Helvetia Annual General Meeting confirms all proposals of the Board of Directors
The shareholders of Helvetia Holding Ltd approved all proposals put forward by the Board of Directors at the company’s Annual General Meeting. The Chair and other members of the Board of Directors standing for election were re-elected. Dr Andreas von Planta stepped down from the Board on age grounds.
The Chair of the Board of Directors, Dr Thomas Schmuckli, welcomed 2,410 shareholders with voting rights (representing 65.73% of share capital) to Helvetia Holding Ltd’s 29th ordinary Annual General Meeting held at the Olma Messen St.Gallen venue. Fabian Rupprecht, Group CEO of Helvetia, presented the 2024 financial results. Helvetia successfully continued on its selective growth path with a focus on profitable and capital-efficient business fields and increased its business volume by 3.1% to CHF 11,552.7 million on a currency-adjusted basis (2023: CHF 11,311.3 million). The Helvetia Group generated underlying earnings of CHF 528.5 million, which represents an increase of 41.9% compared to the previous year (2023: CHF 372.5 million). “Thanks to its focus on profitable and capital-efficient business fields, Helvetia was able to perform well in the 2024 financial year. A notable highlight is the strong growth recorded in the attractive non-life business. With our new strategy, we will build on our strong foundation and continue to focus on technical profitability and operating efficiency”, explained Fabian Rupprecht at the Annual General Meeting. Focus on new strategy
Helvetia unveiled its new strategy in December 2024 as part of its Capital Markets Day. Dr Thomas Schmuckli, Chairman of the Board of Directors, presented the content of the new strategy to shareholders, including the planned merger with Baloise, which both companies announced on Tuesday and which will be voted on at an extraordinary shareholders’ meeting on 23 May 2025: “The strategies of the two companies complement each other very well. Both focus on customers and place a strong focus on operational efficiency and technical excellence. Together, Helvetia and Baloise will become a leading European insurance company with strong Swiss roots.” Dividend increase of 40 centimes
Based on Helvetia’s profitable growth and resilient result in the 2024 financial year, as well as the Group’s continued strong capitalisation, the Board of Directors proposed to the Annual General Meeting that the dividend be increased by 40 centimes to CHF 6.70 per share. The shareholders approved this proposal. Helvetia is therefore continuing its attractive dividend policy of recent years. Dr Thomas Schmuckli confirmed as Chair of Board of Directors
The Annual General Meeting confirmed Dr Thomas Schmuckli as Chair of the Board of Directors. All other members of the Board of Directors standing for election were also re-elected. Dr. Andreas von Planta did not put himself forward for re-election as he will soon reach the age limit stipulated in the Organization Rules. Compensation approved
The shareholders also approved the total amounts of fixed compensation for the members of the Board of Directors and the fixed and variable compensation for the Executive Management. In addition, Walter Wagner, a lawyer and notary from St. Gallen, was elected as independent proxy. KPMG AG, Zurich, was once again confirmed as auditor.
Ατλαντική Ένωση Α.Ε.Γ.Α : Θετική εξέλιξη η συγχώνευση του μειοψηφικού μετόχου της Baloise με την ασφαλιστική Helvetia
Με ιδιαίτερη χαρά η ΑΤΛΑΝΤΙΚΗ ΕΝΩΣΗ Α.Ε.Γ.Α ανακοινώνει ότι ο μέτοχος μειοψηφίας Ελβετικός Όμιλος Baloise και ο Ελβετικός Όμιλος Helvetia πρόκειται να ενωθούν σε έναν νέο Ασφαλιστικό Όμιλο, ο οποίος θα είναι ο δεύτερος μεγαλύτερος ασφαλιστικός όμιλος στην Ελβετία με ένα πολύ μεγάλο μερίδιο αγοράς και είναι ο μεγαλύτερος εργοδότης της ελβετικής ασφαλιστικής αγοράς.
Ο νέος όμιλος θα συγκαταλέγεται στους 10 μεγαλύτερους ευρωπαϊκούς ασφαλιστικούς ομίλους.
Η ενοποίηση των ομίλων Baloise και Helvetia είναι μία από τις μεγαλύτερες ενοποιήσεις που έγιναν ποτέ στην Ευρώπη με σύνολο παραγωγής περίπου 24 δισεκατομμύρια δολάρια.
Η ΑΤΛΑΝΤΙΚΗ ΕΝΩΣΗ Α.Ε.Γ.Α η οποία είναι μέλος του Ομίλου Baloise τα τελευταία 53 χρόνια, είναι ιδιαίτερα χαρούμενη διότι θα είναι πλέον μέλος ενός ακόμα μεγαλύτερου Ομίλου, πράγμα το οποίο θα δώσει περισσότερες ευκαιρίες για περαιτέρω ανάπτυξη.
