Helvetia Holding AG

Helvetia reported underlying earnings of CHF 301 million, up 5% year over year, and underlying earnings per share up 7%. Net income rose 24% to CHF 320 million. Business volume increased 1.6% at constant exchange rates to CHF 7 billion, with non-life up 4% currency adjusted; Life volume was down 2.5%. The combined ratio improved into the 92% to 94% guidance range, and the current-year claims ratio excluding nat cats and discounting improved by 1.2 percentage points. The cost ratio fell by 10 basis points, and underlying ROE was 14%. For forward guidance, management reiterated confidence in achieving its 3-year target of 9% to 11% underlying EPS growth on average, expects continued retail market hardening, and said short-term focus is on margins rather than top-line growth in commercial and reinsurance. The merger with Baloise is expected to close toward the end of the year, with full-year 2025 reporting to be on Helvetia Baloise if closing occurs as planned.

Fabian Rupprecht framed the quarter as evidence that Helvetia’s technical excellence initiative is working, pointing to better underwriting, stronger claims performance, and continued growth in profitable non-life business. He said the company remains committed to its 3-year targets and emphasized that the merger with Baloise is still on track and strategically aligned with Helvetia’s priorities. His tone was confident but measured: he highlighted retail growth opportunities while saying the company is more cautious on commercial and reinsurance because the cycle is turning there.

Annelis Hammerli said underlying earnings of CHF 301 million were driven mainly by a better non-life underwriting result, while net income of CHF 320 million benefited from very strong investment funds performance, positive real estate revaluations, realized gains, and FX. She noted that the CHF 12 million move in intercompany interest accounting shifted earnings from non-life to non-insurance with no group impact, and said the Blatten landslide cost the group a mid-double-digit million Swiss franc amount. She also highlighted a stable SST ratio at an outstanding level, financial leverage only changing for timing reasons around two new CHF 250 million bonds, and ongoing remittances flowing in as planned.

Analysts focused on whether the strong half-year results change the merger exchange ratio, but management said the exchange ratio is already set and will not change. Questions also probed top-line growth, with management saying retail should keep hardening and growing, while commercial and reinsurance may soften, so near-term focus is on margins. On life reserves and remittances, management said remittances are proceeding exactly as planned and reserve releases are typically mid-double-digit million Swiss francs annually, while the life reinvestment yield was cited at 2.7%.