Who is Baloise? What do we stand for and what are our ambitions? In our equity story, we provide answers to these questions and show many good reasons for investing in Baloise. You can find more information about our corporate strategy here and at www.baloise.com/investorupdate.
A provider of peace of mind for more than 150 years, Baloise Group, which is headquartered in Basel, provides prevention, pension, investment, assistance and insurance solutions in its core markets of Switzerland, Belgium, Luxembourg and Germany.
Baloise has established a unique business model in Switzerland combining insurance and banking services and is the first Swiss insurer to provide an omnichannel solution for its customers. Through targeted strategic acquisitions and robust organic growth, we have significantly strengthened our market position in both Belgium and Luxembourg. In Germany, we have successfully merged companies, streamlined structures, lowered costs, and improved its business mix.
With the refocusing strategy, Baloise launched a new direction for the company in 2024, namely refocusing on what we do best: Insurance, asset management and prevention. In these three areas, our core business, we are driving efficiency and growth in order to increase our profitability.
Three financial ambitions are at the centre of our refocusing strategy:
- A return on equity of 12% to 15%
- Cash remittance of over CHF 2 billion from 2024 to 2027
- A cash payout ratio of at least 80% for dividends supplemented by share buy-backs
In order to achieve these ambitions, Baloise is focusing on increasing efficiency, targeted cost reductions and continuous portfolio optimisation. We are focussing on growing in strategically important areas and attractive segments in order to ensure long-term success.
The refocusing strategy forms the basis for the continuation of Baloise's attractive shareholder policy. The reliable dividend payments will be supplemented by a new distribution logic for share buy-backs. The difference between the dividend payments and the cash payout ratio of at least 80% will be accumulated annually.
With this clear focus, we are continuing our strategic journey towards sustainably profitable growth and an attractive distribution policy.
As an insurance, asset management and prevention company, Baloise is designed from the ground up to be sustainable because we contribute to the functioning of private households, companies, economies and communities on a daily basis. Sustainability therefore, plays a fundamental role in Baloise's value management and is an integral part of its business decisions and processes.
We have developed the "ECCO" value management system in order to continuously offer our shareholders high added value and achieve our financial ambitions. This is based on the four key factors of "Earnings", "Cash", "Capital" and "Optionality", which are also the main drivers of total shareholder return.
Baloise has a strong position in attractive core markets and a pronounced diversification of earnings between the "Non-Life", "Life" and "Asset Management & Banking" business segments. In Non-Life, we have had a combined ratio of better than 95% for over ten years. In the Life insurance business, we are well positioned to meet the challenges of the current market environment, while our Asset Management & Banking division consistently delivers stable and reliable contributions.
Operational cash generation is the core element of Baloise's value management system. We are known for our attractive and reliable shareholder policy in the form of dividends and share buy-backs. Since 2003, Baloise has never reduced the dividend, but has either kept it stable or increased it from year to year. We have also carried out several share buyback programmes. We are maintaining this clear focus on cash and have set ourselves the strategic goal of achieving a cash flow to the holding company totalling more than CHF 2 billion between 2024 and 2027. At least 80% of the cash generated will be distributed in the form of dividends and complementary share buy-backs. This ensures an attractive and reliable dividend policy.
Thanks to its strong capitalisation, excellent risk management and conservative and forward-looking investment policy, Baloise has been able to safely navigate the financial crises of recent decades. The high capitalisation makes the company resistant to adverse market conditions and offers a high degree of financial flexibility. This flexibility enables Baloise to invest in future growth, capitalise on market opportunities and continue its attractive and reliable distribution policy to our shareholders.
Baloise is characterised by innovation in its core business in order to meet changing customer needs for security and services in the digital age. We focus on integrated financial and insurance services and operational excellence, thereby ensuring that we are a sustainably relevant company for all our stakeholders and continue to generate added value for employees, customers, partners and investors in the future.