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Baloise: Results Miss But Limited Contagion to Euro IG Issuers

FINANCIALS

Baloise (BALN SW) FY23 results which were weak on both sales and claims. This looks relatively limited to Swiss businesses so there’s limited read-across to Euro IG issuers here but the conf call may give more details.


  • Key credit metrics: the SST (Swiss solvency) ratio is ~210% from >230% at Jun-23. Equity is down marginally on Jun-23 and the CSM (contractual service margin, akin to embedded value) is CHF3.9bn (from CHF4.1bn at Jun-23).
  • Operating performance: business volumes slowed in 4Q23 (were CHF2.3bn per quarter for 9M23 then dropped to CHF1.7bn for 4Q23) which appears to be driven by the life business. A spike in large claims (Swiss nat-cat) added to the issue, this then meaning EBIT and net profit both missed consensus expectations.
  • Outlook: there’s very little here other than some comments around reducing the scope of investments and focussing on the core business. An investor day is coming but not until 12-Sep-24.

Conf call is 0930 (London time) at: https://media.choruscall.eu/mediaframe/webcast.html?webcastid=LCxADCZ0

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