Helvetia Baloise Holding Ag · SIX:HBAN

Helvetia Baloise — Helvetia Group — Non-Deal Roadshow (June 2018)

62 slides from Helvetia Baloise's roadshow presentation, June 2018

  1. Slide 1: Roadshow presentation – Milano / Lugano

    Strong business. Profitable growth. huber.huber: Habitat_2, 2017, Collage and acrylic spray on cardboard, 70 x 54.2 cm (image section) Shareholder value. Roadshow presentation – Milano / Lugano Helvetia Group June 2018

  2. Slide 2: Disclaimer

    Disclaimer Disclaimer: 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 UNITED STATES, AUSTRALI

  3. Slide 3: Helvetia at a glance

    Kapiteltrenner Helvetia at a glance. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 3 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  4. Slide 4: Who we are – Helvetia at a glance

    Who we are – Helvetia at a glance Our profile  Leading Swiss all-lines insurer (Top 3) with business operations in four additional country markets in Europe and in selected niche markets worldwide (Specialty Markets)  Active in non-life (property & casualty) and life insurance as well as in Specia

  5. Slide 5: Helvetia is well positioned and has an excellent basis for the future

    Helvetia is well positioned and has an excellent basis for the future Switzerland Business volume 2017: CHF 4,978 million Stable foundation of the Group Non-life:  Private clients & SME, #5 market position  Very good CR of 83.1% (2017) Europe  High quality service provider Life:  Business volume

  6. Slide 6: Our strength is a well developed sales network with excellent partners

    Our strength is a well developed sales network with excellent partners… Own sales force Agents Brokers Partners Direct sales/new media 960 sales agents 1,410 agents 1,160 broker agreements Swisscanto online@helvetia.ch CH Raiffeisen smile.direct AT 240 sales agents 490 agents 1,200 brokers 3 partner

  7. Slide 7: Customer-centered omni-channel network step by step

    …which we develop into a customer-centered omni- channel network step by step Cross-channelling Omni-channelling Partners Own Mobile sales- force Own Agents Brokers Partners Direct sales / sales force new media Online 7 |

  8. Slide 8: We have grown profitably over 160 years

    We have grown profitably on an organic basis and through selected acquisitions over 160 years 160 years of insurance expertise  1858 start as transport insurer  1996 merger of Helvetia Insurance & Patria Mutual  1870-1970 initially, expansion strategy with small portfolios worldwide  Creation of

  9. Slide 9: Key investment highlights

    Key investment highlights Strong business set-up Profitable growth strategy Shareholder value  Successful all-lines insurance since  Increasing underlying earnings  Increased dividend per share (in CHF) 160 years (in CHF million)  Sound business mix (47% non-life, 53% life)1) 422 439 492 502 21.

  10. Slide 10: Key Financials & Highlights 2017

    Kapiteltrenner Key Financials & Highlights 2017. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 10 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  11. Slide 11: 2017 key figures and highlights at a glance

    2017 key figures and highlights at a glance Business volume Investment-linked life products +14.1% Growth CHF 8,641 million Non-life +4.3% $ Profitability Underlying earnings Life +11.3% CHF 502 million Non-life +6.7% Net combined ratio CR Europe -1.8% pts to 95.4% 91.8% New business margin New busi

  12. Slide 12: Solid development of volume, profit and combined ratio

    Solid development of volume, profit and combined ratio After tax profit1) Business volume Our focus (in CHF million) (in CHF million)  Profitable growth 492 502 8,235 8,513 8,641 422 439 7,767 2014 2015 2016 2017 2014 2015 2016 2017 Net combined ratio (non-life) Value of new business (life) Our foc

  13. Slide 13: Sustainable dividends with an attractive yield

    Sustainable dividends with an attractive yield Shareholders’ equity1) Solvency Our focus (in CHF million) (as of 01/01/2018)  Financial strength SST ratio: 212% 5,229 140-180% 4,963 4,655 4,813 0% 100% 200% Target range 2014 2015 2016 2017 Dividend per share Dividend yield / Pay-out ratio Our focus

