Helvetia Holding AG

Earnings Release • Mar 29, 2007

Helvetia in top form: best result of all time
High lights (CHF million or %)	2006	2005
n Profit climbed by more than 40%	423.8	301.9
n Excellent equity ratio	16.2%	13.4%
n Considerable strengthening of equity base (+10%)	2738.4	2480.8
n Impressive share price performance (+44%) [CHF]	401.5	278.0
n Gross combined ratio: significant progress	93.2%	95.2%
n Embedded value demonstrates profitability of life business	1881.7	1673.6
n Further gains of market shares:
n Germany (L) Switzerland (NL and L) n
n Italy (NL) n Spain (L)

Helvetia Group: Record year 2006 / all targets reached
Targets for 2006	Results		Comments
Sustainable guarantee of profitability	Group profit: CHF 423.8 m illion ROE: 16.2%	ü	Income targets outstripped
Positive results in all countries	Very positive result overall in the double-digit million range (in CHF)	ü	Significant improvements in result once again in Switzerland, Spain, Germany and in assumed reinsurance
Growth in insurance business	Clear progress in premium area particularly in non life, but also in life	ü	Further gains in market shares in Switzerland (NL+L), Italy (NL) and Spain (L)
Net combined ratio well under 100%	Net combined ratio of 94.1%	ü	Stabilisation on a par with the excellent level of the previous year (94.0%)
Maintaining the risk capacity of the Group	Rise in equity by 10% to CHF 2.7 billion	ü	Considerable strengthening of equity base

Helvetia Group: Key data for total business
(CHF million or %)	2006	2005	+/-
Gross premiums written	5,255.7	5,176.8	1.5%
Profit for period (after taxes)	423.8	301.9	40.4%
Investments	28,927.7	27,783.2	4.1%
Investment income	1'109.3	1,301.5	-14.8%
Investment performance	3.1%	5.5%	-2.4
Underwriting reserves, net	25,094.6	23,969.9	4.7%
Consolidated equity	2,738.4	2,480.8	10.4%
Return on equity	16.2%	13.4%	2.8
lvency 1) Group so	218.6%	204.2%	14.4

	Consolidated gross premiums		Growth (in CHF)
(CHF million or %)	2006	2005	2006	2005
Total direct business	5,062.5	4,947.6	2.3%	6.5%
Non-life	2,234.6	2,159.5	3.5%	-0.1%
Life	2,827.9	2,788.1	1.4%	12.1%
Total assumed reinsurance	193.2	229.2	-15.7%	6.4%
Helvetia Group	5,255.7	5,176.8	1.5%	6.5%
Non-life	2,423.3	2,386.6	1.5%	0.6%
Life	2,832.4	2,790.2	1.5%	12.0%

Helvetia Group: Best Group result of all time
(CHF million or %)	2006	2005	+/-
Pre-tax profit, total	562.2	420.2	33.8%
- non-life	321.6	262.5	22.5%
- life	184.6	139.9	32.0%
- other	56.0	17.8	214.6%
Taxes	138.4	118.3	17.0%
Profit for period (after taxes)	423.8	301.9	40.4%

Helvetia Group: Non-life business (1/2)
(CHF million or %)	2006	2005	+/-
Gross premiums written	2,423.3	2,386.7	1.5%
Net earned premiums	2,169.4	2,118.6	2.4%
Net insurance benefits	-1,330.8	-1,312.8	1.4%
Net technical costs	-708.4	-676.5	4.7%
Net cost of surplus participation	-2.7	-3.0	-10.0%
Net interest from insurance business	0.1	0.1	0.0%
Net actuarial profit/loss	127.6	126.4	0.9%
Current income on investments	139.6	136.3	2.4%
Gains and losses on investments	70.4	53.6	31.3%
Other income and expenses	-16.0	-53.8	-70.3%
Net profit of non-technical account	194.0	136.1	42.5%
Pre-tax profit	321.6	262.5	22.5%

(% or percentage points)	2006	2005	+/-
Premium growth (in CHF)
- Total business	1.5%	0.6%	0.9
- Direct business	3.5%	-0.1%	3.6
Gross claims ratio	61.2%	64.3%	-3.1
Gross cost ratio	31.9%	30.7%	1.2
Gross combined ratio	93.2%	95.2%	-2.0
Net claims ratio	61.3%	62.0%	-0.7
Net cost ratio	32.8%	32.0%	0.8
Net combined ratio	94.1%	94.0%	0.1
Funding ratio	154.6%	149.1%	5.5

