Plain-text annual report
Annual Report
2022
22
Baloise Group Annual Report 2022
Contents
Baloise
Corporate Governance
Bâloise Holding AG
Overview of the reporting
environment
Key figures
Letter to shareholders
Review of operating
performance
Solid results, increased cash
remittance and higher dividend
at Baloise
Annual financial results in brief
Baloise sustainably successful in a
challenging environment
Consolidated income statement
Consolidated balance sheet
Business volume, premiums and
combined ratio
Technical income statement
Gross premiums by sector
Banking activities
Investment performance
4
5
6
10
10
11
16
18
19
21
22
23
24
Risik management
Risk management – a key pillar
of our value creation
28
Corporate Governance Report
33
Appendix 1: Remuneration Report 53
Income statement of Bâloise
Holding Ltd
Appendix 2: Report of the
statutory auditor to the
Annual General Meeting of
Bâloise Holding Ltd, Basel
Balance sheet of Bâloise
Holding Ltd
Notes to the financial statements
of Bâloise Holding Ltd
244
77
242
243
Appropriation of distributable
profit as proposed by the Board
of Directors
Report of the statutory auditor
to the Annual General Meeting
of Bâloise Holding Ltd, Basel
General Information
Alternative
Performance Measures
Glossary
Addresses
Informationen on the
Baloise Group
253
254
260
264
268
269
Financial calendar and contacts 270
Financial Report
Consolidated balance sheet
82
Consolidated income statement 84
Consolidated statement of
comprehensive income
85
Consolidated cash flow statement 86
Consolidated statement of
changes in equity
Notes to the consolidated
annual financial statements
Notes to the consolidated
balance sheet
Notes to the consolidated
income statement
Other disclosures
88
90
170
213
224
Report of the statutory auditor
to the annual general meeting of
Bâloise Holding Ltd, Basel
234
3
3
Baloise Group Annual Report 2022
Baloise
Overview of the reporting
environment
Overview of Baloise’s external reporting
The external reporting procedures of the Baloise Group are
based on relevant statutory and regulatory requirements
and applicable standards and guidelines, such as those
issued by the International Accounting Standards Board
and SIX Swiss Exchange, where the shares of Bâloise Holding
Ltd are listed.
The Annual Report forms the core of the reporting activ-
ities and comprises the management report, the financial
report and the income statement of Bâloise Holding Ltd. The
review of the financial year also serves to provide a holistic
view of the added value generated by Baloise under its value
creation approach. This approach is based on the integrated
reporting framework ( Framework) of the International
Integrated Reporting Council (IIRC).
Annual Report
2022
Annual Review
2022
Reporting processes in detail
Baloise Annual Report
The Annual Report of the Baloise Group comprises the management review of the operating
performance, the corporate governance report, the remuneration report and the financial
report. The financial report contains the consolidated annual financial statements of the
Baloise Group and the income statement of Bâloise Holding Ltd.
Baloise Annual Review
The review of the financial year of the Baloise Group provides an overview of important
financial key figures as well as comprehensive information on non-financial disclosure. The
report outlines the value creation of Baloise across the six resources of the value creation
approach (investors, employees, customers, partners, environment and society) and the four
framework processes (IT, compliance, corporate governance and risk management). The aim
of the report is to provide a comprehensive view of Baloise’s value creation.
Presentation for financial analysts
The presentation for financial analysts is specifically aimed at investors. It is made available
only on our website and exclusively in English, and it provides detailed information on the
financial performance of Baloise and its individual operating segments and strategic busi-
ness units. The reports published by the Baloise Group are also available online at
www.baloise.com/annual-report.
Continuous reporting
In addition, Baloise uses its website, www.baloise.com, to share updates on various initia-
tives and activities as well as background stories about the implementation of its strategy
on an ongoing basis.
Reporting by national organisations
In some cases, Baloise’s national organisations publish their own external reports in accord-
ance with the statutory and regulatory requirements of the jurisdiction in which they operate.
These reports are published on the websites of Baloise in
Belgium www.baloise.be/fr/a-propos-de-nous,
Germany www.baloise.de/de/ueber-uns and
Switzerland www.baloise.com/en/home/investors/publications/financial-condition-report.
4
Baloise Group Annual Report 2022
Key figures
CHF million
Business volume
Gross non-life premiums written
Gross life premiums written
Sub-total of IFRS gross premiums written 1
Investment-type premiums
Total business volume
Operating profit (loss)
Profit / loss for the period before borrowing costs and taxes
Non-life
Life 2
Asset Management & Banking
Other activities
Consolidated profit for the period
Balance sheet
Technical provisions
Equity
Ratios (per cent)
Return on equity (RoE)
Gross non-life combined ratio
Net non-life combined ratio
New business margin (life, as percentage)
Investment performance (insurance) 3
New life insurance business
Annual premium equivalent (APE)
Value of new business
Key figures on the Company's shares
Shares issued (units)
Basic earnings per share 4 (CHF)
Diluted earnings per share 4 (CHF)
Equity per share 4 (CHF)
Closing price (CHF)
Market capitalisation (CHF million)
Dividend per share 5 (CHF)
Baloise
2021
2022
Change (%)
4,063.4
3,389.7
7,453.1
2,138.0
9,591.1
303.9
406.7
82.5
– 70.5
583.3
3,969.1
3,160.8
7,130.0
1,631.0
8,760.9
321.7
376.7
63.5
– 56.5
544.5
48,661.4
44,605.2
7,299.9
4,552.1
8.3
99.3
92.6
39.0
1.4
340.5
133.1
9.4
91.7
91.9
53.5
– 8.1
243.6
130.3
45,800,000
45,800,000
13.06
13.05
161.7
149.10
6,828.8
7.00
12.13
12.12
100.5
142.70
6,535.7
7.40
– 2.3
– 6.8
– 4.3
– 23.7
– 8.7
5.9
– 7.4
– 23.0
– 19.9
– 6.7
– 8.3
– 37.6
–
–
–
–
–
– 28.5
– 2.1
0.0
– 7.1
– 7.1
– 37.8
– 4.3
– 4.3
5.7
1 Premiums written and policy fees (gross).
2 Of which deferred gains / losses from other operating segments (31 December 2021: CHF – 2.5 million; 31 December 2022: CHF – 2.8 million).
3 Excluding investments for the account and at the risk of life insurance policyholders.
4 Calculation is based on the profit for the period attributable to shareholders and the equity attributable to shareholders.
5 2022 based on the proposal submitted to the Annual General Meeting.
Baloise Group Annual Report 2022
5
Baloise
Letter to shareholders
Dear shareholders,
Over the past financial year, we succeeded in building on
the progress we had already achieved and, despite the chal-
lenging market environment, achieved healthy results with
profit attributable to shareholders of CHF 548.0 million (2021:
CHF 588.4 million). In local currency terms, Baloise generated
growth in its target segments in 2022. The net combined
ratio stood at 91.9 per cent, a testament to the high quality
of our business. The expense ratio improved slightly, while the
claims ratio was robust in a mixed environment for claims.
Extreme weather events impacted results again in 2022,
and war in Europe exacerbated what was already a difficult
economic situation due to the effects of the coronavirus
pandemic. The economic environment was also shaped
by latent geopolitical risks. These factors are increasingly
affecting national economies and are slowing sustainable
growth in many countries. Supply shortages, inflation and
interest rates are also having an impact on our business
and on customer behaviour. In line with our objective of
sustainable and forward-looking business management,
we have also recognised reserves to cushion potential infla-
tion effects.
Our capital position remains strong. We expect the SST
ratio as at 1 January 2023 to be over 230 per cent, and in
summer 2022 Standard & Poor’s confirmed its rating for the
Baloise Group’s core companies of A+ with a stable outlook.
Based on the high operational profitability and reliable cash
generation, we intend to ask the Annual General Meeting to
increase the dividend by CHF 0.40 to CHF 7.40. Over the past
20 years, we have continuously increased the dividend or at
least kept it constant. This is almost unparalleled within the
Swiss insurance industry and confirms Baloise as a reliable
and attractive investment.
Our business model and strategy are designed for the
long term. Measured by these targets, the first year of the
new strategic phase got off to a satisfactory start, especially
in light of the difficult environment. We generated CHF 471
million of our target of CHF 2 billion in cash in 2022, 9 per cent
more than in 2021. We also attracted a total of 173,000 new
customers. For our employee target, we introduced a new
measuring method and a significantly expanded benchmark
group in 2022. We are consistently among the top 35 per cent
of the best employers in Europe. We achieved an excellent 79
per cent approval rating for employee satisfaction, and only
4 per cent of responses to the survey were negative. Baloise is
an excellent employer and we are not letting up in our efforts
to improve our position.
Change in the leadership of the Group
Having recovered from cancer, our Group CEO Gert De Winter
has made the difficult decision to leave Baloise on 30 June
2023 after around 18 years. Following the personal events
of recent months, he believes that now is the right time to
reassess his priorities. The insurance industry is undergoing
a fundamental transformation, and since taking on his role
seven years ago Gert de Winter has made sure that Baloise
is fully prepared for these changes. He has been a huge asset
to Baloise and has earned the gratitude of the whole Board
of Directors. The baton will pass to Michael Müller, currently
CEO of Baloise in Switzerland, when he becomes the new CEO
of the Baloise Group on 1 July. He has been with Baloise for 26
years and has been a member of the Corporate Executive
Committee since 2011. Michael Müller represents continuity
but will also provide impetus to take the Company forward
in his new role. He will build on the strengths of previous years
to ensure that Baloise remains a highly attractive, reliable
and responsible company for our customers, employees and
shareholders.
Insurance companies strengthen society
Events of recent years illustrate the strengths and thus the
importance of insurance companies. We continuously adapt
our business activities in line with our sustainability strategy
and the challenges facing society. Our role traditionally
becomes even more important during phases of change.
Baloise has always been part of any transition process, and
that is why we are certain that we can play an important
role in society when it comes to tackling climate change.
We have the expertise and the solutions required to help
economies overcome some of the leading risks such as cyber,
earthquakes, power supply shortages or the next pandemic.
In Switzerland, we have had a sustainable and communi-
ty-based solution in the area of natural disasters for years.
Not all the biggest risks are insurable, but we should work
with the national government to find solutions for certain key
risks because there are large gaps in cover. These gaps can
prove very costly for individuals and economies.
Switzerland has been grappling with the thorny political
issue of how to finance pension provision in a sustainable way
for years. Other European countries are also facing similar
challenges. Demographic change is testing the inter-gen-
erational contract and the growing number of pensioners is
putting the state-funded part of retirement provision under
pressure. Policymakers need to adjust the state parameters in
6
Baloise Group Annual Report 2022 Baloise
«Insurance
companies play
an especially
important role in
periods of change.»
occupational pension provision as a matter of urgency. As one
of the few remaining providers with a comprehensive range
of occupational pension solutions, we are responsible for a
great many small and medium-sized enterprises and thus
for an equitable society. The importance of our services for
private pension provision is likely to continue to grow in future.
Over the past 160 years, Baloise has tackled every economic
challenge head-on. The qualities that set us apart and make
us strong will continue to support us as we move into the
future. We have excellent capitalisation, a stable and loyal
customer base, and a committed workforce that we can rely
on. We can therefore be sure of sustainable value generation
that you, our valued shareholders, can continue to depend
on in future.
Basel, March 2023
Dr Thomas von Planta
Chairman of the Board of Directors
Gert De Winter
Group CEO
Dr Thomas von Planta, Chairman of the Board of Directors (left), and Gert De Winter, Group CEO (right)
7
Baloise Group Annual Report 2022 Review of operating
performance
Solid results, increased cash remittance
and higher dividend at Baloise
Annual financial results in brief
Baloise sustainably successful in a challenging
environment
Consolidated income statement
Consolidated balance sheet
Business volume, premiums and combined ratio
Technical income statement
Gross premiums by sector
Banking activities
Investment performance
10
10
11
16
18
19
21
22
23
24
9
Baloise Group Annual Report 2022 Review of operating performance
Solid results, increased cash
remittance and higher dividend at
Baloise
The global economy faced persistent challenges in 2022 that will affect
the business activities of many companies this year too. Against the
backdrop of these market conditions, we are especially proud that we
can once again present solid financial results for 2022. In the attractive
non-life business, Baloise generated growth in local currency terms and
improved the profit contribution despite the strengthening of reserves
to reflect inflation. We achieved an excellent level of earnings in the life
business. This resulted in profit attributable to shareholders of CHF 548.0
million. Based on the high operational profitability and reliable cash
remittance, we intend to request to increase the dividend by CHF 0.40 to
CHF 7.40. This confirms once again that Baloise is a reliable and attractive
investment. Over the past 20 years, we have continuously increased the
dividend, one of only very few European insurance companies to do so.
Annual financial results in brief
● Profit attributable to shareholders for 2022 amounted
to CHF 548.0 million (2021: CHF 588.4 million). The rapid
rise in inflation in 2022 resulted in non-recurring effects
in the non-life business that had a net negative impact
of CHF 37.2 million on profit.
● Earnings before interest and tax (EBIT) in the non-life
business came to CHF 321.7 million, which represented
a good year-on-year improvement of 5.9 per cent (2021:
CHF 303.9 million).
● The level of gross premiums in the life business
reflected the continuing trend towards partially auto-
nomous occupational pension solutions. As a result,
the volume of premiums in the traditional life insurance
business fell by 6.8 per cent year on year to CHF 3,160.8
million (2021: CHF 3,389.7 million). EBIT attributable
to the life business came to a very healthy CHF 376.7
million, which was down only slightly on the exceptio-
nally strong prior-year figure (2021: CHF 406.7 million).
● The new business margin in the life business stood at a
very solid 53.5 per cent in 2022 (2021: 39.0 per cent). The
interest rate margin improved to 117 basis points (2021:
108 basis points) thanks to a rise in current income.
