Our refocusing strategy is aimed at increasing Baloise’s profitability and building on our existing strengths. It is centred on our three new financial targets, which we intend to achieve by 2027:
- return on equity of between 12 per cent and 15 per cent
- strong cash remittance of more than CHF 2 billion by 2027
- cash payout rate of 80 per cent or more
To achieve these targets, Baloise is planning to raise efficiency, implement targeted cost-cutting measures and continually optimise its portfolio. In doing so, we are focusing on generating growth in strategically important areas and thus securing our long-term success.
The refocusing strategy also provides the basis for the continuation of Baloise’s attractive shareholder policy, under which we will supplement the reliable dividend payment with a new distribution structure for share buy-backs. Cash in excess of the 80 per cent that is distributed in dividends will be accumulated until a minimum of CHF 100 million is reached and then returned to shareholders in the form of a share buy-back.
Value creation for all our stakeholders
Insurance companies play a key role in our society by protecting people against unforeseeable risks. They owe their success to the principle on which they were founded: the sharing of risks and costs among the community. This means that the community is stronger than the individuals within it, regardless of how cautiously they act. Insurance companies make it possible to manage risks more effectively and for the financial burden to be shouldered by multiple parties.
The key to this is a well organised community of insured persons. Since Baloise was founded in the 19th century, we have stood for responsibility and sustainable development. And even today, our services are based on the principle of sharing risk among the community. At Baloise, our role is to coordinate and manage this community and to provide stability and security in the interests of our customers, employees and partners.
By pursuing our refocusing strategy, we are therefore creating added value for all our stakeholders – shareholders, customers, sales partners and employees.