St. Gallen's future in danger: Helvetia headquarters could move to Basel!

St. Gallen's future in danger: Helvetia headquarters could move to Basel!

The merger of Helvetia and Baloise Insurance, which was approved by the shareholders of both companies in two extraordinary general meetings on May 23, 2025, raises numerous questions. Approval was surprisingly high in St. Gallen at 98.37% and in Basel at 95.7%. Nevertheless, the consequences for the St. Gallen location and the employees remain unclear.

The St. Gallen government is concerned about the impending loss of Helvetia's headquarters. This could become reality as part of the merger with Baloise Insurance. According to the government response to a proposal by three FDP cantonal parliamentarians, the possible relocation of the headquarters to Basel is described as “painful”. It would be beneficial for St. Gallen if central business and service areas remained in the city.

The new headquarters and its consequences

In the middle of the year, the Helvetia Group is already in the process of evaluating the structure of its headquarters. Currently, almost two thirds of the group functions are already located in Basel, while only a third remain in St. Gallen. This shift could have far-reaching effects on St. Gallen as a business location. The government fears a loss of tax base and possible job cuts, but this cannot be specified.

FDP politicians have expressed concerns about the impact of this shift on the University of St. Gallen (HSG). However, they have assured that they do not expect any “noticeable weakening” of the educational location. The merger could only have a selective impact on the demand for educational offerings in the insurance sector.

Market concentration and employee fears

The merged Helvetia Baloise Holding will form the second largest Swiss insurance group with a market share of around 20%. While some shareholders expressed concerns about possible cost cuts and job cuts, experts estimate that in the medium to long term, customers could benefit from more efficient structures and potentially more attractive prices. Despite these optimistic prospects, there are voices of uncertainty among employees. Around two thirds of the announced synergies of 350 million francs could be achieved through job cuts.

It remains to be seen how the merger will play out in detail and in practice. While shareholder approval is a first step, regulatory approval is still pending. The St. Gallen government has now set itself the goal of strengthening St. Gallen as a business location and actively addressing the challenges arising from the merger.

In summary, the merger presents both great opportunities and risks. The population of St. Gallen and the employees of the affected companies are eagerly awaiting the next steps in this important merger of the insurance industry.