● The volume of business amounted to CHF 8,760.9
million owing to a lower volume of premiums in the
traditional life insurance business and unfavourable
currency effects (2021: CHF 9,591.1 million). Adjusted for
currency effects, this equated to a decrease of 5.1 per
cent.
● The volume of premiums in the non-life business rose
by a healthy 2.4 per cent, adjusted for currency effects.
In Swiss francs, the volume of premiums fell slightly to
CHF 3,969.1 million (2021: CHF 4,063.4 million).
● The net combined ratio of the Group was 91.9 per
cent (2021: 92.6 per cent). Non-recurring effects during
the reporting year, particularly the strengthening of
reserves in view of inflation, had a negative impact on
the net combined ratio, adding 1.4 percentage points.
10
Baloise Group Annual Report 2022
● Asset management delivered a net return on insu-
Business volume
rance assets of 2.0 per cent (2021: 2.2 per cent). Net new
assets from third parties increased once again, rising
by around CHF 1 billion.
● Baloise’s capitalisation remained robust. We expect
the SST ratio as at 1 January 2023 to be over 230
per cent (2021: 220 per cent). Consolidated equity
amounted to CHF 4,552.1 million (30 June 2022:
CHF 5,021.0 million). In June 2022, Standard & Poor’s
confirmed its rating of A+ for the Baloise Group.
● In 2022, the cash remittance increased by 9 per cent
to CHF 471 million (2021: CHF 431 million). The Board of
Directors intends to request to increase the dividend
by CHF 0.40 to CHF 7.40 per share.
● Reporting in accordance with the new IFRS 17 and
9 accounting standards will be published for the
first time in the half-year financial statements on 20
September 2023. We will provide an update for
capital market participants on 29 June 2023.
Baloise sustainably successful in a challenging
environment
Profit attributable to shareholders for 2022 amounted to
CHF 548.0 million, a year-on-year fall of 6.9 per cent (2021:
CHF 588.4 million). There was a non-recurring positive effect
on profit from reserves that were no longer needed in view
of the planned sale of the German hospital liability busi-
ness and from the interest-rate-related reversal of reserves
for the accident and health insurance business in Switzer-
land. Conversely, the strengthening of reserves to reflect
the increase in inflation had an adverse effect on profit.
These effects together had a net negative impact of CHF
37.2 million on profit. There was a particularly strong profit
contribution from the Swiss life business, which benefited
from a rise in interest rates and the continual optimisation
of the life insurance portfolio. Overall, all operating segments
contributed to Baloise’s sound profit.
The Group’s earnings before interest and tax (EBIT)
amounted to CHF 705.3 million (2021: CHF 722.5 million).
The Group’s business volume declined year on year owing
to shifts within the traditional life insurance business invol-
ving occupational pensions, lower volumes in the invest-
ment-linked life insurance business and currency effects.
The total volume of business went down by 8.7 per cent to
CHF 8,760.9 million (2021: CHF 9,591.1 million). In local currency
terms, the decrease was 5.1 per cent.
Review of operating performance
CHF million
Total business volume
Life
Non-life
Investment-type
premiums
2021
2022
+/– %
9,591.1
3,389.7
4,063.4
2,138.0
8,760.9
3,160.8
3,969.1
1,631.0
– 8.7
– 6.8
– 2.3
– 23.7
Business volume in 2022 (gross)
by strategic business unit*
46.4 % Switzerland
15.5 % Germany
24.1 % Belgium
13.3 % Luxembourg
* 0.6 % group business
Higher profit contribution from non-life business;
strengthening of reserves to reflect inflation takes its toll
on the combined ratio
Adjusted for currency effects, the non-life business gene-
rated organic growth in all markets. In Swiss francs, there
was a fall of 2.3 per cent to CHF 3,969.1 million (2021: CHF
4,063.4 million), whereas the increase in local currency terms
was 2.4 per cent.
Gross premiums written in the Swiss market rose by a
healthy 2.7 per cent to CHF 1,429.9 million (2021: CHF 1,392.7
million).
The Belgian unit recorded modest year-on-year growth
of 0.7 per cent in local currency terms. In Swiss francs, gross
premiums written decreased by 6.4 per cent to CHF 1,538.9
million (2021: CHF 1,644.3 million).
In Germany, we achieved very satisfying growth of 5.2 per
cent in local currency terms. In Swiss francs, there was a fall
of 2.2 per cent to CHF 802.5 million (2021: CHF 821.0 million).
Business in Luxembourg recorded gross premiums written
of CHF 141.8 million. This amounted to growth of 2.7 per cent in
local currency terms and a decrease of 4.5 per cent in Swiss
francs (2021: CHF 148.5 million).
Earnings before interest and tax (EBIT) in the non-life
business rose by 5.9 per cent to CHF 321.7 million despite the
strengthening of reserves to cushion the effects of inflation
(2021: CHF 303.9 million). The aforementioned non-recurring
effects added 1.4 percentage points to the net combined
ratio. Nonetheless, this ratio improved to a robust 91.9 per
cent (2021: 92.6 per cent), partly due to the lower level of
claims incurred compared with 2021 and partly due to a
reduction in costs.
11
Baloise Group Annual Report 2022 Review of operating performance
Development of net combined ratio
2022
2021
2020
2019
2018
91.9 %
92.6 %
91.2 %
90.4 %
91.7 %
Another very good profit contribution from the life
business thanks to the improved interest-rate situation
and optimisation of the business mix
The volume of life insurance business fell by 13.3 per cent in
Swiss francs and by 10.6 per cent in local currency terms to
stand at CHF 4,791.8 million (2021: CHF 5,527.7 million). This
decrease was primarily attributable to the emerging trend
of a preference for partially autonomous solutions in the
Swiss group life business over the comprehensive insurance
model. We are therefore seeing a reduction in premiums in
the traditional life insurance business, which declined by
6.8 per cent to CHF 3,160.8 million in 2022 (2021: CHF 3,389.7
million). The bulk of this decrease was attributable to busi-
ness in Switzerland, which registered a fall of 7.9 per cent to
CHF 2,512.6 million (2021: CHF 2,727.8 million).
In Germany, the volume of premiums grew by 4.2 per
cent to CHF 385.4 million in local currency terms (2021: CHF
397.9 million) as a result of increased new business involving
biometric products and pension products. In Swiss francs,
the volume of premiums contracted by 3.1 per cent.
Gross premiums written in the life business in Belgium
rose by a good 3.4 per cent to CHF 195.7 million (2021: CHF
189.3 million). In local currency terms, the increase was a
substantial 11.2 per cent.
Business declined in Luxembourg, resulting in a premium
volume of CHF 66.9 million (2021: CHF 74.5 million).
The volume of investment-type premiums slumped by
23.7 per cent year on year to CHF 1,631.0 million (2021: CHF
2,138.0 million). As observed in the recent past, the ‘freedom
of service’ business – which is mainly operated from Luxem-
bourg – is sensitive to market uncertainty and tends to react
with a high level of volatility. Capital market conditions in
2022 and the significant uncertainty provoked by the war in
Europe resulted in a sharp fall in premiums in the reporting
year.
EBIT in the life business remained at a high level, amoun-
ting to a very healthy CHF 376.7 million in 2022 (2021: CHF
406.7 million). Although this was down slightly year on year,
the prior-year figure had been exceptionally high owing to
the very upbeat conditions in the capital markets in 2021.
The profit contribution was excellent once again in 2022
thanks to continual optimisation of the business mix, profit
contributions from our property portfolio and the improved
interest-rate situation.
12
The new business margin in the life business swelled to 53.5
per cent in 2022 owing to the rise in interest rates (2021: 39.0
per cent).
The interest rate margin improved to a solid 117 basis
points (2021: 108 basis points). This increase was due to
higher current income, whereas the average guaranteed
rate of return was on a par with 2021.
Buoyed by the trend towards partially autonomous
collective foundations, the performance of the Perspectiva
collective foundation was very satisfying in 2022. Perspec-
tiva’s customer base continued to see steady growth in its
eighth year of operation and included 4,427 companies with
around 19,600 policyholders at the end of 2022. The founda-
tion assets stood at approximately CHF 1.4 billion. Despite
the prevailing cautious sentiment, the trend towards parti-
ally autonomous pension solutions remains intact.
Insurance assets: solid investment yield despite highly
challenging market conditions
The war in Ukraine and rising inflation dominated the global
economy in 2022. This triggered sharp rises in interest rates
in the bond market. Moreover, the global equity market
lost almost 20 per cent in value over the course of the year.
Given the very challenging market conditions, the gains on
the investment of insurance assets were at a healthy level
at CHF 1,123.0 million (2021: CHF 1,351.2 million). Moreover,
current income was on a par with the prior-year level at CHF
1,085.7 million as a result of further reallocations from bonds
to private debt (2021: CHF 1,088.0 million). Gross impair-
ment losses were up by CHF 76.9 million year on year and
were mainly attributable to adverse market movements. The
gain of CHF 414.0 million recognised in the income state-
ment was therefore very satisfying (2021: CHF 507.4 million).
Higher currency hedging costs and the depreciation of the
euro against the Swiss franc caused an additional year-on-
year reduction in profit of CHF 66.1 million. Nonetheless, the
investment yield on insurance assets held up well at 2.0 per
cent (2021: 2.2 per cent). Unrealised gains fell by CHF 5.7 billion
due to significantly higher interest rates and spreads and due
to the correction in the equity markets. The IFRS investment
performance on insurance assets, which includes unrealised
net gains and losses on investments but excludes gains and
losses on held-to-maturity debt instruments, was minus 8.1
per cent, representing a decrease compared to the 1.4 per
cent IFRS investment performance in 2021.
As at 31 December 2022, the total assets under manage-
ment (AuM) at Baloise Asset Management stood at CHF
55.8 billion, a decrease of 15.1 per cent compared with
the end of 2021 (31 December 2021: CHF 65.7 billion). This
reduction was attributable to rising interest rates and the
resulting decrease in value of the bond portfolio in the insur-
ance assets, the downtrend in the equity markets, and the
weakness of the euro against the Swiss franc. The favourable
business mix meant that fee income remained at a good
level despite the decrease in AuM.
Baloise Group Annual Report 2022 Review of operating performance
Key figures for the national Baloise companies
Key figures for Switzerland
Key figures for Belgium
2021
2022
+/– %
2021
2022
+/– %
CHF million
Business volume
Of which: life
Of which: non-life
Net combined ratio
(per cent)
Profit before borrowing
costs and taxes
4,239.9
2,847.2
1,392.7
89.2
4,068.5
2,638.6
1,429.9
92.0
– 4.0
– 7.3
2.7
2.8
584.6
540.9
– 7.5
CHF million
Business volume
Of which: life
2,302.5
2,112.6
658.2
573.7
Of which: non-life
1,644.3
1,538.9
Net combined ratio
(per cent)
Profit before borrowing
costs and taxes
93.0
92.1
149.0
149.7
0.5
– 8.3
– 12.8
– 6.4
– 0.9
Key figures for Germany
Key figures for Luxembourg
2021
2022
+/– %
2021
2022
+/– %
CHF million
Business volume
Of which: life
Of which: non-life
Net combined ratio
(per cent)
1,406.4
1,356.8
585.4
821.0
96.8
554.2
802.5
93.5
– 3.5
– 5.3
– 2.2
– 3.3
CHF million
Business volume
Of which: life
Of which: non-life
Net combined ratio
(per cent)
1,585.3
1,436.7
148.5
93.9
1,167.0
1,025.2
141.8
88.3
– 26.4
– 28.6
– 4.5
– 5.6
Profit before borrowing costs
and taxes
42.5
31.1
– 26.8
Profit before borrowing costs
and taxes
12.5
13.8
10.4
Assets held by Baloise
as at 31 December 2021
CHF million
Investments for own account and at own risk
Asset portfolio for the account and at risk
of life insurance policyholders and third parties
Total recognised assets
Third-party assets
as at 31 December 2022
CHF million
Investments for own account and at own risk
Asset portfolio for the account and at risk
of life insurance policyholders and third parties
Total recognised assets
Third-party assets
Non-life
Life
Asset
Management
& Banking
Total for
the Group
10,593.7
49,528.2
17,309.2
8,599.6
10,593.7
66,837.3
8,599.6
67,793.5
17,879.0
85,672.6
13,422.8
Non-life
Life
Asset
Management
& Banking
Total for
the Group
9,520.5
43,228.4
14,864.8
8,442.1
9,520.5
58,093.2
8,442.1
60,411.7
15,429.4
75,841.1
12,627.2
13
Baloise Group Annual Report 2022
Review of operating performance
Investment components in 2022
48.4 % Fixed-income securities
18.6 % Mortgage assets
14.1 % Investment property
7.0 % Policy loans and other loans
5.6 % Equities
3.4 % Cash and cash equivalents
2.1 % Alternative financial assets
0.8 % Derivates
Proprietary investments by category 1
31.12.2021
31.12.2022
+/– %
CHF million
Investment property
Equities
Alternative financial assets
8,464.5
3,946.4
1,236.9
8,495.1
3,378.7
1,240.7
Fixed-income securities
34,886.3
29,237.1
Mortgage assets
11,269.3
11,255.3
Policy loans and other loans
4,829.6
4,247.5
Derivatives
583.3
512.2
Cash and cash equivalents
2,577.3
2,045.1
Total
67,793.5
60,411.7
0.4
– 14.4
0.3
– 16.2
– 0.1
– 12.1
– 12.2
– 20.6
– 10.9
1 Excluding investments for the account and at the risk of life insurance policyholders
and third parties.
Continued expansion of third-party business
The existing growth trend remained intact in spite of the
generally difficult investment market. Net new assets in the
business with external customers amounted to CHF 960.0
million in 2022, which matched the volume of growth in the
prior year. Assets under management declined by 5.9 per
cent, from CHF 13.4 billion to CHF 12.6 billion, owing to market
conditions. Activities in the institutional investor business
included the successful launch of a private market strategy
for debt finance of infrastructure, in connection with which
the first transaction was completed in an amount of EUR
75 million. The Group-wide Baloise brand was launched in
the reporting period and, fittingly, collaboration between
Asset Management and Banking again contributed to the
volume of net new assets in 2022. We were entrusted with
14
the management of assets of CHF 268.5 million in the repor-
ting period.
