Insurance companies Baloise clearly increases profit in the first half of the year

Baloise earned more in the first half of the year than in the previous year. Consolidated profit rose by 7.6 percent to CHF 219.1 million, as the insurer announced on Thursday.

One reason for the increase was higher profit contributions from Germany and Belgium. The operating profit EBIT rose by 1.8 percent to CHF 271.9 million. The early summer storms in various parts of Switzerland had depressed the results and led to a deterioration in the combined ratio of 3.1 percentage points to 90.4 percent. If this figure is below 100 percent, the business is operationally profitable.

The Group achieved an increase in earnings in life insurance, where EBIT rose by 40% to CHF 145.5 million. And in Asset Management and the Bank, EBIT amounted to 41.8 million, compared to 43.4 million previously. Meanwhile, Baloise benefited from the good performance of the financial markets across the entire Group.

Slight growth

The insurance group's business volume fell slightly by 0.9 percent to CHF 5.29 billion. In local currencies, this would have resulted in a slight increase of 0.3 percent, according to the statement. The non-life segment grew by 3.2 percent and the volume in the life business fell by 5.1 percent. The growth of semi-autonomous solutions in occupational pensions is only partially reflected in the premium development.

With the figures presented, the Group clearly exceeded the targets at result level, but the volume was below expectations. Analysts had previously expected a consolidated profit of CHF 201 million, EBIT of CHF 253 million and a volume of CHF 5.39 billion.

Group CEO Michael Müller believes that Baloise is still well positioned for the future with an estimated SST capital ratio of 210 per cent (as at the end of June). At the beginning of the year, it stood at 207 percent. In addition, cash of over CHF 500 million is to be generated for the year as a whole as a basis for a continued "attractive" dividend policy.