BASEL - Swiss insurer Baloise Holding AG has announced an expected impact of CHF 200 million ($225.2 million) on its second-half earnings, a significant rise from their initial mid-double-digit millions forecast. This update comes after facing a higher number of large natural-disaster claims than anticipated.
Despite the unforeseen claims, Baloise reported a modest business expansion over the first nine months of the year, with total business volume marginally increasing by 0.2% to reach CHF 6.94 billion. The company experienced a mixed performance across different segments:
- A decline in traditional life insurance volume by 5.2%, down to CHF 2.87 billion.
- Growth in the non-life and investment-type premiums sectors.
When adjusted for currency fluctuations, Baloise's business volumes actually saw a more notable increase of 2.2% during this period.
In addition to these financial metrics, the company highlighted a strengthening in its Swiss Solvency Test ratio, which is an important measure of financial health for insurance companies. The ratio climbed from 230% in June to approximately 240% by September, indicating a solid capital position even amidst these costly claims.
Baloise also reaffirmed its commitment to maintaining its dividend policy despite the recent challenges posed by natural disasters, signaling confidence in its financial resilience and stability to shareholders.
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