An attractive investment for the past 160 years – Baloise
raises its dividend for the 13th time in 20 years, taking it
to CHF 7.40
Consolidated equity went down from CHF 5,021.0 million as
at 30 June 2022 to CHF 4,552.1 million at the end of 2022. As
communicated in August 2022, the significant rise in inte-
rest rates during the year led to downward adjustments of
the valuation of fixed-income investments. This in turn had
an adverse effect on equity from an accounting perspec-
tive. In the previous ten years, equity had generally grown
continuously due to falling interest rates and the resulting
higher valuation of investments with more attractive yields.
As expected, 2022 saw the inversion of this effect for the first
time in a while owing to the sustained increase in interest
rates. However, Baloise’s capital adequacy remains comfort-
able, as was evident when Standard & Poor’s reaffirmed its
rating of A+ for the Baloise Group in June 2022. It awarded
this credit rating in recognition of Baloise’s excellent capitali-
sation – which is comfortably above the AAA level according
to the S&P capital model – as well as its high operational
profitability, robust risk management and solid competitive
position in its profitable core markets. The complete report
is available at www.baloise.com/ratings.
In the Swiss Solvency Test (SST)*, a ratio of over 230 per
cent is expected as at 1 January 2023. The Board of Directors
of Bâloise Holding Ltd is optimistic about Baloise’s long-term
success in view of its strong operational profitability. It will
therefore propose to the 2023 Annual General Meeting that
the dividend be raised by CHF 0.40 to CHF 7.40 per share. This
means that Baloise will have raised its dividend a total of
13 times in the past 20 years. The average annual dividend
increase over the past ten years is over 5 per cent, underlining
that we are an attractive investment with long-term success.
* The SST ratio will be published at the end of April 2023.
Further growth through innovation, advancement of
the sustainable business strategy, first cost savings
achieved
In the first year of the new strategic programme, Simply Safe:
Season 2, Baloise gained around 173,000 new customers.
Ecosystem innovation initiatives played a major part in this
increase.
The innovation projects and the Home and Mobility
ecosystems generated revenue of CHF 82.5 million (2021:
CHF 70.4 million). Baloise’s digital insurer FRIDAY made a
significant contribution, with a premium volume of CHF 51.9
million. In local currency terms, FRIDAY grew by 5.9 per cent.
In addition, we are also seeing the first efficiency gains,
which – adjusted for growth – have amounted to around CHF
50 million since launch of the second phase of Simply Safe.
In 2022, existing sustainability criteria were tightened and
embedded in more of the Company’s business processes.
They were also reviewed from a quality and usability
Baloise Group Annual Report 2022 Review of operating performance
perspective. In this context, we are introducing more trans-
parent reporting on sustainability criteria in our underwriting
processes. With a view to the future, we updated our Respon-
sible Investment Policy to reflect the changing regulatory
environment and it came into effect on 1 January 2023. The
ESG ratings from MSCI and Sustainalytics improved once
again in 2022. Baloise now holds an AA rating from MSCI,
which is the second-highest level in MSCI’s rating system.
Sustainalytics lowered Baloise’s risk exposure again, and it
now stands at 20.4.
www.baloise.com/sustainability-ratings-2022
www.baloise.com/sustainability
In 2022, Baloise entered a new strategic phase, Simply Safe:
Season 2, which continues until 2025. We are building on the
successes of the first strategic phase and continuing to focus
our ambitious objectives on our stakeholders: customers,
shareholders and employees. By the end of 2025, we are
aiming to have gained a total of 1.5 million new customers,
to have generated CHF 2 billion in cash (of which 60–80
per cent is to be distributed as dividends), and to be in the
top 5 per cent of the best companies to work for in Europe.
A substantially expanded benchmark of companies from
various sectors across Europe was used to measure the latter
target in 2022. The baseline measurement places us in the
top 36 per cent of these companies.
Our Company is celebrating its 160th anniversary this
year. Over the past century and a half, Baloise has repeatedly
demonstrated its resilience and ability to adapt. We firmly
believe that this will help us to live up to the expectations of
all our stakeholders despite the impact of the war in Europe,
stubbornly high inflation and disrupted supply chains, and
we will continue to build on the successes we have achieved
in the past.
15
Baloise Group Annual Report 2022 Review of operating performance
Consolidated income statement
Five-year overview
CHF million
Income
Premiums earned and policy fees (gross)1
Reinsurance premiums ceded
Premiums earned and policy fees (net)
Investment income
Realised gains and losses on investments2
For own account and at own risk
For the account and at risk
of life insurance policyholders and third parties
Income from services rendered
Share of profit (loss) of associates
Other operating income
Income
Expense
Claims and benefits paid (gross)
Change in technical reserves (gross)
Reinsurance share of claims incurred
Acquisition costs
Operating and administrative expenses
for insurance business
Investment management expenses3
Interest expenses on insurance liabilities
Gains or losses on financial contracts
Other operating expenses3
Expense
2018
2019
2020
2021
2022
6,737.0
– 209.0
6,528.0
7,571.3
– 241.5
7,329.8
7,034.8
– 268.0
6,766.8
7,416.2
– 326.5
7,089.7
7,109.5
– 317.8
6,791.7
1,376.0
1,257.0
1,176.5
1,159.5
1,157.2
96.1
– 1,087.8
336.1
1,709.5
130.4
6.2
227.6
126.0
10.8
227.7
288.3
179.5
118.5
64.1
193.4
370.5
124.0
1,534.2
– 2,057.9
130.6
4.9
213.2
130.0
4.9
178.2
7,276.6
10,996.9
8,787.0
10,502.5
6,328.1
– 5,904.4
– 6,090.4
– 6,182.6
– 5,813.4
– 6,350.5
412.4
83.3
– 535.8
– 810.8
– 82.2
– 19.2
801.2
– 483.6
– 956.7
117.0
– 554.6
– 816.0
– 108.1
– 17.2
– 1,388.0
– 459.0
33.1
236.4
– 581.3
– 831.6
– 107.4
– 15.2
– 259.5
– 476.1
– 1,184.7
529.6
– 655.6
– 856.7
– 124.4
– 13.6
– 1,168.3
– 493.0
929.0
251.7
– 596.6
– 867.0
– 122.9
– 11.6
1,609.9
– 464.8
– 6,539.1
– 10,273.0
– 8,184.1
– 9,780.0
– 5,622.8
Profit before borrowing costs and taxes
737.5
723.9
602.9
722.5
705.3
1 In line with the accounting principles applied by the Baloise Group, investment-type insurance premiums are not included in premiums earned and policy fees.
2 Including financial liabilities held for trading purposes (derivative financial instruments).
3 The harmonisation of the recognition of investment administration costs caused a minor shift in the 2019 figures for other operating expenses and investment
management expenses.
16
Baloise Group Annual Report 2022
Review of operating performance
Five-year overview
CHF million
2018
2019
2020
2021
2022
Profit before borrowing costs and taxes
737.5
723.9
602.9
722.5
705.3
Borrowing costs
Profit before taxes
Income taxes
Profit for the period
Attributable to
Shareholders
Non-controlling interests
Earnings / loss per share
Basic (CHF)
Diluted (CHF)
Additional information insurance
CHF million
Gross premiums written and policy fees
Investment-type premiums
Total business volume
Investments for the account and at the risk
of life insurance policyholders
Net combined ratio
Funding ratio (non-life) (per cent)
– 39.9
697.6
– 174.7
522.9
523.2
– 0.3
11.14
11.12
– 37.7
686.2
3.3
689.5
694.2
– 4.7
15.02
14.99
– 34.3
568.6
– 140.3
428.3
434.3
– 6.1
9.65
9.63
– 24.7
697.9
– 114.6
583.3
588.4
– 5.1
13.06
13.05
– 22.4
682.9
– 138.4
544.5
548.0
– 3.5
12.13
12.12
2018
2019
2020
2021
2022
6,766.2
1,912.1
8,678.2
7,602.4
1,907.5
9,509.9
7,093.8
1,832.7
8,926.5
7,453.1
2,138.0
9,591.1
7,130.0
1,631.0
8,760.9
13,640.8
15,337.8
15,564.1
17,309.2
14,864.8
91.7
179.4
90.4
179.8
91.2
174.3
92.6
161.8
91.9
158.4
17
Baloise Group Annual Report 2022 Review of operating performance
Consolidated balance sheet
Five-year overview
as at 31.12.
CHF million
Assets
Property, plant and equipment
Intangible assets
Investments in associates
Investment property
Financial instruments with characteristics of equity
Financial instruments with characteristics of liabilities
Mortgages and loans
Derivative financial instruments
Other assets / receivables
Deferred tax assets
Cash and cash equivalents
Total assets
as at 31.12.
CHF million
Equity and liabilities
Equity
2018
2019
2020
2021
2022
318.3
1,041.2
221.1
7,904.0
14,137.9
33,775.1
16,396.2
914.8
2,036.6
73.5
362.8
1,034.7
387.4
8,120.1
16,232.9
36,749.0
16,812.9
1,048.1
2,184.3
97.4
466.2
1,155.4
263.4
8,410.3
16,539.8
37,078.9
17,014.9
1,089.1
2,254.7
87.9
419.5
411.5
1,180.4
1,405.9
316.0
344.7
8,464.5
8,495.1
19,172.0
16,275.9
36,961.5
31,384.2
16,098.9
15,502.8
902.1
812.9
2,317.0
2,329.0
73.7
217.9
4,036.1
3,988.0
4,004.0
4,073.5
3,370.2
80,854.8
87,017.8
88,364.5
89,979.0
80,550.1
2018
2019
2020
2021
2022
Equity before non-controlling interests
5,970.6
6,714.0
6,983.7
7,285.1
4,539.5
Non-controlling interests
Total equity
37.6
1.6
2.0
14.8
12.6
6,008.2
6,715.6
6,985.7
7,299.9
4,552.1
Liabilities
Gross technical reserves
Liabilities arising from banking business
and financial contracts
Derivative financial instruments
Other accounts payable
Deferred tax liabilities
Total liabilities
46,575.2
21,539.0
48,333.3
24,540.4
48,585.0
25,283.5
48,661.4
44,605.2
26,882.4
24,576.3
117.3
5,707.2
907.8
117.5
6,372.6
938.5
152.6
6,357.4
1,000.4
89.8
6,043.4
1,002.0
136.1
6,089.9
590.6
74,846.6
80,302.2
81,378.8
82,679.1
75,998.1
Total equity and liabilities
80,854.8
87,017.8
88,364.5
89,979.0
80,550.1
18
Baloise Group Annual Report 2022 Business volume, premiums and combined ratio
Review of operating performance
Business volume
2021
CHF million
Non-life
Life
Sub-total of IFRS gross premiums written 1
Investment-type premiums
Total business volume
2022
CHF million
Non-life
Life
Sub-total of IFRS gross premiums written 1
Investment-type premiums
Total business volume
1 Premiums written and policy fees (gross).
Group Switzerland
Germany
Belgium Luxembourg
4,063.4
3,389.7
7,453.1
2,138.0
9,591.1
1,392.7
2,727.8
4,120.6
119.4
4,239.9
821.0
397.9
1,218.9
187.5
1,406.4
1,644.3
189.3
1,833.7
468.8
2,302.5
148.5
74.5
223.0
1,362.2
1,585.3
Group Switzerland
Germany
Belgium Luxembourg
3,969.1
3,160.8
7,130.0
1,631.0
8,760.9
1,429.9
2,512.6
3,942.6
126.0
4,068.5
802.5
385.4
1,188.0
168.8
1,356.8
1,538.9
195.7
1,734.6
377.9
2,112.6
141.8
66.9
208.7
958.3
1,167.0
19
Baloise Group Annual Report 2022 Review of operating performance
Net combined ratio
2021
as a percentage of premiums earned
Claims ratio 1
Expense ratio
Combined ratio
2022
as a percentage of premiums earned
Claims ratio 1
Expense ratio
Combined ratio
1 Including the profit-sharing ratio.
Gross and net combined ratio
as a percentage of premiums earned
Claims ratio 1
Expense ratio
Combined ratio
1 Including the profit-sharing ratio.
Funding ratio (non-life)
CHF million
Technical reserve for own account 1
Premiums written and policy fees for own account
Funding ratio (per cent)
