"By focusing on profitable and capital-efficient business fields, Helvetia was able to deliver a good performance in 2024. With our new strategy, we will continue to build up on this strong foundation and further focus on technical excellence and operational efficiency", says Fabian Rupprecht, Group CEO of Helvetia, on the 2024 annual financial statements.
In 2024, Helvetia generated underlying earnings of CHF 528.5 million, a 41.9% increase on the prior-year period (2023: CHF 372.5 million). Besides focusing on profitable and capital-efficient business fields, the selective approach of the Group in terms of writing business resulted in a continued focused growth in 2024. The strong improvement was driven by non-life insurance. Life business also posted solid underlying earnings, which were supported by the stable CSM release relative to 2023. In the non-insurance business area (previously other activities), Helvetia increased its underlying earnings significantly compared to the previous year.
The IFRS net income in 2024 stood at CHF 502.4 million (2023: CHF 301.3 million). In addition to the underlying earnings, more beneficial non-operational effects relative to the previous year positively impacted the result. These included, in particular the non-recurrence of adverse market fluctuations and an impairment in connection with the intermediary and advisory business in Switzerland in the prior-year period.
Continued targeted growth – non-life as primary driver
In keeping with its strategy, Helvetia successfully continued its selective and disciplined growth with a focus on profitable and capital-efficient business fields in 2024. RoE increased in 2024 to 12.8% (2023: 7.2%). The business volume amounted to CHF 11,552.7 million (2023: CHF 11,311.3 million). At constant exchange rates, this represents an increase of 3.1%. Measured in Swiss francs, growth was impacted by exchange rate developments and stood at 2.1%. Insurance revenue, which reflects the share of business earned during the reporting period, was up 6.8% at constant exchange rates amounting to CHF 9,101.4 million (2023: CHF 8,609.5 million).
Non-life business proved to be the primary growth driver with currency-adjusted business volume growth of 5.7% to CHF 7,425.0 million. In this business area, Helvetia posted an increase in all segments and grew above the market in Switzerland and Austria. In life insurance, business volume stood at CHF 4,127.7 million. This represented a small decline of 1.3% (2023: CHF 4,205.3 million) on a currency-adjusted basis. The main reason for this decline was that the prior year included a large non-recurring contract.
First effects of technical excellence measures in non-life
Helvetia posted underlying earnings of CHF 357.1 million in non-life business in 2024 (2023: CHF 201.0 million). The Group's combined ratio improved to 95.0% (2023: 97.7%), with the benefit seen in the claims ratio. This is a result of both better underlying technical performance, and a lower burden from natural catastrophes relative to the prior-year period. The cost ratio also improved slightly to 27.5% (2023: 27.6%), due to first efficiency gains. The improvement is less than that reported at the half year due to the expanded scope with the inclusion of Group Reinsurance, increasing weight of business with higher acquisition cost ratios but lower claims ratios, and some small one-off costs in the second half of the year. Measures aimed at boosting technical profitability have yielded their first positive effects, and, excluding claims from natural catastrophes and the development of prior-year claims, there was widespread improvement. On account of the strong results in the segments Spain, GIAM (German, Italian and Austrian Markets) and Specialty Markets, the portfolio could again benefit from its diversification and compensate for the weaker performance in the segment Switzerland. With regard to natural catastrophes, the prior year experienced several costly events which were not repeated, notwithstanding the flooding and severe weather events experienced in Switzerland at the end of June 2024.
New business in life insurance remains profitable
The underlying earnings of the life business stood at CHF 275.8 million in 2024 (2023: CHF 312.6 million). This is a solid result, as this is even slightly above the communicated run-rate at Capital Market Day in December 2024. The decrease of 11.8% is due to non-recurring items in the previous year.
Meanwhile, the contractual service margin (CSM) release remained stable at the level of the prior-year period at CHF 372.1 million (2023: CHF 371.6 million). The operating insurance service result was also stable. However, 2023 included some items outside of the insurance service result which were not recurring, meaning that the underlying earnings of 2023 were also not fully sustainable.
