Berenberg: Swiss Life's Robust H1 Cash Flow 'Bodes Well' for Future 'Attractive' Buyback; Forecasts Updated

MT Newswires · 3d ago
08:44 AM EDT, 09/02/2026 (MT Newswires) -- Berenberg updated its forecasts for Swiss Life Holding (SLHN.SW), noting that the life insurance group's robust cash flow in the first half "bodes well" for an "attractive" share buyback in the future. "Swiss Life has demonstrated with its H1 2026 results that it is returning to strong earnings growth. After adjusting for the CHF29m pre-tax and CHF23m net-of-tax gain on the sale of Swiss Life Network to Generali, H1 2026 results were broadly in line with our estimates. However, the CHF250m buyback and the 600-position reduction announced with the H1 2026 results, together with the 8% rise in H1 2026 fee revenues, support our view that operating profit growth is set to rise strongly through to 2028E," the research firm said in a note published Wednesday. "We believe that Swiss Life's strong cash flow bodes well for an attractive buyback, which is likely to be announced when management presents its new 2028-30 strategic plan, probably in December 2027. We pencil in a CHF1bn buyback announcement for December 2027, to be completed by June 2029." With this in mind, analysts "modestly" trimmed their operating profit estimates for 2027 and 2028, mainly reflecting the insurer's investment in efficiency. The projected operating profit compound annual growth rate over the 2025 to 2028 period was bumped down to 7% from 8%, against the consensus of 5%, while adjusted EPS projections for 2026 through 2028 were also lowered. The stock's buy rating and price target of 1,073 francs were left unchanged, with Berenberg noting that the stock is still "compelling" against the backdrop of the Swiss market.