Helvetia Baloise Holding Ag · SIX:HBAN
Helvetia Baloise — Helvetia Group — Merger or Acquisition (January 2020)
21 slides from Helvetia Baloise's merger presentation, Jan 24, 2020
Slide 1: Acquisition of Caser – Investor presentation
Second foothold. Diversification benefits. Shareholder value. Acquisition of Caser Investor presentation Helvetia Group 24 January 2020
Slide 2: Disclaimer
Disclaimer Disclaimer: Analyst presentation NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT NOR THE INFORMATION CONTAINED IN IT AND ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UN
Slide 3: Acquisition of up to 70% of Caser: a strategic milestone for Helvetia Group
Acquisition of up to 70% of Caser: a strategic milestone for Helvetia Group Strengthening of European business as a strong second pillar in line with strategy helvetia 20.20: Acquisition of 70% of share capital of Caser, S.A., a Spanish composite insurance company Gaining significant market shar
Slide 4: Transaction highlights: value-enhancing acquisition with significant strategic benefits
Transaction highlights: value-enhancing acquisition with significant strategic benefits Significant › Unique opportunity to strengthen Europe as a second pillar fostering growth and further diversifying strategic benefits sources of income › Building a top 7 position in the Spanish non-life market ›
Slide 5: A highly attractive opportunity creating added value for Helvetia's shareholders
A highly attractive opportunity creating added value for Helvetia's shareholders Acquisition price and funding structure Financial impact (after capital raising) EUR ~780 million Comfortably within target SST ratio range (180-240%) ~67% 100% Expected to remain at current S&P rating level ('A') ~33%
Slide 6: Building a top 7 market position in the Spanish non-life market
Building a top 7 market position in the Spanish non-life market Market share non-life (2018) Market share life (2018) Grupo Mutua Madrileña 14.3% Vidacaixa 28.3% Mapfre 14.2% Zurich 8.8% Allianz 7.1% Mapfre 7.9% Grupo Catalana Occidente 6.0% Santander 6.7% Axa 5.5% Santalucia 4.9% Generali 4.4% Iber
Slide 7: Caser is a promising opportunity for the Spanish business…
Caser is a promising opportunity for the Spanish business… Company: Founded in 1942 in Madrid, Caser is a composite insurance Revenues by segment company, active throughout Spain in non-life and life insurance. It holds a (as of FY 2018) meaningful market position (standalone top 10 in non-life). Al
Slide 8: …to improve scale resulting in diversification benefits on Group level…
…to improve scale resulting in diversification benefits on Group level… Helvetia in Spain Caser Seguros Please note: due to the fact that Caser only reports based on local GAAP, its figures are only comparable Premium volume (IFRS) Premium volume (Local GAAP) to Helvetia's numbers to a limited exten
Slide 9: …and a good contribution to Group profit from Europe
…and a good contribution to Group profit from Europe Helvetia in Spain Caser Seguros Please note: due to the fact that Caser only reports based on local GAAP, its figures are only comparable Net income (IFRS) Net income (Local GAAP) to Helvetia's numbers to a limited extent; however, (in EUR million
Slide 10: Integration approach: two separate entities sharing best practices
Integration approach: two separate entities sharing best practices Keeping legal entities separate Helvetia Holding AG Acquisition of St.Gallen, Switzerland Retaining bank distributors (minority majority stake Helvetia Versicherungen in Caser shareholders) as strategic partners Future St.Gallen,
Slide 11: Helvetia expects to acquire up to 70% of Caser; close cooperation with distribution partners
Helvetia expects to acquire up to 70% of Caser; close cooperation with distribution partners Caser's current shareholding structure Expected stake to be acquired by Helvetia Sellers ≤ 56.5% under the sales and purchase agreement (SPA) Main shareholders intending Distribution partners: to sell their
Slide 12: Acquisition of Caser supports Helvetia's growth ambition without compromising its financial targets
Acquisition of Caser supports Helvetia's growth ambition without compromising its financial targets Targets Expected realisation Organic development Incl. acquisition of Caser Business volume CHF 10 billion (ambition) ~ Non-life Net CR < 93% Life NBM > 1% Return on equity 8 – 11% Divid
Slide 13: Acquisition of Caser – key takeaways
Acquisition of Caser – key takeaways Achieved strategic aim of strengthening position in Europe Improved diversification of core and new business models Strengthening the core business: New business models: Europe as a strong second pillar Non-insurance businesses enhancing fee business Improv
Slide 14: Appendix
Kapiteltrenner Appendix. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 14 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.01.2020
Slide 15: Who we are – Helvetia Group at a glance
Who we are – Helvetia Group at a glance1) Swiss all-lines insurer with a leading position in the Swiss home market Promising positioning in Germany, Italy, Spain and Austria International niche strategy for Active Reinsurance and Specialty Lines (engineering, transport and art) Business volume of CH
Slide 16: Europe has been growing profitably over the past years
Europe has been growing profitably over the past years1) Business volume Europe Net combined ratio Europe (in CHF millions) 2,979 97.7% 97.1% 97.1% 2,826 2,606 2,635 2,764 95.4% 95.1% 2) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Net income after tax Europe3) (in CHF millions) Business volu
Slide 17: Increased weight of Europe supporting shift to a more balanced business mix
Increased weight of Europe supporting shift to a more balanced business mix1) Business volume by segment Business volume by business activity Geographical mix: increasing share of 8% European business resulting in lower 11% 32% 33% dependency on Swiss market 46% 48% 54% 52% Business activities:
Slide 18: Strong position of Europe will be additionally boosted by Caser…
Strong position of Europe will be additionally boosted by Caser… Meaningful position in Spanish market: combined no. 7 position in Spanish non-life Improved business mix of the Group: shift towards more profitable non-life business, promising fee-generating non-insurance business with cross-sell
Slide 19: …which reinforces beneficial diversification in many respects
…which reinforces beneficial diversification in many respects1) Strong business mix Balanced portfolio mix: active in non-life (48%2), including specialty lines and reinsurance) and life (52%2)) Geographical diversification Beneficial geographic diversification: leading Swiss all-lines insurer (
Slide 20: Helvetia has an excellent acquisition and integration track record
Helvetia has an excellent acquisition and integration track record M&A transactions since 2008 Nationale Suisse Helvetic incl. its entities in Spain, Warranty Germany and Italy CH Phenix SEV Alba MoneyPark gan FR CEAT Eurocourtage 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 IT C
Slide 21: Calendar and contact
Calendar and contact Important dates 04/03/2020 Publication of financial results 2019 24/04/2020 Ordinary Shareholders’ Meeting 2020 27/08/2020 Publication of half-year results 2020 Contact details Investor Relations Corporate Communications & PR Susanne Tengler Philipp Schüpbach Jonas Grossni
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