Baloise achieves a very healthy profit for the period and makes significant progress with implementing its refocusing strategy

Basel, 10 September 2025.
“Baloise achieved very good results for the first half of 2025, generating profit attributable to shareholders of CHF 275.9 million. We further optimised our core business, improved the combined ratio, boosted profitability and recorded an annualised return on equity of 15.5 per cent. A year on from the launch of our refocusing strategy, it is clear that we are making sustained progress, not only due to our firm focus and determined efforts to implement it but also thanks to the dedication and hard work of our employees. We also kept our promise once again during the first six months of the year by delivering on the values that we uphold as an insurance company. This can be seen from the quick, simple and straightforward support that we were able to provide to people affected by the landslide in the Swiss village of Blatten in May. The village was buried under rock and ice within just a few seconds. Moments such as these show how important our role in society is, because our services can at least help to cushion people’s financial losses.”

                                                                                   Michael Müller, CEO of the Baloise Group

Half-year financial results in brief

• Profit attributable to shareholders for the first half of 2025 improved by a very good 25.5 per cent to CHF 275.9 million (H1 2024: CHF 219.8 million). This increase was primarily due to the excellent profit achieved in the non-life business.
   
• The Baloise Group’s annualised return on equity stood at a very healthy 15.5 per cent in the first six months of 2025 thanks to the sharp rise in profit attributable to shareholders (H1 2024: 13.0 per cent) and was thus slightly higher than the target range of 12 per cent to 15 per cent that Baloise defined as part of its refocusing strategy.
   
• The volume of business in the Baloise Group held steady at CHF 5,236.5 million (H1 2024: CHF 5,293.0 million). This represents an increase of 0.1 per cent in local currency terms, although the volume decreased by 1.1 per cent in Swiss francs.
   
• Adjusted for currency effects, the volume of premiums in the non-life business grew by 1.9 per cent. Measured in Swiss francs, gross premiums written rose by 0.7 per cent to CHF 2,734.2 million (H1 2024: CHF 2,715.9 million).
   
• Despite the massive landslide in the Swiss village of Blatten in May 2025 and the resulting claims incurred of CHF 46.5 million gross, the Baloise Group achieved a robust combined ratio of 90.6 per cent. This was an improvement of 2.6 percentage points compared with the prior-year period (H1 2024: 93.2 per cent^*).
   
• Profit before borrowing costs and taxes in the non-life business (EBIT) surged by 85.6 per cent to CHF 228.7 million (H1 2024: CHF 123.2 million) thanks to an improved insurance service result – owing to factors such as a year-on-year fall in large claims incurred – and a very strong level of net financial income.
   
• The volume of business in the life business (premiums written and investment-type premiums) went down by 1.9 per cent in local currency terms, or 2.9 per cent in Swiss francs, to CHF 2,502.4 million in the first six months of 2025 (H1 2024: CHF 2,577.1 million). This decrease reflects a continuing trend towards semi-autonomous occupational pension solutions and our selective underwriting policy.
   
• The new business margin in the life business was 3.9 per cent in the first half of 2025 (H1 2024: 5.7 per cent), while the interest rate margin held steady at 134 basis points (31 December 2024: 135 basis points).
   
• Profit before borrowing costs and taxes in the life business (EBIT) was on a par with the prior-year period at CHF 143.0 million (H1 2024: CHF 144.7 million^*).
   
• Over the reporting period, the total assets under management (AuM) of Baloise Asset Management declined to CHF 58.0 billion (31 December 2024: CHF 59.5 billion). Whereas there was a reduction in AuM in the traditional life insurance business, AuM increased significantly in business with third parties. The EBIT of the Asset Management & Banking segment jumped to CHF 49.5 million in the period under review (H1 2024: CHF 41.8 million).
   
• Baloise maintained a strong level of capitalisation in the first half of 2025. S&P Global Ratings (S&P) confirmed its A+ rating with a stable outlook for the Baloise Group in June 2025. We expect an SST ratio of around 215 per cent as at 30 June 2025 (1 January 2025: 204 per cent).
   
• The equity attributable to shareholders amounted to CHF 3,482.5 million as at 30 June 2025 (31 December 2024: CHF 3,629.7 million). The contractual service margin (CSM) after taxes stood at CHF 3,915.7 million as at the reporting date (31 December 2024: CHF 4,004.7 million). Comprehensive equity therefore fell by 3.1 per cent to CHF 7,398.2 million (31 December 2024: CHF 7,634.4 million).
   
• Implementation of Baloise’s refocusing strategy is progressing according to schedule. For 2025, Baloise once again anticipates strong cash remittance, and we thus believe that we are comfortably on track to hit our target of more than CHF 2 billion in the period 2024 to 2027.
   
• Preparations for the planned merger with Helvetia to form Helvetia Baloise Holding Ltd are running to plan, and we expect the merger to take place in late 2025.