Η ΑΤΛΑΝΤΙΚΗ ΕΝΩΣΗ Α.Ε.Γ.Α. είναι η πρώτη σε Φερεγγυότητα Εταιρία Ζωής και Γενικών Ασφαλίσεων στην ελληνική ασφαλιστική αγορά με δείκτη φερεγγυότητας 297%, αύξηση κερδών 43% και αύξηση παραγωγής 16% το 2024, όπως αναφέρει στη σχετική ανακοίνωση.
Baloise and Helvetia join forces to create the second largest insurance group in Switzerland and a leading European insurer
Baloise and Helvetia announce intention to join forces in a merger of equals
Creating the second largest Swiss insurance group with a combined market share of ~20% and largest insurance employer in Switzerland
Generating approx. CHF 350 million run-rate pre-tax cost synergies before policyholder participation in addition to existing cost efficiency plans
Meaningfully enhancing cash generation; dividend capacity to increase by approx. 20% by financial year 2029
Similar culture, values, and vision, as well as balanced governance approach facilitating a seamless integration
The Boards of Directors of Baloise Holding Ltd (“Baloise”) and Helvetia Holding Ltd (“Helvetia”), two leading Swiss composite insurance groups, propose to form “Helvetia Baloise Holding Ltd” (“Helvetia Baloise” or the “Group”) by way of a merger of equals. With a business volume of CHF 20 billion across 8 countries and a global Specialty business, Helvetia Baloise will become the second largest insurance group in Switzerland and a leading European insurer. The high degree of cultural and strategic alignment offers a unique opportunity for a seamless integration, strengthening the Group for a new chapter of focused, yield-oriented growth. The merger is expected to generate run-rate pre-tax cost synergies of approximately CHF 350 million before policyholder participation, in addition to existing cost efficiency programmes, enhancing the distribution capacity and creating significant value for all its stakeholders.
Key terms
Merger structure and exchange ratio
Merger of equals based on at-market reference prices
Merger structure: Baloise merges into Helvetia. The Group will be listed on the SIX Swiss Exchange under the new name “Helvetia Baloise Holding Ltd” and will trade under the ticker symbol “HBAN”
Fixed share exchange ratio1 of 1.0119 Helvetia shares for each Baloise share
Leadership and governance framework
Board of Directors: comprised of 14 members consisting of 7 from Baloise and 7 from Helvetia; Chairman: Thomas von Planta (Chairman of Baloise’s Board of Directors); Vice-Chairman: Ivo Furrer (member of Helvetia’s Board of Directors)2
Group Executive Board: key members include CEO: Fabian Rupprecht (CEO of Helvetia); Deputy CEO and Head of Integration: Michael Müller (CEO of Baloise); CFO: Matthias Henny (from Baloise); CIO: André Keller (from Helvetia)3
The headquarters and registered domicile will be in Basel; Helvetia’s current headquarters in St. Gallen will remain an important location
The new logo will follow the design of Baloise’s logo
Approval process
Subject to approval from Baloise and Helvetia shareholders; support from Helvetia anchor shareholder Patria Genossenschaft confirmed
Customary regulatory and anti-trust approvals
Anticipated closing in Q4 2025
1) Reflecting adjustment for proposed dividends2) Detailed information on the composition of the Board of Directors can be found in the shareholders’ brochure on the planned merger on the websites of both companies3) Detailed information on the composition of the Group Executive Board can be found in the shareholders’ brochure on the planned merger on the websites of both companies
A significant milestone in the Swiss insurance industry
Thomas von Planta, Chairman of Baloise Holding Ltd, says: “The merger to form Helvetia Baloise is a significant milestone in the history of the Swiss insurance industry. It’s the next logical step for both companies in delivering against their respective strategies to become a leading European insurer and the second largest Swiss insurance group. The transaction will ensure the long-term attractiveness and competitiveness of the two long-standing Swiss companies in the local and international insurance market and generate superior value for customers, partners, employees, the public and shareholders.”
Thomas Schmuckli, Chairman of Helvetia Holding Ltd, adds: “Leveraging our strong positioning in the market, we as two medium-sized listed insurance groups can tackle future challenges together supported by increased scale, improved profitability and a highly attractive value proposition for all our stakeholders. This merger is not just a strategic move; it is a commitment to our values and vision for a sustainable future. We are confident that Switzerland, as a business location, our customers, partners, employees and shareholders will benefit from this decision. Together, we are stronger and better equipped to drive growth in the future.”
