Helvetia (HELN) H1 2024 earnings summary

Executive summary

• Underlying earnings reached CHF 285 million, nearly stable year-over-year, supported by strong capitalisation and a return on equity of 13.4%.

• SST ratio estimated at around 300% as of June 2024, reflecting robust solvency and S&P A+ rating.

• Disciplined growth in non-life (+6.4%) and life new business (+8.6%), with fee business revenues up 10.4%, mainly from health and care services in Spain.

• All segments delivered solid results despite higher natural catastrophe claims, with improvements in technical profitability and operational efficiency.

• Group structure adjusted in July 2024, elevating Spain to its own segment and strengthening international focus.

Financial highlights

• Underlying earnings: CHF 285 million (down 1.5% year-over-year); IFRS net income: CHF 259 million.

• Business volume grew 4.7% at constant FX to CHF 6,927 million, led by non-life and fee business; fee and commission income rose 10.4% to CHF 211 million.

• Combined ratio in non-life increased to 95.4% (H1 2023: 94.0%) due to higher Nat Cat claims, but underlying technical profitability improved.

• New business margin in life: 4.9%, within target range.

• CSM increased to CHF 4,467 million, with normalised CSM growth of +0.4%.

Outlook and guidance

• On track to pay out more than CHF 1.65 billion in dividends by 2025, with a new strategy to be presented at Capital Market Day in December 2024.

• Combined ratio target of 92%-94% reaffirmed for 2025, with ongoing measures to improve technical profitability and cost efficiency.

• Continued focus on operational efficiency, technical excellence, and selective growth in profitable segments.