Bâloise Holding (BALN) H2 2024 earnings summary

Executive summary

• Refocusing strategy launched in September 2024 delivered strong underlying results, higher profitability across all business units, and significant improvement in core business.

• Profit attributable to shareholders rose 60.6% year-over-year to CHF 385 million, despite a CHF 92 million negative impact from the sale of FRIDAY and discontinuation of the ecosystem strategy.

• Cash remittance grew to CHF 565 million, supporting increased shareholder payouts via a higher dividend and a planned CHF 100 million share buyback.

• All countries increased their EBIT contribution, with Switzerland showing the largest improvement.

• Dividend per share proposed at CHF 8.10, up CHF 0.40, with a CHF 100 million share buyback planned.

Financial highlights

• EBIT increased 58.3% year-over-year to CHF 545 million; non-life EBIT up 94.9% to CHF 261 million, life EBIT up 39% to CHF 282 million.

• Return on equity rose from 7.2% to 13.9%, within the 12%-15% target range.

• Combined ratio improved by 1.7 percentage points to 92.9%, within guidance, despite major storm events.

• Cash remittance reached CHF 565 million, including a CHF 62 million non-recurring gain from Belgium life back book optimization.

• Non-life premiums grew by 2.2% in local currency to CHF 4,120 million; investment-type premiums up 20.2% to CHF 1,048 million; life premiums declined by 5.2%.

Outlook and guidance

• Targeting a combined ratio of about 90% by 2027, with expense ratio aimed at a maximum of 26%-28%.

• Cash remittance goal of more than CHF 2 billion for 2024–2027 period.

• Dividend proposed at CHF 8.10 per share, with a CHF 100 million share buyback planned.

• Total cash payout ratio increased to 83%, exceeding the 80% strategic target.

• Guidance for life EBIT remains at least CHF 200 million, with CSM release ratio at a sustainable 5.4%.