1 Not including capitalised settlement premiums.
20
Group Switzerland
Germany
Belgium Luxembourg
60.4
32.2
92.6
62.3
26.9
89.2
61.3
35.5
96.8
59.0
34.0
93.0
60.3
33.6
93.9
Group Switzerland
Germany
Belgium Luxembourg
60.1
31.8
91.9
65.7
26.3
92.0
58.5
35.0
93.5
57.9
34.2
92.1
54.7
33.6
88.3
Gross
Net
2021
2022
2021
2022
68.6
30.7
99.3
61.5
30.2
91.7
60.4
32.2
92.6
60.1
31.8
91.9
2021
2022
6,133.6
3,791.6
161.8
5,836.3
3,684.8
158.4
Baloise Group Annual Report 2022 Technical income statement
CHF million
Gross
Gross premiums written and policy fees
Change in unearned premium reserves
Premiums earned and policy fees (gross)
Claims and benefits paid (gross)
Change in technical reserves (gross)
Change in claims reserve / actuarial reserves 1
Change in other technical reserves
Technical expenses
Total technical result (gross)
Ceded to reinsurers
Reinsurance premiums ceded
Claims and benefits paid
Reinsurers' share of claims incurred
Change in other technical reserves
Technical expenses
Total technical result of ceded business
For own account
Premiums earned and policy fees
Claims and benefits paid
Change in claims reserve / actuarial reserves 1
Change in other technical reserves
Technical expenses
Total technical result for own account
Investment income (gross)
Realised gains and losses on investments 2
Investment management expenses
Other financial expenses and income
Gains or losses on investments
Profit before borrowing costs and taxes
Borrowing costs
Income taxes
Profit for the period (segment result)
Review of operating performance
Non-life
Life 3
2021
2022
2021
2022
4,063.4
– 36.9
4,026.5
3,969.1
– 20.5
3,948.7
3,389.7
3,160.8
–
–
3,389.7
3,160.8
– 2,541.8
– 2,518.8
– 3,271.6
– 3,831.8
– 208.7
– 19.1
108.9
– 35.4
– 1,262.3
– 1,215.1
– 591.3
– 365.5
– 344.2
– 5.5
288.3
– 1,183.0
1,227.4
– 372.0
– 331.9
– 147.4
– 279.1
318.8
179.2
0.0
28.8
247.7
– 280.9
362.6
– 140.0
0.0
25.5
– 32.8
– 47.4
13.1
4.3
14.2
0.9
– 15.0
– 36.9
11.3
8.0
9.9
0.2
– 7.6
3,747.4
3,667.8
3,342.3
3,123.9
– 2,223.0
– 2,156.2
– 3,258.5
– 3,820.4
– 29.5
– 19.1
– 31.1
– 35.4
– 1,233.5
– 1,189.6
242.3
151.9
32.6
– 32.4
– 90.6
61.6
303.9
– 0.3
– 32.9
270.7
255.5
157.3
29.6
– 28.5
– 92.3
66.1
321.7
– 0.2
– 74.5
247.0
– 587.1
– 351.3
– 343.4
– 1,197.9
936.1
1,235.3
– 362.1
– 331.7
– 155.0
928.4
1,873.9
– 1,865.7
– 111.5
– 1,093.9
1,604.7
406.7
– 10.2
– 74.4
322.1
– 104.7
1,573.7
531.7
376.7
– 10.2
– 50.7
315.8
1 Including change in reserve for claims handling costs.
2 Including financial liabilities held for trading purposes (derivative financial instruments).
3 Of which deferred gains / losses from other operating segments (31 December 2021: CHF – 2.5 million; 31 December 2022: CHF – 2.8 million).
21
Baloise Group Annual Report 2022 Review of operating performance
Gross premiums by sector
Gross premiums by sector (non-life)
CHF million
Accident
Health
General liability
Motor
Property
Marine
Other
Inward reinsurance
Gross premiums written (non-life)
Gross premiums by sector (life)
CHF million
Business volume generated by single premiums
Business volume generated by periodic premiums
Investment-type premiums
Gross premiums written (life)
2021
2022
+/– %
440.2
169.0
382.3
1,329.2
1,336.3
230.8
112.3
63.3
422.8
168.3
370.9
1,264.2
1,312.9
243.2
111.8
75.1
4,063.4
3,969.1
– 4.0
– 0.4
– 3.0
– 4.9
– 1.8
5.4
– 0.4
18.6
– 2.3
2021
2022
+/– %
2,971.9
2,555.9
2,346.5
2,445.3
– 2,138.0
– 1,631.0
3,389.7
3,160.8
– 21.0
– 4.3
– 23.7
– 6.8
22
Baloise Group Annual Report 2022 Review of operating performance
Banking activities
Profit or loss from banking activities
CHF million
Net interest income
Net fee and commission income
Trading profit
Other net income
Total operating income
Personnel expenses
General and administrative expenses
Total operating expenses
Gross profit
Net losses and impairment due to credit risk
Depreciation, amortisation and impairment of property, plant and equipment and of intangible assets
Profit before borrowing costs and taxes
Borrowing costs
Income taxes
Profit for the period (segment result)
Additional information
CHF million
Third-party assets
Asset allocation
CHF million
Investment property
Equities
Alternative financial assets
Fixed-income securities
Mortgage assets
Policy loans and other loans
Derivative financial instruments
Cash and cash equivalents
Total
2021
2022
77.3
66.8
0.2
13.6
78.6
60.8
– 0.1
12.7
158.0
152.0
– 69.6
3.6
– 66.0
92.0
– 4.4
– 5.1
82.5
0.0
– 12.0
70.4
– 86.5
7.9
– 78.7
73.3
– 0.4
– 9.4
63.5
0.0
– 9.9
53.6
31.12.2021
31.12.2022
13,422.8
12,627.2
31.12.2021
31.12.2022
–
15.1
–
–
17.8
–
114.0
109.1
6,956.8
7,124.7
169.5
10.3
1,333.8
195.2
72.4
922.9
8,599.6
8,442.1
23
Baloise Group Annual Report 2022 Review of operating performance
Investment performance
Alternative
financial
assets,
derivatives,
cash and
cash
equivalents
Mortgage
assets, policy
loans and
other loans
Total
Fixed-income
securities
Equities
Investment
property
551.3
– 137.0
111.0
152.2
286.4
239.6
203.0
– 6.3
7.8
1,159.5
122.1
370.5
2021 1
CHF million
Current income
Realised gains and losses
and impairment losses
recognised in profit or loss (net)
Change in unrealised gains and losses recognised
directly in equity
– 1,059.2
298.5
–
–
270.6
– 490.0
Investment management costs
Operating profit
Average investment portfolio
Performance (per cent)
– 54.8
– 699.7
– 7.3
554.4
– 28.0
498.0
– 14.7
182.0
– 8.3
392.2
– 113.2
926.8
34,989.3
3,760.5
8,437.4
16,556.9
4,196.1
67,940.2
– 2.0
14.7
5.9
1.1
9.3
1.4
1 Excluding investments for the account and at the risk of life insurance policyholders and third parties.
Alternative
financial
assets,
derivatives,
cash and
cash
equivalents
Mortgage
assets, policy
loans and
other loans
Total
Fixed-income
securities
Equities
Investment
property
563.0
– 317.8
110.7
153.7
279.7
242.7
188.4
– 78.0
15.3
123.5
1,157.2
124.0
2022 1
CHF million
Current income
Realised gains and losses
and impairment losses
recognised in profit or loss (net)
Change in unrealised gains and losses recognised
directly in equity
– 5,197.5
– 485.2
–
–
– 22.2
– 5,704.8
Investment management costs
Operating profit
Average investment portfolio
Performance (per cent)
– 55.9
– 5,008.2
32,061.7
– 15.6
– 6.7
– 227.5
3,662.6
– 6.2
– 28.1
494.3
– 9.6
100.8
– 10.1
– 110.4
106.5
– 4,534.0
8,479.8
15,800.9
4,097.7
64,102.6
5.8
0.6
2.6
– 7.1
1 Excluding investments for the account and at the risk of life insurance policyholders and third parties.
24
Baloise Group Annual Report 2022 Review of operating performance
2021
2022
Non-life
Life
Total
Non-life
Life
Total
36.9
33.4
1.1
62.2
6.6
12.3
– 0.6
248.5
77.1
9.0
487.7
56.5
58.5
– 1.2
285.4
110.5
10.1
549.9
63.1
70.8
– 1.8
36.5
32.8
3.1
67.3
6.1
11.6
0.0
242.6
77.5
13.0
494.5
51.6
49.4
– 0.3
279.1
110.2
16.1
561.8
57.8
61.0
– 0.3
151.9
936.1
1,088.0
157.3
928.4
1,085.7
2021
2022
Non-life
Life
Total
Non-life
Life
Total
18.2
48.5
13.6
– 39.8
– 0.4
1.9
– 9.5
32.6
219.8
103.6
65.1
– 97.2
– 0.4
19.2
62.4
238.0
152.1
78.7
28.9
46.8
14.7
213.7
106.9
67.5
242.6
153.7
82.1
– 137.0
– 58.6
– 259.2
– 317.8
– 0.7
21.1
52.9
–
– 0.6
– 1.6
29.6
0.0
– 2.7
12.9
139.1
0.0
– 3.3
11.4
168.7
372.5
405.1
2021
2022
Non-life
Life
Total
Non-life
Life
Total
1,008.6
1,136.4
347.0
7,443.9
2,787.0
889.9
8,452.6
3,923.4
1,236.9
1,036.8
775.7
407.4
7,446.2
2,575.1
833.3
8,483.0
3,350.8
1,240.7
5,697.3
29,074.3
34,771.6
5,112.5
24,015.1
29,127.5
465.5
1,575.1
21.1
342.7
3,847.0
4,243.8
548.3
693.9
4,312.5
5,818.9
569.5
1,036.5
443.0
1,415.8
17.4
312.0
3,687.6
3,587.6
421.9
661.6
4,130.6
5,003.4
439.3
973.6
10,593.7
49,528.2
60,121.9
9,520.5
43,228.4
52,748.9
Current income from insurance 1
CHF million
Investment property
Equities
Alternative financial assets
Fixed-income securities
Mortgage assets
Policy loans and other loans
Cash and cash equivalents
Total current income
Realised gains and losses in insurance 1
CHF million
Investment property
Equities
Alternative financial assets
Fixed-income securities
Mortgage assets
Policy loans and other loans
Derivative financial instruments
Total capital gains and losses
Asset allocation in insurance 1
as at 31.12.
CHF million
Investment property
Equities
Alternative financial assets
Fixed-income securities
Mortgage assets
Policy loans and other loans
Derivative financial instruments
Cash and cash equivalents
Total
1 Excluding investments for the account and at the risk of life insurance policyholders and third parties.
25
Baloise Group Annual Report 2022 Risk management
Risk management – a key pillar of our
value creation
Risk management system and risk culture
Compliance with regulatory obligations and
disclosure requirements
Risk management
Sustainability risks and climate risks
Inclusion of sustainability criteria in our
investment and underwriting policy
External view of capitalisation and risk management
28
29
29
29
30
30
31
27
Baloise Group Annual Report 2022 Risk management
Risk management – a key pillar of our
value creation
Risk management objectives
● Identification and measurement of key risks
● Compliance with all external requirements regarding
Impact of value creation
● Understanding current and future risks
● Ensuring stability and the proper functioning of
risk management
business operations at Baloise
● Carefully considered management of opportunities,
● Enhancing risk awareness at all levels of the
taking account of the risks
organisational structure
● Providing transparency about risks taken
● Reducing sustainability and climate risks and
contributing to society and environmental protection
in positive ways
● Risk measurement
At Baloise, risk is identified and quantified in all busi-
ness and financial processes according to common
internal standards. This enables appropriate priorities
to be set for our senior management in respect of the
risks taken on.
● Risk processes
Leadership, reporting and evaluation processes are
supported by risk processes in order to ensure that the
risk perspective is factored into all important business
decisions.
● Risk reporting
Risk reporting ensures that the current risk situation
is presented transparently in our internal and external
communications.
● Risk management
Risks are managed and mitigated carefully in keeping
with the defined risk tolerance. Upside potential is opti-
mised with due consideration of the risks, resulting in
sustainable value creation for Baloise’s investors.
Sustainability risks – including climate risks – are identified
along the risk map and integrated into the existing risk
management processes and frameworks. This ensures that
the results of our regular analyses and assessments are
incorporated into our strategic risk management approach.
● Involvement of our employees from different
departments and operating segments in the risk
management system
● Active communication about the risk situation
● Integration of sustainability risks and climate risks into
the risk management system and in the investment
and underwriting process
Risk management is a key element of a sustainability-
focused corporate governance system and, as such, plays an
important role at Baloise in adding value for all our stakehol-
ders. It helps to ensure a strong balance sheet, a high level of
operational profitability, a well-developed risk culture, consis-
tent risk processes and a sustainable investment policy. The
main tasks of risk management are to satisfy the statutory,
regulatory and other external requirements applicable to
Baloise and to optimise the risk/return ratio with the aim
of maintaining and increasing value for our stakeholders in
the long term.
Our risk management system plays an important role
in the overall value creation process. It involves managing
risk and value alike and is based on innovative standards so
that we can always keep our promise to customers. Our risk
management is a standardised strategic and operational
system that is applied throughout the Baloise Group and
covers the following areas:
● Risk governance and risk culture
Standards that apply across the Group form the back-
bone of Baloise’s risk strategy and define – in the form
of a risk map – the fundamental risk issues, such as
actuarial risk and market risk, as well as the opera-
tional risk arising from business activities. The detailed
risk map can be found on pages 126 and 127 of the 2022
Financial Report. Risk awareness – i. e. a sense of readi-
ness to detect and respond to risks – is encouraged
and embedded throughout the organisation. One way
in which we achieve this is by involving our employees
from different departments and operating segments in
the risk management system (e. g. in the assessment of
risks and in the allocation of responsibility for risks).
28
Baloise Group Annual Report 2022 Risk management system and risk culture
The end-to-end risk management system and risk culture
ensure that all material risks are identified, measured and
adequately addressed. Risks that have been taken on are
consciously managed and unwanted risks are actively
reduced for Baloise and for its stakeholders.
A key part of our risk management system is the identifi-
cation and assessment of risks. Group-wide individual risks
are plotted on the risk map according to their likelihood and
their expected impact. A corporate database of specific risks
– containing a detailed description of the risks concerned,
their position on the risk map, early-warning indicators
and their evaluation – is generated from this standardised
process. Risks are documented together with the measures
needed to mitigate them. Clear responsibilities are defined
across all departments. Each risk is assigned to a risk owner
(with overall responsibility) and to a separate risk controller
(responsible for risk monitoring and control). Based on this
database, which is regularly updated, it is possible to check
whether the risks that have been taken on are within the
limits of acceptable risk. This allows unwanted risks with
possible negative consequences for Baloise and its stake-
holders to be identified at an early stage and mitigated in
a targeted manner. Strategic decision-makers are brought
into the risk assessment process, along with system mana-
gers, process managers and specialists, which creates risk
awareness and a risk culture among our employees.
Compliance with regulatory obligations and
disclosure requirements
By complying with regulatory obligations and disclosure
requirements in risk management, Baloise demonstrates
that it is a reliable partner to regulatory authorities, custo-
mers, investors and society.
