Baloise Unveils Refocusing Strategy and New Financial Targets

Baloise Holding AG has announced a new refocusing strategy aimed at improving profitability and operational efficiency. The company is targeting a return on equity between 12% and 15%, while increasing its payout rate to 80% or more. These targets are part of an effort to capitalize on the company's strengths and enhance shareholder value.

The strategy includes measures to boost technical profitability, streamline operations, and grow within target segments. Baloise will also initiate a share buy-back program. This marks a shift from the company's previous Simply Safe strategic program.

Baloise's non-life business has consistently delivered strong results, with a combined ratio below 95% since 2012. The life business remains a stable source of earnings, contributing at least CHF 200 million to EBIT. The company aims to optimize policy portfolios and improve cost efficiency by leveraging new technologies.

Operational efficiency and growth in key markets like Switzerland, Belgium, Germany, and Luxembourg are also priorities. Baloise plans to cut 250 positions and enhance its cost discipline. The goal is to maintain an expense ratio around 90% and achieve superior growth rates compared to market averages.

Strong cash remittance of over CHF 2 billion is anticipated for 2024-2027. These funds will support dividend payments and share buy-backs, reinforcing Baloise's commitment to its shareholders. Depending on the year's cash remittance, a share buy-back of at least CHF 100 million may be considered.