In a significant move within the Swiss insurance industry, Helvetia and Baloise have announced their merger, creating the Helvetia Baloise Holding AG. This merger will position the newly formed entity as the second-largest insurance group in Switzerland, boasting a combined market share of approximately 20 percent. The deal was confirmed on April 21, 2025, and is expected to be completed in the fourth quarter of 2025.
The merger has been structured as an absorption, meaning Baloise will be fully integrated into Helvetia. Fabian Rupprecht, currently the CEO of Helvetia, will take the helm as the CEO of the new company, while Michael Müller, the current CEO of Baloise, will serve as his deputy. The administrative leadership will include a board composed of seven members from each company, with Thomas von Planta, the current chairman of Baloise, assuming the role of chairman for the new entity.
This merger is expected to yield substantial synergies, with projected annual savings of around 350 million Swiss francs before taxes. These savings are anticipated to be realized by 2028, with integration costs estimated between 500 to 600 million Swiss francs. The combined group will have a gross premium volume of 8.6 billion Swiss francs in life insurance and 11.5 billion Swiss francs in property insurance, contributing to an overall business volume of approximately 20 billion Swiss francs across eight countries.
As part of the merger agreement, Baloise shareholders will receive 1.0119 new Helvetia shares for each Baloise share they hold. This exchange ratio is based on the weighted average share prices of both companies over the 30 trading days prior to the announcement. The largest shareholder of Helvetia, Patria Genossenschaft, which holds 34.1 percent of the company's shares, has already expressed support for the merger.
The new company will be listed on the SIX Swiss Exchange under the ticker HBAN, and its headquarters will be located in Basel, with St. Gallen remaining a significant operational site. The merger aims to enhance competitiveness and attractiveness in both national and international markets, providing significant value for customers, partners, employees, and shareholders alike.
According to Thomas von Planta, this merger represents a crucial milestone in the history of the Swiss insurance sector. He stated, "The merger of Helvetia and Baloise is a significant milestone in the history of the Swiss insurance industry. It is the next logical step for both companies in implementing their respective strategies towards becoming a leading European insurer and the second-largest insurance group in Switzerland."
Rupprecht echoed this sentiment, emphasizing the importance of the merger in strengthening their market position: "We are excited about the unique opportunity to build a leading European insurer with strong Swiss roots. Helvetia Baloise will be the largest employer in the Swiss insurance sector—an organization with the utmost customer proximity. This, combined with the 160-year successful tradition of both companies, is the basis for future success and sustainable value creation for all our stakeholders."
While the merger is poised to create a more formidable competitor in the insurance market, it may also lead to job redundancies in overlapping areas. The companies have committed to managing these reductions through natural attrition and early retirements, ensuring a socially responsible approach to workforce changes.
As the merger moves forward, both companies must still secure regulatory and antitrust approvals, with extraordinary general meetings scheduled for May 23, 2025, to gain shareholder consent. Analysts have noted that the merger comes on the heels of previous market speculation surrounding Baloise, particularly following pressure from activist investors like Cevian, who highlighted the company’s profitability issues.
In a recent statement, Cevian Co-Founder Lars Förberg pointed out that Baloise's profitability was 50 percent below the industry average, underscoring the need for strategic restructuring. The merger with Helvetia is seen as a response to these challenges, aimed at enhancing operational efficiencies and market positioning.
The implications of the merger extend beyond Switzerland, as the new entity aims to establish a strong presence in European markets such as Germany, France, Italy, Spain, Belgium, Austria, and Luxembourg, as well as in the global specialty insurance business. This ambition reflects a strategic vision for growth and innovation, positioning Helvetia Baloise as a key player in the European insurance landscape.
In summary, the merger between Helvetia and Baloise marks a transformative moment in the Swiss insurance industry, promising to create a more competitive and resilient organization. With a focus on customer service and operational excellence, the new Helvetia Baloise Holding AG is set to redefine the insurance landscape in Switzerland and beyond.
