Helvetia Baloise Holding Ag · SIX:HBAN
Helvetia Baloise — Helvetia Group — FY2019 Earnings Presentation
87 slides from Helvetia Baloise's earnings presentation, May 2020
Slide 1: Solid basis. Pleasing tailwinds. Strong results.
Solid basis. Pleasing tailwinds. Strong results. Conference presentation: Full-year results 2019 Helvetia Group Cover: Dave Bopp, "Mirage", 2018 (image section) May 2020
Slide 2: Disclaimer
Disclaimer Disclaim er: 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 U
Slide 3: Content
Content Click on » to navigate to the respective section Latest update: SST Main section Appendix Swiss Solvency Test 2019 » Key figures and highlights » Business volume » Current developments » Net income » Non-life » Business volume » Life » Non-life » Investments » Life »
Slide 4: Latest update: Swiss Solvency Test 2019 and current developments
Kapiteltrenner Latest update: Swiss Solvency Test 2019 and current oder Fazit auf developments. Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 3 Optional Bereichsbezeichnung | Thema/Projekt | Referent 08.05.2020
Slide 5: SST 2019: positive business and market performance further improves capital base
SST 2019: positive business and market performance further improves capital base Improved SST ratio driven by a relatively stronger increase of risk-bearing (in CHF m illion, as of 1 January) 2019 2020 ∆ 20/19 capital compared to target capital Risk-bearing capital 8,067 9,477 +1,410 Strong posi
Slide 6: Current developments: resilient capitalisation in times of elevated market volatility
Current developments: resilient capitalisation in times of elevated market volatility Impact of market developments in the course of the COVID-19 crisis (31/03/2020 vs. 01/01/2020) SST ratio SST sensitivities Increasing credit spreads Significant negative impact of higher credit spreads Dampening ef
Slide 7: Full-year results 2019
Kapiteltrenner Full-year results 2019. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 6 Optional Bereichsbezeichnung | Thema/Projekt | Referent 08.05.2020
Slide 8: Key figures and highlights at a glance
Key figures and highlights at a glance Business volume Non-life (+8.3% in OC) by segments: substantial growth in Europe and Specialty Markets; by Growth CHF 9,454 million line of business growth driven by property business, engineering and active reinsurance (+5.6% in OC) Life (+3.0% in OC): strong
Slide 9: Financial figures 2019
Kapiteltrenner Financial figures 2019. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 8 Optional Bereichsbezeichnung | Thema/Projekt | Referent 08.05.2020
Slide 10: Net income increased by 24.9% thanks to strong capital markets & tax effect
Net income increased by 24.9% thanks to strong capital markets & tax effect, solid technical results Net income after tax (in CHF million) 538 36% Life1) 431 398 Non-life1) 64% 332 224 148 2018 -49 2019 -85 Total Non-life Life Other activities ∆ 24.9% 20.0% 51.7% n.a. 1) Share on total earnings
Slide 11: Net income increased by 24.9%: remarks
Net income increased by 24.9% thanks to strong capital markets & tax effect, solid technical results Remarks Total: Life: Earnings growth driven by strong investment results and a positive Increase in earnings driven by higher gains on investments, an one-off tax effect; continuing solid technic
Slide 12: Strong earnings improvement in all main segments
Strong earnings improvement in all main segments Net income after tax (in CHF million) SpM1) 10% 538 CH1) 21% Europe1) 431 427 70% 321 117 128 59 35 2018 -42 2019 -76 Total Switzerland Europe Specialty Markets Corporate ∆ 24.9% 33.2% 9.0% 68.2% n.a. 1) Share on total earnings excl. Corporate 6 |