Pro forma combined figures (unaudited)
In CHF million as of December 31, 2024
Helvetia
Baloise
Helvetia Baloise4
Premiums Written Life5Premiums Written Non-LifeTotal Business Volume
4,1287,42511,553
4,4844,120 8,604
8,61111,54520,156
Net income attributable to shareholdersCombined ratio
48295%
38593%
86794%
Shareholders’ equity6Dividend payout7
3,660355
3,630371
7,290726
4) Presented pro-forma combined figures are highly preliminary and represent the aggregated, unadjusted figures of Helvetia and Baloise5) Including Deposits Life6) Excluding non-controlling interests and preference shares7) FY 2024 based on the “dividend payout proposed to the respective Annual General Meeting in 2025” times the “number of shares issued”
Strategic rationale: leverage strategic advantages for growth and innovation
The merger will create a leading composite insurance group in both Switzerland and Europe with more than 22,000 employees and a combined CHF 8.6 billion in gross premiums8 in the Life business and CHF 11.5 billion in the Non-Life business.
In its home market Switzerland, Helvetia Baloise will become the second largest insurance group in terms of overall business volume, reaching a market share of ~20% across all business lines (Life and Non-Life). It will also be the largest insurance employer. Beyond Switzerland, Helvetia Baloise will become a leading insurer with attractive positions in its European markets of Germany, France, Italy, Spain, Belgium, Austria, and Luxembourg as well as in its global Specialty business. The merger will combine similar strategies and leverage complementary strengths with a full suite of innovative insurance products and financial services.
The similar scale, complementary markets, and high synergy potential make this transaction a unique opportunity for sustainable value creation. Strong cultural alignment, rooted in both companies’ 160-year histories in Switzerland, provides the best possible condition for a successful integration.
8) Including Life deposits
Significant synergies with attractive value creation
The merger is expected to create approximately CHF 350 million pre-tax cost synergies, before policyholder participation, in addition to current cost efficiency plans, of which ~80% is projected to be realised by 2028. To achieve the cost synergy targets, total integration costs of approximately CHF 500-600 million in the coming years are expected, most of which are foreseen to be incurred by 2028. As a result, additional cash generation9 of ~CHF 220 million on a run-rate basis and ~20% dividend capacity uplift by financial year 2029 compared to current standalone consensus forecasts and extrapolations are expected.
Helvetia Baloise will benefit from a very strong solvency capital position with an estimated SST ratio of more than 240% as of 1 January 2025. Additional upside from capital and revenue synergies will materialise over time.
Any merger-related job reductions in countries where there is duplication will be implemented before 2029 and shall be achieved by natural attrition and early retirement whenever possible. Helvetia Baloise is committed to managing this process in a socially responsible manner with fairness and support for the people affected.
9) Post-tax and net of impact from policyholder participation and profit-sharing mechanism
Strong commitment to customers, partners, and employees
Helvetia Baloise is deeply committed to its customers, partners, and employees, ensuring that their needs and aspirations are at the forefront of their business. The merger will significantly improve customer proximity by expanding the companies’ capabilities and enlarging their individual distribution networks, allowing the Group to serve its joint customers more efficiently and effectively. By leveraging complementary strengths and best practices, the Group will further enhance its customer service. The strong cultural alignment is further strengthened by a dedicated management team, which will ensure that Helvetia Baloise is led in the long-term interests of its customers, partners, employees and shareholders.
Fabian Rupprecht, CEO of Helvetia says: “We are very excited about this amazing opportunity to build a European insurance leader with strong Swiss roots. Helvetia Baloise will become the largest employer in the Swiss insurance industry with the greatest possible proximity to customers. This, coupled with the combined expertise of two players that each have been successful for over 160 years, are key factors for future success and sustainable value generation for all our stakeholders.”
Michael Müller, CEO of Baloise concludes: “The complementary strengths of the two companies make Helvetia Baloise a relevant insurance and finance partner with Swiss roots and a strong market presence in Europe. The merger adds gravity in our markets and unlocks a new era and opportunities to deliver focused, yield-oriented growth to our shareholders. This is a unique chance to consolidate our position as a leading European insurance and financial services provider.”
Boards of Directors of Baloise and Helvetia propose to their shareholders to approve the merger
The parties have concluded that a merger of equals by way of absorption is the most efficient and tax-neutral transaction structure. The combined entity will be renamed “Helvetia Baloise Holding Ltd”. As part of the merger, Baloise shareholders will receive 1.0119 new Helvetia shares for each Baloise share10. The share exchange ratio was determined based on the volume-weighted average prices (VWAP) of the shares of both companies over the last 30 trading days preceding the announcement. In its independent fairness opinion to the two Boards of Directors, IFBC has confirmed that the exchange ratio is fair and appropriate from a financial point of view. The fairness opinion is available here.
