Merger of Helvetia and Baloise: St.Gallen loses headquarters!

Merger of Helvetia and Baloise: St.Gallen loses headquarters!

The extraordinary general meeting of Helvetia Holding AG took place on May 23, 2025, at which the shareholders approved the merger agreement with Baloise Holding AG and the simultaneous relocation of the headquarters to Basel with a vote of 97.68 percent. The merger will be called Helvetia Baloise Holding AG and promises significant advantages for the new group of companies, which will thus become the second largest insurance group in Switzerland with a market share of around 20 percent. This reported Tagblatt.

Chairman of the Board of Directors Thomas Schmuckli and other senior leaders emphasized the advantages of the merger during the meeting. These include doubling the business volume and a planned increase in dividend potential by 20 percent for the 2029 financial year. The merger is expected to generate annual synergies of approximately CHF 350 million before taxes, which is expected to increase the company's efficiency. In addition, the merger will be listed on the Swiss market under the new name Helvetia Baloise Holding AG on the SIX stock exchange.

Concerns about the St. Gallen location

Despite the overwhelming support for the merger, some shareholders and close observers expressed concerns about the headquarters move. Former Federal Councilor Hans-Rudolf Merz and Ueli Forster, former Vice President of Helvetia, called for a stronger commitment to Eastern Switzerland and the preservation of jobs in St. Gallen, where Helvetia was founded. Schmuckli assured that St. Gallen will continue to be an important location for the company and that certain operational tasks there will be examined.

It was also noted at the general meeting that two thirds of employees with corporate functions already have their workplace in Basel. Matthias Steiner, a shareholder and employee, recommended a no to the relocation as a sign for the St.Gallen location. Nevertheless, approval for the merger, which is also supported by Patria Genossenschaft, Helvetia's largest shareholder, prevails.

Merger details and challenges

The merger agreement stipulates that Helvetia and Baloise will have equal representation on their boards of directors, with a total of 14 members - seven from each side. At the top is Dr. Thomas von Planta (Baloise) as President, while Dr. Ivo Furrer (Helvetia) takes over the position of Vice President. CEO Fabian Rupprecht and COO Michael Müller will also be integrated into the management structure. The integration of the two companies is aimed at through natural fluctuation and early retirement, with integration costs of CHF 500 to 600 million expected.

Shareholder approval and the necessary regulatory approval are critical steps towards completing the merger, which is scheduled for the fourth quarter of 2025. The combined gross premium volume of the new company is expected to be CHF 20.1 billion, with CHF 8.6 billion in life and CHF 11.5 billion in non-life. The merger is being handled by financial advisors such as J.P. Morgan, Walder Wyss, Morgan Stanley and Lenz & Staehelin to ensure a smooth implementation. These fundamental changes in the insurance industry mark a significant milestone in the industry, while the question of whether the operational functions will remain in St. Gallen continues to be discussed.