Baloise meets various regulatory obligations such as
the Swiss Solvency Test (SST), Solvency II, the Own Risk and
Solvency Assessment (ORSA) and the requirements for internal
control systems. This helps it to monitor risk and provide
regular reports on its risk and solvency situation to the regu-
lators. Fulfilment of these requirements ensures that Baloise
reduces unwanted risks to the greatest possible extent and
remains solvent even under adverse circumstances so that
we can always meet our obligations to customers.
The calculation methods stipulated by the Swiss Solvency
Test and the Solvency II guidelines provide the basis for the
quantitative risk measurement of all business and financial
market risks. This combination of quantitative risk measu-
rement and analysis of specific risks as described above
ensures that we have an adequate overview of the prevai-
ling risk situation at all times. The overall risk situation is
presented in the Own Risk and Solvency Assessment and
discussed with the decision-makers as a basis for developing
appropriate action plans.
Risk management
The purpose of the internal control system is to ensure
compliance with laws and regulations, the reliability of the
financial reporting and the effectiveness of the business
processes in order to support the Company in achieving
its goals. In implementing the internal control system, we
are pursuing a strategy of increasing risk awareness at all
levels of the Company and focusing on the identification and
management of key risks faced by the Company that could
pose a threat to the proper functioning of business opera-
tions and thus to the success of the Company. Using the
internal control system, we can identify risks for our stake-
holders at an early stage and effectively mitigate them.
Disclosures made in the financial condition report (Baloise
Group and its Swiss companies) and the Solvency and Finan-
cial Condition Report (European Economic Area) inform the
market, investors and customers about the most important
findings of the quantitative solvency measurement and thus
the capital strength and the risks taken. This reporting also
promotes market discipline and thus also the stability of the
financial sector.
Our risk management team proactively participates in
discussions with our partners, thereby contributing to society
and to a better understanding of the future risks for the
insurance industry. Baloise is a member of the Swiss Insu-
rance Association (SVV), for example. At Baloise, we fulfil our
responsibilities through our work with the association, and
also in direct cooperation with the regulatory authorities, by
providing support in the form of data, analyses and assess-
ments for industry surveys about specific issues and for use
in the ongoing development of the regulatory system.
Risk management
The ongoing optimisation of income through risk/return
criteria as part of strategic risk management will secure
the long-term stability of Baloise and be of benefit to our
customers and investors.
Our risk models, which use quantitative methods to assess all
business risks and financial market risks in all strategic units,
form the basis for strategic discussions about risk appetite.
Strategic risk management within the scope of the defined
risk appetite offers a clear picture of the risks involved in
opening up new business lines and of how to optimise the
risk/return profile of existing business. In the area of invest-
ment, for example, we aim to achieve the highest possible
expected return with the lowest possible risk. This will ensure
long-term stability, benefiting both our customers and our
investors.
29
Baloise Group Annual Report 2022 Risk management
Sustainability risks and climate risks
As the integration of sustainability risks and climate risks
into our risk management framework progresses, our risk
profile is becoming more nuanced. Over the long term, the
inclusion of sustainability aspects in risk-related strategic
considerations will improve the creation of value for our
customers and investors and will reduce the Company’s
environmental impact.
In order to facilitate an efficient assessment from diffe-
rent angles and over different periods of time, sustainability-
related risks are integrated into the existing risk processes
at Baloise. To this end, sustainability risks are classified as
pertaining to the environmental, social or corporate gover-
nance (ESG) dimensions. They are identified, recorded and
assessed along the risk map within the established risk
categories used by insurance companies, banks and asset
management companies (e. g. actuarial risk, credit risk and
market risk). Another key risk category considered is climate
risk. In addition, sustainability aspects that are of strategic
relevance in terms of risk are addressed as a separate risk
type in the context of the business strategy.
Although we predominantly evaluate sustainability risks
on a qualitative basis, there are also established quantita-
tive processes and methods at Baloise – including natural
disaster analysis – that we regularly use in collaboration with
our reinsurance brokers.
To integrate sustainability aspects, we first identified
various sustainability risk clusters (e. g. storm and flood disas-
ters) and, working closely with the underwriting, investment
and actuarial departments, used the findings to determine
any potential or actual risks. We then added the material
risks identified by means of this process to our Group-wide
frameworks. These are evaluated as part of the Own Risk and
Solvency Assessment. In this context, we analyse sustain-
ability risks and climate risks over short-term (approximately
one year), medium-term (approximately one to five years)
and long-term (more than five years) periods. This evalua-
tion is integrated into the usual ORSA risk measurement
processes. The resulting risk situation is discussed in detail
with the Corporate Executive Committee and its commit-
tees – primarily the Risk Committee – and signed off by the
Board of Directors.
Based on the commonly used typology, the following
sustainability-related risks have been identified:
● Physical risks
Although physical climate risks that may arise in
the short term, such as natural disasters, are largely
mitigated by reinsurance or the recognition of
adequate capital reserves, climate change is a key
factor driving medium-term and long-term risks arising
from the increasing prevalence of natural phenomena
such as hurricanes, floods, hailstorms and fires. Chronic
risks with long-term effects – such as rising sea levels
– represent potential emerging risks, especially as they
are expected to have an adverse impact on invest-
ments and insured business in low-lying regions.
● Transition risks
In the short term, changes in the expectations of stake-
holders with regard to sustainability – and the resulting
shift in demand for financial and insurance products
– will create competition risks if we at Baloise do not
respond appropriately to these changes. Moreover,
an unexpectedly strong shift in demand in respect of
certain companies or sectors in which we have invested
could lead to market risks (stranded assets). There is a
risk in the medium term that these circumstances are
not adequately factored into strategic decisions and
that suitable adjustments are not made to our product
range. It is also important to consider technological
developments in connection with the transition to a
lower-carbon economy.
● Liability risks
Particularly in the long term, risks may arise for Baloise
if companies are increasingly held liable for the envi-
ronmental damage that they cause (e. g. due to pollu-
tion, endangering of biodiversity or breaches of envi-
ronmental standards).
The integration of sustainability risks into existing risk
management processes ensures that the results of regular
analyses and assessments are incorporated into our stra-
tegic risk management approach and that this approach
is adequate for dealing with these risks. In addition, general
risk awareness is strengthened through the involvement of
our employees from different departments and operating
segments. This ongoing integration of sustainability risks
and climate risks into our management of risk constitutes an
important step in implementing the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD).
Inclusion of sustainability criteria in our
investment and underwriting policy
By embedding sustainability criteria in our investment and
underwriting policy as part of our strategy, the risks for our
customers and investors are reduced and opportunities
are identified so that a positive contribution to society and
environmental protection can be achieved.
By integrating ESG factors into our investment process,
we at Baloise are making a positive contribution to the
environment, society, investors and customers. This is being
achieved as part of Baloise’s responsible investment stra-
tegy, which incorporates the climate strategy and active
ownership strategy applicable to asset management at
Baloise. We are reducing investment risks in the long term by
investing in companies whose management of ESG risks is
30
Baloise Group Annual Report 2022 categorised as good to excellent. These companies are more
resilient in times of crisis and, in particular, can minimise
downside risks. This benefits the environment and society as
a whole, as these companies reduce their negative impact or
even generate a positive impact. Our customers and inves-
tors benefit indirectly from the positive impact on society as
a whole and directly from the long-term positive effects of
this investment strategy on the risk/return ratio.
www.baloise.com/sustainability
Our underwriting policy also increasingly takes account of
sustainability criteria, especially in new insurance business
with industrial and large corporate customers. In addition,
Baloise sees itself as a reliable partner for customers whose
business model is currently undergoing a transformation.
We have launched a process in product management that
identifies market-specific opportunities in the field of sustai-
nability that can then be addressed through products and
services. This allows us to make a positive contribution to
society and environmental protection through our core busi-
ness (see chapter ‘Environment / responsible underwriting’,
page 93 onwards).
External view of capitalisation and risk
management
Baloise’s capitalisation, which has a positive impact on the
security of investors and customers, is also highly rated
outside the Company.
The Standard & Poor’s rating of ‘A + with a stable outlook’ is
evidence that our excellent capitalisation is also recognised
by third parties. Standard & Poor’s also takes a favourable
view of our strategic risk management, risk culture and risk
controls. These are aspects that have a positive impact on
the security of our investors and our customers.
www.baloise.com/risk-management
Risk management
31
Baloise Group Annual Report 2022 Corporate
Governance
Corporate Governance Report
1. Structure of the Baloise Group and
shareholder base
2. Capital structure
3. Board of Directors
4. Corporate Executive Committee
5. Remuneration, shareholdings and loans
6. Shareholder participation rights
7. Changes of control and poison-pill measures
8. External auditors
9. Information policy
Appendix 1: Remuneration Report
Appendix 2: Report of the external auditor for the
Annual General Meeting of Bâloise Holding Ltd, Basel
33
34
35
37
46
48
48
49
49
50
53
77
33
Baloise Group Annual Report 2022 Corporate Governance
Corporate Governance Report
Baloise is a company that adds value, and, as such, we attach great
importance to practising sound, responsible corporate governance.
Operating in line with the requirements of economiesuisse’s
Swiss Code of Best Practice and the SIX Swiss Exchange
Corporate Governance Guidelines, Baloise strives to foster a
corporate culture of high ethical standards that emphasises
the integrity of the Company and its employees. Baloise
firmly believes that high-quality corporate governance has
a positive impact on its performance.
This chapter reflects the structure of the SIX Corporate
Governance Guidelines as amended on 29 June 2022 in order
to improve comparability with previous years and with other
companies. It includes the requirements of economiesuisse’s
Swiss Code of Best Practice for Corporate Governance, which
contains recommendations on the remuneration paid to the
Board of Directors and the Executive Committee. In item 5
of its Corporate Governance Report, Baloise publishes the
principles used to determine the content and scope of the
disclosures on remuneration in the Remuneration Report
(Appendix 1 to the Corporate Governance Report, page 53
onwards).
The information contained in the Corporate Governance
Report refers to the situation on the balance sheet date
(31 December 2022). Additional reference is made to material
changes occurring between the balance sheet date and the
print deadline for the Annual Report.
Sustainable business management plays an important
role at Baloise. In addition to the information provided in
the Corporate Governance Report, governance structures –
both general and relating to specific areas – are described
in more depth in the sustainability section of the Company’s
Annual Review.
1. Structure of the Baloise Group and
shareholder base
Structure of the Baloise Group
Headquartered in Basel, Switzerland, Bâloise Holding Ltd is
a public limited company that is incorporated under Swiss
law and listed on the Swiss Exchange (SIX). The Baloise
Group had a market capitalisation of CHF 6,535.7 million as
at 31 December 2022.
● Information on Baloise shares can be found in the
Annual Review from page 40 onwards.
● Significant subsidiaries, joint ventures and associates
as at 31 December 2022 can be found from page 226
on wards in the notes to the consolidated annual
financial statements, which form part of the Financial
Report.
● Segment reporting by region and operating segment
can be found from page 165 onwards in the notes to
the consolidated annual financial statements within
the Financial Report.
● The Baloise Group’s operational management structure
is presented on page 48 onwards.
Shareholder base
As a public company with a broad shareholder base, Bâloise
Holding Ltd is a member of the SMI Mid (SMIM) Index.
Capital structure
A total of 27,343 shareholders were registered in Bâloise
Holding Ltd’s share register as at 31 December 2022. The
number of registered shareholders had increased by 2.8
per cent compared with the previous year. The ‘Significant
shareholders’ section on page 251 provides information
on the structure of the Company’s shareholder base as at
31 December 2022.
The reports that were submitted to the issuer and to SIX
Swiss Exchange AG’s disclosure office during the reporting
year in compliance with article 120 of the Federal Act on
Financial Market Infrastructures and Market Conduct in Secu-
rities and Derivatives Trading (FinfraG) and were published
on the latter’s electronic reporting and publication platform
in compliance with article 124 FinfraG can be viewed using
the search function at www.six-exchange-regulation.com/
en/home/publications/significant-shareholders.html.
34
Baloise Group Annual Report 2022 Corporate Governance
Treasury shares
Bâloise Holding Ltd held (directly and indirectly) 311,418
treasury shares (0.7 per cent of the issued share capital) as
at 31 December 2022.
Bâloise Holding’s equity
The table below shows the changes in equity during the last
three reporting years.
Cross-shareholdings
There are no cross-shareholdings based on either capital
ownership or voting rights.
2. Capital structure
Dividend policy
Bâloise Holding Ltd pursues a policy of paying consistent,
earnings- related dividends. It uses other dividend instru-
ments such as share buy-backs to supplement conven-
tional cash dividends. Shareholders have received a total of
CHF 1,994.8 million from cash dividends and share buy-backs
over the last five years.
Cash dividends
Share
buy-backs
Year (CHF million)
2018
2019
2020
2021
2022
Total
292.8
312.3
312.3
320.6
338.9 1
1,576.9
135.1
190.0
92.8
–
–
All figures stated as at 31 December.
1 Proposal to the Annual General Meeting on 28 April 2023.
417.9
1,994.8
Total
427.9
502.3
405.1
320.6
338.9
Changes in Bâloise Holding Ltd’s equity
(before appropriation of profit)
31.12.2020
31.12.2021
31.12.2022
4.9
11.7
9.2
922.3
372.5
– 491.3
829.3
4.6
11.7
7.6
502.8
391.6
– 9.3
909.1
4.6
11.7
7.8
573.6
407.4
– 8.1
997.0
CHF million
Share capital
General reserve
Reserve for treasury
shares
Free reserves
Distributable profit
Treasury shares
Equity
attributable to
Bâloise Holding Ltd
Since the capital reduction decided on 30 April 2021, the
share capital of Bâloise Holding Ltd totals CHF 4.58 million
and is divided into 45,800,000 dividend-bearing registered
shares with a par value of CHF 0.10 each.