The Boards of Directors of both companies will propose that their shareholders approve the merger at the respective Extraordinary General Meetings, which are planned on 23 May 2025. Patria Genossenschaft, the largest shareholder of Helvetia, which currently holds 34.1% of the share capital of Helvetia, has already committed to vote in favour of the merger.
The merger agreement, the joint merger report, the report of the joint merger auditor, the fairness opinion, all dated 21 April 2025, as well as a shareholders’ brochure on the planned merger will be available for inspection at the registered offices of both Baloise and Helvetia as of today. The annual reports of the last three years of both companies will also be available.These documents can also be viewed and downloaded from the websites of the two companies at www.baloise.com/merger and www.helvetia.com/merger-documents.
10) Exchange ratio reflecting adjustment for proposed dividends
Next steps
25 April 2025
Ordinary Annual General Meetings of Baloise and Helvetia
23 May 2025
Extraordinary General Meetings of Baloise and Helvetia
Q4 2025
Closing of the transaction, subject to obtaining all required regulatory approvals
The transaction is expected to close in Q4 2025 and is subject to customary regulatory and anti-trust approvals as well as the approval of the two Extraordinary General Meetings. Each company will distribute ordinary dividends related to their full-year 2024 results subject to approval by shareholders at their respective Annual General Meetings. Baloise’s share buy-back programme will not be implemented, provided that the merger is approved by the shareholders at the Extraordinary General Meetings.
The current statutory auditor of Helvetia, KPMG, Zurich, is to remain in its position for a transitional period following the completion of the merger. The parties intend to re-tender the audit mandate by 2027 at the latest, in view of the election of the statutory auditor at the Annual General Meeting in 2028.
Morgan Stanley & Co. International plc is acting as lead financial advisor and Lenz & Staehelin served as legal advisor to Baloise in connection with this transaction. UBS also acted as financial advisor to Baloise. J.P. Morgan Securities plc is acting as exclusive financial advisor and Walder Wyss is acting as legal advisor to Helvetia.
Helvetia (CH) Swiss Property Fund delivers solid results for 2022/23
For its fourth financial year, Helvetia (CH) Swiss Property Fund is again able to report an encouraging set of results, in a challenging market environment. With solid net income of CHF 22.59 million as well as the strategic focus on residential usage accounting for 78% of rental income, a stable development produced total income of CHF 0.16 million. This represents an investment yield of 0.41%.
Active management of the investments increased rental income to CHF 36.93 million (2021/22:CHF 27.36 million), while the rent default rate declined to 2.48% (2021/22: 2.53%). This had a positive impact on earnings capacity, with the EBIT margin increasing to 66.19%, versus 65.05% in the previous year.
Higher net income per unitThe net income available for distribution registered a substantial year-on-year increase, rising from CHF 17.94 million to CHF 22.59 million. This represents net income per unit of CHF 2.78 (2022: CHF 2.76). The previous year’s distribution of CHF 2.75 per unit was maintained for the year under review, despite higher financing costs. Accordingly, a total of 94.53% of the income available for distribution is being distributed to investors, which corresponds to a payout ratio of 98.90%. Based on the OTC price of CHF 104.00 as at 30 September 2023, the dividend yield is a gratifying 2.64%.
The slight, market-related drop in property portfolio value is offset in part by the positive operating result. Unrealized capital losses amount to CHF 22.02 million (2021/22: unrealized capital gains of CHF 8.45 million). This value adjustment is attributable to higher interest rates over past months and the resultant rise in the discount rates applied by independent appraisers. This led to a decline in market values in the portfolio.
Successful capital increaseIn the fourth financial year (1 October 2022 to 30 September 2023), attention was focused on the capital increase that took place in spring 2023 for a gross amount of CHF 172 million. Subsequent to the capital increase, eight high-quality properties were acquired from the portfolio of Helvetia Insurance, with an approximate market value of CHF 229.5 million. At CHF 1,078 million, the portfolio’s market value has thus topped the one-billion mark, and offers our investors ideal diversification in terms of macro- and microlocations, economic year of construction and tenant structure.
