Yahoo Finance

• Underlying Earnings: Increased by 42% to CHF529 million.

• Dividend Proposal: Increase of 6% to CHF6.70 per share.

• SST Ratio: Estimated at about 290% at the start of the year.

• Business Volume Growth: 3.1% currency adjusted.

• Non-Life Volume Growth: 5.7% currency adjusted.

• Combined Ratio: Reduced from 97.7% to 95%.

• Fee Business Growth: 7% growth, contributing 7% of the group's IFRS net income.

• IFRS Net Income: Increased by 67% to CHF502 million.

• Non-Life Current Investment Income: Up 22% year on year.

• New Business Volume in Life: CHF2.8 billion, up 4% on the prior year.

• New Business Margin in Life: 4.7%.

• Free Deployable Funds: CHF378 million.

• Dividend Yield: 4.5% based on the 2024 closing share price.

• Warning! GuruFocus has detected 9 Warning Sign with XSWX:HELN.

• High Yield Dividend Stocks in Gurus' Portfolio

• This Powerful Chart Made Peter Lynch 29% A Year For 13 Years

• How to calculate the intrinsic value of a stock?

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Helvetia Holding AG (XSWX:HELN) reported a 42% increase in underlying earnings to CHF529 million, surpassing previous guidance.

• The company proposed a 6% dividend increase to CHF6.70, supported by strong free deployable funds.

• Diversification across regions helped offset challenges in Switzerland and Austria due to severe weather events.

• Non-life business showed strong growth with a 5.7% increase in volume, supported by effective rate adjustments.

• The fee business grew by 7%, contributing over 7% to the group's IFRS net income, surpassing the 5% target set for 2025.

Negative Points

• Switzerland and Austria faced challenges due to flooding and severe weather events, impacting results.

• Volume growth in specialty markets was lower due to disciplined cycle management.

• The combined ratio, although improved, remains above the target range, indicating room for further efficiency.

• Life business volume declined by 1% due to the non-repeat of a large contract in Spain.

• The cost ratio improvement was less than expected, partly due to business mix and higher acquisition costs in embedded insurance.

Q & A Highlights

Q: On the fee result, should we expect margin expansion to continue, with costs rising more slowly than fee and commission income? What lines will drive this? A: Annelis Luscher Hammerli, CFO: The fee result is driven by various businesses, including health and elderly care in Spain and asset management in Switzerland. While we aim to sustainably maximize profitability, I wouldn't expect such margin expansion every year. However, we are optimistic about maintaining current margins, particularly in the mortgage business.