  14. Slide 14: Strategy helvetia 20.20

    Kapiteltrenner Strategy helvetia 20.20. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 14 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  15. Slide 15: Our strategy helvetia 20.20 creates value

    Our strategy helvetia 20.20 creates value helvetia 20.20 creates ...through transformation … and gets us fit for the Our financial targets value... and innovation future Volume: CHF 10 billion (ambition) Value for customers Transformation Fit for the future  Simple, customised and personalised Stre

  16. Slide 16: Strengthening of core business: tailor-made customer journey

    Strengthening of core business: tailor-made customer journey along all touchpoints 360° customer view Strengthening of core business 16 |

  17. Slide 17: New business models: Home ecosystem

    New business models: ʺHomeʺ ecosystem – everything from a single source Establishing new business models 17 |

  18. Slide 18: Non-life

    Kapiteltrenner Non-life. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 18 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  19. Slide 19: Non-life: overview

    Non-life: overview Non-life business volume in 2017 Non-life underlying earnings (in CHF million) (in CHF million) 363 22%  Europe 341 17 42%  Switzerland 36 4,094  Specialty Markets 84 74 Specialty Markets 36% Europe Switzerland 263 10%  Property (incl. engineering) 232 8% 34%  Motor vehicle 9

  20. Slide 20: Non-life: cautious underwriting policy

    Non-life: we focus on retaining the good portfolio quality by pursuing a cautious underwriting policy 93.6% 93.5% 92.1% 91.6% 91.8% 9.2 8.7 9.0 8.9 9.0  Disciplined underwriting strategy 21.0 21.9 20.4 20.3 20.7  Selective underwriting of large risks  Portfolio optimisation if necessary 63.4 62.9

  21. Slide 21: Life

    .2018 Optional Bereichsbezeichnung | Thema/Projekt | Referent Kapiteltrenner Life. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 21

  22. Slide 22: Life: overview

    Life: overview Life business volume in 2017 Life profit (in CHF million) (in CHF million) Life underlying earnings by segment Life IFRS operating profit by source 431 466 193 174 9% 57%  Individual life 39 35 Europe 248 246 Risk result Traditional 16 17 Fee result 41% 35% Investment-linked 134 15

  23. Slide 23: Life: stabilising the interest margin

    Life: in the current low interest rate environment we focus on stabilising the interest margin  Sustainable balance sheet structure due to Group interest margin efficient asset-liability matching 2.37%2) 2.33%2) 2.23%2)  Limited long-term liabilities within our Swiss group pension business due to

  24. Slide 24: Individual life: new business mix continues to improve

    Individual life: new business mix continues to improve Individual life single premiums Individual life regular premiums (New business; in CHF million) (New business; in CHF million) Share of capital- 42% 52% 73% 52% 50% 78% light business1) 848 835 113 111 810 106 39 41 51 315 429 519 24 19 10 12 4

  25. Slide 25: Switzerland

    Kapiteltrenner Switzerland. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 25 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  26. Slide 26: Switzerland at a glance

    Switzerland at a glance Business volume in 2017 (in CHF million) Total Non-life Life 4,978 million 10% 32% 22% 20% 23% 42% 8,641 4,094 4,548 Life Non-life 29% 36% 58% 57%  Switzerland  Europe  Specialty Markets  Group 71% life  Individual life Underlying earnings Net combined ratio New business

  27. Slide 27: Switzerland: market positions

    Switzerland: market positions Life Non-life Total 1. Swiss Life 1. Axa 1. Axa 2. Axa 2. Mobiliar 2. Swiss Life 3. 3. Zurich 3. 4. Baloise 4. Allianz 4. Baloise 5. Allianz 5. 5. Zurich 27 |

  28. Slide 28: Europe

    Kapiteltrenner Europe. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 28 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  29. Slide 29: Europe at a glance

