Swiss Life intends to boost its revenues in the asset management division and also the dividend ratio. The insurer will kickstart the new campaign with a share buyback later this year.
Swiss Life, a Zurich-based insurer, has defined a new set of targets for the three years through 2021. And the company specifically wants to award its shareholders, according to a statement released in connection with its investors’ day.
The company aims not only to increase its profits but also to change the way it earns its money. Apart from the core business with insurance policies, Swiss Life today focuses strongly on developing the wealth management through its asset management and in the business with financial advisers.
Higher Earnings Expected
Within three years, Swiss Life aims to increase profit from these operations to a range between 600 and 650 million Swiss francs ($600 to 650 million) from a current range of 400 to 450 million francs, in other words by about half.
The increase will come mainly through investments for third-party clients in asset management, earnings from the business with share-linked products and independent financial advisers, the company said.
Share Buyback
In the insurance business, Swiss Life expects to boost profits to between 400 and 450 million francs, from a current 350 to 400 million francs.
Swiss Life will raise the dividend ratio to between 50 and 60 percent of its profit in the coming three-year period. It also announced a share buyback program worth 1 billion francs starting in December and which will run through the end of 2019.
