Berenberg: Swiss Life's 'Stronger' Nine-month 2026 Fees Signal Higher Cash Remittances in FY27

MT Newswires · 2d ago
04:54 AM EST, 11/12/2026 (MT Newswires) -- Berenberg affirmed its investment opinion on Swiss Life (SLHN.SW), saying the life insurance group's "stronger" fee growth for the first nine months of 2026 signals higher cash remittances next year. "When adjusted for FX, the company grew fees by 8% in 9M 2026 compared with 9M 2025, and we estimate that fee growth was 6% when excluding the benefit of the first-time consolidation of its new German IFA network TELIS Group. Within this 8% growth (or, we estimate, 6% lfl), Swiss Life's third-party asset management unit grew fees by 10%, including an increased contribution from project development fees of 12% of the total. Moreover, Swiss Life reaffirmed its aim to reach a 25% contribution from project development fees in FY 2026 and FY 2027, particularly since it is reaching development milestones for several projects, which we believe will trigger not only revaluations but also cash payments in some cases," the research firm said Thursday. Accordingly, analysts expect this fee momentum and improved cash conversion to drive a surge in 2027 cash remittances. This backs Berenberg's three-year remittance forecast of 3.9 billion francs, "just above" management's target of 3.6 billion francs to 3.8 billion francs. The research firm also expects Swiss Life to announce its next share buyback worth 1 billion francs during its Dec. 1, 2027, capital markets day event, with the company projected to have paid out 4 billion francs in total, or 15% of its current market cap, between 2025 and 2027. Berenberg maintained its buy rating and price target of 1,125 francs on the stock.