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Helvetia Holding AG

Earnings Release Mar 2, 2008

894_rns_2008-03-02_234f3e7c-854b-4c3d-853c-1f19af7dd79f.pdf

Earnings Release

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Where we operate – Helvetia country markets

Breakdown of Group gross premiums

(CHF million / share in %)

Key figures Very solid development, high performance track record

n Not everything for everybody

n Regional focus, customer focus, product focus

n Clear value proposition

n For customers

  • Big enough to be reliable, small enough to be personal
  • Strong service culture: individual, personal, competent
  • High quality distribution networks and premium "Swiss" brand

n For investors

  • Diversified, but not overstretched, portfolio
  • Strong customer base supported by clear customer value proposition
  • Shareholder value culture but aimed predominantly at medium and longer term investors
  • Track record of capital strength maintenance and steady medium term earnings growth

Our strategy is well aware of size-related opportunities and threats

Gross premiums by segment and country

Pre-tax profit by geography

Helvetia combines Europe's most attractive markets:

Non-life as profit-generator, Life and Pension as growth engine

pushing governments to reform their pension systems

Data Source: Avenir Suisse, Demographie, CEA 2006

Profitable
growth
Non-life
premium
growth:
7.1%
(FX-adjusted:
4.0%)
Combined
ratio
(net):
94.5%
Life premium
growth:
2.2%
(FX-adjusted:
1.2%)
Volume
of
new
business
(APE):
+13.1%
Embedded
value
yield:
21.3%
Solid
financial
strength
Equity:
+
4.1 %
Stable solvency
margin
at: 217.4 %
Interactive
rating:
"A-"
with
stable outlook
Attractive
return
on
equity
RoE after
taxes: 14.4%
(06: 16.2%)
Pay
out
ratio
of
54%
Above-average dividend
yield
of
6.1%
(excl. par
value
reduction: 3.7%)

Investment structure

Valuable portfolio thanks to prudent investment strategy

Capital measure - par value reduction

Total dividend payout of CHF 215.5 million

1) Dynamisation of growth

Distribution management and cooperations

  • n Multiplication of distribution success models
  • n Exploitation of alternative and new distribution channels
  • n Capitalise on existing banking partner options

2) Expansion of life business

Life penetration in retail business and focus on unit-linked growth

  • n Cross-selling approach
  • n Transfer of successful German unit-linked model

3) Structural cost improvements

Strategic cost- and operations management

  • n Clear targets to reduce cost ratio (£ 30%)
  • n Develop selected cross-country synergies

4) Optimisation of capital structure and M&A

Use structural leverages to support a 15% RoE target

Systematic M&A approach for profitable growth-opportunities

  • n Within given geographic spread
  • n Mainly focussing on bolt-on acquisitions
  • n Primarily enhancing distribution capacities

ask us.

Appendix

25.04.2008
n
Ordinary
Shareholders'
Meeting in St.
Gallen
03.09.2008
n
Publication of half-year
financial
results for 2008
18.03.2009
n
Publication of annual
results for
2008
17.04.2009
n
Ordinary
Shareholders'
Meeting in St.Gallen
03.09.2009
n
Publication of half-year
financial
results
for 2009

Executive Management at a glance

Helvetia is an all-line insurance carrier active in all of Europe. It focuses on risk management (life and non-life business, reinsurance) and employee benefits, and has branch offices and partly-owned subsidiaries in Central and Southern Europe. The Group is headquartered in St. Gallen, while the Swiss company's headquarters are located in Basel. With approximately 4,600 employees, Helvetia provides services to more than two million customers in six European countries. Around 2,300 people work for the company in Switzerland. During the previous financial year, the Group reported a premium volume of CHF 5.5 billion and earned a net profit of CHF 402.0 million. The Helvetia Holding registered share is listed on the SWX Swiss Exchange under the code HELN and is included in the Swiss Performance Index (SPI).

This document was prepared by Helvetia Group and may not be copied, altered, offered, sold or otherwise distributed to anybody by the recipient without the consent of Helvetia Group. Although all reasonable effort has been made to ensure that the facts stated herein are correct and the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to and overview of the business of Helvetia Group. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed as accurate by Helvetia Group. Neither Helvetia Group nor any of its directors, officers, employees and advisors nor any other person is liable in any way for any loss howsoever arising directly or indirectly from the use of this information. The facts and information contained in this document are as up to date as is reasonably possible and may be subject to revision in the future. Neither Helvetia Group nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document.

This document may contain projections or other forward-looking statements related to Helvetia Group which by their very nature involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These include (1) changes in general economic conditions, in particular in the markets in which we operate; (2) the performance of financial markets; (3) changes in interest rates; (4) changes in currency exchange rates; (5) changes in laws and regulations, including accounting policies or practices; (6) risks associated with implementing our business strategies; (7) the frequency, magnitude and general development of insured events; (8) the mortality and morbidity rates; (9) policy renewal and lapse rates. We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties. All forward-looking statements are based on information available to Helvetia Group on the date of its publication and Helvetia Group assumes no obligation to update such statements unless otherwise required by applicable law.

The purpose of this document is to inform the Helvetia Group's shareholders and the public of the business activities of Helvetia Group. This document does not constitute an offer or a solicitation to exchange, buy or subscribe to securities, nor does it constitute an offering circular as defined by Art. 652 a of the Swiss Code of Obligations or a listing prospectus as defined by the listing rules of the SWX Swiss Exchange. Should Helvetia Group make one or more capital increases in the future, investors should make their decision to buy or subscribe to new shares or other securities solely on the basis of the relevant offering circular.

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