(CHF million or %)	2006	2005	+/-
Gross premiums written	2,832.4	2,790.2	1.5%
Earned net premiums	2,789.8	2,757.1	1.2%
1) Net insurance benefits	-2,943.2	-3,079.5	-4.4%
Net technical costs	-278.0	- 266.7	4.2%
Net cost of surplus participation	-164.0	-288.9	-43.2%
Net interest from insurance business	-33.8	-33.8	0.0%
Subtotal 1, net	-629.2	-911.8	-31.0%
Current income on investments	714.3	689.4	3.6%
Gains and losses on investments	135.6	410.8	-67.0%
Other income and expenses	-36.1	-48.5	-25.6%
Subtotal 2, net	813.8	1,051.7	-22.6%
Pre-tax profit	184.6	139.9	32.0%

(CHF million or %)	2006	2005	+/-
Premium growth (in CHF)
- Total business	1.5%	12.0%	-10.5
- Direct business	1.4%	12.1%	-10.7
Gross cost ratio	10.0%	9.7%	0.3
Total embedded value (CHF million)	1,881.7	1,673.6	12.4%
- Switzerland	1,519.4	1,373.1	10.7%
- EU	362.3	300.5	20.6%
Value of new business (CHF million)	21.7	19.9	9.0%

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(CHF million or %)	2006	2005	+/-
Current income on investments	867.0	841.1	3.1%
- Interest and dividend income	704.4	675.7	4.2%
- Rental income1)	162.6	165.4	-1.7%
Total gains and losses	250.7	475.8	-47.3%
Total gains/losses on investments	290.9	506.9	-42.6%
- Shares, investment funds, derivatives	224.4	387.3	-42.0%
- Bonds	63.4	113.9	-44.4%
- Other	3.1	5.7	-46.2%
Gains/losses on investment property	-40.2	-31.1	29.3%
Other asset management expenses	-8.4	-15.4	-45.7%
Investment income	1,109.3	1,301.5	-14.8%
2) Direct yield	3.1%	3.2%	-0.1%
Investment performance	3.1%	5.5%	-2.4%

Outstanding result, all objectives achieved
Targets for 2006	Results		Comments
Sustainable guarantee of profitability of Swiss business	Profit of CHF 289.0 million	ü	Profit increased substantially yoy ROE targets outstripped
Income-oriented growth in life and non-life	Growth of 2.0 % in L and 4.2 % in NL	ü	Market growth in L and NL
Combined Ratio below 100%	Combined Ratio of 82.9%	ü	High portfolio quality, no damage by natural forces
Active cost management	Stable cost base	ü	Costs below previous year & budget
Attractive product range	New L and NL products	ü	Raiffeisen builder's risk and buildings, Swisstrend, BVG Invest
Quality-oriented approach	Finalist for Esprix Quality Award	ü	Target of 400 EFQM points was exceeded

Switzerland: Accelerated growth of premiums in life business
(in CHF million)	2006	2005	+/-
Total premiums direct life	2,217.0	2,174.4	+2.0%
Regular premiums individual life	415.1	415.3	-0.1%
Single premiums individual life	246.6	234.5	+5.2%
Total individual life	661.7	649.8	+1.8%
Regular premiums group life	821.8	788.1	+4.3%
Single premiums group life	733.5	736.5	-0.4%
Total group life	1,555.2	1,524.6	+2.0%

n Group life: growth in very competitive market environment, successful revival of acquisitions by sales force

Balance sheet media conference 2007 30

Profit drivers	Developments	Comments
Whole life insurance	+	Consistently good results
Disability insurance	++	Good economic conditions, selective underwriting policy, active benefit management
Cost (loadings)	+	Active cost management in all areas
Investments	++	See comments of Roland Geissmann
Embedded value	Developments	Comments
Development embedded value 2006	+	Embedded value increased by 10.7%
Value of new business	++	Value of new business increased by 23.9%
Profitability of new business	+++	Profitability of new business increased by 37.6%

Proof of compliance with legal quota
(in CHF million, in accordance with statutory financial statements)	2006
Gross income, business subject to legal quota	476.5	100.0%
Benefits to insured, business subject to legal quota	439.0	92.1%
Operating result, business subject to legal quota	37.5
Operating result, business not subject to legal quota	19.8
Operating result group life Switzerland	57.3