Slide 13: Strong earnings improvement in all main segments: remarks
Strong earnings improvement in all main segments Remarks Switzerland: Europe: Increasing IFRS result of CHF 427 million benefits from favourable Improving IFRS result of CHF 128 million driven by non-life. equity market performance and a positive one-off tax effect of CHF Non-life: Higher inve
Slide 14: Pleasing top-line growth driven by non-life in Europe and Specialty Markets
Pleasing top-line growth driven by non-life in Europe and Specialty Markets Business volume (in CHF million) 9,073 9,454 4,396 4,675 4,677 4,779 2018 2019 2018 2019 2018 2019 Total Non-life Life ∆ 4.2% 6.4% 2.2% ∆ OC 5.6% 8.3% 3.0% 7 |
Slide 15: Pleasing top-line growth: remarks
Pleasing top-line growth driven by non-life in Europe and Specialty Markets Remarks Increase of total business volume of +5.6% in OC. Life: +9.7% in OC, strong increase in investment-linked business Non-life business (+8.3% in OC) as main growth driver, particularly (+9.3% in OC) in all countrie
Slide 16: Non-life: strong investment income and solid technical results
Non-life: strong investment income and solid technical results supported by a positive tax effect Non-life profit by sources (in CHF m illion) 2018 2019 ∆ 19/18 Technical result (net) 349 311 -10.8% Investment income (net)1) 109 208 91.4% Other non-technical expenses and income1) -37 -48 -29.3% Prof
Slide 17: Non-life: profit by sources remarks
Non-life: strong investment income and solid technical results supported by a positive tax effect Remarks Definitions: Earnings performance: Technical result (net) = Earned premiums – insurance benefits – Net income after tax increasing by +20.0%. technical costs – reinsurance share. Significa
Slide 18: Non-life: net combined ratio on an ongoing good level
Non-life: net combined ratio on an ongoing good level Group net combined ratio Net claims ratio development Net CR 2019 by segment 91.0% 92.3% 94.8% 96.4% 8.8% 86.2% 7.2% 7.3% 8.6% 61.1% 61.7% 1.6% 11.7% 21.3% 21.8% 1.7% 23.7% 24.7% 17.4% 62.2% 59.3% 57.2% 63.9% 64.3% 61.1% 61.7% 0.7% -2.8% 2018 201
Slide 19: Non-life: net combined ratio remarks
Non-life: net combined ratio on an ongoing good level Remarks Group net combined ratio: Higher combined ratio due to an increased claims ratio and a higher Increased cost ratio (+2.3% pts) resulting from higher acquisition cost ratio, both driven by Switzerland; despite the increase, costs due t
Slide 20: Life: higher gains on investments, good technical development, one-off tax effect
Life: higher gains on investments, good technical development and a one-off positive tax effect Life profit by sources (in CHF m illion) 2018 2019 ∆ 19/18 Savings result 255 247 -3.1% Fee result 20 23 13.3% Risk result 237 218 -8.1% Other result -26 13 n.a. Cost result -73 -46 37.0% Margin after cos
Slide 21: Life: profit by sources remarks
Life: higher gains on investments, good technical development and a one-off positive tax effect Remarks Savings result: Cost result: Definition: Balance of current income and interest expense. Definition: Balance of cost premiums and acquisition and administration expenses. Earnings performance:
Slide 22: Life: higher NBM driven by lower capital needs for group life
Life: higher NBM driven by lower capital needs for group life (model changes) and better business mix New business margin (in % PVNBP) 1.2% pts 2.9% 1.7% 2018 2019 (in CHF million) 2018 2019 ∆19/18 New business volume (in PVNBP) 2,634 2,878 9.3% Value of new business (VNB) 44 83 87.8% 11 |