    Europe at a glance Business volume in 2017 (in CHF million) Total Non-life Life 2,764 million 10% 32% 22% 20% 23% 42% 8,641 4,094 4,548 Life Non-life 36% 37% 58% 57% 63%  Europe  Switzerland  Specialty Markets  Group life  Individual life Underlying earnings Net combined ratio New business marg

  30. Slide 30: Europe is a strong second foothold

    Europe is a strong second foothold that helps to diversify from the Swiss home market Consistent customer segments  Focusing mainly on hybrid private clients, including HNWI, and SME business Consistent distribution channels  Cross-channel approach with own sales force, agents, brokers, partners e

  31. Slide 31: Europe: our market positions

    Europe: our market positions Germany: CHF 866 million Non-life No. 27 Life No. 36 Property No. 18 No. 29 Austria: CHF 551 million Non-life No. 8 Life No. 7 Household No. 6 No. 8 Spain: CHF 453 million Non-life (incl. health) No. 20 No. 23 Life No. 31 Burial insurance No. 11 No. 27 Italy: CHF 894 mil

  32. Slide 32: Specialty Markets

    Kapiteltrenner Specialty Markets. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 32 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  33. Slide 33: Specialty Markets at a glance

    Specialty Markets at a glance Business volume in 2017 (in CHF million) Total Non-life Life 900 million 10% 32% 22% 20% 23% 42% 8,641 4,094 4,548 Specialty Active Re- 30% Lines CH/Int. 36% 58% 57% insurance 46%  Specialty Markets  Switzerland  Europe 23%  Group life France  Individual life Under

  34. Slide 34: Specialty Markets: portfolio and strengths

    Specialty Markets: portfolio and strengths SpL CH/Int. France Active Reinsurance Business volume 2017 CHF 273 million CHF 211 million CHF 415 million Our portfolio  Small to large engineering, marine  Wide range of standardised  Property, casualty and selected and art risks, strong technical focu

  35. Slide 35: Investments

    Kapiteltrenner Investments. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 35 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  36. Slide 36: Our investment portfolio is well diversified

    Our investment portfolio is well diversified and we have a good ALM Portfolio by asset class  Bonds CHF 49.6 bn  Investment property 60% 14% 9% 6% 5% 2%2%2% 5%  31/12/2016 6% Mortgages  Market risk PH  Equities 1) CHF 52.3 bn  Loans 58% 14% 10% 7% 5% 2%2%2% 31/12/2017  Alternative investments

  37. Slide 37: Swiss Solvency Test

    Kapiteltrenner Swiss Solvency Test. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 37 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  38. Slide 38: Group SST ratio improved

    Group SST ratio improved thanks to business and capital market performance and new hybrid  Greatly improved SST ratio driven by the increase of risk-bearing capital (in CHF million) 2017 2018 ∆ 18/17  Stable target capital (compensating effects) Risk-bearing capital 6,317 7,863 +1,546  Favorable

  39. Slide 39: Risk-bearing capital: sensitivities

    Risk-bearing capital: sensitivities (as of 31/12/2017; in CHF million, sensitivities on RBC) Market risk sensitivities Shift 31/12/2016 31/12/2017 ∆ 17/16 Interest rates -50 bp -166 -150 +16 Spreads +50 bp -526 -620 -94 Equities -10 % -156 -202 -46 Real estate -10 % -545 -593 -48 FX EUR/CHF +10 % -7

  40. Slide 40: Shareholder Structure

    Kapiteltrenner Shareholder Structure. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 40 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  41. Slide 41: We target a shareholder structure with long-term focus

    We target a shareholder structure with long-term focus Shareholder structure (as of 31/12/2017) Free float by geography Swiss investors 37.5% Investors based abroad Free float 34.1% 62.5% Patria Mutual 65.9% Free float by investor type Private Other institutional individuals 29.5% investors 45.6% Ba

