Insurance Helvetia sets itself new financial targets

Under a new strategy, Helvetia intends to focus on the specialty insurance business in addition to the retail business. The insurance group also wants to cut costs further and has set itself new financial targets for the period from 2025 to 2027.

While the local retail customer business will remain the foundation of the strategy, the international specialty lines business will form the second focus of the strategy in future, Helvetia announced on Thursday ahead of its Capital Markets Day.

The insurance group now wants to further improve its operating efficiency and increase its technical profitability. The aim is to improve operating efficiency by over CHF 200 million per year and the combined ratio by around 2 percentage points by the end of 2027, according to the statement. The first important measure here is the planned integration of Caser and Helvetia Seguros in Spain.

The new financial targets for 2025 to 2027 include a return on equity of 13 to 16 percent, following a target of 11 to 14 percent in the previous strategy. The annual growth rate for adjusted earnings per share is to be between 9% and 11%.

The insurer also intends to pay shareholders cumulative dividend payments of over CHF 1.2 billion over the three-year period. It is also aiming for a strong balance sheet with an issuer rating of "at least A".

Helvetia now expects an underlying profit of around CHF 520 million for the 2024 financial year. The contribution from the life business is expected to be lower than in 2023, as it includes around CHF 45 million that will not recur.