Baloise Reports Decreasing Profits in Half-Year Results
Published: Wednesday, Sep 20th 2023, 11:40
Updated At: Friday, Oct 13th 2023, 14:12
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The Swiss insurer Baloise reported a 4.2% decrease in profits for the first half of 2023, due to a decrease in life insurance business. The decrease was expected due to the new accounting standards IFRS 17 and 9, and the figures were adjusted accordingly. The total business volume decreased by 1.5%, but was up 0.6% when adjusted for currency. The non-life insurance business saw a clear improvement in the damage-cost ratio, which was up 1.7% to 87.3%. This was due to low damage costs in the first six months. The life insurance business saw a decrease in operating profits due to lower interest rates in Switzerland and a stronger Swiss Franc. CEO Michael Müller announced that the company will review its innovation initiatives and ecosystems, and will focus more on insurance and financial solutions to generate additional third-party funds. The company also promised to generate 2 billion in cash by 2025 and maintain its attractive dividend policy. The market reacted negatively to the results, with the Baloise share price dropping 7%.
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