Bâloise Holding (BALN) H2 2024 earnings summary

Executive summary

• Refocusing strategy launched in 2024 delivered strong underlying results and higher profitability across all business units, with all countries increasing EBIT contribution and Switzerland showing the largest improvement.

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

• 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 the FRIDAY portfolio and ecosystem strategy discontinuation.

• Dividend per share proposed at CHF 8.10, a 5.2% increase, with a total cash payout ratio of 83%.

Financial highlights

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

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

• Non-life premiums grew 2.2% in local currency to CHF 4,120 million; investment-type premiums increased by 20.2% to CHF 1,048 million; life premiums declined by 5.2% to CHF 3,435 million.

• Combined ratio improved by 1.7 percentage points to 92.9%, with an expense ratio of 29.9%.

• Shareholders' equity rose 11.7% to CHF 3,630 million; SST ratio expected just over 200% as of January 2025.

Outlook and guidance

• Targeting a combined ratio of about 90% by 2027, with an expense ratio goal of 26%-28%.

• Cash remittance target of more than CHF 2 billion for 2024-2027.

• Dividend per share proposed at CHF 8.10, with a total cash payout ratio of at least 80%.

• Guidance for 2025 combined ratio is 90%-93%, including 4% for large claims and 2-3% from discounting effects.