Slide 23: Life: new business margin remarks
Life: higher NBM driven by lower capital needs for group life (model changes) and better business mix Remarks Improvement of NBM driven by the Swiss group life business: > Positive effect from model changes that led to lower capital requirements > Additional benefits from a more advantageous busin
Slide 24: Life: increasing interest margin despite low interest rate environment
Life: increasing interest margin despite ongoing low interest rate environment Direct yields and guarantees in life business Group (CHF) Switzerland (CHF) Europe (EUR) Guarantee buckets Group 100% 2.44% 2.39% 90% 2.17% 2.22% 2.10% 2.12% 80% 2.00% 2.04% 1.95% 0.42% 0.53% 0.52% 70% 0.85% 0.84% 60% 0.9
Slide 25: Life: interest margin remarks
Life: increasing interest margin despite ongoing low interest rate environment Remarks Direct yields decreasing in Switzerland and the Europe segment mainly due to lower income on bonds in consequence of the low interest rate environment. Average interest rate Helvetia has to generate in order t
Slide 26: Other activities: net income lower due to consolidation effect
Other activities: net income lower due to consolidation effect on own investment funds Other activities earnings by sources (in CHF m illion) 2018 2019 ∆ 19/18 Net technical result (group reinsurance) 15 0 -16 Investment / FX result1) 22 -4 -26 Costs / Other1) -55 -65 -10 Financing costs -35 -33 2 T
Slide 27: Other activities: remarks
Other activities: net income lower due to consolidation effect on own investment funds Remarks Definitions: Earnings performance: Technical result (group reinsurance) = premiums – insurance Lower technical result in Group reinsurance mainly resulting from its benefits – technical costs – share e
Slide 28: Investments: strong performance of equity markets drives investment result
Investments: strong performance of equity markets drives investment result Investment result (in CHF million) Yield 1.9% 0.9% 2.9% 3.0% 5.9% 469 1,432 3,304 2,835 456 1,403 947 Current income Net G/L incl. Group result ∆ unreal. G/L Overall Group Investments with Total derivatives and FX result mark
Slide 29: Investments: remarks
Investments: strong performance of equity markets drives investment result Remarks Current income (CHF 947 million) almost at prior year's level (CHF 987 million) despite persistently low interest rates. Realised and book gains amounted to CHF 456 million – a substantial increase compared to 201
Slide 30: Investments: strong portfolio performance and stable new and re-investment yield
Investments: strong performance of portfolio and stable new and re-investment yield Investment performance: total portfolio Investment Other (in CHF m illion) Equities Bonds Mortgages Total property (incl. funds) Current income 75 2.9% 498 1.7% 252 3.4% 82 1.6% 41 947 1.9% G/L 308 1 151 -1 -4 456 In
Slide 31: Dividend per share increased to CHF 5.00
Dividend per share increased to CHF 5.00 – attractive dividend yield of 3.7% Dividend per share1) Dividend yield / Pay-out ratio (in CHF) (in %) 3.8% 4.2% 4.2% 3.7% Dividend yield Pay-out ratio based on: 5.00 58% 59% 58% 58%2) IFRS earnings 4.60 4.80 4.20 44% 47% underlying earnings 2016 2017 2018 2
Slide 32: Strong operating cash production ensuring dividend payment
Strong operating cash production ensuring dividend payment Operating cash production by segment and business area Cash production and payout (in CHF million; remittance in % of IFRS earnings) (in CHF million; payout in % of operating cash production) 2018 2019 2018 2019 Operating cash Operating cash