Strong profit growth and stable business volume

Profit attributable to shareholders rose sharply, by 25.5 per cent, to reach CHF 275.9 million in the first half of 2025 (H1 2024: CHF 219.8 million). This increase was primarily due to a very strong level of net financial income and an improved insurance service result in the non-life business. The Group’s profit before borrowing costs and taxes (EBIT) was up by 31.8 per cent year on year at CHF 358.5 million (H1 2024: CHF 271.9 million). Both the non-life business and Asset Management & Banking played a part in this improvement. The biggest contribution to EBIT came from business in Switzerland. The EBIT of Baloise in Switzerland jumped by 58.3 per cent to CHF 254.4 million (H1 2024: CHF 160.7 million). Baloise in Germany also saw a healthy rise in EBIT, which climbed by 11.9 per cent to CHF 51.9 million (H1 2024: CHF 46.4 million).

The Group’s volume of premiums was down slightly year on year at CHF 4,662.6 million (H1 2024: CHF 4,878.0 million). The continuing shift in occupational pensions from the traditional life business to semi-autonomous solutions, combined with a selective underwriting policy, acted as a brake on premiums, and the non-life business was unable to offset all of the decrease. Including investment-type premiums calculated in accordance with IFRS 9, the Group’s volume of business amounted to CHF 5,236.5 million in the first half of 2025 (H1 2024: CHF 5,293.0 million). This represented an increase of 0.1 per cent in local currency terms but a decrease of 1.1 per cent in Swiss francs.

Profitable growth in the non-life business and a much lower combined ratio

The non-life business at Baloise improved markedly in the first six months of 2025. Whereas the prior-year period had seen a heavy volume of claims incurred, the reporting period recorded a lower level of weather-related claims and large claims incurred. This was despite the significant impact on claims incurred from the devastating landslide in Blatten (Switzerland) in May. Baloise’s local response was prompt, simple and straightforward, ensuring that the people affected received support quickly. This event particularly underlined the strength of the Swiss natural perils pool, in which natural peril risks are borne on a solidarity basis by both policyholders and insurers belonging to the Swiss Insurance Association. The model clearly illustrates the importance of the fair distribution of risks, the availability of insurance even in at-risk regions and efficient claims settlement.

All national subsidiaries achieved positive price effects. Premium growth was particularly encouraging in the German business, with an increase of 8.5 per cent in local currency terms and 6.1 per cent in Swiss francs, to CHF 587.7 million. Switzerland also delivered healthy growth, of 1.7 per cent, to reach CHF 1,173.8 million. There was a sharp increase in Luxembourg too, with a rise of 5.5 per cent in local currency terms and 3.2 per cent in Swiss francs to CHF 98.6 million. The volume of premiums in Belgium declined slightly – as it had in the prior-year period – to CHF 838.9 million (H1 2024: CHF 878.6 million), owing to targeted action to boost profitability and as a result of a far-reaching withdrawal from marine insurance under the refocusing strategy. Adjusted for currency effects and the strategic disposal of marine insurance portfolios, the Belgian non-life business registered growth of 1.2 per cent.

Overall, Baloise increased its gross premiums written in the non-life business by 1.9 per cent in local currency terms and by 0.7 per cent in Swiss francs to CHF 2,734.2 million (H1 2024: CHF 2,715.9 million).

The combined ratio stood at 90.6 per cent, which was a very encouraging 2.6 percentage points lower than in the prior-year period (H1 2024: 93.2 per cent^*). During the current strategic phase, we are aiming for a combined ratio of around 90 per cent. The reduction in the Baloise Group’s combined ratio was driven by the decrease in the loss ratio in the Swiss business.

Gains or losses on investments in the Non-Life segment improved markedly to a net gain of CHF 136.7 million in the first half of 2025 (H1 2024: CHF 109.0 million). At CHF 103.9 million, current income was at a high level. The gains recognised in the income statement amounted to CHF 152.0 million. Positive movements in the Swiss real estate market had a favourable impact on this figure. The gains on investment recognised in other comprehensive income (OCI) came to CHF 4.5 million and were primarily attributable to the effects of currency hedging. Overall, the investment performance of the non-life business stood at 1.5 per cent (H1 2024: 0.6 per cent^*).

The much improved insurance service result and the very good level of net financial income were reflected in an 85.6 per cent jump in profit before borrowing costs and taxes (EBIT) in the non-life business to CHF 228.7 million (H1 2024: CHF 123.2 million).

Profit contribution from the life business holds steady at a very good level

The volume of business in the life business (premiums written and investment-type premiums) went down by 1.9 per cent in local currency terms, or 2.9 per cent in Swiss francs, to CHF 2,502.4 million in the first six months of 2025 (H1 2024: CHF 2,577.1 million). Gross premiums written in the life business also declined overall, falling by 10.1 per cent in local currency terms or 10.8 per cent in Swiss francs, to CHF 1,928.4 million (H1 2024: CHF 2,162.1 million).

