Baloise is on track

Basel, "We have set ourselves three targets as part of our Simply Safe strategic phase: being in the top 10 per cent of employers in the industry, attracting one million new customers and generating cash of CHF 2 billion for the holding company by 2021. Our results for the first nine months of this year show that we have passed another milestone en route to achieving these targets. For 2018 as a whole, we are very confident that we will again generate cash in excess of CHF 400 million* and maintain our attractive dividend policy." - Gert De Winter, Group CEO

Performance in the first nine months of 2018

  • Baloise on course to achieve its targets in 2018

  • Attractive non-life business expands by 5.7 per cent to CHF 2,869.5 million (adjusted for currency effects: 2.2 per cent)

  • Robust growth for capital-light life products in Belgium and Germany; high volume in Luxembourg

  • Positive trend in the service and brokerage businesses thanks to the combined insurance and banking business model involving Baloise Bank SoBa

  • Strong growth for Perspectiva, a partially autonomous collective foundation: volume of premiums in the traditional life business decreases by 5.5 per cent to CHF 2,712.6 million (adjusted for currency effects: fall of 6.5 per cent) due to the restrictive underwriting policy

Robust growth in non-life business

Premium income from the non-life business rose by 5.7 per cent to CHF 2,869.5 million (Q1–Q3 2017: CHF 2,715.6 million). All of the strategic business units are contributing to the growth of the non-life business. Baloise's healthy growth rates in Belgium and Luxembourg deserve particular mention. Basler Switzerland's volume of premiums advanced by just over 1.6 per cent to CHF 1,247.9 million, underlining its importance in terms of the Group's profitability. Based on the expectation of an average level of claims in the fourth quarter of 2018, Baloise predicts that the combined ratio will be within the target range of 90 per cent to 95 per cent. This confirms, once again, the strength of the non-life business.

Sustained improvement to the business mix in the life business

In line with the strategy, the volume of traditional life premiums declined by a further 5.5 per cent to CHF 2,712.6 million in the nine-month period (Q1–Q3 2017: CHF 2,871.9 million). The 2.1 per cent decline in the business volume for the first nine months to CHF 7066.9 million is mainly attributable to the premium volume decline in the traditional life business.

More and more companies in Switzerland are putting their faith in Baloise Insurance's partially autonomous pension solution Perspectiva, which continues to grow rapidly and has seen a sharp rise in the number of customers.

The life business is expected to have a positive impact on the profit for 2018 as a whole because of the sustained shift towards life products that entail less risk capital and due to the stabilisation of interest rates at a low level.

Investment-type premiums: strong growth in Belgium and Germany

Investment-type premiums jumped by a substantial 29.1 per cent to CHF 311.6 million in Belgium and by 11.7 per cent to CHF 172.5 million in Germany. The total volume of investment-type premiums fell by 9.0 per cent to CHF 1,484.8 million (Q1–Q3 2017: CHF 1,632.1 million). This decrease is attributable to typical seasonal fluctuation during the first nine months of 2018 and to the fact that the Luxembourg market as a whole is currently contracting slightly. Baloise's Luxembourg business remains the strongest contributor to this segment, generating premiums of CHF 935.4 million.

Baloise Insurance and Baloise Bank SoBa: successful model combining insurance and banking

The combined insurance and banking business model is having a very positive impact on the brokerage and services business. Last year's uptrend in deposit volumes has continued uninterrupted.

 

As at the end of the third quarter of 2018, aggregate growth was in excess of CHF 206 million. This is a sure sign that the interaction between the insurance sales force, pension and wealth management advisors and private banking staff is working very well.

 

CHF million;
change (%);
LC = local currency
CH DE BE LU Total
Life
CHF

LC
2,245.0
-8.0%

-8.0%
285.7
6.2%

0.1%
118.1
17.5%

10.8%
63.8
4.8%

-1.3%
2,712.6
-5.5%

-6.5%
Investment-
type premiums
CHF

LC
65.2
-9.3%

-9.3%
172.5
11.7%

5.3%
311.6
29.1%

21.7%
935.4
-19.7%

-23.3%
1,484.8
-9.0%

-13.3%
Non-life
CHF

in LC
1,247.9
1.6%

1.6%
657.6
3.3%

-2.7%
839.8
11.7%

5.3%
108.7
12.3%

5.8%
2,869.5
5.7%

2.2%
Total
CHF

LC
3,558.1
-4.9%

-4.9%
1,115.8
5.2%

-0.8%
1,269.6
16.1%

9.4%
1,108.0
-16.2%

-20.2%
7,066.9
-2.1%

-4.7%

*The sum of CHF 2 billion spread over the five years of the strategic phase (2017–2021) equates to CHF 400 million being generated per year.

The Baloise Group is more than just a traditional insurance company. The changing security, safety and service needs of society in the digital age lie at the heart of its business activities. The 7,300 or so employees of Baloise therefore focus on the wishes of their customers. The best possible customer service, combined with innovative products and services, makes Baloise the first choice for people who want to feel ‘simply safe’. Located at the heart of Europe, with its head office in Basel, the Baloise Group is a provider of prevention, pension, assistance and insurance solutions. Its core markets are Switzerland, Germany, Belgium and Luxembourg. In Switzerland, with Baloise Bank SoBa, the Group also operates as a specialised financial services provider, offering a combination of insurance and banking services. The Group offers innovative pension products to retail customers throughout Europe from its competence centre in Luxembourg. Bâloise Holding Ltd shares are listed in the main segment of the SIX Swiss Exchange.