Bâloise Holding (BALN) H1 2024 & Investor Update earnings summary

Executive summary

• Shareholder profit rose 6.9% to CHF 220 million, driven by life business growth and strong contributions from Germany and Belgium, with diversified earnings across markets.

• Refocusing strategy launched, ending non-core ecosystem activities to concentrate on core insurance and banking, technical profitability, and capital productivity.

• Set new financial targets: ROE 12%-15%, combined ratio ~90%, life EBIT >CHF 200 million, and >CHF 2 billion cash remittance (2024–2027), with payout ratio of at least 80%.

• Comprehensive equity rose 8.5% to CHF 7.8 billion; SST ratio stable at ~210%; S&P A+ rating confirmed.

• Workforce reduction of 250 FTEs planned to improve cost efficiency.

Financial highlights

• Group EBIT reached CHF 272 million; net income attributable to shareholders was CHF 220 million for HY 2024.

• Non-life segment grew 4.6% in local currency; combined ratio at 90.4%; EBIT CHF 123 million, impacted by CHF 80 million in Swiss storm claims.

• Life segment EBIT CHF 145 million, up 39% year-over-year; CSM increased from CHF 4.9 billion to CHF 5.3 billion; new business margin 5.7%.

• Asset management and banking added CHF 700 million net new third-party assets; EBIT CHF 42 million.

• Business volume CHF 5,293 million, down 0.9% year-over-year; adjusted for currency, up 0.3%.

Outlook and guidance

• Targeting ROE 12%-15%, combined ratio ~90%, life EBIT >CHF 200 million, and >CHF 2 billion cash remittance (2024–2027).

• Expense ratio in non-life to be reduced by 2-3 percentage points by 2027.

• Cash remittance goal of >CHF 2 billion (2024–2027); payout ratio to shareholders of at least 80%, including share buybacks.

• Share buybacks to be considered when cash for buybacks exceeds CHF 100 million.

• Combined ratio outlook for FY 2024: 91-94%, reflecting claims and interest rate environment.