Helvetia (HELN) H2 2024 earnings summary

Executive summary

• Underlying earnings rose 42% to CHF 529 million, driven by strong non-life growth, improved technical profitability, and non-insurance business area results.

• IFRS net income increased 67% to CHF 502 million, supported by strong non-life results and improved investment performance.

• The Board proposes a 6% dividend increase to CHF 6.70 per share, with a payout ratio of 78% on underlying earnings.

• Capital position remains robust, with an estimated SST ratio of 290% as of January 2025 and S&P rating confirmed at A+.

• New management team and strategy launched in December 2024, emphasizing technical excellence, operational efficiency, and selective profitable growth.

Financial highlights

• Business volume grew 3.1% currency adjusted to CHF 11,553 million, with non-life up 5.7% and life down 1% due to prior year one-offs.

• Combined ratio improved to 95.0% from 97.7%, reflecting better claims experience and efficiency gains.

• Fee and commission income rose 7% to CHF 413 million, with the fee business contributing 7% of IFRS net income.

• Non-life current investment income increased 22% year-over-year, aided by US dollar business growth and higher rates.

• Cash remittance increased 27%, with free deployable funds at CHF 378 million, exceeding the proposed dividend.

Outlook and guidance

• New strategy targets 9%-11% CAGR in underlying EPS, 13%-16% underlying ROE, and CHF 1.2 billion cumulative dividend over three years.

• Combined ratio expected to reach 92%-94% by 2027, with operational efficiency improvements of over CHF 200 million.

• Focus remains on profitable, capital-efficient growth and technical excellence.

• Integration of Caser and Helvetia in Spain planned to enhance operational efficiency and achieve CHF 50 million in cost efficiencies by 2027.