Sub-total of IFRS gross premiums written 1 6,803.3 6,741.7 – 0.9
Dividend per share 4 (CHF) 4.50 4.50 0.0 1 Premiums written and policy fees (gross).
Who we are: Headquartered in Basel, Switzerland, the Baloise Group is a European provider of insurance and pension solutions. In Switzerland, the Group operates as a specialised financial services provider, offering a combination of insurance and banking services. The Group also has a market presence in Germany, Austria, Belgium, Luxembourg, Liechtenstein, Croatia and Serbia. Its sales network includes its own sales organisation, as well as brokers and other partners. Baloise operates its innovative pension plan business for private customers throughout Europe with its competence centre in Luxembourg. Bâloise Holding Ltd shares are quoted in the main segment of the SIX Swiss Exchange. The Baloise Group employs some 8,800 people.
CHF 4.50 per share (will be proposed to Annual General Meeting on 2 May 2013)
What we want to achieve: In future we will continue to focus on our high-quality and profitable core business. We therefore aim to achieve a combined ratio of between 93 per cent and 96 per cent in our non-life business, while in our life insurance we are looking to attain a new business margin in excess of 10 per cent. As far as our operational profitability is concerned, we plan to achieve a return on equity of between 8 per cent and 12 per cent and to continue our practice of paying consistent, attractive dividends.
Dr Andreas Burckhardt, Chairman of the Board of Directors (left) and Dr Martin Strobel, Group CEO (right)
The life and non-life divisions achieved huge year-on-year increases in their profit contributions. The non-life business once again demonstrated the strength of its operating earnings power and reported a net combined ratio of 94.1 per cent, which was a significant improvement on the figure of 95.5 per cent reported for 2011. The banking business managed to replicate its impressive prior-year results despite the tough market environment. The “Baloise 2012” strategic growth and earnings enhancement programme was brought to a successful conclusion.
The positioning of the “Baloise Safety World” brand was embedded even more firmly in all markets. This brand comprises targeted prevention services that add value to the Company’s range of classical insurance products. These supplementary services are popular with customers and are driving business growth in individual insurance divisions. They facilitate cross-selling to risk-conscious target customers while ensuring that these clients remain loyal to Baloise and are more likely to recommend its products to others.
Still safe, secure, reliable and profitable – for the past 150 years
There were no material changes in the group of entities consolidated as part of the Baloise Group in 2012.
In 2012, the embedded value of the life business rose from CHF 2,153.0 million to CHF 2,752.8 million, which was equivalent to a return on embedded value of 26.4 per cent. Operating income contributed CHF 378.4 million to the embedded value. A further CHF 198.3 million stemmed from the change in the economic environment. The value of new business was CHF 23.5 million and the new business margin was 8.9 per cent (2011: 10.2 per cent).
EquIT y: SIGnIFICAnTLy HIGHER CARRyInG AMOunTS The Baloise Group’s consolidated equity (before minority interests ) rose by 25.1 per cent year on year to CHF 4,830.7 million as at 31 December 2012 (31 December 2011: CHF 3,860.3 million ). This increase was attributable to the rise in unrealised gains on fixed-income financial assets and to the Baloise Group’s substantial profit for the period. The return on equity jumped to 10.3 per cent (2011: 1.6 per cent). The solvency ratio also rose sharply, reaching an excellent 277 per cent compared with 203 per cent in 2011.
InVESTMEnTS: SIGnIFICAnT GAInS On InVESTMEnTS Following a first quarter during which equity markets had performed well and interest rates had risen, the investment outlook became much bleaker around the middle of the year. The response mounted by central banks calmed the markets, enabling share prices to rise sharply from July onwards. At the same time, credit spreads on bonds narrowed substantially. Risk-free interest rates, on the other hand, remained at historically low levels. Despite this challenging environment Baloise managed to generate slightly higher recurring income of CHF 1,782.2 million.
bonds held by Baloise entities in Switzerland were largely hedged against currency fluctuations.
Directly held real estate has maintained its value and is yielding consistent rates of return. The risk situation with respect to mortgage loans remains sound.
The rate of return according to International Financial Reporting Standards (IFRS) amounted to 6.6 per cent, which – owing to unrealised gains on fixed-income financial assets – comfortably exceeded the prior-year figure of 2.8 per cent. Net income advanced by 43 per cent year on year to CHF 1,947.6 million (2011: CHF 1,359.1 million). This represented a net return of 3.5 per cent on insurance investments. The life insurance division once again generated a higher rate of return than the nonlife business.
Even at a time when interest rates are low Baloise continues to adhere to its quality criteria for bond investments so that it does not jeopardise the excellent quality of issuers in its asset portfolio. Consequently, the investment universe available is getting smaller and smaller. The proportion of government bonds issued by GIIPS countries (Greece, Ireland, Italy, Portugal and Spain) was reduced further in 2012 and at year-end amounted to only 1.2 per cent of total investments. The foreign-currency
Total assets under management 69,355.3 as at 31 December 2012 non-life Life Banking Total for the
Share of profit (loss) of associates 8.5 1.4 – 0.5 10.2 16.5
Change in technical reserves (gross) 583.4 – 968.3 – 1,393.2 – 639.9 – 867.6
Earnings / loss per share 1 In line with the accounting principles applied by the Baloise Group, investment-type insurance premiums are not included in premiums earned and policy fees. 2 Including financial liabilities held for trading purposes (derivative financial instruments).
Financial assets of an equity nature 7,551.8 9,486.1 9,844.2 9,703.9 9,234.0
BâLOISE HOLDInG LTD Aeschengraben 21 CH-4002 Basel www.baloise.com 19.3.2013 Annual financial results: media conference conference call for analysts 2.5.2013 Annual General Meeting of Bâloise Holding Ltd 29.8.2013 Half-year financial results: conference call for analysts and the media 25.3.2014 Annual financial results: media conference conference call for analysts 24.4.2014 Annual General Meeting of Bâloise Holding Ltd