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par Baloise Holding AG (isin : CH0012410517)

Baloise reports solid earnings in occupational pension business in 2022

Baloise Holding AG / Key word(s): Miscellaneous
Baloise reports solid earnings in occupational pension business in 2022

24.05.2023 / 07:00 CET/CEST


Basel, 24 May 2023. In a challenging investment environment, Baloise in Switzerland has once again demonstrated its stability and reliability as an occupational pension provider. This is reflected in solid earnings of CHF 52.8 million (up by 31 per cent) and in the interest paid to customers on their retirement assets. However, pension provision continues to face huge challenges that are ramping up the pressure on political decision-makers to take action. 

From an investment perspective, 2022 was a very turbulent year. The war in Ukraine, the energy crisis in Europe and rising inflation all affected occupational pension provision, particularly with regard to investments. Exceptional circumstances in 2022 also included the poor performance of the equity markets and the losses suffered by bonds against the backdrop of rising interest rates. This makes the positive results in Baloise’s group life report all the more encouraging.

Comprehensive insurance model proves stability in uncertain times

Baloise’s comprehensive insurance model has proven to be an attractive and resilient solution in a very challenging market environment. Even though the investment return was negative, comprehensive insurance customers benefited from full protection because the investment risk is borne by the insurer. In a year characterised by volatility, this was a strong selling point for the comprehensive insurance model. 

Baloise was able to offer customers an interest rate premium of 0.50 per cent on retirement savings above the income threshold, bringing the total interest paid to a minimum of 0.75 per cent. Although net investment income was slightly down at CHF 315.5 million and substantial provisions of more than CHF 64 million had to be set aside, a little over CHF 7 million was allocated to the surplus fund.

Healthy growth at Baloise’s partially autonomous pension solution

The partially autonomous foundation Perspectiva continued to grow robustly, adding more than 750 new customers. Counting more than 4,400 participating companies and total assets of around CHF 1.5 billion, the collective foundation has reached a considerable size. This will help Baloise to take an even stronger position in the market going forward and to offer customers attractive pension solutions that are tailored to their needs. 

Nonetheless, the downtrend in the wider market in 2022 did have an impact on partially autonomous foundations. Perspectiva generated a negative return of around 10 per cent. It thus fared better than the reference market index but the performance still had an adverse impact on the foundation’s financial position. However, a high proportion of active policyholders and a clear investment strategy allow Baloise to look ahead with optimism even in a very uncertain market environment.

Persistent pressure on policymakers

Baloise believes that the comprehensive insurance model is a solution that meets a wide range of customer needs. But occupational pension provision is facing significant challenges that need to be addressed urgently. As the baby boomer generation approaches retirement, insurers are incurring losses even though conversion rates are being lowered. There is now no way of avoiding the pension reforms that have long been the subject of intense debate and which now need to be tackled as a matter of priority. The reform proposal recently approved by the Swiss parliament is a step in the right direction. For Baloise, the lowering of the statutory minimum conversion rate to 6.0 per cent is a crucial element of this reform package.

Contact
Baloise, Aeschengraben 21, CH-4002 Basel
Website: www.baloise.com
E-Mail: media.relations@baloise.com / investor.relations@baloise.com
Media Relations: Tel: +41 58 285 82 14
Investor Relations: Tel: +41 58 285 81 81

About Baloise

The focus is firmly on the future at Baloise. We aim to make tomorrow more straightforward, safer and more carefree for our customers, and we are taking responsibility for this today. Baloise is more than just a traditional insurance company. Through our smart finance and insurance solutions, complemented by a whole host of innovative offerings for the home and personal transport, we offer a complete service package. Dependable support, reliable cooperation and trust-based relationships are key aspects of our stakeholder interaction. We take care of financial matters so that our customers can concentrate on the important things in their lives and can find inspiration in the everyday. Baloise, a European company founded in 1863, currently employs 8,000 people at its headquarters in Basel (Switzerland) and across its subsidiaries in Belgium, Germany and Luxembourg. Our services generated a business volume of around CHF 8.8 billion in 2022 and a profit of CHF 548 million. Baloise Holding Ltd shares (BALN) are listed on the SIX Swiss Exchange.



End of Media Release


Language:English
Company:Baloise Holding AG
Aeschengraben 21
4002 Basel
Switzerland
Phone:+41 61 285 85 85
Fax:+41 61 285 70 70
E-mail:media.relations@baloise.com
Internet:https://www.baloise.com
ISIN:CH0012410517
Listed:BX Berne eXchange; SIX Swiss Exchange
EQS News ID:1640063

 
End of NewsEQS News Service

1640063  24.05.2023 CET/CEST

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