Baloise on track to meet its targets

Basel, The Baloise Group posted good growth over the first nine months of the year in both its non-life and life businesses, with an overall increase of 7.6 per cent. Despite the sizeable claims incurred due to Nat Cat losses, the Group will achieve a pleasing set of results for the year. Baloise is on course to meet its operational and financial targets (a combined ratio of 93 to 96 per cent, a new business margin of over 10 per cent and a return on equity of 8 to 12 per cent) by the end of the year. This operational strength provides the basis for an attractive and reliable dividend.

Dr. Martin Strobel

Pleasing growth in the insurance business: In its core markets, Baloise continued the positive growth trend of the first half of the year and increased its business volume in the non-life segment by 4.4 per cent to CHF 2,926 million. Large claims incurred to date due to Nat Cat losses in Switzerland, Germany, Belgium and Austria more than doubled, compared with the first half of the year. In spite of this, Baloise expects to achieve a combined ratio within the target range set, thanks to the good quality of its insurance portfolio.

The good growth in the first half of the year was maintained in the area of traditional life insurance. The seasonal single-premium business in Baloise's innovative (unit-linked) investment products increased in the third quarter.

Strong capitalisation and good profitability: Baloise's strong capitalisation is reflected in its sustained high solvency ratio of 264 per cent. Despite numerous large claims, Baloise expects to achieve a pleasing set of results for the 2013 financial year. This operational strength provides the basis for an attractive and reliable payout to shareholders.

Business volume as at 30 September 2013 (YTD)

CHF million,
change in %

Switzerland Germany Belgium Luxembourg Other units* Rest Total
Life 2,381
14.9%
449
-3.4%
114
5.2%
48
1.9%
36
-2.1%
0
0.0%
3,028
11.0%
Unit-linked 93
87.1%
169
4.0%
160
-17.1%
697
9.8%
14
2.9%
0
0.0%
1,133
7.5%
Non-life 1,251
2.8%
733
5.3%
745
5.7%
65
7.6%
129
8.1%
4
-27.4%
2,926
4.4%
Total 3,725
11.6%
1,351
2.1%
1,019
1.3%
810
9.1%
178
5.5%
4
-27.4%
7,088
7.6%

 * Austria, Croatia and Serbia

Headquartered in Basel, Switzerland, the Baloise Group is a European provider of insurance and pension solutions and has positioned itself as a market player that offers an intelligent 'Safety World' prevention strategy. In Switzerland the Company operates as a focused financial services provider, offering a combination of insurance and banking services. It also has a market presence in Belgium, Germany and Luxembourg. Its distribution network includes its own sales organisation as well as brokers and other partners. The Company uses its competence centre in Luxembourg to run its business in innovative pension products for private customers throughout Europe. Bâloise Holding Ltd shares are listed in the main segment of the SIX Swiss Exchange. The Baloise Group employs some 7,400 people.