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Management Report

Swiss Life Holding increased its profit in the 2019 financial year from CHF 460 million to CHF 758 million

The annual profit of Swiss Life Holding in 2019 mainly consisted of dividends, investment income and revenues from guaranteed benefits and commissions. During the year under review, dividend payments from subsidiaries to the holding company increased from CHF 623 million to CHF 670 million, while there was a slight decrease in investment income from CHF 74 million to CHF 72 million and in income from guaranteed benefits and commissions from CHF 47 million to CHF 46 million.

As at the end of the year, Swiss Life Holding had assets (liquid funds, receivables from Group companies, debt securities, investment funds and equities) of CHF 1056 million. Liquid funds declined to CHF 51 million (previous year: CHF 118 million) and debt security, investment fund and equity holdings fell to CHF 937 million (previous year: CHF 1524 million). The main reason for the decrease is the financing of the share buyback programme begun in 2018 and completed in 2019 with a total value of CHF 1 billion. A total of 2 208 715 treasury shares were repurchased, 628 500 of which had already been cancelled by the end of the year under review. As at the end of the year, Swiss Life Holding held 5.12% treasury shares.

Swiss Life Holding’s distribution to shareholders in the period under review came to CHF 547 million, or CHF 16.50 per share, of which CHF 83 million (CHF 2.50 per share) was made from the capital contribution reserve and CHF 464 million (CHF 14.00 per share) as an ordinary dividend. The par value of the share remains unchanged at CHF 5.10. The nominal share capital of Swiss Life Holding decreased slightly to CHF 171 million (previous year: CHF 175 million) due to the shares cancelled as part of the share buyback programme.

Long-term debt capital increased by CHF 625 million to CHF 1049 million. Short-term debt capital mainly consists of repo transactions. As of the end of the year, it amounted to CHF 190 million (previous year: CHF 100 million). In the year under review, interest on long-term bonds totalled CHF 6 million. With short-term repo transactions, Swiss Life Holding generated interest income of CHF 2 million.

New loans totalling CHF 682 million were awarded to Group units to finance real estate projects or smaller acquisitions. Including repayments of expired loans and payments under lines of credit granted, the outstanding amount increased to CHF 1637 million (previous year: CHF 986 million).