The first nine months of 2024 in brief: 

• Refocusing strategy reaches its first milestones 
• Sale of the FRIDAY portfolio and write-downs resulting from discontinuation of the ecosystem strategy expected to have a total non-recurring negative effect of around CH 100 million on the profit attributable to shareholders for 2024 
• Growth of 2.9 per cent (in local currency terms) for the attractive non-life business 
• Solid SST ratio of around 210 per cent as at 30 September 2024 
• High level of cash remittance of over CHF 550 million expected 
• Attractive dividend policy remains in place, supported by a new capital allocation framework with at least 80 per cent of cash remittance distributed to shareholders

As part of its investor update on 12 September, Baloise announced that it would be pursuing a refocusing strategy under which it is strengthening its focus on profitable segments in its core business. The new financial targets consist of a return on equity of between 1 per cent and 15 per cent, strong cash remittance of more than CHF 2 billion in the period 2024–2027 and a higher cash payout ratio of 80 per cent or more.

The sale of the portfolio of digital insurer FRIDAY, which was announced at the end of October, represented a further step in the new strategic direction. We anticipate that the sale of the FRIDAY portfolio, the related reversal of tax loss carryforwards, and write-downs resulting from the discontinuation of the ecosystem strategy will have a non-recurring negative effect of around CHF 100 million on profit for 2024. Of this amount, CHF 75 million is attributable to FRIDAY and CHF 25 million to write-downs in connection with the ecosystem initiatives. We do not expect the portfolio transaction or ecosystem divestments to have any further substantial adverse impact on earnings in 2025 or beyond.  

The volume of business in the first nine months of 2024 was on a par with the prior-year period at CHF 6,892.0 million (Q1–Q3 2023: CHF 6,943.5 million). It increased by 0.3 per cent in local currency terms and therefore achieved a similar growth rate to the first half of 2024. Adjusted for currency effects, there was a small decrease of 0.7 per cent.

The volume of premiums in the non-life business rose by 2.9 per cent in local currency terms to CHF 3,428.3 million in the first nine months of 2024 (Q1–Q3 2023: CHF 3,372.4 million). The increase in Swiss francs was 1.7 per cent.

The slower growth of the non-life business in comparison with the first half of 2024 was due to an accounting effect resulting from the way in which premiums are recognised. The growth rate for Switzerland was therefore lower than in the first six months of the year.

In local currency terms, all of the national subsidiaries contributed to the growth of the non-life business. The biggest contributors were Germany and Luxembourg, which notched up increases of 8.4 per cent and 7.2 per cent respectively in local currency terms. In Belgium, we continued to place a greater emphasis on profitability in some sectors, which resulted in growth of 1.6 per cent in local currency terms. 

In connection with the financial results for the first half of 2024, we communicated our expectation of an additional negative effect of around CHF 30 million on EBIT owing to large claims and natural disaster claims. We anticipate that the combined ratio for 2024 will be in the communicated range of 91 per cent to 94 per cent. In the medium term, the combined ratio should fall to around 90 per cent thanks to the steps being taken under our refocusing strategy.

The volume of premiums in the life business declined by 3.5 per cent in local currency terms to CHF 2,748.5 million (Q1–Q3 2023: CHF 2,868.2 million). The decrease in Swiss francs was 4.2 per cent. As explained in the communications regarding the half-year financial results, the reduction was primarily attributable to the Swiss group life business, which is being affected by the ongoing trend towards semi-autonomous products and by the restrictive underwriting policy still being pursued in this sector. The semi-autonomous collective foundation Baloise Perspectiva maintained its encouraging growth trajectory and, as at the end of September, around 22,000 insured persons and 5,400 companies had signed up. 

The Group’s investment-type premiums improved by 3.7 per cent in local currency terms to CHF 715.2 million thanks to the relaunch of products in Belgium. The increase in Swiss francs was 1.8 per cent. 

EBIT in the life business was also at a healthy level in the first nine months of the year. We expect this segment to make a profit contribution of significantly over CHF 200 million. This is partly because the assumptions used to calculate the yield curve have been updated. 

Despite the challenging nature of the current environment, Baloise is proving its credentials as a solid business with a strong capital base. The Swiss Solvency Test (SST) ratio stood at around 21 per cent as at the end of September 2024, which was the same level as reported in the half-year financial statements. Our comfortable capital adequacy was once again confirmed by S&P Global Ratings in June 2024, when it reaffirmed its rating of A+ for the Baloise Group. S&P rated Baloise’s capital strength as excellent and, in its credit rating report, underlined the Company’s very good market positions, strong technical performance and continued high level of capitalisation.  

Thanks to the optimisation of a Belgian run-off life insurance portfolio in the prior year, we are confirming a one-off cash remittance of CHF 62 million in 2024. This amount, combined with cash remittance from operations, means that Baloise anticipates a high level of cash remittance of more than CHF 550 million this year. 

Depending on the effective cash remittance at the end of 2024 and subject to the decision made about the dividend at the next Annual General Meeting, Baloise will consider a share buy-back of at least CHF 100 million next year.  
Baloise has been continuously distributing a healthy dividend for more than 20 years and, with the introduction of the new capital allocation framework for share buy-backs and distributions (at least 80 per cent of the cash remittance), its attractive shareholder policy will remain in place going forward.  

* Investment-type premiums