Helvetia posts improved profit and good growth
10.03.11 14:30
 
Helvetia posted a profit of CHF 341.5 million and growth in original currency of 5.3 per cent in the 2010 financial year. With a Solvency I margin of 220 per cent the capital base remains solid. The proposed dividend of CHF 16.00 per share is around 10 per cent higher than the previous year.
 
The most important key figures for the 2010 financial year at a glance:
 
Profit after tax: CHF 341.5 million (2009: CHF 326.8 million*;+ 4.5 per cent)
Business volume: CHF 6,755.4 million (2009: CHF 6,711.0 million; + 5.3 per cent in original currency)
Investment income: CHF 1,133.5 million (2009: CHF 1,239.2 million)
Solvency I: 220 per cent  (2009: 219 per cent*)
Combined ratio (net): 94.1 per cent (2009: 91.3 per cent*)
Proposed dividend payment: CHF 16.00 per share (2009: CHF 14.50)
Additional key figures are provided in the annex.
 
* The figures for the 2009 financial year were adjusted following a change in accounting standards.
 
Helvetia Group's profit of CHF 341.5 million is up 4.5 per cent from the previous year. Business volume improved 5.3 per cent in original currency to CHF 6,755.4 million,with both the non-life and life business posting robust growth. The technical performance was once again very encouraging and the net combined ratio is good at 94.1 per cent. Thanks to a further productivity increase, the non-life cost ratio in particular could be reduced to less than 30 per cent.
 «In a challenging environment Helvetia Group once again improved its profit and turnover in 2010. We have acquired additional market share, reduced our costs and kept the strength of the balance sheet at a high level. Our Group has thus once again proved itself as a reliable insurance partner for our customers and a good investment for our shareholders,» says Stefan Loacker, CEO of Helvetia Group.

 
Attractive return on investment and solid capital base

Low interest rates and the pronounced weakness of the euro posed the biggest challenges in the 2010 investment year.  Thanks to the good quality of Helvetia's well-diversified investments and effective measures to hedge the foreign currency exposure the investment profit amounted to CHF 1,133.5 million. The direct return of 3.0 per cent was robust (previous year 3.2 per cent) and Helvetia confirmed the strength of its capital base with a Solvency I margin of 220 per cent. The return on equity was 10.7 per cent. The solid balance sheet and improved annual profit allows Helvetia to propose a dividend payment of CHF 16.00 per share to the Shareholders' Meeting. Of this dividend, CHF 8.00 per share will be paid from the capital contribution reserve which is not subject to withholding tax in Switzerland. With a dividend payout ratio of 41 per cent Helvetia is continuing its attractive dividend policy.
 

Strengthening of market position in home market Switzerland

Helvetia expanded its good market position in its home market in 2010 by purchasing the insurance companies Alba General Insurance Company Ltd, Phenix Insurance Company Ltd and Phenix Life Insurance Company Ltd. These acquisitions will substantially increase the business volume in the Swiss non-life business in particular by more than 25 per cent. The integration of the acquired companies is progressing according to plan. From as early as May 2011 all Swiss companies will appear on the market with a joint sales organisation under the uniform Helvetia brand.
 

Good conditions for Helvetia 2015+ strategy

Helvetia ended its 2007-2010 strategy period successfully with the good 2010 financial year. All important objectives were achieved. Helvetia experienced dynamic growth, both organically as well as through targeted acquisitions in the country markets Italy, France, Austria and Switzerland. The life business share of the foreign portfolio was increased significantly, the operating efficiency was improved and the financial structure was optimised. Helvetia will use this momentum to continue to evolve in step with its motto «To excel in growth, profitability and customer loyalty». «The goal of the Helvetia 2015+ strategy is to substantially expand our attractive business portfolio in our current markets,» says Stefan Loacker. «Our direct road to success harbours substantial potential for creating added value for our customers and shareholders in the next few years.»  
 
 
About Helvetia Group

In the past 150 years, Helvetia Group has grown from a number of Swiss and foreign insurance companies into a successful insurance group that does business everywhere in Europe. Today, Helvetia has branch offices in Switzerland, Germany, Austria, Spain, Italy and France, and routes some of its investment and financing activities through subsidiaries and fund companies in Luxembourg and Jersey. The Group is headquartered in St. Gallen in Switzerland. Helvetia is active in the life, property and casualty and reinsurance business, and almost 4,900 employees provide services to more than two million customers. With a business volume of CHF 6.8 billion, Helvetia posted a net profit of CHF CHF 341.5 million in the 2010 financial year. The Helvetia Holding registered share is traded on the SIX Swiss Exchange under the symbol HELN.
 
 
 
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