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Ad hoc announcement pursuant to Art. 53 LR
Strong growth for Baloise; very good result expected in the life business
Media releases Ad hoc announcement pursuant to Art. 53 LR
Strong growth for Baloise; very good result expected in the life business
Basel, November 18, 2021. “I am very satisfied with what has been achieved in the first nine months of 2021. Despite challenges in the form of flood damage and storms in the summer, Baloise is steering its usual stable course towards a successful conclusion to Season 1 of its Simply Safe strategy. With net claims incurred projected to come in at around CHF 120 million, we are helping our customers to alleviate the financial impact of these extreme weather events. Despite once again experiencing an exceptionally large volume of claims, Baloise expects 2021 to be a successful year based on its performance in the first nine months. We have maintained growth at a high level in our target segments. And thanks to the rigorous optimisation of our life portfolio, the recovery of the capital markets and the slightly improved interest-rate situation, we expect a healthy contribution to EBIT from the life business. Our operational profitability, capital base and cash generation remain strong, and these credentials prove that Baloise is a reliable partner for its customers and an attractive long-term investment for its shareholders.”

- Gert De Winter, Group CEO
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Further information Media kit for the 2021 Q3 financial results Baloise Innovation-Story
Overview of the first nine months of 2021

•    The volume of business rose by a substantial 9.9 per cent to CHF 7,657.1 million (Q1–Q3 2020: CHF 6,964.3 million).

•    The volume of premiums collected in the life business improved by 4.5 per cent to CHF 2,747.1 million, while investment-type premiums increased by 30.7 per cent to CHF 1,539.3 million. 

•    Total premium income in the non-life business advanced by 6.8 per cent to CHF 3,370.7 million.

•    Net claims incurred in the non-life business are expected to come in at around CHF 120 million for 2021 due to the floods and summer storms. However, the high quality of the portfolio means that the combined ratio is still expected to be firmly within the target range of between 90 and 95 per cent.

•    EBIT in the life business is expected to reach more than CHF 300 million because of the upturn in the capital markets. 

•    Swiss Solvency Test (SST) ratio estimated to be around 200 per cent as at 30 September 2021.

•    Baloise Innovation: expansion of the Home and Mobility ecosystems continues to progress rapidly, including the recent launch of GoMore in the Swiss market. 
The newly launched website www.baloise.com/innovation-story provides a detailed breakdown of Baloise’s innovation approach, reveals what the Company has achieved on the innovation front since 2017 and explains what its goals are for the period up to 2025. 
 
Biggest volume of claims in Baloise’s history, but strong combined ratio expected thanks to operational excellence

Thanks to both organic growth and growth by acquisition, the volume of premiums in the non-life business rose by 6.8 per cent to CHF 3,370.7 million in the first nine months of 2021 (Q1–Q3 2020: CHF 3,157.2 million). All business units contributed to this encouraging result. There was also a positive contribution from the acquisition of the Athora portfolio, which was fully included in the figures for the reporting period. Net expenses of around CHF 120 million were incurred in the wake of the storm and flood damage this summer. The volume of claims incurred as a result is the biggest in Baloise’s history and the Company was able to help thousands of customers in its core markets in this challenging situation. However, Baloise is confident that the exceptionally strong quality of its portfolio will enable it to achieve a solid combined ratio for 2021 in its target range of between 90 and 95 per cent.
Healthy growth and profitability in the life business, very strong growth in investment-type premiums


Despite a selective underwriting policy, gross premiums written in the life business rose by just over 4.5 per cent to reach CHF 2,747.1 million (Q1–Q3 2020: CHF 2,629.5 million). A healthy contribution to EBIT is expected from the life business thanks to the rigorous optimisation of our life portfolio and to how well the capital markets have performed. Baloise forecasts that this contribution to EBIT from the life business will amount to more than CHF 300 million provided that the interest-rate situation remains stable at its current level or improves further in line with the market’s expectations. 
  
Baloise’s partially autonomous pension solution Perspectiva has enjoyed very strong growth once again. A total of 3,640 companies with around 15,300 beneficiaries had signed up as at 30 September.

The Group’s investment-type premiums surged by 30.7 per cent year on year to CHF 1,539.3 million (Q1–Q3 2020: CHF 1,177.5 million). The main reason for this strong growth was the rebound in the ‘Freedom of Service’ business, which in the previous years had suffered badly as a result of market volatility. Baloise in Luxembourg now has more than CHF 13 billion in assets under management. 
 
SST ratio of around 200 per cent and A+ rating from Standard & Poor’s confirm excellent capital base

Despite the challenging nature of the current environment, Baloise is proving its credentials as a solid business with a strong capital base and balance sheet. The Company estimates its Swiss Solvency Test (SST) ratio to have been around 200 per cent as at 30 September 2021. And in June 2021, Standard & Poor’s confirmed its rating of A+ for the Baloise Group. The rating of the German business Basler Sachversicherungs-AG was upgraded from ‘A’ (with a positive outlook) to ‘A+’ (with a stable outlook) because of sustained improvements in its profitability. The complete report is available at www.baloise.com/ratings.
Business volume as at 30 September 2021 (YTD)

CHF million; gross; change (%); LC = local currency

  Switzerland Germany Belgium Luxembourg Baloise Group Total
Life
CHF
LC		 2'248.5
4.2%
4.2%		 295.3
7.2%
5.5%		 137.3
0.0%
-1.5%		 65.9
13.1%
11.3%		 0.1
-8.4%
-8.4%		 2'747.1
4.5%
4.2%
ITP*
CHF
LC		 72.9
6.5%
6.5%		 143.3
8.0%
6.3%		 299.4
-8.5%
-10.0%		 1'023.7
57.7%
55.2%		 n.a.
n.a.
n.a.		 1'539.3
30.7%
28.8%
Non-life
CHF
LC		 1'269.4
1.4%
1.4%		 670.4
6.0%
4.4%		 1'270.0
11.6%
9.8%		 117.8
5.3%
3.6%		 43.0
80.5%
77.7%		 3'370.7
6.8%
5.7%
Total
CHF
LC		 3'590.8
3.2%
3.2%		 1'109.0
6.6%
4.9%		 1'706.7
6.5%
4.8%		 1'207.4
47.4%
45.1%		 43.2
80.1%
77.2%		 7'657.1
9.9%
9.0%

* Investment-type premiums. 
Further information Media kit for the 2021 Q3 financial results Baloise Innovation-Story
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About Baloise The focus is firmly on the future at Baloise. 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, 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 more than 160 years ago, 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 8.6 billion in 2023. Baloise Holding Ltd shares (BALN) are listed on the SIX Swiss Exchange.
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