  42. Slide 42: Appendix I. Full-year results 2017

    Kapiteltrenner Appendix I. Full-year results 2017. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 42 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  43. Slide 43: Pre-tax synergies of CHF 137 million realised

    Pre-tax synergies of CHF 137 million realised FTE development Realised synergies (pre-tax) (as of 31/12/2017; in CHF million) -474 FTE development 137 204  Staff reduction by 474 FTEs since start of synergy Basler AT 118 tracking Money- 104 Park Nationale 1,831  Thereof 439 FTEs left as a conseque

  44. Slide 44: Underlying earnings increased by 2.2%

    Underlying earnings increased by 2.2% – life and non-life business with strong performance Underlying earnings (in CHF million) 492 502 35% Life1) Non-life1) 65% 363 341 193 174 -22 -54  2016 Total Non-life Life Other activities  2017 ∆ +2.2% +6.7% +11.3% n.a. 1) Share on total earnings excl. othe

  45. Slide 45: Stronger results from Switzerland and Europe

    Stronger results from Switzerland and Europe, resilient earnings in SpM despite NatCats Underlying earnings (in CHF million) SpM 3% 22% 492 502 CH Europe 410 366 75% 113 120 36 17 -24 -43  2016 Total CH Europe Specialty Markets Corporate  2017 ∆ +2.2% +11.9% +5.4% -53.7% n.a. 1) Share on total ear

  46. Slide 46: Non-life: business volume in 2017

    Non-life: business volume in 2017 (in CHF million; currency-adjusted Property thereof Motor Liability Accident / Transport / ARI Total NL growth against 2016) Engineering vehicle Health Art 537 - 604 152 168 4 - 1,465 Switzerland 1.9% - 1.1% -2.0% 4.4% -4.7% - 1.4% 632 29 648 181 180 88 - 1,729 Euro

  47. Slide 47: Non-life: overview of net combined ratios

    Non-life: overview of net combined ratios CH Europe Specialty Markets Group Claims ratio (net) 57.1 64.6 66.0 62.1 Cost ratio (net) 26.0 30.8 34.1 29.7 Combined ratio 2017 (net) 83.1 95.4 100.1 91.8 Combined ratio 2016 (net) 82.9 97.1 96.9 91.6 Change from 2016 0.1 -1.8 3.3 0.2 DE IT ES AT SpL FR AR

  48. Slide 48: Non-life: net combined ratio split

    Non-life: net combined ratio split +0.2% pts 91.6% 91.8% -3.1% +2.0% +0.6% 29.2% +0.8% 29.7% 0.6% 2.6% 65.5% 62.4% -3.7% -2.9% CR 2016 ∆ Underlying ∆ NatCat ratio ∆ Prior year ∆ Cost ratio CR 2017 claims ratio1) claims development Underlying claims ratio NatCat ratio Prior year claims Cost ratio 1)

  49. Slide 49: Life: business volume in 2017

    Life: business volume in 2017 (in CHF million; currency- Investment- Deposits1) Total Traditional Total Total Total adjusted growth against linked investment- life2) individual life group life life 2016) linked 265 26 291 631 922 2,591 3,513 Switzerland 8.3% 93.5% 12.7% -12.3% -5.7% -3.5% -4.1% 381

  50. Slide 50: Life: NBM improved to 1.8%

    Life: NBM improved to 1.8% thanks to de-risking and focused sale of capital-light products  VNB: increased significantly due to revised New business (in CHF million) 2016 2017 ∆ 17/16 guarantee concepts in traditional savings products Value of new business (VNB) 33 49 50% and focused sale of capita

  51. Slide 51: Life: reserves

    Life: reserves (as of 31/12/2017; in CHF billion)  0.25% interest guarantee  21% of Swiss life reserves are subject to the BVG EU minimum interest rate 7.6  1.00% interest guarantee Individual life 11.5 CH Other 29.0 6.3 Group life 5.2 extra-mandatory 17.5 Retirement assets 11.2 mandatory 6.0 51

