This article first appeared on GuruFocus .
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Underlying Earnings:CHF632 million; CHF6.2 per share for H1 2026.
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Annualized Underlying Return on Adjusted Equity:18.7%, above the communicated 16%18% range.
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Non-Life Combined Ratio:92%.
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Life New Business Margin:4.1%.
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Non-Life Business Volume:0.4% higher, adjusted for scope changes and effects.
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Expense Ratio Benefit:0.4 percentage point improvement versus prior year from synergies and efficiencies.
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Life CSM Release Ratio:7.8% annualized.
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Semi-Autonomous Business Growth:Plus 16%.
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Synergies and Efficiencies:49% of CHF650 million gross run rate target secured by June 30; ~60% expected by end-2026 (up from 50%); 2026 P&L benefit increased by CHF20 million, bringing cumulative underlying earnings benefit to CHF170 million.
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Integration Costs:Projected in the lower half of previously announced range; weighted toward H2 2026.
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Intangible Amortization:CHF672 million in H1 2026 (non-cash); expected ~CHF200 million per year post-tax from 2027 to 2030.
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Hailstorm Claims:CHF120140 million net of reinsurance (pre-tax), expected in H2 2026.
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Pro Forma SST Ratio:Broadly in line with or slightly above previous full-year 2025 estimate.
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Credit Rating:S&P confirmed A+ with stable outlook.
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Leverage:Adjusted for CHF275 million pre-financing, leverage would be 27%, similar to year-end 2025.
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Dividends:More than CHF2.8 billion to be paid out in 20262028; 2029 dividend at least 50% higher than 2025.
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Release Date: September 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Helvetia Baloise Holding AG achieved high profitability with underlying earnings of CHF632 million and an annualized return on adjusted equity of 18.7%, above the communicated range of 16-18%.
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The company reported excellent technical margins, with a combined ratio of 92% in non-life and a new business margin of 4.1% in life, demonstrating disciplined underwriting and technical excellence.
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Integration is progressing ahead of plan, with 49% of targeted run rate synergies and efficiencies already secured by mid-2026, and the company now expects to lock in approximately 60% by year-end, up from the previous estimate of 50%.
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The balance sheet remains exceptionally strong, with a pro forma SST ratio estimated at around 270% and an S&P A+ rating with stable outlook, supporting financial flexibility.
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The company confirmed its guidance for double-digit underlying earnings CAGR and attractive dividend growth, including a 2029 dividend at least 50% higher than in 2025, reflecting confidence in future performance.
Negative Points
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The severe hailstorm in Switzerland in August 2026 is expected to result in claims of CHF120-140 million net of reinsurance, which will likely prevent a repeat of the strong first-half result in the second half.
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Underlying earnings for the first half included some positive one-off elements and timing effects; without these, earnings would have been close to CHF600 million, indicating that the reported result may not be fully sustainable.
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The company expects the second half of 2026 to be below the normalized half-year run rate due to the hailstorm and delayed project costs, despite anticipating more benefits from synergies and efficiencies.
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Business volume growth in non-life was modest at 0.4% adjusted for scope changes, with declines in some markets due to portfolio pruning and selective underwriting, and life new business volumes were lower than expected.
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Integration costs are weighted towards the second half of 2026, and while total costs are projected to remain in the lower half of the previously announced range, they will still impact profitability in the near term.
Q & A Highlights
Q: On the combined ratio, can you quantify the benefit if the negative CSM variances that offset the CSM release disappeared, and to what extent will you use PYD as a tool to manage volatility, for example, with the August hailstorm? A: Matthias Henny (Group CFO) explained that the non-life CSM is excluded from the combined ratio calculations as it is unnatural to include acquisition accounting effects. On NatCat, the first-half loading was broadly normal (winter storms in Spain, hailstorms in Belgium). On PYD, it is a case-by-case assessment and currently sits at the lower range of the 2% to 3% guidance, handled in the normal way. Peter Elliott (IR) added that the CSM release and the buffering were roughly equal in magnitude, with details to be followed up offline.
