Helvetia (HELN) H1 2025 earnings summary

Executive summary

• Underlying earnings rose 5.5% year-over-year to CHF 301 million, with IFRS net income up 24% to CHF 320 million, driven by strong non-life growth, technical excellence, and investment performance.

• Business volume increased 1.6% at constant exchange rates to CHF 7 billion, led by non-life segment growth.

• The group remains on track to achieve its three-year targets, with the planned merger with Baloise expected to close in Q4 2025, pending regulatory approvals.

• Operational efficiency initiatives are underway, targeting CHF 200 million in annual savings by 2027, with over 360 initiatives defined and early savings realized.

• Robust capitalisation maintained, with an estimated SST ratio of 290% as of 30 June 2025.

Financial highlights

• Combined ratio improved to 93.3% (from 94.5%), within the 92%-94% guidance range, driven by technical improvements and lower claims ratios.

• Underlying return on equity reached 14%, with IFRS ROE at 16%.

• Life new business margin stable at 4.9%, with new business value up 12%.

• Fee and commission income grew 8% currency adjusted.

• Direct yield on group investments stable at 2.2%.

Outlook and guidance

• Confident in achieving 9%-11% underlying EPS growth over the three-year period, with some backloading due to efficiency measures.

• Merger with Baloise expected to generate CHF 350 million in pre-tax cost synergies and increase dividend capacity by 20% by 2029.

• Integration of Spanish entities progressing, with merger approval expected by year-end.

• Full-year 2025 disclosure will reflect the merged entity if the transaction closes as planned.

• Focus remains on profitable, capital-light growth and operational efficiency.