Baloise delivers an operationally successful year and increases its dividend

Basel, 25 March 2025.
“From an operational perspective, 2024 was a successful year for Baloise, which saw it tangibly improve its core business. Our recently launched refocusing strategy has begun to have a visible impact on the performance of our business and its ability to generate value, as our annual results show, with an improved combined ratio and a higher return on equity. Thanks to strong cash remittance of CHF 565 million, we are well on track to achieving our target of more than CHF 2 billion cash remittance in the period 2024–2027. This success is the result of our focused endeavours and reinforces our commitment to pursuing our targeted course of action. Based on the high level of cash remittance and an improvement in underlying business, we intend to maintain our attractive shareholder policy and propose an increase of CHF 0.40 in the dividend per share to CHF 8.10. As announced, we also intend to supplement the ordinary dividend with a share buy-back of up to CHF 100 million.”

Michael Müller, CEO of the Baloise Group

• Profit attributable to shareholders for 2024 amounted to CHF 384.8 million (2023: CHF 239.6 million), which was an outstanding 60.6 per cent higher than in 2023 when a lot of claims were made. All countries increased their EBIT contribution. The previously announced sale of FRIDAY and the discontinuation of the ecosystem strategy will have a negative effect of CHF 92 million on profit attributable to shareholders in accordance with IFRS. These steps will also impact on the statutory earnings of Baloise Holding Ltd calculated in accordance with the Swiss Code of Obligations (OR).
   
• Adjusted for exceptional non-operating items of CHF 92 million, return on equity amounts to 13.9 per cent, which is considerably higher than the prior-year figure of 7.2 per cent.
   
• The Group’s volume of business was slightly lower than in the prior year at CHF 8,603.7 million (2023: CHF 8,618.1 million). This equated to a decrease of 0.2 per cent. Adjusted for currency effects, there was an increase of 0.9 per cent.
   
• In the non-life business, the volume of premiums rose by 2.2 per cent in local currency terms, or 0.9 per cent in Swiss francs, to CHF 4,120.2 million (2023: CHF 4,081.6 million). Particularly strong growth was generated in Germany (8.7 per cent in local currency terms) and Luxembourg (6.7 per cent in local currency terms).
   
• The combined ratio of the Group was reduced significantly to stand at 92.9 per cent (2023: 94.6 per cent^*). This positive result was achieved despite an again increased level of storm-related claims in Switzerland in the first half of 2024.
   
• Profit before borrowing costs and taxes in the non-life business (EBIT) climbed to CHF 261.1 million (2023: CHF 134.0 million). This was due to an improvement in gains and losses on investments, and a lower level of large claims incurred compared with 2023.
   
• The level of gross premiums in the life business reflected the continuing trend towards semi-autonomous occupational pension solutions. The volume of premiums in the traditional life insurance business fell by 5.2 per cent year on year in local currency terms or 5.8 per cent in Swiss francs to CHF 3,435.4 million (2023: CHF 3,648.0 million).
   
• The new business margin in the life business stood at 4.9 per cent in 2024 (2023: 6.5 per cent). The interest margin came to 135 basis points (2023: 137 basis points).
   
• EBIT in the life business rose by a very healthy 39.0 per cent to CHF 282.3 million, which was considerably higher than in the prior year (2023: CHF 203.1 million^*). Besides a larger amount being released from the contractual service margin (CSM), this improvement was due to a positive non-recurring effect in other income following the updating of actuarial assumptions.
   
• As at 31 December 2024, the total assets under management (AuM) of Baloise Asset Management stood at CHF 59.5 billion, a rise of 2.8 per cent compared with the end of the prior year (31 December 2023: CHF 57.9 billion). EBIT for Asset Management & Banking amounted to CHF 89.1 million (2023: CHF 82.3 million).
   
