absolute cost. In the life insurance business, keeping costs flat. That is basically how we think about cost and being efficient and scaling.

Speaker #1: Regarding that and the third question on the operating expenses and growth, I think that's basically part of our strategy. We aim to improve scalability and operating efficiency.

Speaker #1: That's one part of our goal, and we have a clear goal on scaling the fee business. That's part of our strategy, and we have a clear goal and have related to that in the speech on the life absolute cost.

Speaker #1: So in the life insurance business keeping costs flat. So that's basically how we think about cost and being efficient and scaling. And now having this 150 million Matthias alluded to it and it lasts and half coming from Switzerland going through the legal quote and the policy holder sharing and the remaining part with more of it being within asset management starting from 29 is an effect we will see in the operating expenses but from a result point of view because of the sharing is the policy holder only one part of it mainly will show up in the result and I think that's how to think about it.

Marco Gerussi: Having this 150 million, Matthias alluded to it, and it is less than half coming from Switzerland, going through the legal quota and the policyholder sharing, and the remaining part is more of it being within asset management, starting from 2029. It is an effect we will see in the operating expenses. From a result point of view, because of the sharing with the policyholder, only one part of it mainly will show up in the result, and I think that is how to think about it.

Matthias Aellig: If I may add on the remittances question, I think that is an important one. As Marco said, more than half is funded from cash at holding, and it is less than half that relates to repatriation. I think it is important also to understand cash remittance and repatriations are not the same. When we talk about repatriations, this can be maturing internal loans that are not used anymore for, let us say, internal purposes in the opco. This is the kind of things that we talk about when referring to repatriation. That said, there will be additional cash remittances, but that said, this is not the same thing as the repatriation.

Speaker #3: If I may add on the remittances question, I think that's an important one. I mean, as Marco said, more than half is funded from cash at holding and it's less than half that relates to repatriation.

Speaker #3: I think it's important also to understand cash remittance and repatriations are not the same. So, when we talk about repatriations, this can be maturing internal loans that are not used anymore for, let's say, internal purposes in the op cost, and this is the kind of thing that we talk about when referring to repatriation.

Speaker #3: And that said, there will be additional cash remittances, but that said, this is not the same thing as the repatriations.

Speaker #5: Perfect. No, okay. That makes sense. Thank you.

Iain Pearce: Perfect. Okay, that makes sense. Thank you.

Speaker #3: Good.

Operator: The next question comes on the line of Hamed Naseeb from UBS. Please go ahead.

Speaker #4: The next question comes from the line of Ahmed Nasib from UBS. Please go ahead.

Speaker #6: Hi. Good morning. So, first question on the network business: What's the cash component, and when are you expecting it to come through? I think you mentioned 27.

Hamed Naseeb: Hi, morning. My first question on the network business. What is the cash component and when are you expecting for it to come through? I think you mentioned 2027. Is it similar to the IFRS result? Secondly, on the French health tax, I think you said you are going to manage that. Is that done? Is that within the H1 results already? We should not expect anything more from that component? Then finally, Vita Collective Foundation from Zurich is going independent. Is there any thought of your foundation also running independently? What is the earnings contribution from that business? Thank you.

Ahmed Nasib: Hi, morning. My first question on the network business. What is the cash component and when are you expecting for it to come through? I think you mentioned 2027. Is it similar to the IFRS result? Secondly, on the French health tax, I think you said you are going to manage that. Is that done? Is that within the H1 results already? We should not expect anything more from that component? Then finally, Vita Collective Foundation from Zurich is going independent. Is there any thought of your foundation also running independently? What is the earnings contribution from that business? Thank you.

Speaker #6: Is it similar to the IFRS result? Secondly, on the French health tax, I think you said you're going to manage that. Is that done, is that within the first half results already? We shouldn't expect anything more from that component?

Speaker #6: And then finally, Vita Foundations from Zurich is going independent. Is there any thought of your foundation also running independently, and what's the earnings contribution from that business?

Speaker #6: Thank you.

Speaker #3: Good. I think Marco can start with the first question. I will take the second and the third.

Matthias Aellig: Good. I think Marco Gerussi can start with the first question. I will take the second and the third.