Slide 33: Strong operating cash production: remarks
Strong operating cash production ensuring dividend payment Remarks Strong operating cash production across all segments and business activities. Shareholder dividends ensured by current year cash production highlighting sustainability of dividend payment. Continued commitment of high external
Slide 34: Update on strategy implementation
Kapiteltrenner Update on strategy implementation. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 33 Optional Bereichsbezeichnung | Thema/Projekt | Referent 08.05.2020
Slide 35: On the home stretch on implementing our strategy
On the home stretch on implementing our strategy Strengthening the core business New business models Innovation Access: Online business B2B2C business Smile mobile app Claim notification (CH) VIVA (DE, ES) (CH, DE, ES) (CH) and virtual insurance assistance (ES) via SMART online chatbot Bank partners
Slide 36: Strengthening the core business by the acquisition of Caser
Strengthening the core business by the acquisition of Caser, reinforcing the European business Well-performing A promising Benefits from the foundation in Europe transaction acquisition Helvetia Europe 2015 2019 Helvetia acquiring 70% of Caser Strengthening the core business: 981) 128 Financed b
Slide 37: Improving profitability of life business by introducing a new tariff
Improving profitability of life business by introducing a new tariff in Swiss group life Purpose New tariff in full insurance Implications (adopted as from 01/01/2020) Strengthening the core business in Swiss Gradual lowering of conversion rate Expected shortening of balance sheet group life by: b
Slide 38: On track to reach our financial targets
On track to reach our financial targets Targets Realised as of 31/12/2019 Business volume CHF 10 billion (ambition) On track (incl. acquisition of Caser) Non-life Net CR < 93% Net CR: 92.3% Life NBM > 1% NBM: 2.9% Return on equity 8 – 11% RoE: 9.3% Dividend (5 years) > CHF 1 billion CHF 92
Slide 39: Appendix
Kapiteltrenner Appendix. oder Fazit auf Farbfläche Flexible Schriftgrösse Arial Black 0.9 ZA 38 Optional Bereichsbezeichnung | Thema/Projekt | Referent 08.05.2020
Slide 40: Business volume by business area in 2019
Business volume by business area in 2019 Non-life Life1) Total 2018 2019 ∆ 19/18 2018 2019 ∆ 19/18 2018 2019 ∆ 19/18 (in CHF million) (OC) (OC) (OC) Switzerland 1,472 1,483 0.8% 3,603 3,641 1.1% 5,075 5,124 1.0% Europe 1,905 1,945 5.8% 1,074 1,138 9.7% 2,979 3,083 7.2% Germany 658 668 5.1% 295 312 9
Slide 41: Switzerland: business volume in 2019
Switzerland: business volume in 2019 Business volume (in CHF million) 3,603 3,641 949 947 Individual life 2018 2,654 2,694 2019 Regular 1,305 1,339 1,472 1,483 premiums 2,654 2,694 Group life 949 947 Single Investment- 1,349 1,355 367 405 premiums linked 582 542 Traditional Non-life Life Group l
Slide 42: Non-life: business volume in 2019
Non-life: business volume in 2019 (in CHF million; currency-adj usted Property thereof Motor Liability Accident / Transport / ARI Total NL grow th against 2018) Engineering vehicle Health Art 544 - 599 161 174 3 - 1,483 Switzerland 3.4% - -1.3% 0.7% 0.1% -10.7% - 0.8% 714 38 746 200 195 91 - 1,945 E
Slide 43: Non-life: technical account
Non-life: technical account 2018 2019 (in CHF m illion) Gross Share R/I Net Gross Share R/I Net Premiums earned 4,342 -444 3,898 4,518 -496 4,022 Insurance benefits -2,583 203 -2,380 -2,734 254 -2,480 Technical costs -1,268 99 -1,168 -1,349 119 -1,230 Technical result 491 -142 349 434 -123 311 Inves
Slide 44: Non-life: overview of net combined ratios