• Baloise’s capitalisation remained reliably robust. S&P Global Ratings (S&P) confirmed its A+ rating with a stable outlook for the Baloise Group in June 2024. Comprehensive equity increased to CHF 7,634.4 million as at 31 December 2024 (31 December 2023: CHF 7,170.9 million). This was due to both an increase in equity of CHF 3,629.7 million (31 December 2023: CHF 3,250.0 million) and a higher CSM (after taxes) of CHF 4,004.7 million (31 December 2023: CHF 3,921.0 million). We expect the SST ratio as at 1 January 2025 to be just over 200 per cent (1 January 2024: 207 per cent).
   
• In 2024, cash remittance increased to CHF 565 million (2023: CHF 493 million). This includes a positive non-recurring effect of CHF 62 million from the optimisation of a Belgian run-off life insurance portfolio in 2023.
   
• The reliable and increased level of cash remittance allows Baloise to maintain its attractive shareholder policy. The Board of Directors of Baloise Holding Ltd therefore intends to ask the Annual General Meeting 2025 to increase the dividend by CHF 0.40 to CHF 8.10 per share. We also plan to supplement the ordinary dividend with a share buy-back of CHF 100 million. All in all, this will give rise to a much higher total cash payout ratio of 83 per cent for 2024 (2023: 72 per cent).

Baloise grew its profit considerably in 2024. Profit attributable to shareholders increased to CHF 384.8 million, which equated to growth of 60.6 per cent year on year (2023: CHF 239.6 million). This includes negative non-recurring items of around CHF 92 million from the sale of FRIDAY and the discontinuation of the ecosystem strategy. Adjusted for these non-recurring effects, profit attributable to shareholders stood at a healthy CHF 476.9 million.

The Group’s profit before borrowing costs and taxes (EBIT) was also much higher as a result, recording a 58.3 per cent increase compared with the prior year to CHF 545.3 million (2023: CHF 344.4 million). Non-life and life business and Asset Management & Banking contributed to this improved result, with all national subsidiaries contributing too.

The biggest contribution to EBIT came from business in Switzerland, which saw a substantial improvement from CHF 166.2 million in 2023 to CHF 358.5 million in 2024. With strong EBIT growth as a whole, contributions to the overall increase came from the companies in Belgium, with CHF 153.3 million (2023: CHF 111.7 million), Germany, with CHF 102.2 million (2023: CHF 93.6 million), and Luxembourg, with CHF 34.4 million (2023: CHF 18.2 million). This positive performance reinforces our commitment to implementing our refocusing strategy, which we presented in September.

Due to adverse currency effects, the Group’s volume of business edged down by 0.2 per cent year on year to CHF 8,603.7 million (2023: CHF 8,618.1 million). Adjusted for currency effects, the increase was 0.9 per cent. Growth in the target segments was outweighed to some extent by the decline in traditional life business.

The volume of investment-type premiums improved to CHF 1,048.2 million (2023: CHF 888.5 million) on the back of a product relaunch in Belgium and higher contributions from Luxembourg.

Baloise’s non-life business fared well in 2024 despite the persistently high level of claims incurred in Switzerland. While 2023 saw an unusually high level of claims incurred, the first half of 2024 was shaped by a large number of storm-related claims that affected the financial results. The segment continued to strengthen nevertheless as a result of decisive changes to insurance rates and profitable growth.

The entire volume of premiums rose by 2.2 per cent in local currency terms, or 0.9 per cent in Swiss francs, to CHF 4,120.2 million (2023: CHF 4,081.6 million), which was attributable chiefly to strong growth in Germany and Luxembourg.

In Switzerland, the non-life portfolio grew by 1.1 per cent to CHF 1,485.6 million (2023: CHF 1,468.7 million). The slightly lower growth compared with 2023 was attributable to the performance of individual insurance sectors. Good growth in property and liability insurance was partially offset by negative volume effects in motor vehicle, accident and marine insurance – due to a stronger focus on profitability.

The volume of premiums in Belgium declined slightly to CHF 1,550.8 million (2023: CHF 1,589.7 million) as result of initiatives to improve profitability in motor vehicle business and a far-reaching exit from marine business under the refocusing strategy. Adjusted for currency effects and the portfolio disposals in the marine business, growth in Belgian non-life business came to just over 3 per cent in 2024.

