European Insurance News & Views "Feedback from Swiss Life downgrade/PSP ..."

Research evidence excerpt

European Insurance News & Views "Feedback from Swiss Life downgrade/PSP ..."

Global Research

12 May 2026ab

European Insurance News & Views Equities

Europe including UKFeedback from Swiss Life downgrade/PSP results

read-across Financial

Nasib Ahmed, FIA

Analyst

nasib-za.ahmed@ubs.com

Headline: Feedback from Swiss Life downgrade/PSP results read-across +44-20-7568 8231

Will Hardcastle, CFA

We downgraded Swiss Life from Neutral to Sell last week (see note here) and we Analyst

summarise investor feedback on the note below. We also provide read-across from PSP's will.hardcastle@ubs.com

1Q results this morning (see First Read here ) for Swiss Life. +44-20-7567 9763

Qian Lu

UBS Summary: Analyst

qian-za.lu@ubs.com

+44-20-7567 4657

Swiss Life investor feedback: Key areas of feedback on our note were: 1) Our

Chloe Ryandetailed SOTP range led us to a range of CHF670-960, with investor feedback mainly

Associate Analyst

that some valuation parameters used were optimistic. We see this as a reasonable

chloe.ryan@ubs.com

challenge, particularly around our Swiss valuation (where we use a implied yield of 4- +44-20-7567 3505

5%) and Germany where listed German IFA business MLP trades at around 10x versus

our valuation range of 12-15x. 2) Risks: We noted in our downgrade potential risk from

higher EUR interest rates, if they led to negative property revaluations on French and

German properties. Investors we have spoken with agree this was the main risk to the

Swiss Life investment story, particularly if project development net income came under

pressure again, as it did in 2023. 3) Share buybacks: There does not appear to be any

expectation of a share buyback announcement at 1Q (in line with company guidance).