Speaker #1: So the network business and the transfer to a partner this is IFRS accounting so that again we are already account we have to account for it in our books.

Marco Gerussi: The network business and the transfer to a partner, this is IFRS accounting, so that the gain we have to account for it in our books. The cash, let's assume it's the similar amount for that gain coming in over the next few years, starting in 2027. So 2027, 2028, 2029. Let's put it like that.

Speaker #1: And the cash let's assume it's the similar amount for that gain coming in over the next few years starting in 27. So 27, 28, 29 let's put it like let's put it like that.

Matthias Aellig: And maybe on the French health business, I am not sure whether we fully captured your questions, but let me mention what we have been doing over the past years. We had a year, I think it was 2023 or 2024, where we really had significant issues. I believe the entire market had similar challenges back then. And we have been repricing, we have been doing many, many measures to restore profitability. And you may have seen that in H1, we had, in the health and protection business, a lower top line. So that means we are really prioritizing, as in the past, profit over growth. And this is what we have been doing for the past quarters and years almost, and that's what I think we can say. Marco also mentioned a bit, and I now switch to the P&C business.

Speaker #3: And maybe on the French health business, I'm not sure whether we fully captured your questions, but let me mention what we have been doing over the past years.

Speaker #3: We had a year—I think it was 2003 or 2004—where we really had significant issues. I believe the entire market had similar challenges back then.

Speaker #3: And we have been repricing. We have been taking many, many measures to restore profitability. And you may have seen that, in the first half, we had in the health and protection business a lower top line.

Matthias Aellig: And you may have seen that in H1, we had, in the health and protection business, a lower top line. So that means we are really prioritizing, as in the past, profit over growth. And this is what we have been doing for the past quarters and years almost, and that's what I think we can say. Marco also mentioned a bit, and I now switch to the P&C business.

Speaker #3: So, that means we are really prioritizing, as in the past, profit over growth. This is what we have been doing for the past quarters and years, almost, and that's what I think we can say.

Speaker #3: Marco also mentioned a bit, and I will now switch to the P&C business. Here, we had in France, as you can imagine, some large claims.

Matthias Aellig: There we had, in France, as you can imagine, some large claims. So the combined ratio is above 100%, and there we have the same thought. We want to make that business profitable. But that's a different starting position than the health and protection business that, as you have heard, has improved the profitability from a combined ratio from the mid-90s to even lower levels, which I think is a pleasing level. Now, on the Vita Collective Foundation and what you could read in the newspaper, obviously, we do not comment on competitors and what their things are, but let me maybe make a couple of comments on our situation. Our approach to the Swiss BVG business is that we have a really wide range of offerings.

Speaker #3: So the combined ratio is above 100%, and there we have the same thought. We want to make that business profitable, but that's a different starting position than the health and protection business.

Speaker #3: That, as you have heard, has improved the profitability, reducing the combined ratio from the mid-90s to even lower levels, which I think is a pleasing level.

Speaker #3: Now, on the Vita Foundation and what you could read, or in the newspaper. Obviously, we do not comment on competitors and what their things are, but let me maybe make a couple of comments on our situation.

Speaker #3: Our approach to the Swiss PVG business is that we have a really wide range—it is the largest part of our offering—where we have the full set of risks being covered by Swiss Life.

Matthias Aellig: Clearly, we have the full insurance, which is the largest part of our offering, where we have the full set of risks being covered by Swiss Life, so meaning the savings, the risk, and the cost part. And there, as you can imagine, if somebody wants to come to the Swiss Life full insurance, he or she wants us to provide these services. We have also this semi-autonomous offer. I think Marco mentioned also the growth we achieved there, and we have additional offerings, such as pure risk coverage for semi-autonomous foundations outside, let's say our Swiss Life offering. So that gives you a bit our position, and we are, I would say, in good shape with having this wide range of offerings to the client, so the client can choose what fits best for their risk appetite or the risk appetite of their business, if I may say so.

Speaker #3: So, meaning the savings, the risk, and the cost part. And there, as you can imagine, if somebody wants to come to the Swiss Life full insurance, he or she wants us to provide these services.

Speaker #3: We also have this semi-autonomous offer. I think Marco mentioned also the growth we achieved there, and we have additional offerings, such as pure risk coverage for semi-autonomous foundations outside, let's say, our Swiss Life offering.