In Switzerland, the volume of premiums in the life business declined by 20.2 per cent to CHF 1,267.3 million (H1 2024: CHF 1,588.6 million) due, in part, to the contraction of the group life business. Our semi-autonomous collective foundation Perspectiva, conversely, continued to generate growth. It now has 5,239 companies signed up and 22,215 beneficiaries. The foundation’s assets increased to CHF 1,927.6 million (31 December 2024: CHF 1,918.6 million).

In the life business, the volume of premiums in Germany rose by 2.1 per cent to CHF 256.4 million in local currency terms. In Belgium, the volume went up by 2.0 per cent in local currency terms to CHF 215.8 million. Baloise in Luxembourg recorded a jump of 91.8 per cent in local currency terms to CHF 188.9 million, which was primarily attributable to an increase in single premiums.

Investment-type premiums amounting to CHF 574.0 million were written in the first half of 2025 (H1 2024: CHF 415.0 million). This equated to an increase of 41.2 per cent in local currency terms and 38.3 per cent in Swiss francs. Our business unit in Luxembourg continued to account for the biggest share of investment-type premiums at CHF 499.0 million. There were also healthy contributions from the business units in Belgium and Switzerland of CHF 48.9 million and CHF 26.1 million, respectively.

Gains or losses on investments in the Life segment amounted to a net gain of CHF 116.1 million (H1 2024: CHF 171.0 million^*). Current income decreased by CHF 27.2 million to CHF 418.5 million owing to a smaller investment portfolio. The rise in yields on bonds denominated in Swiss francs and euros had a negative impact, as did exchange-rate movements and high costs for currency hedging. By contrast, favourable trends in the Swiss property and equity markets had a positive impact. The fair value losses recognised in the income statement totalled CHF 250.4 million. The investment performance in the life business stood at 0.6 per cent in the first half of 2025 (H1 2024: 0.3 per cent).

EBIT in the life business held steady at CHF 143.0 million in the first half of 2025, falling only just short of the good figure for the prior-year period (H1 2024: CHF 144.7 million^*). The increase in the insurance service result on the one hand made up for most of the decline in net financial income on the other.

The CSM before taxes amounted to CHF 4,935.0 million, which was on a par with the figure at the start of the year (31 December 2024: CHF 5,002.1 million). The contribution to the CSM from new business totalled CHF 45.7 million and the expected business contribution came to CHF 108.3 million, thereby more than offsetting the amount released from the CSM of CHF 140.5 million. This was the result of a rise in the CSM of 0.5 per cent (excluding variances).

The new business margin in the life business was 3.9 per cent in the first half of 2025 (H1 2024: 5.7 per cent). This decrease was due to changes in the composition of the business, with smaller volumes coming from Switzerland. The interest rate margin held steady at a very healthy 134 basis points (31 December 2024: 135 basis points).

Robust EBIT in Asset Management & Banking

EBIT in Asset Management & Banking jumped to CHF 49.5 million in the period under review (H1 2024: CHF 41.8 million). This increase was attributable both to Asset Management and to Banking.

EBIT in Banking swelled to CHF 25.6 million (H1 2024: CHF 21.7 million) owing to an improvement in the brokerage business and a slight fall in operating expenses, combined with a steady level of net interest income. The sales volume of Baloise Bank Ltd stood at a healthy CHF 464.8 million (H1 2024: CHF 513.8 million). The sales volume comprises the net growth in lending business assets, particularly mortgages, net growth in client assets and the inflow of new funds from asset management mandates adjusted for performance factors. The refocusing strategy is having a positive impact in Banking, with the cost/income ratio falling to 60.3 per cent in the reporting period (H1 2024: 65.4 per cent).

EBIT in Asset Management improved to CHF 23.9 million as a result of higher contributions from business with third parties (H1 2024: CHF 20.0 million). Over the reporting period, the total assets under management (AuM) of Baloise Asset Management declined to CHF 58.0 billion (31 December 2024: CHF 59.5 billion) owing to the reduction in the traditional life insurance business.

Uptrend in business with third parties

Assets under management in business with third parties increased from CHF 16.8 billion to CHF 17.4 billion, with net new assets contributing CHF 0.6 billion. Net new assets related to a number of items, including the continued expansion of the asset management business at Baloise Bank Ltd and the further growth of real estate.

Real estate assets in business with third parties rose from CHF 2.3 billion to CHF 2.4 billion. This was primarily driven by the successful capital increase of CHF 80 million carried out by the Baloise investment foundation for pension funds for the Real Estate Switzerland investment group (BAPRECH). Third-party assets in the multi assets business went up from CHF 7.9 billion to CHF 8.3 billion in the period under review. These encouraging results show that we are well on track to achieve the targets in our refocusing strategy.

