Helvetia and Baloise want to merge

It had already been rumored in recent weeks - now it's official: the two insurance groups Baloise and Helvetia want to merge. A merger of equals is intended, as the companies announced this morning. With a combined market share of around 20 %, the aim is to create the second-largest Swiss insurance group. The merger will enable annual synergies of around CHF 350 million before tax, according to the statement. The combined business volume of CHF 20 billion is spread across eight countries. According to the plans, the new insurer will operate under the name Helvetia Baloise.

The two companies, based in St. Gallen and Basel, point to their "close cultural proximity and similar strategic orientation", which offer the best conditions for a smooth integration. Their real estate asset management activities are also comparable. Each of the two maintains a real estate fund called "Swiss Property Fund" with a volume of just over CHF 1 billion, which grew in each case through the acquisition of real estate from the life insurance business. Both Helvetia and Baloise also run investment foundations with real estate investment groups. However, Baloise AST's Swiss real estate portfolio is significantly smaller and only has a volume of CHF 210 million, while Helvetia's was just under CHF 1 billion at the end of the year.

The activities of the two insurers in the - shrinking - life insurance business are comparable with a business volume of just over CHF 4 billion each. However, Helvetia's non-life business is significantly larger, meaning that the St. Gallen-based company will contribute the largest share of the combined business volume at CHF 11.6 billion. The merger will take place in such a way that Baloise will merge into Helvetia. However, the head office is to be created in Basel. The Helvetia location in St. Gallen will continue to play an important role. (aw)