Matthias Aellig: I think Marco mentioned also the growth we achieved there, and we have additional offerings, such as pure risk coverage for semi-autonomous foundations outside, let's say our Swiss Life offering. So that gives you a bit our position, and we are, I would say, in good shape with having this wide range of offerings to the client, so the client can choose what fits best for their risk appetite or the risk appetite of their business, if I may say so.

Speaker #3: So that gives you a bit of our position, and we are, I would say, in good shape with having this wide range of offerings to the clients.

Speaker #3: So the client can choose what fits best for their risk appetite—or the risk appetite of their business, if I may say so.

Speaker #6: Thank you very much. That's wonderful.

Hamed Naseeb: Thank you very much. That's helpful.

Ahmed Nasib: Thank you very much. That's helpful.

Speaker #3: You're welcome.

Matthias Aellig: You're welcome.

Speaker #4: Next question comes from the line of Kaya Batikan from Kepler Sure. Please go ahead.

Operator: Next question comes from the line of Kaya Batikan from Kepler Cheuvreux. Please go ahead.

Speaker #5: Hi there. Thank you for the opportunity. I have one question related to TPAM inflows. We have seen some normalization in TPAM net new assets from the exceptionally high level last year.

Kaya Batikan: Hi there. Thank you for the opportunity. I have one question related to TPAM inflows. We have seen some normalization in TPAM net new assets from the exceptionally high level last year. Could you give us some color on how flows have developed since the end of June and your expectations for the remainder of the year and going forward? Thank you.

Speaker #5: Could you give us some color on how flows have developed since the end of June, and your expectations for the remainder of the year and going forward?

Speaker #5: Thank you.

Speaker #3: Yes. So on the

Matthias Aellig: On the NNA and the inflows into TPAM, this is on the CHF 7.2 billion we reported on. I think here pleasing the real asset share, so real estate and infrastructure amounting to CHF 1.4 billion, and the other asset classes just mentioned, the equities and also in the money markets. In view of the inflows, we do not guide on details for the H2. So far, we are happy with the inflows. We have a strong pipeline.

Speaker #1: NNA and the inflows in the TPAM business and the 7.2 billion we reported on—I think here, pleasingly, the real asset share. So, real estate and infrastructure amounting to 1.4 billion, and then the other asset classes just mentioned, the equities and also in the money markets.

Speaker #1: In view of the inflows, I mean, we don't guide on details for the second half of the year. So far, we are happy with the inflows.

Speaker #1: We have a strong pipeline. We also intend to further increase the amount of real assets in our inflows, and we can confirm—and I think that's the most important point—in view of the total assets under management.

Matthias Aellig: We also intend to further increase the amount of the real assets in our inflows, and we can confirm, and I think that is the most important point in view of the total assets under management, the CHF 170 billion being the target of Swiss Life 2027, that we are well on the way to reach the target and also in the area of the recurring income in TPAM based on the higher underlying, on the higher asset base. I think the growth of 7% of the recurring income in TPAM also gives you a bit of a view on how the development is. We are constructive and positive in that area.

Speaker #1: The CHF 170 billion being the target of Swiss Life for 2027, but we are well underway to reach that target. And also, in the area of the recurring income in TPAM, based on the higher underlying—on the higher asset base—I think the growth of 7% of the recurring income in TPAM also gives you a bit of a view on how the development is.

Speaker #1: So we are constructive and positive in that area.

Speaker #5: Perfect, thank you. Can I ask one more question related to direct investment income? It seems like direct investment income has declined. How much of this decline reflects timing or volatility, and what would be a reasonable run rate for the second half?

Kaya Batikan: Perfect. Thank you. Can I have one more question related to direct investment income? It seems like direct investment income is declined. How much of this decline reflects timing or volatility, and what would be the reasonable run rate for the H2?

Speaker #1: Yes. I mean, the decrease in the investment is—there are different, let's say, reasons for that. One being a bit lower asset base in real estate, impacting the direct investment income.

