Helvetia (HELN) CMD 2024 summary

Strategic priorities and business model evolution

• New strategy focuses on becoming a local customer champion in retail and a global specialist in specialty lines, leveraging strong direct customer access, bancassurance, and digital capabilities across all markets.

• Specialty Markets and SME business expansion prioritized in Spain, Germany, Italy, Austria, and select international markets, supported by a Center of Excellence and a "smart follower" approach.

• Integration of Caser and Helvetia Seguros in Spain aims to unlock significant cost synergies, enhance profitability, and improve customer service.

• AI, automation, and process optimization are central to technical excellence and efficiency, targeting CHF 200 million in cost savings over three years.

• Sustainability remains a core pillar, with Net Zero targets for 2040/2050, growth in sustainable insurance products, and ESG embedded in operations.

Financial guidance and capital management

• Underlying earnings per share targeted to grow 9%-11% CAGR from a 2024 baseline of CHF 520 million, with two-thirds of growth from margin improvement and one-third from profitable growth.

• Return on equity is expected to reach 13%-16% by 2027, supported by capital optimization, annual portfolio reviews, and a strong SST ratio.

• Dividend distributions planned to exceed CHF 1.2 billion over 2025–2027, with a ratchet mechanism for stability and annual increases.

• Cost savings of CHF 200 million will offset inflation and improve the combined ratio by 2 percentage points, aiming for a 92%-94% range in non-life.

• Strong balance sheet maintained, with robust diversification, leverage capped at 30% of capital base, and an issuer rating of at least "A".

Segment and regional initiatives

• Switzerland: Focus on up/cross-selling, digital leadership, and technical excellence to achieve 9%-11% earnings CAGR and outperform market growth.

• Spain: Integration of Caser and Helvetia Seguros to deliver EUR 50 million in cost synergies, with growth driven by bancassurance, agents, and the 50+ segment, targeting 8%-10% earnings CAGR.

• GIAM (Germany, Italy, Austria): Emphasis on local expertise, product density, and technical excellence, aiming for 10%-12% earnings CAGR and efficiency gains of CHF 25 million.

• Specialty Markets: Selective growth in profitable lines, withdrawal from structurally challenged areas, and a 6%-8% earnings CAGR by 2027.

• Life business benefits from a shift to capital-light products, with new business value expected to grow 6%-8% CAGR and CSM releases increasing.