Successful first-time participation in GRESBThe financial year under review marked the first-ever participation in the Global Real Estate Sustainability Benchmark (GRESB), which was rewarded with a Green Star distinction. The Helvetia (CH) Swiss Property Fund also won three stars in the relative peer comparison. Alongside incorporation into the fund agreement in September 2023, they also serve to underpin the relevance of ESG considerations in the investment process. Responsible investment is one of the four focal points of Helvetia’s sustainability strategy. By 2050, the company intends to gradually shift its investment portfolio to net-zero emissions, fulfilling the requirements of the Paris Climate Agreement.
Outlook for financial year 2023/24Given the rise in the reference interest rate on 1 June 2023 and the adjustment of indexed rental agreements for apartments, additional rental income of CHF 1.12 million is expected for the current financial year. This corresponds to an increase of 2.95% versus target rental income. Similarly, the rise in the reference interest rate with effect from 1 December 2023 is likely to have a further positive impact on rental income.
With a market value in excess of one billion Swiss Francs, the Helvetia (CH) Swiss Property Fund is one of the largest non-listed real estate funds in Switzerland. In favourable market constellations, it thus meets the requirements for listing on SIX Swiss Exchange. This is planned for the first half of 2024.
Three of Helvetia’s real estate investment vehicles awarded a Green Star as part of the GRESB Real Estate Assessment
This year, the independent Global Real Estate Sustainability Benchmark (or GRESB for short) once again rated real estate investments in an effort to provide investors with an impartial and transparent benchmark for the ESG performance of companies and real estate investment vehicles.
The Helvetia Investment Foundation’s two real estate investment groups (Swiss Real Estate and Romandie Real Estate) as well as Helvetia Asset Management Ltd’s Helvetia (CH) Swiss Property Fund were assessed by GRESB for the first time. These three investment vehicles, which have a total volume of around CHF 3 billion, achieved gratifying GRESB scores (of between 76 and 80 out of a total of 100) and three out of five stars in the benchmark comparison. These good results meant all three investment vehicles met the criterion for the separate Green Star award.
Vehicle
Score
Rating
Green Star
Helvetia Swiss Real Estate investment group
80 points
*** stars
Green Star award
Helvetia Romandie Real Estate investment group
77 points
*** stars
Green Star award
Helvetia (CH) Swiss Property Fund
76 points
*** stars
Green Star award
“We are delighted to have been awarded the Green Star for three investment vehicles that we manage on their debut in the GRESB ratings. This highlights the significance of ESG factors in our investment processes. We are convinced that our investors benefit from our ESG expertise and ambitions”, says André Keller, Group Chief Investment Officer at Helvetia.
A sustainability strategy focused on responsible investment The GRESB scores are the result of a comprehensive campaign to gear Helvetia’s investment solutions to sustainability. Responsible investment is one of the four focal points of Helvetia’s sustainability strategy. By 2050, the company intends to gradually shift its investment portfolio to net-zero emissions, fulfilling the requirements of the Paris Climate Agreement.
Helvetia increases its profits, grows profitably and implements its strategy successfully
Overview of key details of the 2023 half-year financial statements:
Further profitable growth in the core business
In the first half of 2023, Helvetia again achieved profitable growth and increased its business volume by 6.0% to CHF 6,687.0 million (at constant exchange rates).
The expansion was driven by strong growth in non-life insurance, with a significant 13.2% currency-adjusted boost in all segments across the board in its various business lines.
The Group’s IFRS result after-tax increased by almost 35% to CHF 257.8 million. Besides a solid technical development, the better performance of the financial markets further boosted the result.
Resilience due to financial strength and diversification
In view of the demanding environment marked by macroeconomic challenges, Helvetia managed to achieve a strong result.
This resilience was once again underpinned the Group’s broad diversification and robust financial strength.
The company’s strength is also reflected in its continuing excellent capitalisation: The estimated SST ratio was around 300% as at 30 June 2023.
Seizing growth opportunities with the helvetia 20.25 strategy
With the implementation of its helvetia 20.25 strategy, Helvetia is systematically focusing on customer needs and expanding its distribution channels, thus enabling further profitable growth.
Helvetia seized attractive new growth opportunities with the targeted development of the fee business and the expansion of new business fields, such as embedded insurance.
The partial integration of MoneyPark’s distribution channel into that of Helvetia enables both organisations to further build their lead as advisers and brokers in the real estate and mortgage sector.
“The first half of 2023 was marked by stability because we were broadly diversified and able to seize profitable growth opportunities, thus achieving remarkable growth and significantly higher profits compared to the same period in the previous year. This was based on the solid technical results we achieved in our core business. At the same time, we successfully established ourselves in new business fields. This means we once again created value for our shareholders in the first half of 2023”, stated Philipp Gmür, Group CEO of Helvetia, in response to the 2023 half-year financial statements. Helvetia used the new IFRS 17 and IFRS 9 standards for the first time in preparing its 2023 half-year financial statements. All previous year’s figures are presented on a comparative basis.