Matthias Aellig: Well, the decrease in the investment is very different, let us say, reasons for that. One being a bit a lower asset base in real estate impacting the derived investment income. We had in the infrastructure area an exit in the prior year period, which was very positive in the prior year numbers. Then there is FX effect, mainly the USD on the coupons coming from USD investments. So there is several reasons why the number is lower. There has been, in relation, relatively seen an improvement compared to the Q1, and we are positive for the H2 to get that closer back to the numbers we have seen in earlier or in prior year reportings. So it has some timing and some volatility in it, and also some effect showing up in the net investment income, which is very positive, up by CHF 800 million.

Speaker #1: We had, in the infrastructure area, an exit in the prior year period, which was very positive in the prior year numbers. Then there is an FX effect, mainly the US dollar, on the coupons we are getting from US dollar investments.

Speaker #1: So, there are several reasons why the number is lower. There has been, relatively speaking, an improvement compared to the first quarter, and we are positive for the second half to get that closer back to the numbers we have seen in earlier or in prior year reportings.

Matthias Aellig: There has been, in relation, relatively seen an improvement compared to the Q1, and we are positive for the H2 to get that closer back to the numbers we have seen in earlier or in prior year reportings. So it has some timing and some volatility in it, and also some effect showing up in the net investment income, which is very positive, up by CHF 800 million.

Speaker #1: So, it has some timing and some volatility in it, and also some effects showing up in the net investment income, which is very positive—up by 800 million.

Speaker #5: Clear. Thank you.

Kaya Batikan: Clear. Thank you.

Speaker #4: Next question is a follow-up question from Michael Hutner from Bernberg. Please go ahead.

Operator: Next question is a follow-up question from Michael Huttner from Berenberg. Please go ahead.

Speaker #5: Thank you very much. I had three. One maybe a little bit on the tax rate—we seem to be going up due to France, and I just wondered whether you can give us a feel for what numbers we should use going forward.

Michael Huttner: Thank you very much. I had three. One, maybe a little bit on the tax rate, which seems to be going up due to France, and I just wondered whether you can give us a feel for what numbers we should use going forward. On real estate, you mentioned again that you have got less of it, and I just wondered, it seems to be in contrast with your remarks saying that real estate is a lovely asset, and I just wonder if you can give us a bit more color on this. Then, a general question on the German pension reform. With your 8,000 IFAs, I guess now, how much benefit do you expect from that going forward? Thank you.

Speaker #5: On real estate, you mentioned again that you've got less of it, and I just wondered—it seems to be in contrast with your remarks saying that real estate is a lovely asset. I just wonder if you can give us a bit more color on this.

Speaker #5: And then a general question on the German pension reform: with your roughly 8,000 IFAs, I guess now, how much benefit do you expect from that going forward?

Speaker #5: Thank you.

Speaker #3: Marco will give you some indications on the tax rate, and I will talk a bit about real estate and the German reform, though.

Matthias Aellig: Marco will give you some indications on the tax rate, and I talk a bit about real estate and the German reform.

Speaker #1: Yeah, tax rate is up. You're right, and we mentioned that in the presentation—more than 27%. Main driver is the higher profit base, but then the step up of the tax rate in France. And maybe two things to mention here.

Marco Gerussi: Yeah. The tax rate is up. You are right. We mentioned that in the presentation, more than 27%. A main driver, the higher profit base, then the step-up of the tax rate in France. Maybe two things to mention here. For the H2 of the year, for the full year 2026, we expect the number to be somewhere between 25% and the current rate. I think that is something we can say. Looking a bit more into the future, current discussions and also signals and information we get from all the discussions in France, it might be expected that the step up will roll over also into the next year, so that the French tax rate will remain at the level we will see this year, also in the next year.

Speaker #1: For the second half of the year, or for the full year '26, we expect the number to be somewhere between 25 and the current rate.

Speaker #1: I think that's something we can say. And looking a bit more into the future, from current discussions and also signals and information we get from all the discussions in France, it might be expected that the step-up will roll over also into the next year.

Speaker #1: So the French tax rate will remain at the level we see this year also in the next year.

Speaker #5: Thank you.

Michael Huttner: Thank you.

Speaker #3: And coming to the real estate question, yes, absolutely, real estate continues to be an attractive asset class. At the same time, you know, and we mentioned that before, we are actively managing our portfolio. We may not be the best owner for each and every single object.

