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From outside Switzerland: +41 58 285 85 85
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Baloise demonstrates resilience in a challenging environment and is ready for the next strategic phase
Media releases Baloise demonstrates resilience in a challenging environment and is ready for the next strategic phase
Basel, August 27, 2020. “Although the effects of the COVID-19 pandemic are noticeable, Baloise’s operating business is proving resilient and sound. We expect gross claims incurred as a result of coronavirus in an amount of up to CHF 200 million, which we recognised in full in the first half of the year. After reinsurance, the net claims incurred stand at around CHF 63 million. Baloise is thus helping thousands of business and retail customers during this period of crisis. Despite these unprecedented circumstances, we still achieved a net combined ratio of 91.1 per cent and an encouraging rate of growth. This shows that Baloise is ideally positioned with a business model founded on resilience and sustainability and a clearly focused corporate strategy,” said Group CEO Gert De Winter, commenting on the Baloise Group’s financial results for the first half of 2020.
Financial results for the first half of 2020 in brief
  • Profit attributable to shareholders for the first half of 2020 amounted to CHF 177.7 million (H1 2019: CHF 395.0 million). The figure for the first half of 2019 had been boosted by a non-recurring tax effect of around CHF 128 million that was not repeated in the first half of this year. Profit attributable to shareholders in the reporting period was adversely affected by coronavirus-related claims incurred. Moreover, turmoil in the capital markets resulted in a decline in the gains on investments achieved for insurance assets.

  • The claims incurred for 2020 in connection with COVID-19, including the necessary reserves, are expected to amount to up to CHF 200 million gross and, after measures to reduce the impact of claims, CHF 62.6 million net. This amount was recognised in full in the first half of the year.

  • The business volume contracted by 10.4 per cent to a more normal level of CHF 5,389.2 million (H1 2019: CHF 6,014.1 million). The first half of the previous year had been boosted by a non-recurring effect. In the prior-year period, a competitor in the group life business in Switzerland had withdrawn its comprehensive insurance products from the market, resulting in a sharp rise in customers with single premiums.

  • The premium volume in the Group’s non-life business increased by 6.9 per cent to CHF 2,419.5 million, partly thanks to the acquisitions of Fidea and the non-life portfolio of Athora (H1 2019: CHF 2,263.6 million). Organic growth was also at the good level of 1.1 per cent (7.3 per cent in local currency terms).

  • EBIT in the non-life business fell by 40 per cent to CHF 135.7 million (H1 2019: CHF 226.1 million) owing to the claims incurred in connection with coronavirus and the decrease in gains on investments. 

  • The net combined ratio stood at 91.1 per cent (H1 2019: 87.4 per cent) due to the excellent quality of the portfolio and as a result of hedging. The impact of the COVID-19 pandemic caused a net increase of 3.7 percentage points. Baloise expects the ratio for 2020 to be at the lower end of the target range of 90–95 per cent. 

  • As anticipated, the volume of premiums collected in the life business fell by 24.4 per cent to CHF 2,168.1 million (H1 2019: CHF 2,869.8 million) owing to the competitor in the group life business withdrawing its comprehensive insurance products from the market in the prior-year period.

  • EBIT attributable to the life business rose by 23.5 per cent year on year to CHF 131.3 million (H1 2019: CHF 106.6 million), partly because there was less need to strengthen reserves.

  • Baloise continues to have a resilient and sound balance sheet, even during the coronavirus crisis. The Standard & Poor’s credit rating of A+ was confirmed in June 2020, underlining Baloise’s excellent capitalisation. Although equity fell to CHF 6,208.4 million (31 December 2019: CHF 6,715.6 million) as a result of the dividend payment, the share repurchase completed in March and a downward adjustment of the valuation of available-for-sale financial assets, it remains at a high level.

  • Despite the turmoil in the capital markets, asset management and banking reported a net return on insurance assets of 1.0 per cent, which was only down by 0.2 percentage points on the prior-year period (H1 2019: 1.2 per cent). This resulted in a decrease of CHF 54.6 million in gains on investments.

  • Further capital expenditure on the digital transformation: In the first half of 2020, Baloise extended its ‘Home’ ecosystem by investing in cleaning services company Batmaid and in Keypoint and Immopass, which are both digital assistants for property management. In addition, Baloise entered into a strategic partnership with Tolomeo Capital in order to further expand its capabilities in fully automated and data-driven asset management. More information: www.baloise.com/innovations
     

     

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Read more Review of the operating performance of the national subsidiaries Documents relating to the half-year financial results Overview of Baloise’s innovation initiatives
Read more Review of the operating performance of the national subsidiaries Documents relating to the half-year financial results Overview of Baloise’s innovation initiatives
+41 58 285 82 14
Write email
About Baloise The focus is firmly on the future at Baloise as part of its «Simply Safe» strategy. 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, complemented by a whole host of innovative offerings for the home and mobility, 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 in 1863, 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 9,600 million in 2021 and a profit of CHF 588.4 million. Bâloise Holding Ltd shares (BALN) are listed on the SIX Swiss Exchange.
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