Q: On business volume growth in non-life, what has happened in pricing in Switzerland and Germany, and is the decline part of a re-underwriting strategy or are you seeing lower customer satisfaction? A: Fabian Rupprecht (CEO) confirmed NPS remains at the same level as before the merger with no impact, and there is no increased churn beyond normal fluctuation. Some growth is impacted by a portfolio review as part of the merger, which should be seen as a temporary effect, with growth rates expected to increase over time.
Q: Can you clarify the normalized CSM growth guidance, and is the expectation that life business growth will come from fee earnings going forward? A: Matthias Henny (Group CFO) said CSM growth should be expected to be flat to slightly positive, noting that some business such as semi-autonomous solutions and the bank's wealth management sits outside the CSM.
Q: On the SST ratio, can you decompose the improvement over the first half, and how significant was the model harmonization component? A: Matthias Henny (Group CFO) noted a slight improvement from 260% to 270%, driven by small effects from financial markets, investment performance and model harmonization. He reminded that the model is not yet a harmonized joint SST model and has not been approved by FINMA, so the improvement is a smaller deviation not to be over-weighted.
Q: What is your thinking on the bank how does it fit relative to its total rate, and would you consider selling it? A: Fabian Rupprecht (CEO) said that after a few months into the integration, the bank's wealth management product is considered an asset, fitting the 50-plus strategy by offering customers a solution after their life policies mature, creating significant value outside the pure life numbers.
Q: Given your strong solvency position, are you ready to consider another acquisition, especially given weak growth? A: Fabian Rupprecht (CEO) stated the focus is on completing the integration with discipline and little time for distraction, prioritizing growth within the existing footprint and execution of the merger, though this will not hold forever.
Q: Can you give more detail on the dividend, including the 50% higher target and any additional uplift in 2027? A: Matthias Henny (Group CFO) reiterated that for 2029 the dividend is expected to be 50% higher than the last dividend, a 20% uplift versus the normal 6% growth trajectory, and expressed confidence in reaching that goal given integration progress. On 2027, he said faster integration and capital synergies from Spain open the door for an earlier dividend uplift, but it is too early to be concrete as dividends will be discussed once full-year 2026 is complete.
Q: On retail non-specialty business, pricing seems higher than shown in business growth what is happening in Spain and the LIAM market, and is the pruning done? A: Fabian Rupprecht (CEO) noted positive growth in integrating markets, partly from price increases, with rate changes outweighing inflation to improve technical excellence. Pruning was also done in Spain, and in retail markets the company expects to grow at least at market level over time, though some fluctuation is expected given it is early days in the largest Swiss merger.
Q: On the 1-point technical excellence benefit on the attritional combined ratio, how much have you achieved in the first half? A: Matthias Henny (Group CFO) said the first half of 2026 shows clear improvement in underwriting, but the company is still in a transition phase and should not over-interpret comparisons of full-year 2025 pro forma with half-year 2026 actuals. The attritional loss ratio is a directional indicator, not an exact number, and the improvement is less than 1%, so there is more to come.
Q: What life insurance products will add to the CSM, and what is the strategy to improve new business CSM contribution? A: Fabian Rupprecht (CEO) said the ambition is to increase value of new business by 8% over time, supported by immediate product launches in several markets alongside the sales start, most importantly in Switzerland and also in Germany. He noted value of new business is a new way of steering, and typically what you measure, you can improve, so dynamic improvement should unfold over the coming months and years.
Q: Is the second-half underlying guidance around CHF500 million, based on CHF600 million normalized first half, less CHF120 million for NatCat, plus CHF20 million for integration? A: Matthias Henny (Group CFO) said the company does not give full-year guidance, but assuming no further severe event like the August hailstorm, the 10% to 12% underlying earnings per share growth target should be reached this year, translating into a bit more than CHF500 million in the second half.
Q: Can we use the H1 CSM release ratio as a reasonable run rate? A: Matthias Henny (Group CFO) confirmed the current 7.8% CSM release ratio can be considered a run rate for the future.
Q: On the Swiss hailstorm, do you expect to recover part of the claims through premium increases at the next renewal? A: Fabian Rupprecht (CEO) put the event into context, noting the group's NatCat budget is around 4% of overall premium volume, so the
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