Matthias Aellig: Coming to the real estate question, yes, absolutely. Real estate continues to be an attractive asset class. At the same time, we mentioned that before, we are actively managing our portfolio. We may not be the best owner for each and every single object that we hold. Some objects may be better owned by third-party clients, due to size considerations and the like. As you know, we are preferring higher or larger objects that are easier and more efficient to maintain. So we are actually on both sides. I think in the H1 of the year, we had a net outflow of real estate. We had years where we had net inflows. So, the outflow that you have seen is by no means a statement about real estate as an asset class. In terms of the pension reform, I am sure you know what is going on.

Speaker #3: That we hold some objects may be better owned by TPAM clients. You know, due to size considerations and the like—as you know, we are going or we are preferring higher or larger objects that are easier and more efficient to maintain. So, we are actually on both sides. And now, I think in the first half of the year, we had a net outflow of real estate.

Matthias Aellig: As you know, we are preferring higher or larger objects that are easier and more efficient to maintain. So we are actually on both sides. I think in the H1 of the year, we had a net outflow of real estate. We had years where we had net inflows. So, the outflow that you have seen is by no means a statement about real estate as an asset class. In terms of the pension reform, I am sure you know what is going on.

Speaker #3: We had years where we had net inflows, so the outflow that you have seen is by no means a statement about real estate as an asset class.

Speaker #3: In terms of the pension reform, I'm sure you know what's going on. I will not go into all the things that the German government is now putting forward.

Matthias Aellig: I will not go into all the things that the German government is now putting forward. I think what I could say is if you look at everything that the German government says, there will be the start of this new pension reform on 1 January 2027. So that is where, if I may say so, the market is reshuffled, and that is where we clearly, with our now 8,000 IFAs, which have this entrepreneurial mindset, will certainly have some opportunities to seize. On the other hand, the H2 of 2026 will be a bit more quiet because in the area of pensions, people, clients, advisors are now waiting for what is going on in 2027. Having said that, as you know, the pensions business, if you wish, in our German IFAs, is only one of the product lines among many others that we advise our clients on.

Speaker #3: I think what I could say is, if you look at everything that the German government says, there will be a start of this new pension reform on 1 January 2027.

Speaker #3: So that's where if I may say so the market is reshuffled and that's where we clearly with our now 8,000 IFAs which I have this entrepreneurial mindset will certainly have some opportunities to seize on the other hand the second half of 2026 will be a bit more quiet because in the area of you know pensions people clients advisors are now waiting for what's going on in 2027.

Matthias Aellig: On the other hand, the H2 of 2026 will be a bit more quiet because in the area of pensions, people, clients, advisors are now waiting for what is going on in 2027. Having said that, as you know, the pensions business, if you wish, in our German IFAs, is only one of the product lines among many others that we advise our clients on.

Speaker #3: Having said that, as you know, the pensions business in our German IFAs is only one of the product lines among many others that we advise our clients on.

Speaker #3: I think what's also important—I've now mentioned specifically the IFAs in our insurance business—I would say, given the product we offer, this is a non-event anyway because we're not into resto.

Matthias Aellig: I think what is also important, I have now mentioned specifically the IFAs. In our insurance business, I would say given the product, the offer, this is a non-event anyway because we are not into REITs too.

Speaker #5: Okay. Thank you.

Michael Huttner: Okay. Thank you.

Speaker #3: Welcome.

Matthias Aellig: Welcome.

Speaker #4: The next question is a follow-up question from Farouk Hanif from JP Morgan. Please go ahead.

Operator: The next question is a follow-up question from Farooq Hanif from JP Morgan. Please go ahead.

Speaker #1: Hi there. Thanks again. Sorry, just a bit of a clarification on Ian's question, and another question of my own. So, you mentioned that half of the 250 buyback will be funded by, you know, cash remittances.

Farooq Hanif: Hi there. Thanks again. Sorry, just a bit of a clarification on Iain's question and another question of my own. You mentioned that half of the 250 buyback will be funded by cash remittances or cash of some sort. If we take the CHF 60 to 70 million, that means roughly a similar amount again, will come from repatriation of cash, so internal loans. Can you tell us about the capacity to keep doing this? Presumably you do have a larger balance of internal loans that you could use. If you could talk about that, the reason I am asking is obviously people are worrying that your cash will fall to a low level as a result of this, and we just need to know whether you have capacity to keep supporting from a cash point of view, that buyback going forward.