Non-life: overview of net combined ratios (in %) CH Europe Specialty Markets Group Claims ratio (net) 57.2 63.9 64.3 61.7 Cost ratio (net) 29.1 30.9 32.1 30.6 Combined ratio 2019 (net) 86.2 94.8 96.4 92.3 Combined ratio 2018 (net) 82.7 95.1 96.2 91.0 Change from 2018 3.5 -0.3 0.1 1.2 DE IT ES AT SpL
Slide 45: Non-life: net combined ratio walk
Non-life: net combined ratio walk 1.3% pts 3.5% pts 0.6% pts 92.3% 91.0% 0.1% pts Cost ratio 30.0% 30.6% -2.9% pts NatCat ratio Current year claims ratio excl. NatCats 1.6% 1.7% Prior year claims development 62.2% 59.3% 0.7% -2.8% CR 2018 ∆ Current year ∆ NatCat ratio ∆ Prior year ∆ Cost ratio CR 20
Slide 46: Non-life: impact of Active Reinsurance's underwriting year accounting on PYD
Non-life: impact of Active Reinsurance's underwriting year accounting on PYD Usual accounting logic: Contract conclusion Contract renewal Current year claims ratio Year: 1 2 3 Claim Building reserves for current year (year 3) Underwriting year accounting logic (ARI): Contract conclusion Contract ren
Slide 47: Non-life: cost ratio walk
Non-life: cost ratio walk 0.6% pts 0.4% pts 0.7% pts -0.1% pts -0.5% pts 30.0% 28.6% 30.6% Cost ratio ∆ Commission Business Other Reinsurance Cost ratio 2018 cost ratio volume effects effect 2019 (net) effect (net) 32 |
Slide 48: Life: business volume in 2019
Life: business volume in 2019 (in CHF m illion; currency- Investment Deposits1) Total Traditional Total Total Total - linked investment- life2) individual life group life life adjusted grow th against 2018) linked 339 66 405 542 947 2,694 3,641 Switzerland 11.9% 3.0% 10.4% -6.9% -0.2% 1.5% 1.1% 376
Slide 49: Life: traditional embedded value (TEV)
Life: traditional embedded value (TEV) 272 (in CHF million) 246 83 -229 -75 -19 31/12/2018 TEV yield 9.7% 31/12/2019 2,719 Adjusted equity 2,384 3,925 3,647 2,285 + Value of insurance portfolio 2,269 -1,357 - Solvency costs -728 3,647 Traditional embedded value 3,925 Expected Value of new Operating
Slide 50: Life: assumptions for TEV calculation
Life: assumptions for TEV calculation Switzerland Europe Assumptions for calculation 2018 2019 2018 2019 Risk discount rate 6.5% 6.5% 7.0% – 8.5% 7.0% – 8.75% Yield on bonds 0.4% – 1.5% -0.1% – 1.0% 2.1% – 3.2% 0.9% – 2.0% Yield on equities 6.5% 6.5% 7.0% 7.0% Yield on real estate 4.2% 3.4% 4.3% 4.3
Slide 51: Life: reserves
Life: reserves (as of 31/12/2019; in CHF billion; incl. investment-linked, excl. PHP, UPR and deposits) EU 0.25% interest guarantee 21% of Swiss life reserves are subject to the BVG 7.8 1.00% interest guarantee minimum interest rate Individual life 11.5 CH Other 29.9 6.8 Group life 5.4 extra-man
Slide 52: Individual life: new business mix
Individual life: new business mix Individual life single premiums Individual life regular premiums (New business; in CHF million) (New business; in CHF million) Share of capital- 73% 73% 74% 78% 87% 89% light business 1) 945 885 111 108 110 835 519 565 598 51 62 65 9 22 4 7 88 70 93 23 13 24 243 245
Slide 53: The Swiss pension system
The Swiss pension system 3 pillars concept Pillar 1 Pillar 2 Pillar 3 General state Occupational pension plan for insurance employees Private coverage AHV (1948) BVG (1985) Purpose Basic level of provision Ensure living standard Coverage of individual requirements Responsibility Government Employer
Slide 54: Treatment of own investment funds in other activities segment
Treatment of own investment funds in other activities segment (illustrative figures) 1 Trading "gains" in market units are offset by "loss" in other activities. Non-Life Switzerland 2 Market valuation gains are then booked in other activities through equity. Trading 10 AFS 0 10 P&L 1 2 0 Equity Othe