Business in Germany registered the highest rate of growth of 8.7 per cent in local currency terms, or 6.5 per cent in Swiss francs, to CHF 869.8 million (2023: CHF 816.5 million) – due to strong new business and inflation-related changes in insurance rates that we successfully pushed through.

Business in Luxembourg was very encouraging with an increase of 6.7 per cent in local currency terms, or 4.6 per cent in Swiss francs, to CHF 161.8 million (2023: CHF 154.6 million).

Baloise boosted its profitability further in the non-life segment and, despite a high level of storm-related expenses in the first half of 2024, improved its combined ratio to 92.9 per cent (2023: 94.6 per cent^*). This was attributable mainly to a lower level of claims in the second half of 2024. The expense ratio improved marginally to 29.9 per cent (2023: 30.0 per cent).

Gains or losses on investments in the non-life segment improved significantly and amounted to a net gain of CHF 198.4 million in 2024. Current income increased to CHF 207.8 million. Gains recognised in the income statement amounted to CHF 17.4 million. Positive movements in the Swiss real estate market and stock market had a favourable impact on the result. The gains on investment recognised in other comprehensive income (OCI) amounted to CHF 78.4 million. These were attributable to the fall in yields on bonds denominated in Swiss francs and the slight narrowing of credit spreads. Overall, investment performance of the non-life business stood at 2.9 per cent.

EBIT attributable to the non-life business rose sharply to CHF 261.1 million (2023: CHF 134.0 million). This was a result of the lower level of claims incurred in 2024 and the improved investment result.

Trend towards semi-autonomous solutions in life business and exceptionally strong EBIT growth

The volume of business in the life business (premiums written and investment-type premiums) deteriorated by 0.2 per cent in local currency terms, or 1.2 per cent in Swiss francs, to CHF 4,483.6 million (2023: CHF 4,536.5 million). This was due largely to a lower volume of premiums in Swiss group life business.

Gross premiums written in life business declined by 5.2 per cent in local currency terms, or 5.8 per cent in Swiss francs, to CHF 3,435.4 million (2023: CHF 3,648.0 million).

In Switzerland, a lower level of demand in group life led to a decline of 10.5 per cent to CHF 2,249.4 million (2023: CHF 2,513.4 million).

Business with semi-autonomous solutions in Switzerland, by contrast, recorded good growth. The Perspectiva Collective Foundation continued to report unbridled growth in 2024. Thanks to huge demand for semi-autonomous pension solutions, the number of companies signing up rose to 5,186 (2023: 4,903) with some 22,750 policyholders, while assets under management (AuM) increased by 20 per cent to CHF 1.9 billion (2023: CHF 1.6 billion). The foundation’s return on investment stood at 9.2 per cent.

The Belgian life business was on a par with the prior year at CHF 471.6 million (2023: CHF 482.0 million).

Life business was encouraging in Germany and in Luxembourg, with growth in German life business outstripping the market in the target segments. The volume of premiums grew by 4.9 per cent in local currency terms, or 2.9 per cent in Swiss francs, to CHF 514.1 million (2023: CHF 499.8 million). In Luxembourg, life business increased by a strong 33.7 per cent in local currency terms, or by 31.1 per cent in Swiss francs, to CHF 200.3 million (2023: CHF 152.8 million) due to additional major contracts in occupational pensions.

Investment-type premiums amounting to CHF 1,048.2 million (2023: CHF 888.5 million) were written in 2024. This equates to an increase of 20.2 per cent in local currency terms and of 18.0 per cent in Swiss francs. Belgium registered the most growth. Our business unit in Luxembourg continued to account for the biggest share of investment-type premiums at CHF 888.8 million.

