In this half-year report, we look back on the first six months of 2025, a period characterised by significant strategic changes for the future and a strong operational performance. As well as successfully launching its refocusing strategy, Baloise laid the foundations, through its planned merger with Helvetia, for further profitable growth in its target markets. Within the scope of our refocusing strategy, we have made sure at all times that proximity to our customers lay at the heart of our activities. We demonstrated once again in the first half of this year that we provide quick and straightforward support for our customers when they are experiencing difficult times. 
On 28 May 2025, a massive landslide occurred in Switzerland’s Lötschental valley that, in combination with the resulting flooding, brought devastation to the village of Blatten. The disaster in Blatten shook us all to the core. An entire village was buried under rock and ice within minutes. For the local people, this is much more than a material loss; their lives have been uprooted. Thanks to simple and straightforward help from Baloise, our customers were at least able to mitigate their financial losses. We anticipate that the claims incurred in connection with the landslide in Blatten will amount to CHF 46.5 million gross.

Last year’s launch of our strategy to retrain our focus on our core competences in the insurance business is already having a positive impact. We worked hard on implementing our new strategy in the first six months of 2025 and can be proud of the progress we have made so far.

Our primary goal of raising operational efficiency and improving profitability is reflected in our results for the first half of 2025. The volume of business stood at CHF 5,236.5 million, which is at the level of the prior-year period when adjusted for currency effects. Moreover, profit before borrowing costs and taxes (EBIT) increased by 31.8 per cent to CHF 358.5 million, while profit attributable to shareholders rose by a very good 25.5 per cent to CHF 275.9 million. This very encouraging performance was the result of channelling investment into our core business and concentrating on profitable operating segments.

Of particular note was the high level of profitability in our non-life business, which delivered a robust combined ratio of 90.6 per cent. During the current strategic phase, we are aiming for a combined ratio of around 90 per cent. 

The systematic selection of risk and the optimisation of our claims processes contributed to this achievement, as did the generally low level of claims in the first half of the year (with the exception of the major claim event in Blatten).

The planned merger with Helvetia, which was announced on 22 April 2025, was welcomed by the shareholders of both companies. At the two extraordinary meetings on 23 May 2025, the merger plans were approved by the companies’ owners with more than 95 per cent of the vote. We are confident that the merger, once completed, will usher in a new era for the combined entity. Our aim is for Helvetia Baloise to play a defining role in both Switzerland and other European markets, thereby further strengthening our market position and unlocking the synergies that have been identified.

The merger is subject to the necessary official approval being granted, a process that is still ongoing but has run to plan so far. We expect the transaction to be completed in late 2025.

The strategic idea behind the merger is compelling: By combining each company’s individual strengths, we will create considerable potential synergies. We anticipate annual cost savings of around CHF 350 million, 80 per cent of which are to be achieved by the end of 2028. Over time, new opportunities for growth will open up thanks to the complementary capabilities of each company, the broader product range, and a stronger geographical presence, especially in the target markets of Switzerland and Germany.

The success of the first half of 2025 would not have been possible without the dedication of our employees, the trust of our customers and the support of our shareholders. In the second half of the year, we will concentrate on continuing to implement our refocusing strategy and planning the merger with Helvetia. We believe that we will remain successful and continue to offer long-term added value for our shareholders in the months ahead. Our very good results for the first half of 2025 show that we can approach the planned merger with Helvetia with confidence and a solid business position.

As the planned merger draws closer, we are standing on the threshold of a new chapter in our Company’s history. Joining forces with Helvetia will allow us to strengthen business in Switzerland, become one of the leading insurers in Europe and create a solid base for further profitable growth.
 

Basel, September 2025

Dr Thomas von Planta
Chairman of the Board of Directors

Michael Müller
Group CEO