Helvetia increased its new business volume by 3.7%. New business volume in life developed profitabliy with a new business margin that remains attractive at 4.7% (2023: 5.1%). Nevertherless, the higher margin in individual life could not fully compensate for a decline in group life.
Significant improvement in the non-insurance business area
The underlying earnings of the non-insurance business area showed a significant improvement compared to the prior-year period at CHF -104.4 million (2023: CHF -139.7 million). The main driver was lower corporate costs, especially from project costs. The fee business also made positive and growing contributions.
Strong fee business performance
Helvetia is tapping into profitable new growth opportunities with the targeted development of the fee business. Once again, the fee business performed strongly in 2024. Income from the fee business increased by 7.2% on a currency-adjusted basis to CHF 412.6 million (2023: CHF 390.5 million).
Capitalisation remains excellent
Helvetia continues to have outstanding capitalisation. The SST ratio was estimated to be about 290% as at 1 January 2025.
Higher dividend again
The Board of Directors will propose to the Annual General Meeting to increase the dividend for the 2024 financial year by CHF 0.40 to CHF 6.70 per share based on Helvetia's profitable growth, resilient result and strong capitalisation. Helvetia will thus continue the attractive dividend policy of recent years.
Board of Directors: Dr Andreas von Planta will reach the age limit
Dr Andreas von Planta will not stand for re-election in 2025 as he will have reached the age limit set in the Organisational Regulation. From 2010 until the merger with Helvetia, he was Chairman of the Board of Directors of Nationale Suisse. Andreas von Planta has been a member of the Board of Directors of Helvetia since 2014. He was most recently a member of the Audit Committee and the Nomination and Compensation Committee. "On behalf of the entire Board of Directors, I would like to thank Dr Andreas von Planta for his collaboration and for his contribution to the development of Helvetia", says Dr Thomas Schmuckli, Chairman of the Board of Directors of Helvetia. All other members of the Board of Directors, including the Chairman, will stand for re-election at the ordinary Annual General Meeting on 25 April 2025.
New strategy announced in December last year
At the end of 2024, Helvetia ended its successful helvetia 20.25 strategy one year early. All financial targets were within the target range or on track, with the exception of the combined ratio, where Helvetia successfully implemented corrective measures. Helvetia launched its new strategy in December 2024. With its new strategy, Helvetia aims to continue its attractive stable growth and attractive dividend policy. By 2027, Helvetia has set itself the targets of an Underlying ROE of 13-16%, an Underlying EPS compound annual growth rate of 9-11% and a cumulative dividend payment of over CHF 1.2 billion. One measure to achieve these targets and to increase operational efficiency, is the planned integration of Caser and Helvetia in Spain, which was announced in December and is progressing as planned.
Cautionary note
This document was prepared by Helvetia Group and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Helvetia Group. The English version of this document is decisive and binding. Versions of the document in other languages are made available purely for information purposes. Although all reasonable effort has been made to ensure that the facts stated herein are correct and the opinions contained herein are fair and reasonable, where any information and statistics are quoted from any external source such information or statistics should not be interpreted as having been adopted or endorsed as accurate by Helvetia Group. Neither Helvetia Group nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this information. The facts and information contained in this document are as up to date as is reasonably possible but may be subject to revision in the future. Neither Helvetia Group nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document.
This document may contain projections or other forward-looking statements related to Helvetia Group which by their very nature involve inherent risks and uncertainties, both general and specific, and there is a risk that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include: (1) changes in general economic conditions, in particular in the markets in which we operate; (2) the performance of financial markets; (3) changes in interest rates; (4) changes in currency exchange rates; (5) changes in laws and regulations, including accounting policies or practices; (6) risks associated with implementing our business strategies; (7) the frequency, magnitude and general development of insured events; (8) mortality and morbidity rates; (9) policy renewal and lapse rates as well as (10), the realisation of economies of scale as well as synergies. We caution you that the foregoing list of important factors is not exhaustive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties. All forward-looking statements are based on information available to Helvetia Group on the date of its publication and Helvetia Group assumes no obligation to update such statements unless otherwise required by applicable law.