Speaker #1: Or cash of some sort. So if we take the 60 to 70 million, that means, you know, roughly a similar amount again will come from repatriation of cash.

Speaker #1: So internal loans. Can you tell us about the capacity to keep doing this? So presumably you do have a larger balance of internal loans that you could use so if you could talk about that just so that you know I mean the reason I'm asking is obviously people are worrying that your cash will fall to a low level as a result of this and we just need to know whether you know you have capacity to keep you know supporting from a cash point of view that buyback going forward.

Farooq Hanif: Presumably you do have a larger balance of internal loans that you could use. If you could talk about that, the reason I am asking is obviously people are worrying that your cash will fall to a low level as a result of this, and we just need to know whether you have capacity to keep supporting from a cash point of view, that buyback going forward.

Speaker #1: And then my second question is going back to the other result in the insurance operating result. As well as a very good French non-life result, I think it was quite a good return on surplus assets.

Farooq Hanif: My second question is going back to the other result in the insurance operating result, as well as a very good French non-life result. I think it was quite a good return on surplus assets as well, which I think in H1 was a similar level to H2 2025. I just want to understand, is this actually quite a good run rate for modeling going forward in that line, or is there some kind of one-off positive in there? Thank you very much.

Speaker #1: As well, which I think in one age was a similar level to two, age 25. So I just want to understand, is this actually quite a good run rate for modeling going forward in that line, or is there some kind of one-off positive in there?

Speaker #1: Thank you very much.

Matthias Aellig: Let me try to give you the answer on the buyback. We said there is CHF 250 million buyback, and more than half of that CHF 250 million is financed by cash we have at the holding today. With that what we have today at the holding, that's the CHF 0.65 billion that Marco Gerussi mentioned. The rest of it is financed by repatriations, as we said, for example, maturing loans that are upstreamed back to the holding, for example, because they're not used anymore at the opco for operating purposes. That's, I think, the financing of the CHF 250 million. Regarding the repatriations, I think we keep talking about them every now and then. I don't know the exact amount, but as you may recall, the dominant part of those internal loans are kind of permanent financing, if you wish.

Speaker #3: Let me try to give you the answer on the buyback. So, we said there is a CHF 250 million buyback, and more than half of that CHF 250 million is financed by cash.

Speaker #3: We have at the holding today. So, with that, what we have today at the holding—that’s the €0.65 billion that Marco mentioned—and the rest of it is financed by repatriations, as we said, for example, maturing loans that are upstreamed back to the holding.

Matthias Aellig: The rest of it is financed by repatriations, as we said, for example, maturing loans that are upstreamed back to the holding, for example, because they're not used anymore at the opco for operating purposes. That's, I think, the financing of the CHF 250 million. Regarding the repatriations, I think we keep talking about them every now and then. I don't know the exact amount, but as you may recall, the dominant part of those internal loans are kind of permanent financing, if you wish.

Speaker #3: For example, because they're not used anymore at the OpCo for operating purposes. So that's, I think, the financing on the $250 million. Now, regarding the repatriations, I think we keep talking about them every now and then.

Speaker #3: I don't know the exact amount, but as you may recall, the dominant part of those internal loans are kind of permanent financing, if we wish.

Matthias Aellig: Past acquisitions that were financed by pushing down the purchase price into the operating companies, and these are loans that are here to stay. We earn money on them from the coupons and obviously the acquired businesses or the businesses that we have been growing, deliver in addition to that coupon on the loan, obviously, their profits as a cash remittance. I think the last point on cash and payback was the cash level falling below CHF 0.5 billion. There, as I said, we have the CHF 0.5 to 0.7 billion as a cash comfort range. If we want to feel comfortable, we stay obviously within that range. If I may go to the first comment I've made, we have CHF 0.65 billion. If I say more than half is financed from cash and holding, you can infer that we want to stay in that comfort range.

Speaker #3: Past acquisitions that were financed by pushing down the purchase price into the operating companies—and these are loans that are here to stay. We earn money on them from the coupons, and obviously, the acquired businesses or the businesses that we have been growing are delivering, in addition to that coupon on the loan, obviously, their profits as a cash remittance.