Non-life business as driver of profitable growth in the core businessIn the first half of 2023, Helvetia Group successfully continued its growth by focusing on profitable and capital-efficient areas, such as the B2B2C and fee businesses as well as the Specialty Markets lines. Business volume came to CHF 6,687.0 million (first half of 2022: CHF 6,418.7 million). At constant exchange rates, this marks a 6.0% increase (4.2% in Swiss francs). Insurance revenue came in at CHF 4,293.6 million (first half of 2022: CHF 4,047.3), which means a growth of 8.4% at constant exchange rates. The non-life business generated strong growth, boosting business volume by 13.2% to CHF 4,200.3 million in total (at constant exchange rates). Helvetia posted gains in this business area across all segments within its diverse portfolio of business lines. Growth in Helvetia’s three largest country markets – Switzerland (10.0% at constant exchange rates), Spain and Germany – as well as Austria was above the market average (overall Europe growth segment: 7.6% at constant exchange rates). Helvetia was therefore able to further expand market share in its profitable core business. The volume in the non-life business of the Specialty Markets segment also experienced very good growth (+30.5% at constant exchange rates), primarily due to additional new business. Furthermore, favourable price effects supported growth in this segment, contributing approximately one third. Life insurance business volume amounted to CHF 2,486.7 million (-4.3% at constant exchange rates). Helvetia’s strategy remains focused on investment-linked business and pure risk products. This led to growth in business volume with deposits received from investment contracts in the individual life business and with the reinsurance of biometric risks assumed in the active reinsurance business. The continuing market trend from full insurance to semi-autonomous solutions caused savings premiums in the Swiss group life business to come in lower compared to the same period in the previous year. Helvetia is well positioned for this trend with its semi-autonomous products and risk solutions. Strong technical results and favourable financial marketsHelvetia generated an IFRS result after tax of CHF 257.8 million in the first half of 2023, which was significantly higher than in the same period in the previous year (first half of 2022: CHF 191.4 million). This good result was based on the robust technical performance of the core business. In addition, a favourable performance in the financial markets was a main reason for the increase in earnings. An unfavourable impact of CHF 26.9 million resulted from the one-off goodwill impairment associated with MoneyPark, as communicated at the beginning of September. At CHF 215.9 million, the IFRS result after tax in the non-life business was significantly higher than in the prior-year period (first half of 2022: CHF 71.4 million). Besides the solid operating insurance service result, it was primarily the much-improved capital market performance that had a significant positive effect on gains and losses from investments. In the life business, the IFRS result after tax in the first half of 2023 was CHF 137.0 million, on par with the same period in the previous year (first half of 2022: CHF 140.4 million). The solid result confirmed the strategy Helvetia has been pursuing in recent years that focuses on capital-light investment-linked insurance products and risk life insurance. Helvetia posted a stable release of the contractual service margin of CHF 188.5 million (first half of 2022: CHF 193.4 million), although, compared to the same period in the previous year, the contribution of the life insurance company Sa Nostra Vida, which was sold at the end of 2022, was no longer included. Combined ratio of 94.0%The Group’s combined ratio was 94.0% (first half of 2022: 92.8%), which is at the upper end of the 92% to 94% target range prescribed by the helvetia 20.25 strategy. The combined ratio proved solid in view of an above-average frequency of medium-sized claims, a few large claims in the Europe segment and the persistently inflationary environment. Improved new business margin and higher contractual service margin (CSM) in the life businessNew business in the life business also performed profitably. The new business margin increased to 5.6% (first half of 2022: 4.2%). This was due to growth with profitable new business in Active Reinsurance and the positive effects from higher interest rates on new business in the Europe segment. The CSM increased compared to the end of 2022 to CHF 4,278.8 million as at 30 June 2023 (31 December 2022: CHF 3,942.4 million). Besides profitable new business written in the reporting period, the main contribution to this increase came from the positive financial markets. Capitalisation remains very strongHelvetia continues to have outstanding capitalisation. As at 30 June 2023, the estimated SST ratio was around 300%. In addition, Helvetia is rated “A+” by the S&P Global Ratings (S&P) agency. Helvetia pursues growth opportunities with the helvetia 20.25 strategyIn the first half of 2023, the Group increased its fee income by 10.2% (at constant exchange rates), thus seizing growth opportunities in line with the helvetia 20.25 strategy. The driver was Caser’s Health & Care ecosystem in Spain. Furthermore, the