Bâloise Holding (BALN) investor relations material

Merger integration and strategic context

• Merger of equals completed on 5 December 2025, forming Switzerland's largest multi-line insurer and the second largest insurance group in the country, with a 20% market share and presence in eight European markets.

• Operational integration is well advanced, with top management layers appointed and working together effectively.

• Previously communicated benefits, including cash and dividend capacity uplift, remain valid; synergy targets of CHF 350 million run-rate pre-tax cost synergies and 20% dividend capacity uplift by 2029 are reaffirmed.

• Integration costs are estimated at CHF 500–600 million, mostly incurred by end of 2028.

• The integration process is proceeding smoothly due to similar corporate cultures and high team motivation.

Pro forma financial information and accounting impacts

• Pro forma financials for FY 2024 and HY 2025 illustrate main accounting effects of the merger under IFRS, with Helvetia as the acquirer.

• Acquisition accounting leads to significant goodwill (CHF 4.7 billion) and intangible assets (CHF 3.4 billion) on the balance sheet, with total assets of CHF 146.5 billion and equity of CHF 13.9 billion as of 30 June 2025.

• Recognition of all identifiable intangible assets, goodwill, and alignment of actuarial assumptions, especially discount rates, are key accounting changes.

• Pro forma combined contractual service margin (CSM) is CHF 8.9 billion, with life at CHF 8.5 billion and non-life at CHF 0.4 billion; non-life CSM will be released quickly, with about a quarter in the first year, and life CSM release ratio is expected to be 7%.

• Insurance contract liabilities increase by CHF 1.4 billion due to lower discount rates and remeasurement.

Income statement impacts and transparency measures

• Amortization of intangibles will distort reported net income but has no impact on cash, solvency, or dividend capacity.

• Underlying earnings and KPIs will be used to adjust for acquisition accounting effects to improve performance visibility.

• Pro forma net income for HY25 is materially impacted by one-off accounting effects, including CSM release, discounting, and amortization of intangibles.

• All accounting changes are IFRS-only and do not affect statutory earnings, cash generation, or dividend-paying ability.

• High payout ratios may appear in IFRS if intangible impairments occur, but this does not affect actual dividend payments.