Authorised and conditional capital;
other financing instruments
Authorised capital
A resolution adopted by the Annual General Meeting on
30 April 2021 has authorised the Board of Directors until
30 April 2023 to increase the Company’s share capital by up
to CHF 400,000 by issuing up to 4,000,000 fully paid-up
registered shares with a par value of CHF 0.10 each (see
article 3 [4] of the Articles of Association). The company law
reform that came into effect on 1 January 2023 replaces
authorised capital with the concept of the capital band.
The Annual General Meeting on 28 April 2023 will be asked to
delete the provision relating to authorised capital from the
Articles of Association and introduce a capital band with a
floor of CHF 4,122,000 and a ceiling of CHF 5,038,000, valid
until 28 April 2028.
www.baloise.com/rules-regulations
35
Baloise Group Annual Report 2022 Corporate Governance
Conditional capital
Conditional capital has also been created that enables the
Company’s share capital to be increased by up to 5,530,715
registered shares with a par value of CHF 0.10 each (see
article 3 [2] of the Articles of Association). This constitutes
a nominal share capital increase of up to CHF 553,071.50.
Conditional capital is used to cover any option rights or
conversion rights granted in conjunction with bonds and
similar securities. Shareholders’ pre-emption rights are disap-
plied. Holders of the pertinent option rights and conversion
rights are entitled to subscribe for the new registered shares.
The Board of Directors may restrict or disapply shareholders’
pre-emption rights when issuing warrant-linked bonds or
convertible bonds in international capital markets (see
article 3 [3] of the Articles of Association).
www.baloise.com/rules-regulations
Upper limit for the disapplication of pre-emption rights
The Annual General Meeting on 28 April 2023 will be asked to
include a new provision in the Articles of Association limiting
to 10 per cent the total number of registered shares that will
be issued from the conditional capital and from the capital
band, in each case disapplying or limiting shareholders’
pre-emption rights.
Other equity instruments
The Company has no profit-participation certificates.
The Baloise Group’s consolidated equity
The Baloise Group’s consolidated equity amounted to
CHF 4,552.1 million on 31 December 2022. Details of changes
in consolidated equity in 2021 and 2022 can be found in the
consolidated statement of changes in equity on pages 88
and 89 in the Financial Report. All pertinent details relating to
2020 can be found in the consolidated statement of changes
in equity on page 90 in the 2021 Annual Report.
Bonds outstanding
Bâloise Holding Ltd and Baloise Life Ltd (with Bâloise Holding
Ltd acting as guarantor) have issued bonds publicly. As at
the end of 2022, a total of 14 public bonds were outstanding.
On 19 January 2023, Bâloise Holding Ltd placed a further
green bond in an amount of CHF 175 million. Details of
outstanding bonds can be found on pages 210 and 249 and
on the website.
www.baloise.com/bonds
Credit rating
On 15 June 2022, the credit rating agency Standard & Poor’s
confirmed its rating for the Baloise Group’s core companies
of A + with a stable outlook. Standard & Poor’s awarded this
credit rating in recognition of Baloise’s excellent capitalisa-
tion – which is comfortably above the AAA level according
to the S&P capital model – as well as its high operational
profitability, robust risk management and solid compet-
itive position in its profitable core markets. Information
about the ratings of Bâloise Holding Ltd and its subsidiaries
Baloise Belgium NV (Belgium), Baloise Sachversicherung AG
(Germany), Baloise Insurance Ltd (Switzerland) and Baloise
Life Ltd (Switzerland) can be found on the website.
www.baloise.com/rating
3. Board of Directors
Election and term of appointment
The Board of Directors consisted of ten members last year.
Each member of the Board of Directors has been elected for
a term of one year at a time. As at 31 December 2022, the
average age on the Board of Directors was 58. The average
term of office is 3.6 years.
The Organisational Regulations state that the term of
appointment for members of the Board of Directors usually
ends at the Annual General Meeting that follows the member’s
70th birthday (age limit).
Members of the Board of Directors
All members of the Board of Directors (including the Chairman)
are independent and are non-executives. They were not
involved in the day-to-day management of any Baloise Group
companies in any of the three financial years immediately
preceding the reporting period, and they maintain no mate-
rial business relationships with the Baloise Group.
During the reporting year, Dr Thomas von Planta,
Christoph Mäder, Christoph B. Gloor, Hugo Lasat, Dr Karin
Lenzlinger Diedenhofen, Dr Markus R. Neuhaus, Professor
Hans-Jörg Schmidt-Trenz and Professor Marie-Noëlle Venturi
- Zen-Ruffinen were re-elected as members of the Board of
Directors for a one-year term until the end of the next Annual
General Meeting. Dr Maya Bundt and Claudia Dill were newly
elected to the Board of Directors, also for a one-year term
until the end of the next Annual General Meeting.
All members of the Board of Directors will be standing for
re-election at the Annual General Meeting on 28 April 2023.
Further information on the members of the Board of Direc-
tors can be found on the website.
www.baloise.com/board-of-directors
36
Baloise Group Annual Report 2022 Corporate Governance
Members
Dr Thomas von Planta, Chairman (since 2021),
Zurich
Christoph Mäder, Vice-Chairman (since 2022),
Hergiswil
Dr Maya Bundt, Adliswil
Claudia Dill, Zufikon
Christoph B. Gloor, Riehen
Hugo Lasat, Kessel-Lo (B)
Dr Karin Lenzlinger Diedenhofen, Wermatswil
Dr Markus R. Neuhaus, Zollikon
Prof. Dr Hans-Jörg Schmidt-Trenz, Hamburg (D)
Prof. Dr Marie-Noëlle Venturi - Zen-Ruffinen,
Crans-Montana
C: Chair, DC: Deputy Chair, M: Member.
Strategy and
Governance
Committee
Investment
and Risk
Committee
Remune-
ration
Committee
Audit
Committee Nationality
Born in
Appointed
in
C
DC
M
M
C
M
M
DC
C
M
M
DC
CH
1961
2017
CH
1959
2019
M
D/CH
CH
CH
B
CH
CH
D
CH
C
M
DC
1971
1966
1966
1964
1959
1958
1959
1975
2022
2022
2014
2016
2021
2019
2018
2016
37
Baloise Group Annual Report 2022 Corporate Governance
Diversity on the Board of Directors
Per cent
Professional background / experience / expertise *
Nationality **
Insurance
Banking
Legal and governance
Risk management
CEO
30
30
30
30
60
Term of appointment
Gender
Switzerland: 75
Germany: 15
Belgium: 10
< 5 years: 40
5–10 years: 60
> 10 years: 0
Men: 60
Women: 40
* More than one category may apply
** One Board member has two nationalities. Each of these nationalities is counted as
a half in the chart.
Statutory rules concerning the number of permitted
activities
The Articles of Association contain a provision (article 33)
concerning the maximum number of directorships that can
be held outside the Company. Subsection 1 stipulates that
the number of external directorships held by members of
the Board of Directors or Corporate Executive Committee
must be compatible with the commitment, availability,
capabilities and independence necessary for the perfor-
mance of their duties as members of the Board of Directors
or Corporate Executive Committee. Subsection 3 specifies
numerical restrictions. Subsection 2 defines directorships
as seats on the supreme governing bodies of legal entities
external to the Company that are required to be registered
in the commercial register. The company law reform that
came into effect on 1 January 2023 has altered the legal
requirement to include directorships held by members of
the Board of Directors or Corporate Executive Committee in
comparable functions in other companies with a commercial
purpose. The Annual General Meeting on 28 April 2023 will
be asked to amend article 33 of the Articles of Association
concerning directorships in companies outside the Baloise
Group accordingly. In this Annual Report, directorships are
disclosed in accordance with both the currently applicable
and future provisions of the Articles of Association and in
accordance with the SIX Corporate Governance Guidelines.
38
Interlocking directorates
There are no interlocking directorates.
Internal organisation
Functions and responsibilities of the Board of Directors
Subject to the decision-making powers exercised by
shareholders at the Annual General Meeting, the Board of
Directors is the Company’s ultimate decision-making body.
Decisions are taken by the Board of Directors unless, on the
basis of the Organisational Regulations, authority on the
matter is delegated to the Chairman of the Board of Direc-
tors, its committees, the Group CEO or the Corporate Exec-
utive Committee.
Article 716a of the Swiss Code of Obligations (OR) and
section A3 of the Organisational Regulations state that the
Board of Directors’ main functions and responsibilities are to
act as the Company’s ultimate managerial and supervisory
body, to oversee the Company’s finances and to determine
its organisational structures.
www.baloise.com/rules-regulations
Information on the Board of Directors’ role in corporate
social and environmental responsibility can be found on
page 97 onwards in the Company’s Annual Review.
The Chairman of the Board of Directors chairs the meet-
ings of both the Board of Directors and the Strategy and
Governance Committee. He also chairs the Investment and
Baloise Group Annual Report 2022 Risk Committee. He represents the Company externally
and, acting in this capacity, maintains contact with inves-
tors, government agencies, trade associations and other
Baloise stakeholders. The Chairman of the Board of Directors
maintains close contact with the Group CEO. He attends
the meetings of the Corporate Executive Committee when
appropriate, for example whenever matters of strategic or
long-term importance are being discussed. He ensures that
the decisions of the Board of Directors are implemented by
the Corporate Executive Committee and, conversely, that
the Board of Directors is kept informed on all matters of
material importance to the decision-making and monitoring
process at Baloise.
The Board of Directors has a Vice-Chairman who is an ex
officio member of the Strategy and Governance Committee
(see section C2.2 of the Organisational Regulations); he is
also the Chairman of the Remuneration Committee. The
Chairman of the Audit Committee is also a member of the
Strategy and Governance Committee. The heads of the
control functions (Risk Management, Compliance, Group
Internal Audit and the appointed Actuary) report to him, as do
the external auditors. The Chairman of the Audit Committee
has powers that enable him to ensure the independence
of the control functions. The members of the Strategy and
Governance Committee have the right to convene a meeting
at any time. If necessary, the Board of Directors can appoint
an experienced member of the Board of Directors as Lead
Director in order to ensure the independence of the Board
of Directors as a governing body (see section A 3.7 of the
Organisational Regulations).
Committees of the Board of Directors
The Board of Directors has four committees, which support
it in its activities. These committees report to the Board of
Directors and submit proposals and motions. The Investment
and Risk Committee and the Remuneration Committee have
their own decision- making powers.
The committees appointed by the Board of Directors
generally consist of four members, who are newly elected
every year by the Board of Directors. Article 733 OR requires
the members of the Remuneration Committee to be individ-
ually elected by the Annual General Meeting. The Chairman
and Vice-Chairman of the Board of Directors are ex officio
members of the Strategy and Governance Committee. The
Chairman of the Board of Directors is not allowed to sit on
the Audit Committee. The committees’ basic functions and
responsibilities are specified in the Organisational Regula-
tions. Additional specific regulations applicable to individual
committees govern administrative and other aspects.
Functions and responsibilities of the committees
The Strategy and Governance Committee monitors the
progress of strategy and sustainability matters on behalf
of the Board of Directors. The Board of Directors is respon-
sible for both areas (in the case of strategy, this is mandated
by article 716a OR) and, where required, adopts the rele-
Corporate Governance
vant resolutions. The Strategy and Governance Committee
prepares nominations within the parameters of the Board
of Directors’ responsibility for nominations and elections.
The Investment and Risk Committee supports the Board of
Directors in the areas of investment management, capital
management and risk management. It oversees investment
activities and assesses capital adequacy and asset and
liability management as part of its overall review of financial
risks. Key influencing factors (such as solvency, cover assets
and reserves) are now taken into account in the committee
when reviewing asset management.
The committee reviews the risk strategy and risk appetite
of the Group for the attention of the Board of Directors and
takes note of risk reports (function to be taken over by the
Audit Committee after the 2023 Annual General Meeting).
The Remuneration Committee proposes to the Board of
Directors – for subsequent approval by the Annual General
Meeting – the structure and amount of remuneration paid
to the members of the Board of Directors and of the salaries
paid to the members of the Corporate Executive Committee.
Under article 735 OR, the remuneration paid to the Board
of Directors and the Corporate Executive Committee has
to be approved by the Annual General Meeting. The Remu-
neration Committee approves the target agreements and
performance assessments that are applied to the Corporate
Executive Committee members in order to determine their
variable remuneration. It also sanctions the remuneration
policies applicable to the Corporate Executive Committee
members and ensures that they are being correctly imple-
mented. It approves the variable remuneration granted to
individual members of the Corporate Executive Committee;
this remuneration has to be within the maximum amount
approved by the Annual General Meeting. Furthermore, it
specifies the total amount available in the performance pool.
The Remuneration Committee is elected by and reports to
the Annual General Meeting.
The Audit Committee supports the Board of Directors in
its supervision of accounting, financial and regulatory
reporting, and compliance with statutory provisions. Only
independent members of the Board of Directors may sit
on the Audit Committee, which receives the reports from
the various control functions (such as the external auditors,
Internal Audit, Compliance and Risk Management).
39
Baloise Group Annual Report 2022 Corporate Governance
Meetings of the Board of Directors and its committees
The Organisational Regulations stipulate that the full Board
of Directors must meet as often as business requires, but no
fewer than four times a year.
www.baloise.com/rules-regulations
The full Board of Directors of Bâloise Holding Ltd met
on six occasions in 2022. Each one of these meetings was
attended by the full complement of members. All members
of the relevant committee in each case attended every
one of the additional 20 committee meetings. This means
that the Board of Directors achieved an overall meeting
atten-dance rate of 100 per cent. Meetings of the Board of
Directors usually last a full working day, while the meetings
of its committees last either half a working day or a full
working day.
The Strategy and Governance Committee convened eight
times in 2022, which included one two-day strategy meeting.
The Investment and Risk Committee met on four occasions.
The Audit Committee held five meetings, and the Remuner-
ation Committee convened three times.
