Helvetia's collective life business on a solid foundation - Number of active insured persons continues to rise

Media release
Basel, 30 May 2024
 

Helvetia Insurance's collective life business remains on a firm footing. In the context of a year-on-year financial market recovery, the business development was still characterized by the continued shift in the number of insured persons towards semi-autonomous solutions. Overall, the number of active insured persons increased by 8.5% during the year under review. On the other hand, the overall result in 2023 decreased by a total of CHF 7.9 million compared to the previous year.

For the 2023 financial year, Helvetia reports a result of CHF 48.9 million for occupational benefits (2022: CHF 56.8 million). At the same time, in the year under review the surplus fund was increased further in the business subject to the minimum distribution ratio and currently amounts to CHF 175.9 million (previous year: CHF 162.5 million).  

Helvetia LOB Invest with assets under management of more than CHF 1 billion
The Helvetia LOB Invest collective foundation benefited from the continuing trend towards semi-autonomous solutions and achieved assets under management of over CHF 1 billion for the first time in 2023. The continued shift in the number of insured persons towards semi-autonomous solutions is also reflected in the fact that the number of all active insured persons at Helvetia increased by 8.5% in 2023 to 216,700 (2022: 199,708), whereas the number of persons with full-insurance coverage declined by 7.9% to 72,741 (2022: 78,947). Accordingly, operating expenses per active insured person declined from CHF 429 to CHF 420.  

Hedwig Ulmer, Head Pension Provisions and Member of Executive Management Switzerland at Helvetia, is committed to a broad diversification of the product range: "Helvetia offers a full range of occupational benefits solutions. Our customers can thus receive optimum service in line with their individual preferences and needs." 

Premium volume slightly lower year on year
The premium volume for Helvetia's occupational benefits business amounted to CHF 1,776.3 million, around 5.0% lower than in the previous year (2022: CHF 1,861.6 million). This trend is due primarily to the continued shift from full insurance to semi-autonomous solutions and the related decline in savings premiums. This decline in savings premiums was offset by a 7.7% increase in risk premiums in the year under review, while cost premiums declined by 0.3%.

Strong net performance and solid operating result
In 2023, the financial markets largely recovered from the challenges of the previous year. They benefited from a robust economy and the imminent end of the interest rate hike cycle. Net performance based on market values was a gratifying 5.9% in 2023. The return according to the Swiss Code of Obligations, which is relevant for the operating account, was burdened by a strongly negative currency result. The risk process, on the other hand, showed a very positive development. Anja Göing-Jaeschke, Head Actuarial Services Life Switzerland at Helvetia: "Helvetia also relies on stability and long-term solutions for occupational benefits schemes. Accordingly, we have focused on continuity in the surplus policy of recent years and can thus make our surplus participation sustainable."

Increased surplus participation in the business subject to the minimum distribution ratio
In its business subject to the minimum distribution ratio, Helvetia used a total of CHF 346.7 million to the benefit of insured persons in 2023, which equates to a payout ratio of 90.5% and diverges only marginally from the previous year's figure (2022: 90.7%).

The share in the surplus is slightly above that of the previous year. In business subject to the minimum distribution ratio, the balances were credited with an interest rate of 1.0%. In accordance with the regulations on the minimum distribution ratio, which relate to the distribution of surpluses, in 2023 both a risk surplus and the interest surplus were paid out.

About the Helvetia Group
Helvetia Group, with its headquarters in St. Gallen, has grown since 1858 to become a successful insurance group with over 13,800 employees and more than 7.2 million customers. It has been enabling its customers to seize opportunities and minimise risks for all that time – Helvetia is there for them when it matters. Helvetia is the best partner and is present everywhere that protection needs arise, with insurance, pension and investment solutions from a single source as well as simple products and processes. The insurance group knows the business, from mobile phone insurance and insurance cover for the Gotthard Base Tunnel to the long-term investment of customer assets. Helvetia develops and opens up new business models with enthusiasm and drives forward its own business in a powerful and future-oriented manner. It acts with foresight and responsibility in everything it does: for the benefit of its shareholders, customers and employees as well as its partners, society and the environment.
Helvetia is the leading all-lines insurer in Switzerland. In the Europe segment comprising Germany, Italy, Austria and Spain, the company has firmly rooted market positions for generating above-average growth. In the Specialty Markets segment, Helvetia offers tailored special insurance and reinsurance cover worldwide. With a business volume of CHF 11.3 billion, Helvetia generated underlying earnings of CHF 372.5 million and an IFRS net income of CHF 301.3 million in the 2023 financial year. The shares of Helvetia Holding AG are traded on SIX Swiss Exchange.

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 German 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.