Good growth for Baloise

Basel, November 15, 2016. In the first nine months of 2016, Baloise generated good growth in the volume of business, which increased by 2.7 per cent to CHF 7,234.2 million. This growth was driven by business involving investment-type premiums, which benefited from the previously announced shift in the business mix and rose by 26.5 per cent, and by above-average growth in non-life business in Belgium and Luxembourg. As a result of the move away from traditional life insurance and towards innovative life insurance products that tie up less capital, the volume of life business contracted by 6.8 per cent. Baloise therefore confirms the targets set for 2016 as a whole and is already focusing on the ambitions defined in the new Simply Safe strategy, which will apply from 2017.

Premium income from non-life business amounted to CHF 2,666.1 million, a substantial increase of 2.1 per cent. Whereas the business volume in Switzerland was largely unchanged year on year (decrease of 0.2 per cent) owing to a cautious underwriting policy in certain industries and grew slightly in Germany (increase of 1.1 per cent), the business units in Belgium and Luxembourg generated strong growth of 6.2 per cent and 9.3 per cent respectively. These growth rates were well above the market average. One of the reasons for the significant growth in Belgium was the marked rise in income from the marine business. The main growth factors in Luxembourg were the recent acquisitions. Provided that the claims environment remains favourable until the end of the year, Baloise will be able to confirm the excellent net combined ratio reported in the financial results for the first half of 2016.

The volume of life business fell by 6.8 per cent to CHF 2,916.1 million owing to the ongoing shift in the business mix. This is because of the selective underwriting policy applied in comprehensive BVG insurance contract business in Switzerland as well as the scaling back of the portfolio in traditional German life insurance outside the target segments. In Belgium and Luxembourg, however, the volume of business increased slightly (by 1.1 per cent and 0.2 per cent respectively).

The partially autonomous pension solutions business in Switzerland performed very well. Baloise is enjoying considerable success in the SME target segment with its Perspectiva solution, one of the fastest growing foundations in Switzerland.

Business involving investment-type premiums delivered very encouraging growth in Belgium (increase of 24.4 per cent) and Luxembourg (increase of 40.5 per cent). The decrease in this business in Switzerland was attributable to the year-on-year decline in the volume of sales of a tranche product. Given that interest rates are very low, Baloise has stopped prioritising this product. Baloise offers attractive alternatives for its customers in Switzerland in the form of the range of products from Baloise Bank SoBa. This is attested by the high level of reinvestment of insurance assets from individual life insurance.

Baloise is confident about its full-year results for 2016 and is firmly focused on the new strategic phase, which will begin in 2017. By 2021, Baloise aims to have gained a further 1 million customers and upstreamed CHF 2 billion in cash to the holding company, which will be used for the Company's ongoing development and to maintain an attractive shareholder policy. With regard to employee satisfaction, Baloise's intention is to become one of the leading employers in the sector.

Business volume as at 30 September 2016 (YTD)

CHF million
Change compared
with Q1–Q3 2015
in CHF (%)
Switzerland Germany Belgium Luxembourg Rest Total
Life

2,415.1

-7.9%

343.6

-1.4%

100.1

1.1%

57.3

0.2%

-

-

2,916.1

-6.8%

Investment-type
premiums

84.1

-29.1%

154.2

2.5%

333.1

24.4%

1,080.7

40.5%

-

-

1,652.0

26.5%

Non-life

1,225.6

-0.2%

619.9

1.1%

722.5

6.2%

94.5

9.3%

3.6

-2.0%

2,666.1

2.1%

Total

3,724.8

-6.2%

1,117.6

0.5%

1,155.7

10.4%

1,232.5

35.0%

3.6

-2.0%

7,234.2

2.7%

Convertible bond

The convertible bond with a value of over CHF 242.5 million that matures on 17 November 2016 has been partially converted. The remaining funding requirement is to be secured through Bâloise Holding AG's own funds. As a result of the conversion, Bâloise Holding AG's volume of treasury shares fell below the notifiable threshold of 5 per cent on 14 November 2016.

Contact

Portrait Roberto Brunazzi

Roberto Brunazzi

Head of Media Relations

Phone

+41 58 285 82 14

Email

media.relations@baloise.com
Portrait Marc Kaiser

Marc Kaiser

Head of Corporate Communications & Investor Relations

Phone

+41 58 285 81 81

Email

marc.kaiser@baloise.com

Die Baloise Group ist mehr als eine traditionelle Versicherung. Im Fokus ihrer Geschäftstätigkeit stehen die sich wandelnden Sicherheits- und Dienstleistungsbedürfnisse der Gesellschaft im digitalen Zeitalter. Die rund 7'300 Baloise Mitarbeitenden fokussieren sich deshalb auf die Wünsche ihrer Kunden. Ein optimaler Kundenservice sowie innovative Produkte und Dienstleistungen machen die Baloise zur ersten Wahl für alle Menschen, die sich einfach sicher fühlen wollen. Im Herzen von Europa mit Sitz in Basel, agiert die Baloise Group als Anbieterin von Präventions-, Vorsorge-, Assistance- und Versicherungslösungen. Ihre Kernmärkte sind die Schweiz, Deutschland, Belgien und Luxemburg. In der Schweiz fungiert sie mit der Baloise Bank SoBa zudem als fokussierte Finanzdienstleisterin, einer Kombination von Versicherung und Bank. Das Geschäft mit innovativen Vorsorgeprodukten für Privatkunden in ganz Europa betreibt die Baloise mit ihrem Kompetenzzentrum von Luxemburg aus. Die Aktie der Bâloise Holding AG ist im Hauptsegment an der SIX Swiss Exchange kotiert.

Other news

Third quarter financial statements

November 15, 2017

Baloise on course for a successful year

Baloise has consolidated its strong start to the year as it moves into the final stages of 2017. Of particular note was the performance of the attractive non-life business, which grew by a ...