On April 22, 2025, two Swiss insurance giants, Helvetia and Baloise, announced their strategic plan to merge, creating the second-largest insurance entity in Switzerland. The new company, named Helvetia Baloise, is set to have a total business volume of approximately 20 billion Swiss francs (around $24.7 billion), positioning it among the top ten insurance firms in Europe.
Fabian Roebers, currently the CEO of Helvetia, will take the helm as CEO of the merged entity, while Thomas Von Planta, the chairman of Baloise, will assume the role of chairman of the board. The headquarters of the new group will be located in Basel, Switzerland, and the corporate identity of Baloise will be adopted as the official logo.
Prior to the merger announcement, Helvetia's market value stood at 9.6 billion Swiss francs, while Baloise was valued at 8.5 billion Swiss francs. Under the merger terms, Baloise shareholders will receive 1.012 shares of Helvetia for each share they currently hold, resulting in Helvetia shareholders owning 53% of the combined entity.
Both companies anticipate that the merger will yield annual savings of around 350 million Swiss francs (approximately $433 million) before taxes. This is expected to be achieved partly through workforce restructuring, although the number of potential job cuts has not been disclosed yet.
Thomas Von Planta emphasized that this merger will enhance the long-term attractiveness of both companies, increasing their competitiveness in both local and global insurance markets. He stated, "The merger will add value for shareholders, customers, partners, employees, and society as a whole." This announcement comes amid a noticeable uptick in activity within the European insurance sector, following a recent acquisition by Belgian company Ageas of British insurer esure for £1.3 billion.
George Marti, an analyst at Zurich Cantonal Bank, noted that the merger was not entirely unexpected given the recent rumors. He believes that the new group will emerge as a formidable competitor in the insurance sector, improving financial performance for shareholders.
In a related development, Helvetia Holding and Baloise Holding announced on the same day their plans to merge, further solidifying their position in the insurance landscape. The new group will command an estimated 20% market share in Switzerland and will be a key player in various European countries.
The merger is structured on an equal basis, with Baloise merging into Helvetia. Baloise shareholders will receive 1.0119 shares of Helvetia for each share they own. The newly formed entity will be listed on the SIX Swiss Exchange under the ticker symbol "HBAN" and is expected to finalize the deal in the fourth quarter of 2025, pending shareholder and regulatory approvals.
Both boards of directors have expressed their support for the merger, describing it as a strategic response to the evolving insurance landscape. Thomas Von Planta remarked, "The merger to form Helvetia Baloise is a significant milestone in the history of the Swiss insurance industry." He added, "This ambitious deal strengthens the competitive power in the long term for the two Swiss companies in the local and international insurance market."
Financial figures indicate that the merged group recorded a total operating profit of 20.2 billion Swiss francs in 2024, with life insurance contributing 8.6 billion Swiss francs and non-life insurance 11.5 billion Swiss francs. The total income attributable to shareholders reached 867 million Swiss francs, with a combined ratio of 94%. Shareholders' equity stood at 7.29 billion Swiss francs, and the group proposed a total dividend distribution of 726 million Swiss francs for the financial year 2024.
The merger is projected to generate 350 million Swiss francs in annual cost savings before taxes and major transaction participation, with about 80% of this figure expected to materialize by 2028. The integration process is anticipated to incur costs between 500-600 million Swiss francs over the next few years.
The new group expects an additional 220 million Swiss francs in annual cash flow and a 20% increase in dividend distribution by 2029, compared to current forecasts. The board of directors of the new entity will comprise 14 members, evenly split between the two companies. Thomas Von Planta will serve as chairman, while Ivo Vorr from Helvetia will be the vice-chairman. The executive team will include CEO Fabian Roebers from Helvetia and Deputy CEO Michael Muller from Baloise.
Roebers described the merger as "an excellent opportunity to build a leading European insurance company with a strong Swiss anchor," highlighting the group's future role as the largest insurance player in Switzerland. Muller noted the strategic alignment between the two companies, stating, "It makes the competitive strengths of the two companies Helvetia Baloise an important partner in insurance and investment in Switzerland and a strong presence in the European market."
The merger aims to enhance customer service by combining the distribution networks and expertise of both companies. Helvetia Baloise will operate in Germany, France, Italy, Spain, Belgium, the Netherlands, Luxembourg, and various global specialty markets.
The operations will be based on a Swissness factor (SST) estimated to exceed 240% starting January 1. Expected job reductions related to the merger will be limited, managed through natural attrition and early retirement where feasible. The group has committed to a socially responsible transition.
Shareholders will vote on the proposal during extraordinary general meetings on May 23, 2025. The largest shareholder in Helvetia, Batria Genesenschaft, which holds 34.1% of the company's capital, has pledged support for the deal. While awaiting approvals, both companies will continue to pay their regular dividends for 2024 as planned, and Baloise will suspend its share buyback program if the merger proceeds.
