Baloise increases its dividend to CHF 6.40 following a very successful 2019

Blog & News

March 13, 2020. “Great innovative strength, a very healthy core business and two acquisitions were the main features of an extremely successful 2019. Last year marked the half-way point in our current strategic phase, and we laid firm foundations for the future.” Gert De Winter, Group CEO

Progress with the Simply Safe strategic targets in 2019

Employee satisfaction: top 15 per cent of most popular employers in the industry (2018: top 23 per cent; target for 2021: top 10 per cent)
Customer growth in 2019: 209 thousand new customers in 2019, which is 12 per cent more new customers than in 2018 (2018: 186 thousand); total (2017–2019): 514 thousand new customers (target for 2017–2021: one million additional customers)
Generation of cash in 2019: CHF 455 million in 2019, which is slightly more than in 2018; total (2017–2019): CHF 1,319 million (target for 2017–2021: CHF 2 billion)

2019 annual financial results in brief

Profit attributable to shareholders for 2019 amounted to CHF 694.2 million, a year-on-year increase of 32.7 per cent (2018: CHF 523.2 million). The figure for 2019 includes a non-recurring tax effect that boosted profit by around CHF 148.5 million.
The volume of business jumped by 9.6 per cent to CHF 9,509.9 million (2018: CHF 8,678.2 million). As well as robust organic growth, there were two main reasons for this increase: firstly, a far greater volume of premiums in the traditional life business due to the withdrawal of a competitor from business involving comprehensive insurance solutions for occupational pensions in Switzerland and, secondly, the acquisition of Fidea in Belgium.
Baloise generated an increase in premium income in the non-life insurance business thanks to the acquisition of Fidea NV in Belgium. In 2019, gross premiums rose by 4.0 per cent to CHF 3,542.1 million (2018: CHF 3,405.9 million). EBIT in the non-life business advanced by 7.3 per cent to CHF 398.9 million (2018: CHF 371.7 million). The net combined ratio for the Group improved by 1.3 percentage points to an excellent 90.4 per cent.
In the life business, gross premiums rose by 20.8 per cent to CHF 4,060.3 million (2018: CHF 3,360.3 million). EBIT attributable to the life business came to CHF 274.8 million. This is lower than the very good prior-year figure of CHF 333.2 million, which had benefited from non-recurring effects. The new business margin in the life business equated to a very satisfying 37.3 per cent thanks to the selective underwriting policy and an improved business mix.
Baloise’s asset management was in good shape with a net return on insurance assets of 2.3 per cent (2018: 2.2 per cent). This slight increase was attributable to the small year-on-year rise in realised gains. Net inflows from external customers amounted to CHF 841 million (2018: CHF 801 million).
Strong balance sheet: In 2019, Standard & Poor’s affirmed Baloise’s exceptionally robust capitalisation with an ‘A+’ credit rating. Equity rose to a very healthy CHF 6,715.6 million (31 December 2018: CHF 6,008.2 million), mainly owing to higher unrealised gains on fixed-income investments. In the SST*, a ratio of around 200 per cent is expected as at 1 January 2020.
The repurchase of three million treasury shares will be completed in April 2020.
The Board of Directors of Bâloise Holding Ltd intends to ask the 2020 Annual General Meeting to increase the dividend to CHF 6.40 per share (2018: CHF 6.00).

*The SST ratio will be published at the end of April 2020.

Read the whole press release here.