Switzerland: Group life
Performance analysis for business subject to legal quota
(in CHF million, in accordance with statutory financial statements)	2006
Result from savings process * Result from risk process Result from cost process	49.2 67.4 7.6
Gross profit, business subject to legal quota	124.2
Reserve reinforcement Allocation to provisions for future policyholder participation	-11.3 -75.4
Operating result, business subject to legal quota	37.5
* after setting up fluctuation reserves on investments of CHF 14.6 million
Balance sheet media conference 2007	33

Switzerland: Dynamic growth of non-life premiums
(in CHF million)	2006	2005	+/-
Total premiums non-life	607.5	582.9	+4.2%
Property	332.5	317.3	+4.8%
Transport	36.4	37.9	-3.9%
Motor vehicle	162.4	154.6	+5.0%
Liability	76.2	73.1	+4.3%
Market growth in a very competitive environment, particularly in property insurance n Growth stimulated by new range of house products and good performance of sales force n

Switzerland: Outstanding profitability in non-life business
	2006	2005
Gross premiums (in CHF million)	607.5	582.9
Claims ratio (%)1)	54.1%	77.4%
Cost ratio (%)1)	28.8%	28.2%
Combined ratio (%)1) 2)	82.9%	105.7%
Excellent earning power n
Good year for claims n 1) Gross, in % of earned premiums
2) 'all in'

	2006	2005	+/-
Helvetia Group	562.2	420.2	142.0
Switzerland	289.0	220.4	68.6
Abroad	273.2	199.8	73.4
- Germany	51.4	31.7	19.7
- Italy	27.7	28.1	-0.4
- Spain	110.1	62.6	47.5
- Other	84.0	77.4	6.6

Growth	As far as premiums are concerned, the positive results of the new growth strategy are becoming increasingly noticeable.
Claims	The claims experience in the first few months of the current year has been very favourable, not least thanks to the unusually mild winter. This was also not affected by the January storm Cyril.
Costs	Costs are under control, and the cost ratio will improve considerably in tandem with premium growth.
Actuarial results	Overall, we expect good actuarial results once again in the current year, together with a net combined ratio of well under 100% in the non-life sector.
Financial result	Depends on the development of the capital markets.

Target-oriented strategic positioning
Attractive business portfolio	n Lucrative markets and profitable niches n Clear focus on private and SME customers
Strong value proposition for customers	n "Best in class" products and services n Innovative insurance and pension solutions n Service quality in sales and support
Growth through excellent customer access	n Unique sales network with strong partnerships n Sales partnerships for defined products n Customers and sales partners who are very loyal
	Dynamic brand with Swiss identity
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Important dates
04.05.2007 n	Ordinary Shareholders' Meeting in St. Gallen
07.09.2007 n	Publication of half-year financial results for 2007
17.03.2008 n	Financial results for 2007: Analysts' and media conference in Zurich
25.04.2008 n	Ordinary Shareholders' Meeting in St. Gallen
03.09.2008 n	Publication of half-year financial results for 2008
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Contact details:
	Investor Relations:	Wolfgang Lohr Helvetia Group Dufourstrasse 40 CH-9001 St.Gallen
Adress:		Phone +41 (0)58 280 54 48 Fax +41 (0)58 280 55 89
Helvetia Group		E-mail: wolfgang.lohr@helvetia.ch
Home Office Dufourstrasse 40	Corporate Communications:	Yvonne Hafner
CH-9001 St.Gallen		Helvetia Group
Switzerland		St. Alban-Anlage 26
		CH-4002 Basel Phone +41 (0)58 280 13 35
		Fax +41 (0)58 280 29 73
		E-Mail: yvonne.hafner@helvetia.ch
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Cautionary statement regarding forward-looking information

This document was prepared by the Helvetia Group and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of the Helvetia Group. Although all reasonable effort has been made to ensure that the information provided herein is accurate and that the opinions contained herein are fair and reasonable, this document is selective by nature and is intended to provide an introduction to and overview of the business of the Helvetia Group. Where information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Helvetia Group. Neither the Helvetia Group nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this information. The facts and information contained herein are as up to date as is reasonably possible and may be subject to revision in the future. Neither the Helvetia Group as such 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 the 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 forwardlooking 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 factors 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) mortality and morbidity rates; and (9) policy renewal and lapse rates. We caution you that the foregoing list of important factors is not exhaustive; 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 the Helvetia Group on the date of its publication and the 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 Helvetia Group's business activities during 2006. This document does not constitute an offer or a solicitation to exchange, buy or subscribe for securities and it does not 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 the Helvetia Group make one or more capital increases in the future, investors should make their decision to buy or subscribe for new shares or other securities solely on the basis of the relevant offering circular.

This document is also available in German. The German version is binding.

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