Insurance*
“Although we had to deal with a high level of claims due to storms in the first half of 2024, we managed to significantly enhance the quality of our non-life portfolio – most notably in the motor vehicle, property, accident, and health insurance businesses – while also cutting costs. Our attractive non-life business also recorded growth. In liability insurance, we maintained our good level of business. We also further expanded our business model, which comprises a combination of insurance and banking services and is unique in Switzerland. We achieved strong growth in Banking, with the combined advisory approach of our sales organization playing a key role in this. All in all, we got off to a good start with the implementation of our refocusing strategy,” says Clemens Markstein, CEO of Baloise in Switzerland.
- The combined ratio fell by an encouraging 6.7 percentage points year on year to 92.5 per cent as a result of adjustments to prices and coverage. The claims environment has improved compared with 2023, but large claims were disproportionately high, especially those in connection with the storm event at the end of June, and weighed on profitability. The expense ratio improved to 23.0 per cent (2023: 23.5 per cent).
- The premium volume in the non-life business recorded a healthy year-on-year increase of 1.1 per cent to CHF 1,485.6 million.
- The life business stepped up its contribution to overall profitability despite a fall in the volume of (single) premiums in the individual life business and, in particular, in the traditional group life business. The decline of 10.5 per cent in premiums is in line with the market trend towards semi-autonomous solutions. The Perspectiva collective foundation continued to report unbridled growth in 2024. Thanks to huge demand for semi-autonomous pension solutions, the number of companies signing up rose to 5,186 (2023: 4,903) with some 22,750 policyholders, while assets under management increased by 20 per cent to CHF 1.9 billion (2023: CHF 1.6 billion). The foundation’s return on investment stood at 9.2 per cent.
Banking**
“Our strong profit for the period is the solid foundation on which we will continue our business in the years to come. Our focus is on achieving the targets we have set ourselves, boosting our efficiency further and significantly improving the cost/income ratio. I have no doubt that we have set the right course with our refocusing strategy to meet this ambitious remit,” comments Thomas Schöb, who became CEO of Baloise Bank Ltd as at 1 January 2025.
- Increased profit for the period
Baloise Bank Ltd increased its profit to CHF 33.4 million in 2024 (2023: CHF 31.2 million) despite lower net interest income. This equated to a year-on-year increase of 7.1 per cent. - Strong growth in sales volume
At CHF 1,022.0 million, Banking generated a sales volume of over CHF 1 billion for the first time in a single year (2023: CHF 486.0 million). The sales volume comprises the net growth in lending business assets, particularly mortgages, net growth in client assets and the inflow of new funds from asset management mandates adjusted for performance factors. - Consistently high reinvestment rate
Thanks to its combined business model, Baloise maintained a reinvestment rate for expiring life insurance policies of around 30 per cent, which stands it in good stead compared with the competition. This demonstrates that we create tangible added value for our customers with our insurbanking model.
Baloise’s business performance in Switzerland
| Key figures (CHF million) | |||
| 2024 | 2023 | +/– % | |
| Business volume of Baloise Switzerland* | 3,785.4 | 4,025.7 | -6.0 |
| Of which: life | 2,249.4 | 2,513.4 | -10.5 |
| Of which: non-life | 1,485.6 | 1,468.7 | +1.1 |
| Profit before borrowing costs and taxes of Baloise Switzerland* | 358.5 | 166.2 | +115.7 |
| Baloise Switzerland’s combined ratio* | 92.5% | 99.2% | minus 6.7 points |
| Total assets of Baloise Bank** | 9,333.3 | 8,731.7 | +6.9 |
| Net profit of Baloise Bank** | 33.4 | 31.2 | +7.1 |
| Sales volume of Baloise Bank Ltd** | 1,022.0 | 486.0 | +110.3 |
* All figures in accordance with IFRS accounting.
** All figures in accordance with local accounting standards.
Successful launch of the refocusing strategy
The refocusing strategy has been successfully launched. Between now and 2027, we want to bring our combined ratio to below 90 per cent in order to further boost our profitability. Of the 250 job cuts planned across the Group, roughly half relate to Switzerland. Initial steps have already been taken in this regard. The progress to date confirms that we are on the right track and have laid the right foundations for successfully implementing our strategy. It also underscores our concerted efforts to meet our target of lowering the cost/income ratio for the banking business from today’s figure of 63.6 per cent to below 55 per cent by the end of 2027.
Baloise in Switzerland’s Executive Committee reorganised
The appointment of Thomas Schöb as CEO of the banking business as of January 2025, which was announced last year, will ensure fresh momentum in strategic management. In this context, Andrea Kleiner will become the new Head of Business Clients from 1 April 2025, joining the Executive Committee of Baloise in Switzerland.
Baloise collects two awards
Last year, Baloise launched a new e-banking platform, which won first place in the Core Business Integration category of the Best of Swiss Software Awards in December. Baloise also scooped the second prize in the Swiss Insurance Innovation Awards in November 2024 with its innovative marketing campaign #GrandTheftInsurance. On one of Switzerland’s largest role-playing servers, Baloise opened a virtual branch in a fictitious city that is well-known from a video game series played around the world. Two general agents conducted banking business and sold insurance for an entire month, with the public following their adventures live on social media.