The combination of Baloise and Helvetia will create the second-largest insurance group in Switzerland and the country’s largest employer. Photo: Shutterstock

The combination of Baloise and Helvetia will create the second-largest insurance group in Switzerland and the country’s largest employer. Photo: Shutterstock

On 22 April 2025, the Swiss insurance groups Helvetia and Baloise announced their merger, creating “Helvetia Baloise Holding Ltd.” It will be the second largest insurer in Switzerland with a market share of around 20%.

“Leveraging our strong positioning in the market, we as two medium-sized listed insurance groups can tackle future challenges together supported by increased scale, improved profitability and a highly attractive value proposition for all our stakeholders,” commented Helvetia chair Thomas Schmuckli in a press statement. “This merger is not just a strategic move; it is a commitment to our values and vision for a sustainable future.”

The merger, structured as a “merger of equals,” involves the absorption of Baloise by Helvetia. Baloise shareholders will receive 1.0119 Helvetia shares for each share held. The new group will be listed on the Swiss Exchange (SIX) under the name “Helvetia Baloise Holding Ltd” under the ticker symbol “HBAN.”

With a combined business volume of CHF 20.2bn, the group will have more than 22,000 employees and a presence in eight European countries, including Luxembourg, Germany, France, Italy and Spain. In 2024, Baloise Assurances Luxembourg recorded a business volume of CHF 1.25bn, up 12.1% on 2023. Earnings before interest and tax (EBIT) amounted to CHF 34.4m, an increase of 89% on the previous year. In terms of local headcount, Baloise had more than 600 employees in Luxembourg in 2024. It is not yet known what the consequences of this merger will be for the Luxembourg entity.

The merger is expected to be completed in the fourth quarter of 2025, subject to the approval of both companies’ shareholders and the regulatory authorities. Helvetia’s largest shareholder, Patria Genossenschaft, has already expressed its support for the deal.

The board of directors will comprise 14 members, equally divided between the two entities. Thomas von Planta, currently chair of Baloise, will be chair of the new group, while Ivo Furrer, a member of Helvetia’s board, will be vice chair. Executive management will be headed by Fabian Rupprecht, current CEO of Helvetia, with Michael Müller, CEO of Baloise, as deputy CEO and head of integration.

The merger aims to generate annual cost synergies of around CHF 350m before tax, excluding policyholder participation. Around 80% of these synergies are expected to be achieved by 2028. Integration costs are estimated at between CHF 500m and CHF 600m over the next few years.

The group expects to increase its dividend payout capacity by around 20% by 2029, thereby strengthening its financial position and competitiveness in the European market.

This article in French.

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