All Swiss insurance companies are publishing a financial condition report (FCR) by the end of April 2020. Baloise’s solvency ratio is 201 per cent (1 January 2019: 242 per cent) as at 1 January 2020. The year-on-year change is largely due to capital market effects and adjustments to the model. In addition, Baloise used external capital in its acquisition of Belgian insurance company Fidea NV. Although this is cheaper than hybrid capital, it is not eligible for inclusion in the SST calculation. Baloise was able to raise the external capital required in the market at historically favourable terms and conditions in September 2019.
Despite the turbulence in the capital markets, Baloise’s estimated solvency ratio for March 2020 remained at a strong level, within a range around 180 per cent. The SST ratios for its insurance companies in Switzerland, Baloise Life Ltd and Baloise Insurance Ltd, were 204 per cent and 270 per cent respectively as at 1 January 2020. The European subsidiaries, which report their solvency ratios in accordance with the Solvency II directive, are all well capitalised and remain in the green zone.
These ratios – along with the A+ credit rating from Standard & Poor’s – yet again confirm the very healthy capitalisation Baloise has enjoyed for many years.
A strong partner for customers, employees and shareholders
“Recent months have been immensely challenging for everyone, but it makes me proud to see that thanks to its employees, Baloise has remained a reliable partner for all of its stakeholders during the coronavirus period. I would like to express my thanks for this extraordinary achievement. We are confident that we’re on track to achieve the targets defined for our Simply Safe strategic phase by the end of 2021,” said Group CEO Gert De Winter.
Read the whole press release.