Swiss Life will eliminate 600 of its nearly 11,000 positions by the end of 2028, with half of the reductions occurring in Switzerland and the remainder abroad. The insurer aims to achieve most of the cuts through natural attrition, it said on Tuesday. The restructuring is part of a broader efficiency drive that CEO Patrick Aellig framed as a long-term necessity rather than a response to short-term challenges.
The move comes as Swiss Life remains on track to meet all medium-term financial targets, with Aellig noting the company is halfway through its current strategy period and positioned well beyond 2027. ‘Operational efficiency is an ongoing task,’ he said. The cuts will primarily affect back-office roles, while advisory positions are expected to remain unaffected. The company highlighted digitalization and artificial intelligence as key enablers for streamlining internal processes, citing examples such as automated reporting.
The restructuring program is expected to deliver annual savings of 150 million Swiss francs, with the full impact materializing from 2029 onward. Upfront costs associated with the layoffs will offset some of these gains in the near term. Despite the workforce reduction, Swiss Life reported a strong first half of 2026, with net profit rising 8% to 649 million francs despite higher tax expenses. Operating profit increased 7% to 967 million francs, driven by a 10% rise in earnings from fee-based businesses such as financial advisory, retirement products, and asset management, which contributed 430 million francs.
Fee income in these segments grew 5% to 1.34 billion francs, while gross premiums from insurance operations rose 2% to 12.3 billion francs, outpacing market growth in Switzerland and Germany. The insurer’s solvency position remains robust, with its Swiss Solvency Test (SST) ratio at approximately 215%, exceeding its target range of 140% to 190%.
In response to its strong capital position, Swiss Life announced a new share buyback program valued at 250 million francs, set to run from October 1, 2026, to March 31, 2027. The program follows the completion of a previous buyback initiative at the end of May. Analysts had been divided on whether the insurer would launch a new program so soon. The stock traded slightly lower at midday, with some investors citing the job cuts as a potential source of uncertainty despite praise for the company’s financial performance and buyback plans.