Meetings of the Board of Directors are regularly attended
by members of the Corporate Executive Committee. Meet-
ings of the Strategy and Governance Committee are usually
attended by the Group CEO and the Head of Corporate Divi-
sion Finance. Those present at Audit Committee meetings
are the Head of Corporate Division Finance, the Head of
Group Internal Audit and, occasio nally, representatives of the
external auditors and the heads of control functions such as
Risk Management and Compliance. The main attendees at
Remuneration Committee meetings are the Group CEO, the
Head of Group Human Resources and the Head of Compen-
sation and Benefits. Meetings of the Investment and Risk
Committee are usually attended by the Group CEO and
the heads of Corporate Division Asset Management, Asset
Strategy and Investment Control, Corporate Division Finance
and Group Risk Management. The Secretary to the Board of
Directors attends all meetings of the full Board of Directors
and those of its committees.
Self-evaluation
Every year, a comprehensive self-evaluation is carried out in
the full Board of Directors and in all committees. The results
are then discussed in each body.
Training and development
The members of the Board of Directors participate in a
multi-day introductory programme in preparation for
a new role on the board and/or committee and then receive
ongoing training (at least once a year) in half-day semi-
nars on specific topics. In 2022, two long-serving members
stepped down from the Board of Directors. The resulting
changes in the committees necessitated a number of intro-
ductory programmes for the new committee chairmen and
members. Two seminars were held for the Board of Directors
on cyber security and IFRS Accounting Standards 17/9.
Succession planning
There are changes to the Board of Directors on an ongoing
basis. Succession planning is the responsibility of the
Strategy and Governance Committee, which is also respon-
sible for planning personnel changes in the Corporate
Executive Committee.
Care is taken to ensure that the composition of the
Board of Directors is balanced in terms of the experience
and knowledge of its members and their nationality, term
of appointment and gender (see diversity charts on page
38). Any restrictions on availability and potential conflicts
of interest rising from other mandates are also taken into
account.
The election of Maya Bundt and Claudia Dill to the Board
of Directors by the Annual General Meeting in April 2022
replaced and strengthened the expertise in insurance, IT
and digitalisation called for by the Strategy and Governance
Committee and increased the proportion of female members
to 40 per cent.
40
Baloise Group Annual Report 2022 Division of authorities, functions and responsibilities
between the Board of Directors and the Corporate
Executive Committee
The division of authorities, functions and responsibilities
between the Board of Directors and the Corporate Executive
Committee is governed by law, the Articles of Association and
the Organisational Regulations. The Organisational Regula-
tions are reviewed on an ongoing basis and updated as
changing circumstances require. As a result of the company
law reform that came into effect on 1 January 2023, amend-
ments to the Articles of Association will be requested at
the Annual General Meeting on 28 April 2023. The Board of
Directors will then amend the Organisational Regulations in
accordance with the changes to the Articles of Association.
www.baloise.com/rules-regulations
Tools used to monitor and obtain information on the
Corporate Executive Committee
Group Internal Audit reports directly to the Chairman of the
Board of Directors.
Effective risk management is essential for any insurance
group. This is why Baloise has devoted a separate chapter
to the subject of financial risk management: from page 27
onwards and in the Financial Report starting on page 123.
The members of the Board of Directors have access to the
minutes of all meetings of the committees. The Chairman of
the Board of Directors may attend meetings of the Corporate
Executive Committee at any time.
Corporate Governance
41
Baloise Group Annual Report 2022 Corporate Governance
Thomas von Planta (1961, Switzerland, Dr iur., lawyer)
has been a member of the Board of Directors since 2017 and its Chairman
since April 2021. Until 2019, he was Chairman of the Boards of Directors
of Bellevue Group AG, Bank am Bellevue AG and Bellevue Asset Manage-
ment AG. Before that, he had worked for Goldman Sachs in Zurich, Frankfurt
and London for around ten years and had been the interim Head of Invest-
ment Banking and Head of Corporate Finance for the Vontobel Group in
Zurich between 2002 and 2006. Until 2021, he was managing director of
CorFinAd AG, a company he founded that specialises in consultancy for
M&A transactions and capital market finance. Dr Thomas von Planta sits
on the Board of Directors of BB Biotech AG. He is an independent non-
executive director.
Christoph Mäder (1959, Switzerland, lawyer)
has sat on the Board of Directors since 2019 and has been Vice-Chairman
since May 2022. From 2000 to 2018, he was a member of the Syngenta Inter-
national AG executive team with responsibility for legal and tax. He was also
a member of the Management Board of the Basel Chamber of Commerce
and of scienceindustries until 2018, serving as the latter’s president between
2008 and 2014. He has been president of economiesuisse, the umbrella
organisation representing Swiss business, since 2020. Christoph Mäder is
Vice-Chairman of the Board of Directors of Lonza Group AG, a member of
the Boards of Directors of EMS Chemie Holding AG and Assivalor AG and,
since 2021, a member of the Bank Council of the Swiss National Bank. He
is an independent non-executive director.
Maya Bundt (1971, Germany/Switzerland, Dr sc. nat. ETH Zurich,
geoecologist)
has been a member of the Board of Directors since April 2022. She
has worked for the reinsurance company Swiss Re in a variety of roles,
including heading the Cyber & Digital Solutions department and holding
the functions as Cyber Practice Leader and chair of the Swiss Re Cyber
Council. Before joining Swiss Re, Maya Bundt spent three years working
for the Boston Consulting Group as a strategy consultant in a variety
of sectors. She sits on the Boards of Directors of Valiant Bank AG and
APG SGA AG as an independent member. She is an independent non-
executive director.
42
Baloise Group Annual Report 2022 Corporate Governance
Claudia Dill (1966, Switzerland, economist, MBA)
has sat on the Board of Directors since April 2022. From 1999 to 2020, she
worked for the Zurich Insurance Group in a range of managerial positions
in Zurich, New York and São Paulo, including as CFO for internal reinsurance
and the reinsurance run-off unit, CFO for European business and COO for
the property insurance business. In her most recent role as a member of
the Corporate Executive Committee, she was responsible for the Latin
American market. Before working for Zurich, Claudia Dill worked for Credit
Suisse, Deutsche Bank, Commerzbank, and Coopers and Lybrand.
Until March 2022, she was an independent member of the Board of Direc-
tors of Nordea Bank Abp. Claudia Dill is a member of the Boards of Directors
of Credit Suisse (Switzerland) AG and Juno BidCo NV, trading as Intix. She
is an independent non-executive director.
Christoph B. Gloor (1966, Switzerland, degree in business economics HWV)
has been a member of the Board of Directors since 2014. Since 2019, he
has been a director and limited partner in Basel-based private bank
E. Gutzwiller & Cie, Banquiers. He had previously been partner and Chief
Executive Officer of private bank La Roche & Co AG before going on to
become a member of the Executive Committee and Deputy CEO of Noten-
stein La Roche Privatbank AG and Deputy Head of Wealth Management
at Bank Vontobel AG. Prior to joining La Roche & Co AG in 1998, he worked
for Swiss Bank Corporation (SBC) before moving to Vitra (International).
Christoph B. Gloor served as president of the Association of Swiss Private
Banks from 2013 to 2015 and was a member of the Board of Directors of
the Swiss Bankers Association from 2013 to 2015. He was a member of
the Board of Managing Directors of the Basel Banking Association until
2019. He holds an Executive Master in Change from INSEAD, where he also
completed the International Directors Program in 2018. He is an inde-
pendent non-executive director.
Hugo Lasat (1964, Belgium, Master in Economic Sciences, Master in Finance)
has sat on the Board of Directors since 2016. He has been Group CEO
of Brussels- based Degroof Petercam since 2021. In this role, he also
chairs the Board of Directors of Degroof Petercam Asset Manage-
ment (DPAM), a company he previously ran as CEO. Hugo Lasat is
a member of the Boards of Directors of Banque Degroof Petercam
in Luxembourg and Febelfin vzw/asbl, Brussels, and his previous
managerial roles include CEO of Amonis Pension Fund and of the
Candriam Investors Group. He is a guest professor at KU Leuven (Brussels
Campus). He is an independent non-executive director.
43
Baloise Group Annual Report 2022 Corporate Governance
Karin Lenzlinger Diedenhofen (1959, Switzerland, Dr oec. HSG)
has been a member of the Board of Directors since 2021. She has been
Vice-President of SV Group AG since 2017 and Chair of the Board of Directors
and of the staff pension fund of Zürcher Oberland Medien AG since 2015.
She is a member of the Boards of Directors of Bank Linth LLB AG and Über-
morgen Ventures Investment AG and sits on various boards of foundations
and organisations with portfolios including corporate responsibility and
sustainability. Dr Karin Lenzlinger Diedenhofen has been President of the
Zurich Chamber of Commerce and a member of the Board of Directors
of economiesuisse since 2013. Between 1991 and 2019, she held various
positions, most recently as CEO and delegate of the Board of Directors of
Lenzlinger Söhne AG, Nänikon / Uster. She is an independent non-executive
director.
Markus R. Neuhaus (1958, Switzerland, Dr iur., qualified tax expert)
has been a member of the Board of Directors since 2019. He was the
Chairman of the Board of Directors of PricewaterhouseCoopers AG
(PwC) from 2012 to 2019 and served as its CEO for a period of nine years
prior to that. He did not hold any operational role at PwC from July 2012
and was not personally involved in the Company’s audit engagement
for Baloise (until 2015). Dr Markus R. Neuhaus is Vice-Chairman of the
Boards of Directors of Barry Callebaut AG and Orior AG. He is a member
of the Boards of Directors of Galenica AG and Jacobs Holding AG.
Dr Markus R. Neuhaus is also Vice-President of Avenir Suisse and of the
Zurich Chamber of Commerce, and a member of the Board of Foundation
of the ETH Foundation. He is an independent non-executive director.
44
Baloise Group Annual Report 2022 Corporate Governance
Hans-Jörg Schmidt-Trenz (1959, Germany, Prof. Dr rer. pol., economist)
has sat on the Board of Directors since 2018. He is a Professor of Economics
at Saarland University and the University of Hamburg (specialising in
institutional economics and governance) and Founding President of the
HSBA Hamburg School of Business Administration, where he has been an
honorary senator since 2019. From 1996 to 2017, he was Chief Executive
Officer of the Hamburg Chamber of Commerce, and from 2010 to 2018, Pres-
ident of the Working Committee of European Chamber Chief Executives.
Since 2022 he has been Vice-Chair of the World Chamber Federation of the
International Chamber of Commerce (ICC). He was a long-serving member
of the Supervisory Board of Hamburg Airport, Hamburg Exhibition Centre
and the NDR Broadcasting Council, as well as a member of the Board of
Trustees of Hamburger Sparkasse. He is a member of the Board of Trustees
of the Hamburg Academic Foundation, Chairman of the Board of Trustees
of the Tafel foundation of Hamburg-Schleswig-Holstein and managing
director of STconnect GmbH. He is an independent non- executive director.
Marie-Noëlle Venturi - Zen-Ruffinen (1975, Switzerland, Prof. Dr iur., lawyer)
has been a member of the Board of Directors since 2016. She holds a PhD
and master’s degree in law and a master’s degree in philosophy from the
University of Fribourg. She is a lawyer and honorary professor at the School
of Economics and Management at the University of Geneva, where she
mainly lectures on corporate law. Professor Marie-Noëlle Venturi - Zen-Ruff-
inen was a partner in the Geneva law firm Tavernier Tschanz (Niederer
Kraft Frey since 1 January 2023) until 2012, and since that time has been
of counsel for the firm. She is Vice-Chair of the Board of Foundation of the
Swiss Board Institute, Vice-Chair of the Board of Directors of Banco
Santander Inter national SA, a member of the Boards of Directors of
Ina Invest Holding AG and Ina Invest AG and a member of the Board of
Management of the Swiss Institute of Directors. She is an independent
non- executive director.
Secretary to the Board of Directors:
Dr Philipp Jermann,
Buus (BL)
Head of Group Internal Audit:
Christian Schacher,
Breitenbach (SO)
45
Baloise Group Annual Report 2022 Corporate Governance
4. Corporate Executive Committee
Gert De Winter (1966, Belgium, MSc)
studied applied economics at the University of Antwerp. From 1988 to 2004
he performed various roles at Accenture in Brussels for issues relating to
IT and business transformation management in the financial sector. He
was made a partner at the firm in the year 2000. In 2005, he joined the
Baloise Group as Chief Information Officer and Head of HR of the Mercator
insurance company in Belgium. From 2009 to 2015, Gert De Winter was
Chief Executive Officer of Baloise Insurance, which was formed in 2011 from
the merger of the three insurance companies Mercator, Nateus and Avéro.
Gert De Winter has been Group CEO since January 2016. He is a member
of the Management Boards of the Basel Chamber of Commerce and the
Swiss-American Chamber of Commerce.
Alexander Bockelmann (1974, Germany, Dr rer. nat.)
studied geoecology and environmental sciences at the universities of
Bayreuth (Germany) and East Anglia (UK) before completing his doctorate
at the University of Tübingen’s faculty of geosciences. Dr Alexander Bock-
elmann is a proven expert in IT digitalisation and transformation, and has
many years of experience in the industry. He previously worked as an IT
strategy and transformation consultant at the Boston Consulting Group and
in various senior roles at Allianz SE in Germany and the USA, where he was
CIO. At the end of 2013, he moved to UNIQA Insurance Group AG in Austria
in the role of Group CIO and ultimately became Chief Digital Officer and
Group Chief Information Officer on the Management Board. Dr Alexander
Bockelmann joined the Baloise Group in February 2019 as head of the newly
created Corporate Division IT, the position he has held ever since. He is a
member of the Steering Committee of the Swiss FS-CSC association.