Slide 55: Investment portfolio by asset class
Investment portfolio by asset class CHF 52.0 bn 57% 14% 10% 7% 4% 2% 4% 2% 31/12/2018 CHF 54.5 bn 54% 14% 9% 8% 5% 2% 4% 4% 31/12/2019 14% Bonds Investment property Mortgages Investments with market risk for the policyholder 1) Equities Loans 2) Alternative investments / investment funds / derivativ
Slide 56: Investment portfolio by IFRS category
Investment portfolio by IFRS category 4% 16% Available for sale (AFS) 48% Loans and receivables (LAR) 14% CHF 54.5 bn Investment property Trading / Derivatives Held to maturity (HTM) 18% 31/12/2018 31/12/2019 Investment Investment Associates Associates Trading / Trading / property property
Slide 57: Investment result by business area
Investment result by business area Non-life Life Other activities1) Total (in CHF m illion) 2018 2019 2018 2019 2018 2019 2018 2019 ∆19/18 Current income (net) 138 140 851 826 -2 -19 987 947 -40 - Thereof current income on Group investments 110 113 637 601 -2 -19 745 695 -49 - Thereof rental income
Slide 58: Group investment result compared to prior year
Group investment result compared to prior year (in CHF million) 608 63 187 -42 440 -40 1,403 794 2018 Current G/L equities / G/L bonds G/L Other 2019 income funds1) incl. FX investment movements property 1) Also includes alternative investments and equity derivatives 43 |
Slide 59: Investments in original currency
Investments in original currency Switzerland Europe 9% 1% 9% 13% CHF CHF EUR CHF 40.8 billion 13.7 billion USD 91% 77% Other (in CHF billion) Bonds Equities Funds Other CHF 14.7 48% 1.3 46% 0.7 16% 14.8 88% EUR 12.3 40% 0.7 24% 3.1 73% 1.4 9% USD 3.2 11% 0.8 26% 0.4 10% 0.6 4% Other 0.3 1% 0
Slide 60: Currency hedges vs. currency trends
Currency hedges vs. currency trends In general, Helvetia places investments in foreign currencies for congruent coverage of liabilities in foreign currencies and the purpose of diversification; currency risk is systematically hedged. Exposure to foreign currencies amounts to CHF 10 billion befor
Slide 61: Equity exposure
Equity exposure1) 5.9% 5.7% 5.6% 5.6% 5.5% 5.4% 5.4% 5.2% 5.6% 5.2% 4.7% 5.2% 5.1% 5.1% 4.9% 4.9% 4.7% Equity exposure 3.6% Equity exposure delta-adjusted 2.9% Equity exposure after hedging 2.6% 2.6% 2.5% 2.3% 2.3% 2.4% 2.4% 2.0% Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 1
Slide 62: Bond credit ratings
Bond credit ratings AAA 40% 40% AA 44% 43% 42% A BBB <BBB and not rated 23% 25% 25% 27% 25% 15% 17% 18% 18% 15% 12% 15% 16% 16% 16% 2% 2% 2% 1% 1% 2015 2016 2017 2018 2019 47 |
Slide 63: Bond investments
Bond investments Sector and rating class allocation (as of 31/12/2019) Total CHF 54.5 billion 54% Bonds 16% 35% 39% 40% AAA AA CHF Financials CHF A 29.4 bn Corporates 18% 29.4 bn BBB States & supranationals 1) < BBB (0%) Not rated (1%) 27% 25% 1) Supranational entities such as the E
Slide 64: Bond investments – financial bonds
Bond investments – financial bonds Risk profile and country allocation (as of 31/12/2019) Total CHF 54.5 billion 19% Financial bonds 3% 6% 13% 61% 23% 51% 54% Switzerland Germany Netherlands AAA France (5%) AA Secured UK (5%) CHF A CHF Unsecured (straight bonds) CHF Austria (3%)
Slide 65: Bond investments – government bonds
Bond investments – government bonds Entity and country allocation (as of 31/12/2019) Total CHF 54.5 billion 21% Government & supranational bonds 9% 11% Switzerland (AAA) 10% 32% Italy (BBB) 4% USA (AAA) EU (AAA) Country 4% CHF Germany (AAA) CHF Regional authorities 4% 7.1 bn Netherla
