(Reuters) – Swiss Life reported better-than-expected half-year profit on fees and commissions on Tuesday, helped by strong performances at its asset management and insurance businesses in France.
Swiss Life’s fee and commission income rose 17% to CHF 395 million (EUR 419.06 million) in the first half, beating the AWP consensus forecast of CHF 380 million.
The insurer, however, left its outlook for the full year unchanged and still expects to record a result from fees and commissions in 2024 at the lower end of its target range of CHF 850-900 million. The continued normalisation of the real estate markets in Germany and France will be decisive in this regard, the group says.
Swiss Life, which manages real estate assets worth CHF 100 billion across Europe, has been hit by difficulties in the real estate sector in recent times due to rising interest rates and increased construction costs in Germany and France.
However, housing markets have started to show some signs of improvement after the European Central Bank (ECB) cut its key interest rates last June and hinted at further easing of monetary policy this month.
Total revenues at Swiss Life Asset Managers, the asset management unit, rose 15 percent to CHF 506 million in the January-June period, driven by higher net income from real estate project developments, the group said.
(Reporting Andrey Sychev in Gdansk; Diana Mandiá, editing by Kate Entringer)
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