Baloise and Helvetia: merger to form the second largest Swiss insurance company!

Baloise and Helvetia: merger to form the second largest Swiss insurance company!

On June 16, 2025, the shareholders of Baloise Holding AG and Helvetia Holding AG approved the merger to form Helvetia Baloise Holding AG at their extraordinary general meetings. This merger marks a significant step in the Swiss insurance landscape as it will create the second largest insurance group in Switzerland. With an estimated market share of around 20% and an annual business volume of around 20 billion francs, the merged group is also one of the ten largest listed European insurers. This reports swiss-press.com.

Thomas von Planta became the Chairman of the Board of Directors of the new holding company, while the Board of Directors has equal representation with seven members from both companies. The headquarters of Helvetia Baloise Holding AG will be located in Basel, with St. Gallen continuing to play an important role as a location. The merger will take place as part of an absorption merger in which Baloise will be fully integrated into Helvetia.

Integration and finance

The integration of the two companies should be made easier through cultural proximity and similar company sizes. The two companies together have a 160-year history in Switzerland. The cost of the integration will be around 600 million francs, with annual savings of 350 million francs before taxes targeted, 80% of which should be realized by 2028.

The combined gross premium volume will amount to 8.6 billion francs in life and 11.5 billion francs in property business. The company also aims to become a leading insurer in core European markets such as Germany, France, Italy, Spain, Belgium, Austria and Luxembourg. However, this can also result in job cuts in markets with overlaps that should be made socially acceptable, such as versicherungswirtschaft-heute.de supplemented.

Market dynamics and challenges

The merger still needs to be approved by competition and regulatory authorities and is also expected to close in the fourth quarter of 2025. However, there is already a clause in the contract that could jeopardize the merger in the event of takeover offers from third parties. In addition, Cevian, a Swedish investor, increased its shares in Baloise and made adjustments to the demands on the company.

The merger is characterized by the long-term goals of increasing the ability to pay dividends by 20% by 2029 and making the existing corporate structure efficient. The CEO of the new holding will be Fabian Rupprecht from Helvetia, while Michael Müller from Baloise will act as his deputy. With a ticker symbol of HBAN, Helvetia Baloise Holding AG will soon be present on the international markets.