  52. Slide 52: Investments: resilient new and re-investment yield

    Investments: resilient new and re-investment yield Investment performance: total portfolio Investment (in CHF million) Equities Bonds Mortgages Other Total1) property Current income 68 2.8% 569 1.9% 242 3.5% 88 1.8% 35 1,001 2.1% G/L 201 162 33 -1 -48 347 Investment result 269 11.8% 731 2.4% 275 4.0

  53. Slide 53: Sustainable investments: MSCI ESG risk profile

    Sustainable investments: MSCI ESG risk profile Investment portfolio ESG risk profile: A rating CHF 52.3 bn as of 31/12/2017 3% Equities Main asset classes in scope for the analysis1) 28% 58% 14% 10% 7% 5% Bonds Alternative investments / 69% investment funds / derivatives Bonds Investment property Mo

  54. Slide 54: Equity walk: IFRS to statutory equity

    Equity walk: IFRS to statutory equity Reconciliation IFRS to statutory equity (in CHF billion) 5.2 -3.5  Local GAAP equity amounts to 50% of IFRS equity  Investment valuation differences – i.e. unrealised 0.9 2.6 gains and losses, which are not payable as dividends – reflect around 67% of IFRS equ

  55. Slide 55: Risk sensitivities

    Risk sensitivities Risk sensitivities (as of 31/12/2017; in CHF million) Interest rate risk sensitivities Interest rate level Interest rate level +10 bp -10 bp Income statement 1.7 -2.9 Equity -82.7 83.9 Equity price risk sensitivities Equity price Equity price +10% -10% Income statement 102.5 -93.4

  56. Slide 56: Appendix II. Additional information

    Kapiteltrenner Appendix II. Additional information. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 56 Optional Bereichsbezeichnung | Thema/Projekt | Referent 23.08.2018

  57. Slide 57: Our Executive Management structure

    Our Executive Management structure strengthens integration of all market areas Corporate Secretary1) CEO Internal Audit1) Christophe Niquille Philipp Gmür Simon Schneider Support Human Resources 1) Reports to the Chairwoman functions of the Board of Directors Roland Bentele Corporate Centre Members

  58. Slide 58: Our product portfolio (1/2)

    Our product portfolio (1/2) Non-life Premiums by business line (2017)  Property (incl. engineering) CH DE IT ES AT FR LI 8% 10%  Motor vehicle • • • • • • •  Liability Property 34% 9% Motor vehicle • • • • • • 8%  Accident / Health Liability • • • • • • 31%  Transport (incl. art) Accident / Hea

  59. Slide 59: Our product portfolio (2/2)

    Our product portfolio (2/2) Life Group life Occupational pension plans (BVG) (Switzerland only) Individual life Management pension scheme solutions via Helvetia Collective Foundation CH DE IT ES AT All risks and benefits in occupational pension plans are assured and guaranteed by Helvetia Insurance.

  60. Slide 60: How does non-life insurance work?

    How does non-life insurance work? (greatly simplified) Customer Helvetia Policy Premium Insurance process Claims and costs Current claim payments Current claim payments Premium Provisions and future claims Investments Combined ratio Acquisition costs / administration costs Return Insurance benefits

  61. Slide 61: How does life insurance work?

    How does life insurance work? (greatly simplified) Customer Helvetia Policy Premium Insurance process Risk process Savings process Cost process Risk premium Savings premium (investments) Cost premium Risk benefits (death, disability) Risk benefits (death, disability) Return on investments Acquisitio

  62. Slide 62: Calendar and contact

    Calendar and contact Important dates  04/09/2018 Publication of half-year results 2018  06/03/2019 Publication of financial results 2018  03/05/2019 Ordinary Shareholders' Meeting 2019 Contact details Investor Relations Corporate Communications & PR Susanne Tengler Philipp Schüpbach Claudia Saute

Helvetia Group — Non-Deal Roadshow (June 2018) on 6ix