- Combined Ratio Improvement: Enhanced portfolio quality and lower large claims reduced the ratio to 90.6%, up 2.6 pp.
- Net Profit Surge: 26% YoY increase to CHF 276 million, driven by underwriting gains and operational efficiency.
- Return on Equity (ROE): Rose to 15.5%, surpassing the 12%-15% target range, reflecting strong capital efficiency.
- Non-Life Growth: 3.1% local currency growth (excluding Belgium exits) and 41.2% surge in investment-type premiums from Luxembourg/Belgium.
- Helvetia Merger Timeline: Transaction expected to close Q4 2025, with merged entity balance sheet to be published in Q1 2026.
Segment Performance
The company's segment performance was mixed, with non-life EBIT reaching CHF 229 million, driven by a strong combined ratio and higher finance result. Life EBIT remained stable at CHF 143 million, supported by a higher insurance service result and lower costs. Asset Management & Banking EBIT grew 18.4% to CHF 50 million, driven by higher contributions from banking and asset management.
Valuation and Outlook
With a Price-to-Book Ratio of 2.99, the company's valuation appears reasonable, considering its improved return on equity. The Dividend Yield of 4.05% is also attractive, indicating a stable income stream for investors. Looking ahead, Baloise remains confident in achieving its financial targets for 2024-2027, with a focus on sustainable growth and delivering value to stakeholders. Analysts estimate revenue growth of 2.7% next year, indicating a stable outlook for the company.
Merger with Helvetia
The company's merger with Helvetia is progressing as planned, with an expected closure in Q4 2025. The combined entity is expected to be well-positioned for future profitable growth, with a potential release of an opening balance sheet in Q1 2026. The refocusing strategy is on track, with over 50% of the planned 250 FTE reduction achieved by year-end 2027.