Insurance companies

Baloise makes more profit in 2024 and increases dividend

In 2024, Baloise benefited from tariff increases in non-life insurance and lower costs for natural catastrophe losses. (archive picture)

Keystone

Baloise earned significantly more last year and is proposing a higher dividend payment to shareholders. In addition, the insurance group, which is under pressure from activist investors, intends to buy back its own shares.

Keystone-SDA

25.03.2025, 07:25

In 2024, Baloise's shareholder profit climbed by 60 percent to CHF 384.8 million and operating profit (EBIT) by 58 percent to CHF 545.3 million, as was reported in a press release on Tuesday. And shareholders are to receive a dividend increased by 40 centimes to CHF 8.10 per share. Baloise is also launching a share buyback program worth CHF 100 million.

With the key figures presented, Baloise has clearly exceeded analysts' expectations. On average (AWP consensus), they were expecting a profit of CHF 340 million and EBIT of CHF 446 million. The dividend payment was expected to be 8 francs.

Baloise achieved the jump in profit despite the fact that write-downs of CHF 92 million were recorded as part of a change in strategy and the associated halt to the ecosystem initiatives. Rate increases and lower costs for natural catastrophe claims compared with 2023 had a positive impact in non-life insurance. In the life business, the good performance of the financial markets had a positive impact on the result.

Baloise's profit growth was broad-based, with both the non-life (+95% to 261 million) and life (+39% to 282 million) segments contributing significantly more to the operating result. Meanwhile, the volume of business at Group level fell slightly by 0.2% to CHF 8.60 billion.

Baloise is sticking to the medium-term targets it presented in September. Among other things, the return on equity is to be brought into the 12 to 15 percent range by 2027. Last year, the return on equity already reached this level, rising by 6.7 percentage points to 13.9 percent. This also shows that the right course has been set with the refocusing strategy, it said.

Last year, Baloise came under fire from activist shareholders following the surprising abolition of the voting rights restriction that had been enshrined in the Articles of Association for years. Led by Cevian, they demanded the sale of the German business or the separation from Baloise Bank. So far, Baloise has no plans to do either of these things.