Gains or losses on investments in the life segment amounted to a net gain of CHF 1.3 billion. Current income deteriorated by CHF 46.5 million to CHF 870.3 million owing to a smaller investment portfolio. The fall in yields on bonds denominated in Swiss francs and the slight narrowing of credit spreads had a positive impact on the fair values of bonds. Movements in currencies and the stock market also had a favourable impact. However, these effects were partially offset by the persistently high cost of currency hedging. Growth in the Swiss real estate market was unable to compensate for a contraction in the real estate market in the eurozone. The positive change in fair value reported in the income statement came to CHF 512.4 million. The investment performance of the life business stood at 3.1 per cent in 2024.

EBIT in the life business went up significantly year on year to stand at CHF 282.3 million (2023: CHF 203.1 million^*). This growth stemmed from updated assumptions used to calculate the yield curve, which led to a larger amount being released from the contractual service margin (CSM). Updated actuarial assumptions in the ‘freedom of service’ business also had a positive impact, contributing to an improvement in other income. For the strategy phase until 2027, we continue to anticipate an annual EBIT contribution of more than CHF 200 million.

The new business margin in the life business was down slightly year on year at 4.9 per cent in 2024 (2023: 6.5 per cent). The lower new business margin was due to a change in the business mix with higher volumes from Germany and Luxembourg. The new business margin is derived from the contractual service margin (CSM) for new business and is calculated relative to the present value of new business premiums.

The interest margin, which constitutes the difference between current income on the assets side and guarantees on the liabilities side, decreased slightly to 135 basis points (2023: 137 basis points). The slight reduction is attributable mainly to lower current income as a result of a somewhat smaller real estate portfolio in the life segment. The average guarantee was lowered further to 0.9 per cent (2023: 1.0 per cent) through active portfolio management –  in particular the optimisation of a run-off portfolio in the Belgian life business.

Following a strong rise in the prior year, EBIT in Asset Management & Banking saw a renewed rise to stand at CHF 89.1 million (2023: CHF 82.3 million). The rise is attributable to the asset management business and was influenced by the increase in third-party assets. EBIT in the banking business was maintained at a good level of CHF 42.1 million (2023: CHF 42.1 million) despite lower net interest income. Cash remittance for Asset Management & Banking came to CHF 49 million, of which CHF 35 million related to Asset Management (2023: CHF 30 million).

At CHF 1,022.0 million (2023: CHF 486.0 million), the sales volume of Baloise Bank Ltd increased considerably and surpassed CHF 1 billion for the first time. 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.

Initiatives to boost efficiency were also defined as part of the refocusing strategy. By 2027, the Bank’s current cost income ratio of 63.6 per cent should be reduced to less than 55 per cent.

As at 31 December 2024, the total assets under management (AuM) of Baloise Asset Management stood at CHF 59.5 billion, a rise of 2.8 per cent compared with the end of the prior year (31 December 2023: CHF 57.9 billion).

Assets under management (AuM) in business with third parties increased from CHF 15.0 billion to CHF 16.8 billion, with net new assets contributing CHF 0.8 billion. Net new assets related to a number of items, including the continued growth of the asset management business of Baloise Bank Ltd, of the semi-autonomous Perspectiva Collective Foundation and of real estate. Growth in the latter stemmed chiefly from two capital increases in the listed Baloise Swiss Property Fund (BSPF) and from the ‘Real Estate Switzerland’ asset group of the Baloise Investment Foundation for Pension Funds. Real estate assets rose from CHF 2.0 billion to CHF 2.3 billion. Assets under management (AuM) in the multi assets business went up by CHF 6.8 billion to CHF 7.9 billion. We are therefore on track to achieve the refocusing strategy targets for multi assets and real estate that were communicated in the investor update.

In the reporting period, we continued our targeted work in the area of responsible investing (RI). For example, the BSPF is pursuing a sustainable investment strategy from 7 January 2025 that consists of three approaches: a focus on the climate (net zero by 2050), ESG integration and exclusion. As a result, the BSPF is classified as a sustainable investment fund in Switzerland.