Slide 66: Bond investments – corporate bonds
Bond investments – corporate bonds Rating class, country and sector allocation (as of 31/12/2019) Total CHF 54.5 billion 14% Corporate bonds 4% 10% 11% Oil & gas 34% USA 21% 37% 9% Pharmaceuticals France AAA Commercial Transportation Netherlands 35% AA services Switzerland CHF A
Slide 67: Bond investments – credit rating BBB
Bond investments – credit rating BBB Country allocation (as of 31/12/2019) Total CHF 54.5 billion 9% Bonds rated BBB 6% Italy 35% USA Netherlands Spain France (5%) CHF UK (4%) 4.8 bn Germany (4%) 6% Switzerland (3%) Sweden (1%) Canada (1%) 9% Others 28% 52 |
Slide 68: Investment property
Investment property Allocation by use and country (as of 31/12/2019) Total CHF 54.5 billion 14% Investment property 28% CHF Residential CHF 7.5 bn Commercial 7.5 bn Switzerland 72% Austria (4%) Germany (3%) 92% Spain (1%) Italy (1%) France (1%) 53 |
Slide 69: Sustainable investments: MSCI ESG risk profile
Sustainable investments: MSCI ESG risk profile Investment portfolio ESG risk profile: A rating CHF 54.5 bn as of 31/12/2019 2% 10% Equities Main asset classes in scope for the analysis1) 34% 54% 14% 9% 8% 5% Bonds Alternative investments / 54% Bonds investment funds / derivatives Investment property
Slide 70: Energy exposure
Energy exposure (as of 31/12/2019) Share of energy sector on portfolio 2.0% 5.4% 3.0% 3.0% CHF 9 million of total of corporate bonds of equities of private debt Fracking exposure investments (incl. financials) (CHF 54.5 billion) Total energy exposure by rating class and currency Top 3 issuers 2% 2%
Slide 71: Equity / comprehensive income
Equity / comprehensive income G/L recorded in equity: CHF 455 million (in CHF million) Hybrid capital -164 Unrealised gains/losses (including policyholder share) 1,432 -647 Equity, reserves and non- controlling interests -166 6,534 -257 0 10.7% 700 5,797 538 18.1% 5,834 12.1% 9.3% Comprehensiv
Slide 72: Changes in unrealised gains/losses
Changes in unrealised gains/losses (in CHF million) Unrealised G/L on assets Changes in market value Gains/losses transferred to the income statement 2018 2019 ∆ Equities 286 567 281 285 47 2,886 Bonds 1,134 2,239 1,104 -5 Other 33 80 47 Total 1,454 2,886 1,432 -43 ∆ 1,432 1,148 Non-life 341 1,4
Slide 73: Unrealised gains/losses
Unrealised gains/losses Breakdown between shareholders and policyholders (in CHF million) Total unrealised G/L Shareholders' unrealised G/L in equity Policyholders' unrealised G/L in equity Policyholders' unrealised G/L in liabilities 278 Non-controlling interest in unrealised G/L and defe
Slide 74: Net economic dividend capacity supporting sustainable dividends
Net economic dividend capacity supporting sustainable dividends Capital walk: from SST capital to net economic dividend capacity (2019) (as of 31/12/2019; in CHF billion) 9.5 Main effects: Main effects: Valuation differences in SST vs. Valuation differences in IFRS vs. Valuation and 2.1 -2.1 IFR
Slide 75: Net economic dividend capacity: remarks
Net economic dividend capacity supporting sustainable dividends Remarks Net economic dividend capacity (NEDC) reflects additional free available capital at the balance sheet date that can be used for dividends or growth purposes. NEDC takes into account certain considerations: > the available fr
Slide 76: Helvetia capital management approach (1/2)
Helvetia capital management approach (1/2) Managing capital generation To pay out dividends, we need the following conditions: How much dividend Do the legal entities > free statutory shareholder reserves that can be do we need to pay have free statutory dividended out; from the Holding? sharehold