Speaker #3: And I think the last point on cash and buyback was the cash level falling below 0.5 billion. As I said, we have the 0.5 to 0.7 billion as a cash comfort range, and if we want to feel comfortable, we obviously stay within that range. If I may go to the first comment I made, we have 0.65 billion; if I say more than half is financed from cash at holding, you can infer that we want to stay in that comfort range.

Matthias Aellig: I think the last point on cash and payback was the cash level falling below CHF 0.5 billion. There, as I said, we have the CHF 0.5 to 0.7 billion as a cash comfort range. If we want to feel comfortable, we stay obviously within that range. If I may go to the first comment I've made, we have CHF 0.65 billion. If I say more than half is financed from cash and holding, you can infer that we want to stay in that comfort range.

Speaker #3: Second and last point, or last point on that—also keep in mind that we have a revolving credit facility of half a billion, which at this point in time is not drawn at all.

Matthias Aellig: Second and last point, or last point, also keep in mind that we have a revolving credit facility of half a billion, which at this point in time is not drawn at all. I hope this gave some clarification. I would hand over to Marco Gerussi for the other results.

Speaker #3: I hope this provided some clarification, and I will now hand over to Marco for the other results.

Speaker #1: And the operating result in the insurance business—these additional or further contributions—basically, there are two elements in it. One is the non-life business in France, which we already discussed, with the health and protection business and the P&C.

Marco Gerussi: In the operating results, insurance business did these additional or referred contributions. Basically, it is two elements in it. One is the non-life business in France, which we already discussed with the health and protection business and the P&C business. The other part is assets not backing insurance liabilities. As the name already says, the additional contributions, this is something from the accounting standard by construction, doesn't go through the CSM. So there is, by design, a bit more of volatility in the results. So there is always various movements. What we have seen and what I can say is in H1 of last year, 2025, the number was rather at the higher end because of some positive development in the assets not backing insurance liabilities. Now the number is a bit lower, and I would assume plus, minus some movements.

Speaker #1: Business, and then the other part is assets not backing insurance liabilities. As the name already says, the additional contributions—this is something from the accounting standard—by construction, doesn't go through the CSM. So there is, by design, a bit more volatility in the result.

Speaker #1: So there are always various movements. What we have seen, and what I can say, is that in the first half of last year, 2025, the number was rather at the higher end because of some positive developments in the assets not backing insurance liabilities.

Marco Gerussi: What we have seen and what I can say is in H1 of last year, 2025, the number was rather at the higher end because of some positive development in the assets not backing insurance liabilities. Now the number is a bit lower, and I would assume plus, minus some movements. There is also FX and things like that. This is a level you could expect also going forward.

Speaker #1: Now, the number is a bit lower, and I would assume, plus or minus some movements, it is also ethics and things like that. This is a level you could expect also going forward.

Marco Gerussi: There is also FX and things like that. This is a level you could expect also going forward.

Speaker #5: That's very clear. Thank you very much.

Farooq Hanif: That is very clear. Thank you very much.

Speaker #3: Welcome.

Marco Gerussi: Welcome.

Speaker #4: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Mr. Matthias Aellig for any closing remarks.

Operator: Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Mr. Matthias Aellig for any closing remarks.

Speaker #6: Ladies and gentlemen, thank you for your questions and for joining us today. Before we close the call, let me recap. We continued on our growth path across all divisions, and I'm pleased with our operational performance in both the insurance and fee businesses.

Matthias Aellig: Ladies and gentlemen, thank you for your questions and for joining us today. Before we close the call, let me recap. We continued on our growth path across all divisions, and I am pleased with our operational performance in both the insurance and fee businesses. We are well on track with the implementation of our Swiss Life 2027 program. Thank you again, and we wish you a nice day. Goodbye.

Speaker #6: We are well on track with the implementation of our Swiss Life 2027 program. So, thank you again, and we wish you a nice day.

Speaker #6: Goodbye.

Speaker #4: Ladies and gentlemen, the conference is now over. Thank you for choosing Caruscall, and thank you for participating in the conference. You may now disconnect your lines.

Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

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Q2 2026 Swiss Life Holding AG Earnings Call

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