Baloise further solidified its sound capital base in 2024. The equity attributable to shareholders swelled by 11.7 per cent to CHF 3,629.7 million as at 31 December 2024 (31 December 2023: CHF 3,250.0 million). The contractual service margin (CSM) after taxes rose to CHF 4,004.7 million (31 December 2023: CHF 3,921.0 million). Comprehensive equity also increased as a result and totalled CHF 7,634.4 million (31 December 2023: CHF 7,170.9 million) or CHF 167 per share.

The rating agency S&P Global Ratings (S&P) reaffirmed its rating of A+ for the Baloise Group in June 2024 and highlighted Baloise’s excellent capitalisation. In its credit rating report, S&P underlines the Baloise Group’s very good market positions, strong technical performance and continued high level of capitalisation. The complete report is available at www.baloise.com/ratings.

In the Swiss Solvency Test (SST), we expect a ratio of just over 200 per cent as at 1 January 2025 (1 January 2024: 207 per cent), confirming that Baloise’s business remains built on solid foundations.

Baloise recorded cash remittance of CHF 565 million in 2024. This equates to a renewed year-on-year rise of 14.6 per cent (2023: CHF 493 million). This item includes the release of cash of CHF 62 million due to a reinsurance transaction in Belgian life insurance business. Even without this non-recurring effect, Baloise remitted cash of more than CHF 500 million for the first time. This sets us in very good stead to achieve our strategic target of cash remittance of more than CHF 2 billion in the period 2024–2027.

Baloise Holding Ltd’s profit in accordance with IFRS and statutory earnings calculated in accordance with the Swiss Code of Obligations (OR) were adversely affected by the aforementioned write-downs as a result of the sale of FRIDAY and the discontinuation of the ecosystem strategy. An impairment loss from the recognition of losses arising from exchange differences – as a result of the streamlining of the holding company structure – also contributed to the downward pressure. All in all, Baloise Holding Ltd recognised a net loss in accordance with OR of CHF 150 million.

These non-recurring items have no influence on Baloise’s long-term profitability or ability to maintain its sustainable dividend policy. Based on the reliable level of cash remittance, the Board of Directors therefore intends to propose to the Annual General Meeting that the dividend be increased by CHF 0.40 to CHF 8.10 per share. In line with the new structure for share buy-backs introduced in the investor update of 12 September 2024, the Board of Directors reiterates its intention to supplement the attractive dividend policy for 2024 with a share buy-back of up to CHF 100 million.

Baloise has successfully embarked on the new strategy phase and is committed to implementing the refocusing strategy that was unveiled in September 2024. The strategy is founded on four central pillars: technical profitability, operational efficiency, growth in target segments and capital productivity. The aim is to build on Baloise’s existing strengths and achieve a lasting increase in profitability.

Our profit for 2024 shows that we have set the right course with the refocusing strategy. We will relentlessly pursue this course in order to reach the financial targets that we have set. We will take steps to boost efficiency, achieve profitable growth and optimise our portfolio with a targeted combined ratio of around 90 per cent and an expense ratio of 28 per cent at most in 2027. All of this while positioning Baloise as a dependable partner for all its stakeholders.

The new financial targets have been clearly defined and we are well on course to achieve them as follows: a return on equity of between 12 per cent and 15 per cent, strong cash remittance of more than CHF 2 billion in the period 2024–2027 and an increased cash payout rate of 80 per cent or more. This provides the basis for continuing Baloise’s attractive shareholder policy.

Baloise published its 2024 Annual Report today, 25 March 2025, which also contains the report on non-financial matters pursuant to Art. 964a et seq. of the Swiss Code of Obligations (OR). The documents can be viewed and downloaded here:

• 2024 annual report (PDF)
   
• Media information (PDF)
   
• More information about the financial results can be found at www.baloise.com/financialstatements

Tuesday, 25 March 2025
Conferences to present the financial results

09:15 – 11:15 CET: Annual results media conference in Basel

• 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

11:30 – 13:00 CET: 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

Friday, 25 April 2025
Annual General Meeting of Baloise Holding Ltd

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.