Bâloise Holding (BALN) Q3 2024 TU earnings summary

Executive summary

• Refocusing strategy underway, including sale of FRIDAY portfolio and exit from ecosystem initiatives, with a non-recurring negative profit impact of CHF 100 million in 2024.

• Business volume for the first nine months of 2024 stable at CHF 6,892.0 million, up 0.3% in local currency terms year-over-year.

• Cash remittance for 2024 expected to exceed CHF 550 million, supporting a robust dividend policy.

Financial highlights

• Non-life premiums grew 2.9% in local currency to CHF 3,428.3 million; life premiums declined 3.5% to CHF 2,748.5 million year-over-year.

• EBIT in the life business expected to be significantly above CHF 200 million, aided by updated yield curve assumptions.

• Combined ratio for 2024 anticipated within 91–94%; medium-term target is around 90%.

• SST ratio at approximately 210% as of September 2024, with S&P reaffirming A+ rating.

Outlook and guidance

• New financial targets: return on equity of 12–15%, cash remittance over CHF 2 billion for 2024–2027, payout ratio of at least 80%.

• No further substantial adverse earnings impact expected from FRIDAY sale or ecosystem divestments in 2025 or beyond.

• Share buy-back of at least CHF 100 million considered for 2025, subject to final cash remittance and AGM decision.