Merger of Helvetia and Baloise: Is there a risk of losing 2,000 jobs?

Merger of Helvetia and Baloise: Is there a risk of losing 2,000 jobs?

On Friday, May 23, 2025, the shareholders of Baloise and Helvetia are expected to decide to merge the two insurance companies. This step, which provides for the creation of the new Helvetia Baloise Holding AG, aims to secure the future of the new company and assume a leading role in the market. Fabian Rupprecht, who has been Managing Director of Helvetia since October 2023 and will now also lead the newly merged company, emphasizes the necessity of this merger in an increasingly competitive environment.

The merger means that Baloise will be fully integrated into Helvetia, which corresponds to an absorption merger. This measure creates the second largest insurance group in Switzerland with a market share of around 20 percent. The annual business volume of the merged group is estimated at around 20 billion Swiss francs. The new combined gross premiums amount to 8.6 billion francs in life insurance and 11.5 billion francs in property business.

Job cuts and integration

The integration of the two companies will result in significant costs of around 600 million francs and could result in up to 2,000 job cuts. The job cuts are particularly to be feared in markets where there is overlap. However, those responsible have emphasized that the dismantling should be carried out in a socially responsible manner.

The administrative framework for the merger still needs to be met, including approval from competition and regulatory authorities. Approval is expected by the fourth quarter of 2025. In addition, the contract stipulates that the merger may collapse if a third party makes a public purchase offer for more than 40 percent of Helvetia's shares or more than 33⅓ percent of Baloise shares. In the context of these developments, Cevian, a Swedish investor, increased its shares in Baloise and made its own demands on the company.

Future prospects

Following the merger, Fabian Rupprecht will act as CEO, while Michael Müller from Baloise will act as deputy. The new company, which will appear on the markets under the ticker symbol HBAN, plans to expand its market shares in Switzerland and also in various European countries such as Germany, France, Italy and Spain.

The merger has the potential to increase the new company's ability to pay dividends by 20 percent by fiscal year 2029. The Board of Directors will have equal representation, with seven members from each company. The headquarters will be set up in Basel, while St. Gallen will remain an important location.

The upcoming extraordinary general meetings on May 23, 2025 will be crucial to determine the further course of the merger and the company hopes for a positive approval from shareholders. This merger could also consolidate Helvetia Baloise's position in the international insurance market in the long term.