Baloise Projects CHF 550 Million Cash Remittance Amid Refocusing Strategy

Baloise Holding AG is advancing its strategic refocus with significant financial developments in the first nine months of 2024. The company anticipates a substantial cash remittance exceeding CHF 550 million, aligning with its goal to enhance shareholder returns through a new capital allocation framework. Notably, this framework aims to distribute at least 80% of cash remittance to shareholders.

The company's refocus strategy targets a return on equity between 12% and 15% alongside strong cash returns exceeding CHF 2 billion from 2024 to 2027. Despite a non-recurring negative impact of CHF 100 million due to strategic shifts, Baloise's non-life business saw an attractive growth of 2.9% in local currency, with strong contributions from Germany and Luxembourg. Meanwhile, the life business expects a significant EBIT above CHF 200 million in 2024.

Baloise maintains a robust capital base, reflected in its Swiss Solvency Test (SST) ratio of 210% and an A+ rating from S&P. The strategic sale of the FRIDAY portfolio is a pivotal step in this realignment towards core profitable segments.