capital increase in the Helvetia (CH) Swiss Property Fund contributed to commission income from asset management services for third parties. The fee business contributed almost 5% to Helvetia’s overall result. Besides the fee business, Helvetia is also seizing growth opportunities in new business fields such as embedded insurance, which provides access to new customers and creates a basis for further profitable growth. Helvetia has further developed this business by acquiring Mobile Garantie in Germany, which provides bespoke solutions and services for supplementary car insurance in the form of warranty extensions and repair costs cover. Profitable growth is also the focus of the internationalisation of Smile, Switzerland’s leading online insurer. Smile was launched successfully in Austria last year, where in 2023 it expanded its product range to include motor vehicle insurance. Comprehensive real estate servicesA further focus of the helvetia 20.25 strategy is to tailor the company’s own offers specifically to the needs of its customers. In order to provide a comprehensive range of services relating to property purchases from a single source, Helvetia is integrating MoneyPark’s distribution network into its own sales force. MoneyPark is a market leader in real estate consultancy and brokerage. This gives Helvetia customers direct access to mortgage deals provided by over 150 MoneyPark partners that can be combined directly with Helvetia’s pension and insurance solutions. “The first half of 2023 once again shows Helvetia’s strengths: Our robust core business enables us to create sustainable value for our shareholders and our excellent capitalisation and broad diversification make us very resilient. Furthermore, we are successfully seizing growth opportunities. I am very pleased to be able to pass on an excellently positioned company to my successor Fabian Rupprecht”, states Philipp Gmür, who, as announced in April, will hand over to Fabian Rupprecht, the incoming Group CEO, at the beginning of October.
Fabian Rupprecht to become new Group CEO of Helvetia
The Helvetia Board of Directors is to appoint Fabian Rupprecht as Chairman of the Executive Management and Group CEO. Fabian Rupprecht has served as CEO International Insurance and a member of the Management Board of the Dutch NN Group since 2018. The 53-year-old had previously held various international management roles at AXA Group, including as CEO of the MEA Region (Middle East and Africa) and CFO for Emerging Markets and the Mediterranean Region. During his 28-year career in the insurance sector, he has also worked in the life and non-life insurance businesses. Fabian Rupprecht is a German-Swiss dual national and is at home in Switzerland. He studied at WHU – Otto Beisheim School of Management in Koblenz, where he attained a degree in business management with a specialisation in finance and controlling. “With Fabian Rupprecht, we are delighted to have gained an outstanding management figure with extensive experience in the insurance business for the Helvetia Group. In recent years, Fabian Rupprecht has successfully led and further developed the international division of NN Group. His past experience means he is also familiar with the Spain and Switzerland markets, which are important for Helvetia”, explains Thomas Schmuckli, Chair of the Board of Directors of Helvetia. “The Board of Directors is looking forward to working together with Fabian Rupprecht and all employees in continuing to successfully shape the future of the company. We would like to wish Fabian Rupprecht much success and satisfaction in his new role”, adds Thomas Schmuckli. In taking on the role as Group CEO on 1 October 2023, Fabian Rupprecht will succeed Philipp Gmür, who at the end of 2022 announced his departure after 30 years at the Helvetia Group. Thomas Schmuckli: “I would like to take this opportunity to thank Philipp Gmür for his great contribution and the dedication he has shown to successfully developing Helvetia over the past three decades.” The decision on the successor as Group CEO of Helvetia is subject to the approval of the Swiss Financial Market Supervisory Authority (FINMA).
Helvetia recognized as European “Top Employer”
The Helvetia Group has been awarded the European “Top Employer” seal for the first time. The Swiss market has won the “Top Employer” seal for the third, and Germany and Austria for the second time in a row. France and Italy also participated in the auditing and passed. Helvetia impresses at the group level in the fields of business strategy, organization and change as well as ethics and integrity. The Top Employers Institute has audited companies worldwide for over 30 years in terms of their employment conditions and issues awards to the best ones. Helvetia Switzerland has won the “Top Employer” award for the third, Helvetia Germany and Austria for the second time in a row. Helvetia France and Italy participated in the auditing for the first time and passed. As the Helvetia Group was recognized in five country markets, it is also receiving the European seal this year for the first time. Helvetia impressed at the group level in particular in the fields of business strategy, organization and change as well as ethics and integrity. In the Swiss market it was awarded top marks for digital HR and for its purpose and values.
