Bâloise Holding AG

Reported H1 2025 net profit increased 26% to CHF 276 million. Non-life EBIT rose 85.6% to CHF 229 million, with the combined ratio improving 2.6 percentage points to 90.6%. Life EBIT was stable at CHF 143 million, and Asset Management & Banking EBIT increased 18.4% to CHF 50 million. Return on equity rose from 13% in H1 2024 to 15.5% in H1 2025; the estimated SST ratio improved to around 215%. On growth, Non-life premiums in target segments increased 3.1% in local currency after adjusting for portfolio exits in Belgium, investment-type premiums rose 41.2%, and Life premiums declined 10.1%. Management reiterated it is on track for more than CHF 2 billion of cash remittance over 2024-2027. For the planned Helvetia merger, CFO said integration costs are expected to total CHF 500 million to CHF 600 million over the next few years, with CHF 350 million of run-rate synergies and more than CHF 200 million of run-rate cash remittance improvement, plus a 20% dividend uplift in dividend capacity.

Michael Müller framed the half year as proof that the refocusing strategy is working, citing faster execution, better technical profitability and stronger returns. He emphasized that the company is focusing on profitable growth rather than volume for its own sake, and said the business is preparing well for the planned Helvetia merger, which he expects to close in Q4 by year-end pending approvals. His tone was confident and constructive, while still noting that the strategic work is ongoing.

Carsten Stolz highlighted improved profitability and capital strength, pointing to net profit of CHF 276 million, a 90.6% combined ratio in Non-life, and ROE of 15.5%. He also said the estimated SST ratio improved to around 215% and that the company remains on track to remit more than CHF 2 billion of cash from 2024 to 2027. On the merger, he said integration costs of CHF 500 million to CHF 600 million should be spread over the next few years, with CHF 350 million in run-rate synergies and more than CHF 200 million in run-rate cash remittance improvement.

Analysts focused on the lower Life new business margin, and management said the decline was due to business mix, including more capital-light products. Questions also centered on German Non-life growth, the negative 'other' EBIT line, and the CSM operating variance; management said German growth was driven a little more by price than volume, while the 'other' line reflects refocusing and merger-related costs and the CSM variance was mainly from lower Swiss Group Life volumes and updated assumptions. In response to questions about dividend policy and merger accounting, management said the payout policy for the combined company will be set by the new board after closing, and explained that Baloise will be absorbed by Helvetia through a purchase price accounting process for the combined entity.