Slide 77: Helvetia capital management approach (2/2)
Helvetia capital management approach (2/2) What determines dividend payments Capital distributable to shareholders is determined This is the maximum distributable capital we predominantly by the free shareholders' reserves can pay. It is lower than the excess solvency within statutory equity, calc
Slide 78: SST ratio
SST ratio SST ratio Capital management actions (as of 01/01/2020) > Validate capitalisation against strategy and take action as necessary1) 240% 235% Target range > Focus on economic business steering 180% > Considering measures to increase resilience of solvency 140% > Implementing concrete measure
Slide 79: Duration gap
Duration gap Including bonds and other interest rate instruments 30/06/2019 31/12/2019 and loans. Asset duration 7.9 7.7 Excluding real estate as additionally matching asset class which covers the volume gap of interest rate instruments and loans to liabilities. Total weighted duration gap1) N
Slide 80: Risk sensitivities
Risk sensitivities Risk sensitivities1) (as of 31/12/2019; in CHF million) Interest rate risk sensitivities Interest rate level Interest rate level +10 bp -10 bp Income statement 1.3 -2.5 Equity -85.6 86.9 Equity price risk sensitivities Equity price Equity price +10% -10% Income statement 109.5 -10
Slide 81: SST 2019: own funds (RBC) sensitivities
SST 2019: own funds (RBC) sensitivities (in CHF million) Market risk Shift 31/12/2018 ∆ SST- Ratio1) 31/12/2019 ∆ SST- Ratio1) sensitivities 31/12/2018 31/12/2019 Interest rates -50 bp -20 -1% pts. -79 -2% pts. Spreads 2) +50 bp -800 -24% pts. -823 -23% pts. Equities -10 % -173 -5% pts. -279 -8% pts
Slide 82: Caser: company overview
Caser: company overview Revenues by segment and line of business1) Bank partners' branch network2) (as of 2018) (as of December 2018) EUR 1,639 million ~10 6% ~130 ~85 ~10 ~15 13% ~100 ~100 32% 62% Non-life: Multirisk ~500 ~390 Motor Corporate ~285 EUR 1,018 1-5 15% million Agricultural ~65 ~385 Hea
Slide 83: Executive Management as of 1 May 2020
Executive Management as of 1 May 2020 Corporate Secretary1) CEO Internal Audit 1) Barbara Bolliger Philipp Gmür Simon Schneider Support functions Corporate Center Strategy & M&A Roland Bentele Patrick Scherrer Investm ents Finance Actuarial IT André Keller Paul Norton2) Beat Müller Achim Baumstark M
Slide 84: Group structure as of 31 December 2019
Group structure as of 31 December 20191) Helvetia Helvetia Holding AG Helvetia Insurance Head Of fice Switzerland, St.Gallen Legal subsidiaries of Helvetia Holding AG St.Gallen, 100% St.Gallen, 100% Helvetia Reinsurance St.Gallen Branches of Helvetia Insurance, St.Gallen Smile Insurance MoneyPar
Slide 85: Abbreviations and glossary
Abbreviations and glossary Acc. Accounting M&A Mergers & acquisitions AFS Available for sale MSCI Morgan Stanley Capital International AHV Old-age and survivor's insurance n.a. not available ARI Active reinsurance NatCat Natural catastrophe bp Basis point(s) NB nota bene BVG Federal Law on Occupatio
Slide 86: Additional information
Additional information Infokit financial results 2019 Equity story / Fact sheet Financial presentations Business publications Financial calendar 69 |
Slide 87: Calendar and contact
Calendar and contact Important dates 15/09/2020 Publication of half-year results 2020 25/03/2021 Publication of financial results 2020 30/04/2021 Ordinary Shareholders' Meeting 2021 Contact details Investor Relations Corporate Communications & PR Susanne Tengler Philipp Schüpbach Jonas Grossni