Further awards for Helvetia’s HR
Helvetia Switzerland was awarded silver in the “Best Recruiters” 2021/22 study by career Institut & Verlag GmbH in the category all-line insurance. The study analysed the recruiting quality of the companies with the highest turnover and employees in the countries in the DACH region. Helvetia Austria also received silver in the industry ranking and is among the top 5 per cent of all companies evaluated.
Roland Bentele, Group Chief Corporate Center Officer of the Helvetia Group, comments: “I am proud that our purpose ‘Being there when it matters’ also pays off with our employees. The award as ‘Top Employer’ in five country markets and the first-time award of the European seal are key indicators for me that Helvetia is a first-class employer for both current and potential employees.”
Helvetia now rated ‘A’ in sustainability by MSCI
The independent rating agency MSCI has upgraded Helvetia’s ESG rating to ‘A’, thus acknowledging the measures the insurance group has taken in the area of sustainability. As Helvetia’s first Chief Sustainability Officer, Kaspar Hartmann will implement and further develop the sustainability strategy with even more drive in the future.As a European financial service provider, Helvetia wants to contribute to the sustainable development of business and society. As part of the Sustainability Strategy 20.25, the insurance group is pursuing the ambition of being committed to sustainability and being there when it matters, in line with its purpose. To do so, Helvetia is focussing on four areas that are relevant to its stakeholders and the insurance industry: its own business operations, customers and products, investments, and culture and governance. Examples of milestones that have already been achieved include CO2 neutrality for own operations since 2017, signing the UN Principles for Responsible Investment in 2020 and adopting the Responsible Investment Strategy 2021. Improved sustainability rating
The recent rating increase to ‘A’ (previously ‘BBB’) by the independent rating agency MSCI shows that the various measures taken in the area of sustainability over the past few years are viewed very positively. Helvetia has therefore achieved the goal of an ‘A’ ESG rating from MSCI set as part of the Sustainability Strategy 20.25 and will continue to work hard on sustainability issues and push forward improvements. Kaspar Hartmann becomes Chief Corporate Sustainability Officer
Philipp Gmür, Group CEO of Helvetia, emphasises: “Sustainability is a key success factor for our company. With our business model, we promote economic, social and environmental action, and thus deliver sustainable financial performance.” That’s why Helvetia is also strengthening its sustainability work on an organisational level: Kaspar Hartmann is now Helvetia’s Chief Sustainability Officer. In this newly created role, he will be implementing and further developing the Group-wide sustainability strategy with even more drive. Kaspar Hartmann (46) has held various management positions at Helvetia in Switzerland and abroad for 17 years. Most recently, he has been successfully managing the non-life business at Helvetia Austria.
Helvetia: Dr Thomas Schmuckli expected to serve as Chairman of the Board of Directors
As announced in December 2021, Doris Russi Schurter for personal reasons will not stand for re-election as Chairwoman of the Board of Directors at the next Helvetia Holding AG Shareholders’ Meeting. Her designated successor, Dr Axel Lehmann, is also no longer available to Helvetia after having been elected Chairman of the Board of Directors of the Credit Suisse Group. Following a review, the Helvetia Holding AG Board of Directors has now decided to plan for the long term with Dr Thomas Schmuckli as Chairman of the Board of Directors. At the 2022 Shareholders’ Meeting, he will be proposed as the successor to Doris Russi Schurter as Chairman of the Board of Directors. Dr Thomas Schmuckli has been a member and Vice-Chairman of the Helvetia Holding AG Board of Directors since 2018. He is currently a member of the Strategy and Governance Committee and a member of the Investment and Risk Committee. He has also been Chairman of Helvetia’s anchor shareholder Patria Genossenschaft since 2019. He will relinquish this mandate with effect from 13 May 2022. A trained lawyer, he held a number of management positions in the General Counsel area of the Credit Suisse Group from 1993 to 2013. In addition, he has been Chairman of the Board of Directors of Credit Suisse Funds AG since 2012. He will relinquish this post with effect from 13 April 2022. Dr Thomas Schmuckli was elected to the Board of Directors of Bossard Holding AG in 2000 and has served as its Chairman since 2007. “Dr Thomas Schmuckli knows Helvetia very well and closely accompanied and helped shape the development of the helvetia 20.25 strategy as a member of the Strategy and Governance Committee. As an experienced manager with a broad professional background, he will continue to drive the development of Helvetia into a European financial services provider together with the Board of Directors and Executive Management”, explains Doris Russi Schurter, Chairwoman of the Board of Directors of Helvetia Holding AG. The ordinary Shareholders’ Meeting of Helvetia Holding AG will be held on 29 April 2022 at the Olma Messe in St.Gallen. The shareholders will be able to attend the Shareholders’ Meeting in person for the first time since 2019.