In the reporting period, we refined our approach to responsible investing (RI). Since the start of this year, for example, the Baloise Swiss Property Fund (BSPF) has been pursuing a sustainable investment strategy that is based on three approaches: a focus on the climate (net zero by 2050), ESG integration and exclusion.

Solid equity base and renewed confirmation of the A+ rating

The equity attributable to shareholders amounted to CHF 3,482.5 million as at 30 June 2025 (31 December 2024: CHF 3,629.7 million). This small decrease occurred because the profit earned in the first half of 2025 did not fully offset the dividend distribution and the negative figure for other comprehensive income. The contractual service margin (CSM) after taxes stood at CHF 3,915.7 million, which was down by 2.2 per cent compared with the end of 2024 (31 December 2024: CHF 4,004.7 million). Consequently, comprehensive equity also fell slightly, by 3.1 per cent, to CHF 7,398.2 million (31 December 2024: CHF 7,634.4 million).

In June 2025, the Baloise Group’s very solid financial base was confirmed by S&P Global Ratings (S&P), which awarded a rating of A+ with a stable outlook. In its report, S&P emphasised the Group’s leading position in its markets as well as its compelling technical earnings performance. In connection with the planned merger of Baloise and Helvetia, S&P held out the prospect in its report of an upward adjustment to the credit rating in the years ahead, provided that the planned merger strengthens the Group’s competitive position and the combined entity retains its excellent financial risk profile. The complete report is available at www.baloise.com/ratings.

In the Swiss Solvency Test (SST), we expect a ratio of around 215 per cent as at 30 June 2025 (1 January 2025: 204 per cent). This is further proof of the Group’s unwaveringly strong risk-bearing capacity.

Outlook: Planned merger creates a new number two in the Swiss market

The planned merger of Baloise with Helvetia to form Helvetia Baloise Holding Ltd was announced in April 2025. Baloise is thus on the brink of reaching a major milestone in its history. Helvetia Baloise will become one of Europe’s leading insurers, with a combined business volume of CHF 20 billion in eight countries and a global speciality business. In Switzerland, the planned merger will create the second-largest insurance group and the biggest employer in the insurance industry.

We anticipate that the integration will generate annual synergies of around CHF 350 million before taxes and before policyholders’ dividends. These synergies are in addition to the efficiency programmes that are currently running. In this context, cash remittance is expected to rise substantially and the dividend capacity is likely to increase.

The process of obtaining the necessary approvals from the regulatory and competition authorities is progressing as planned, which should make it possible to complete the transaction towards the end of 2025. In view of this, Baloise will not publish its Q3 interim statement for the first nine months of 2025.

_________________________________
^* Restated figure for the prior-year period.

Publication of the half-year report; further information

Baloise published its report for the first half of 2025 today, 10 September 2025. The documents can be viewed and downloaded here:

• Report for the first half of 2025 (PDF)
• Media information (PDF)
• Presentation for investors and analysts (PDF)
• More information about the financial results can be found at www.baloise.com/financialstatements

Important dates

Wednesday, 10 September 2025
Conferences to present the financial results for the first half of 2025

09:30 – 11:00 CEST: Media conference on the financial results for the first half of 2025

• Audio webcast (Note: In order to actively participate in the Q&A session, participants must also be dialled in by telephone.)
• Dial-in number (audio only): +41 (0)58 310 5000

From 11:00 CEST: Conference call for analysts

• Audio webcast (Note: In order to actively participate in the Q&A session, participants must also be dialled in by telephone.)
• Dial-in number:
  • Europe: +41 (0)58 310 5000
  • UK: +44 (0)207 107 0613

Contact
Baloise, Aeschengraben 21, CH-4002 Basel
Website: www.baloise.com
E-Mail: media.relations@baloise.com / investor.relations@baloise.com
Media Relations: Tel: +41 58 285 70 53
Investor Relations: Tel: +41 58 285 81 81

About Baloise

The focus is firmly on the future at Baloise. We aim to make tomorrow more straightforward, safer and more carefree for our customers, and we are taking responsibility for this today. Baloise is more than just a traditional insurance company. Through our smart finance and insurance solutions, we offer a complete service package. Dependable support, reliable cooperation and trust-based relationships are key aspects of our stakeholder interaction. We take care of financial matters so that our customers can concentrate on the important things in their lives and can find inspiration in the everyday. Baloise, a European company founded more than 160 years ago, currently employs 8,000 people at its headquarters in Basel (Switzerland) and across its subsidiaries in Belgium, Germany and Luxembourg. Our services generated a business volume of around CHF 8.6 billion in 2024. Baloise Holding Ltd shares (BALN) are listed on the SIX Swiss Exchange.