Matthias Henny (1971, Switzerland, Dr phil.)
completed his undergraduate and postgraduate studies in physics at the
University of Basel. From 1998 to 2003, he was employed at McKinsey & Co.,
before switching to what was then the Winterthur Group, where he was Head
of Financial Engineering in Asset Management until 2007. Subsequently, he
was a member of the management team at AXA Winterthur, as Head of Asset
Management (until 2010) and as CFO. In 2012, Dr Matthias Henny joined the
Baloise Group. As CEO of Baloise Asset Management AG, he was responsible
for the administration of approximately CHF 50 billion in assets. Dr Matthias
Henny became a member of the Corporate Executive Committee in May 2017.
He manages the Corporate Division Asset Management incorporating the
Investment Strategy and Investment Controlling, Business Development,
Portfolio Management, Finance, Real Estate and Corporate Services units.
46
Baloise Group Annual Report 2022 Corporate Governance
Michael Müller (1971, Switzerland, lic. oec. publ.)
graduated in economics from the University of Zurich, specialising in
insurance and accounting / finance. He began his career at Baloise in
1997, starting as a management trainee, then working in Group Finance
and eventually becoming Deputy Head and, in 2004, Head of Financial
Accounting for the Baloise Group. In 2009, as Head of Finance and Risk,
he became a member of the senior management team in Corporate
Division Switzerland. He has been a member of the Corporate Executive
Committee and CEO of Corporate Division Switzerland since March 2011,
and as such has been in charge of business in Switzerland. Michael Müller
is Vice President of the Swiss Insurance Association (SVV) and a member of
the Board of Foundation of Stiftung Finanzplatz Basel and the Executive
Board of the Association of Basel Insurance Companies. He also sits on the
board of the Promotion Society of the Institute of Insurance Economics at
the University of St. Gallen. He has been treasurer of the Swiss Employers
Confederation since the end of June 2022.
Carsten Stolz (1968, Germany/Switzerland, Dr rer. pol.)
studied business economics at Fribourg University and gained a doctorate
specialising in financial management. He holds an Executive Master in
Change from INSEAD. He joined the Baloise Group in 2002 as Head of
Financial Relations. From 2009 to 2011, he was the Baloise Group’s Head of
Financial Accounting & Corporate Finance. Between 2011 and 2017, he was
Head of Finance and Risk, and thus a member of the Executive Committee,
at Baloise in Switzerland. Dr Carsten Stolz has been Head of Corporate Divi-
sion Finance since May 2017 and is a member of the Corporate Executive
Committee. He is an executive director at creace GmbH and a member
of the Finance and Regulation Committee of the Swiss Insurance Asso-
ciation (SVV).
With the exception of the mandates listed above, no Corporate Executive
Committee members serve on the Boards of Directors at companies outside
the Baloise Group. There are no management agreements that assign
executive functions to third parties. Further information on the members
of the Corporate Executive Committee can be found on the website.
www.baloise.com/corporate-executive-committee
47
Baloise Group Annual Report 2022 Corporate Governance
Management structure
(as at 31 December 2022 )
Group CEO
Gert De Winter*
Group CEO Office
Legal, Tax and Compliance
Group HR
Group Strategy & Digital Transformation
Finance
Carsten Stolz*
Asset
Management
Matthias
Henny*
* Member of the Corporate Executive Committee.
IT
Alexander
Bockelmann*
Switzerland
Michael
Müller*
Germany
Jürg
Schiltknecht
Belgium
Christophe
Hamal
Luxembourg
Romain Braas
Events after the balance sheet date
Gert De Winter has decided to step down as Group CEO this
summer. The Board of Directors of Bâloise Holding Ltd has
appointed Michael Müller (52) to replace him with effect from
1 July 2023. Michael Müller is currently Head of Corporate
Division Switzerland. The process to find his successor has
already begun.
5. Remuneration, shareholdings and loans
The Remuneration Report in Appendix 1 to the Corporate
Governance Report (page 53 onwards) describes the remu-
neration policies adopted and the remuneration system
in place, and contains in particular the remuneration paid
and the loans granted to members of the Board of Directors
and the Corporate Executive Committee in 2022 as well as
the investments they hold. The content and scope of these
disclosures are determined by articles 734 to 734f OR, the
corporate governance information guidelines published
by SIX Swiss Exchange AG (version as at 29 June 2022) and
economisuisse’s Swiss Code of Best Practice for Corporate
Governance.
The report of the external auditors on the audit of the
Remuneration Report can be found in Appendix 2 to the
Corporate Governance Report (page 77 onwards).
6. Shareholder participation rights
Voting rights
The share capital of Bâloise Holding Ltd consists solely of
uniform registered shares. Each share confers the right to
one vote. No shares carry preferential voting rights. To ensure
a broad-based shareholder structure and to protect minority
shareholders, no person (as defined in article 5 of the Articles
of Association) is registered as holding more than 2 per cent
of voting rights, regardless of the size of their shareholding.
The Board of Directors can approve exceptions to this provi-
sion if a majority of two-thirds of all its members is in favour
(article 5 of the Articles of Association). There are currently no
exceptions. A motion will be submitted to the Annual General
Meeting on 28 April 2023 proposing that shareholders be
allowed to delegate the exercise of their voting rights to the
independent proxy and, in a change to the current rules, to
persons of their choosing rather than just to other share-
holders. When exercising voting rights, no person (with the
exception of the independent proxy) can accumulate more
than one-fifth of the voting shares at the Annual General
Meeting directly or indirectly for his or her own votes or proxy
votes (article 16 of the Articles of Association).
Powers of attorney and voting instructions may also
be given to an independent proxy electronically without
requiring a qualifying electronic signature (article 16 [2] of
the Articles of Association).
48
Baloise Group Annual Report 2022 Statutory quorums
The Annual General Meeting is quorate regardless of the number
of shareholders present or proxy votes represented, subject to
the mandatory cases stated by law (article 17 of the Articles
of Association).
The consent of at least three-quarters of the votes repre-
sented at the Annual General Meeting is required to suspend
or create exemptions from statutory restrictions on voting
rights. The votes must also represent at least one-third of the
total shares issued by the Company. This qualified majority
also applies to the cases specified in article 17 (3)(a) to (h)
of the Articles of Association. Otherwise, resolutions are
adopted by a majority of the votes cast, subject to compul-
sory legal provisions (article 17 of the Articles of Association).
Convening the Annual General Meeting
The Annual General Meeting generally takes place in April,
but must be held within six months of the end of the previous
financial year. Bâloise Holding Ltd’s financial year ends on
31 December. The Annual General Meeting is convened at
least 20 days before the date of the meeting. All registered
share holders receive a personal invitation, which includes
the agenda. The invitation and the agenda are published in
the Swiss Official Gazette of Commerce and on the website.
The Annual General Meeting, the Board of Directors or
the external auditors decide whether to convene extraor-
dinary general meetings. Furthermore, legal provisions also
require the Board of Directors to convene an extraordinary
general meeting if requested by the shareholders (article 11
of the Articles of Association). Article 699 (3) OR states such
requests must be made by shareholders who represent at
least 5 per cent of the share capital or the votes.
Requesting agenda items
The statutory provisions concerning shareholder requests to
place items on the agenda were changed as a result of the
company law reform that came into effect on 1 January 2023.
Accordingly, the Annual General Meeting on 28 April 2023 will
be asked to update article 14 of the Articles of Association.
Shareholders representing at least 0.5 per cent of the share
capital or votes will now be able to demand that items be
placed on the agenda or motions submitted. As before, such
requests must be submitted in writing to the Board of Direc-
tors at least six weeks before the Annual General Meeting is
held, giving details of the agenda item and the motion to be
put to the Annual General Meeting (article 14 of the Articles
of Association).
Corporate Governance
Entry in the share register
Shareholders are entitled to vote at the Annual General
Meeting provided they are registered in the share register
as shareholders with voting rights on the cut-off date stated
by the Board of Directors in the invitation. The cut-off date
should be several days before the Annual General Meeting
(article 16 of the Articles of Association).
Article 5 of the Articles of Association determines whether
nominee entries are permissible, taking into account any
percentage limits and entry requirements. The procedures
and requirements for suspending and restricting transfera-
bility are set out in article 5 and article 17 of the Articles of
Association.
www.baloise.com/rules-regulations
www.baloise.com/calendar
7. Changes of control and poison-pill measures
Shareholders or groups of shareholders acting together by
agreement are required to issue a takeover bid to all other
shareholders when they have acquired more than 33 1/3 per
cent of all Baloise shares. Bâloise Holding Ltd has not made
any use of the option to deviate from or waive this regula-
tion. There is no statutory opting-out clause or opting-up
clause as defined by the Federal Act on Financial Market
Infrastructures and Market Conduct in Securities and Deriv-
atives Trading (FinfraG).
The members of the Corporate Executive Committee have
a notice period of twelve months. Baloise has not agreed any
arrangements in respect of changes of control or non-com-
pete clauses with members of either the Board of Directors
or the Corporate Executive Committee.
8. External auditors
The external auditors are elected annually by the Annual
General Meeting. Ernst & Young AG (EY), Basel, has been the
external auditing firm for Baloise since 2016. Christian Fleig
holds the post of auditor-in-charge. In accordance with
article 730a (2) OR, the role of auditor-in-charge is rotated
every seven years. EY is the external auditing firm for almost
all Group companies.
External auditors’ fees
CHF
(including outlays and VAT)
Audit fees
Consulting fees
Total
2021
2022
5,025,285
6,489,699
48,369
27,342
5,073,654
6,517,041
49
Baloise Group Annual Report 2022 Information events
Baloise provides detailed information about its business
activities as follows:
● Details about its financial performance, targets, strate-
gies and operations are provided at media conferences
covering its annual and half-year financial statements.
● Teleconferences for financial analysts and investors
take place when the annual and half-year financial
statements are published. The events can then be
downloaded as podcasts.
● Shareholders are informed about business during the
year at the Annual General Meeting.
● Roadshows are regularly staged at various financial
centres.
● At Investor Days, the Company presents its corporate
strategy and targets as well as any other matters rele-
vant to its business. The documents used for this and
the recording of the event are made publicly available
on various media.
● Ongoing relationships are maintained with analysts,
investors and the media. Full details of individual
Baloise events can be accessed at www.baloise.com.
Corporate Governance
Audit fees paid to EY include fees for engagements with a
direct or indirect connection to a particular audit engage-
ment and fees for audit-related activities (namely, statutory
and regulatory special audits).
The services were rendered in accordance with the rele-
vant provisions on independence set forth in the Swiss Code
of Obligations, the Swiss Audit Supervision Act and FINMA
Circular 2013 / 3 on ‘auditing’ published by the Swiss Financial
Market Supervisory Authority (FINMA).
At its meetings, primarily at meetings about the annual
and half-year financial statements, the Audit Committee
received detailed explanations and documents about the
external auditors’ main findings from the auditors’ repre-
sentatives.
The performance of the external auditors and their inter-
action with Group Internal Audit, Risk Management and
Compliance are assessed by the Audit Committee. The Audit
Committee’s discussions with the external auditors focus
on the audit work the latter have undertaken, their reports
and the material findings and most important issues raised
during the audit.
Before the start of the annual audit, the Audit Committee
reviews the scope of the audit and suggests areas that
require special attention. The Audit Committee reviews the
external auditors’ fees, their independence and the quality
of the service.
9. Information policy
Information principles
Baloise provides (potential) shareholders, investors,
employees, customers and the public with information on a
regular, open and comprehensive basis. All registered share-
holders each receive a summary of the Annual Report once
a year and a letter to shareholders every six months, which
provide a review of business. The full Annual Report is sent
to share holders on request. In addition, a presentation is
created for every set of financial statements that summa-
rises the financial year or period for financial analysts and
investors. All publications are simultaneously available to
the public. All market participants receive the same infor-
mation. Baloise offers tele conferences, podcasts, videos and
live streaming in order to make information generally and
easily accessible.
50
Baloise Group Annual Report 2022 Information about Baloise shares
Information about Baloise shares begins on page 40 of the
Annual Review.
www.baloise.com/baloise-share
Financial calendar
Important dates for investors are available at www.baloise.
com. This is where the publication dates for the annual and
half-year reports and the Q3 interim statement are listed and
where the date of the Annual General Meeting, the invitation
to the Annual General Meeting, the closing date for the share
register and any ex-dividend dates are published.
www.baloise.com/calendar
Availability of documents
Annual and half-year reports, media releases, disclosures,
recent announcements, presentations and other documents
are available to the public at www.baloise.com.
Please register for the latest corporate communications at
www.baloise.com/mailinglist.
www.baloise.com/media
Contact
Corporate Governance
Baloise Group
Philipp Jermann
Aeschengraben 21
4002 Basel, Switzerland
Tel. + 41 58 285 89 42
vrs@baloise.com
Investor Relations
Baloise Group
Markus Holtz
Aeschengraben 21
4002 Basel, Switzerland
Tel. + 41 58 285 81 81
investor.relations@baloise.com
Corporate Governance
51
Baloise Group Annual Report 2022 Remuneration Report
Remuneration Report
1. Shareholder engagement
2. Overview of remuneration
3. Governance
4. Remuneration principles
5. Remuneration system for the Board of Directors
6. Remuneration system for the Corporate
Executive Committee
7. Remuneration for the reporting year
A. Remuneration paid to the members of the
Board of Directors
B. Remuneration paid to the members of the
Corporate Executive Committee
C. Loans and credit facilities granted to members
of the Board of Directors and the Corporate
Executive Committee
D. Shares and options held
E. Total remuneration at the Baloise Group
53
55
58
59
60
61
61
66
66
68
73
74
76
Baloise Group Annual Report 2022
53
Remuneration Report
Letter from the Chairman of the
Remuneration Committee
As announced in the 2021 remuneration report, the short-
term variable remuneration model was simplified signifi-
cantly with effect from 2022 and aligned more closely with
the Company’s strategic objectives. The 2022 remuneration
report provides the first comprehensive explanation of the
new, simplified performance pool (see page 63). The model is
centred on the cash remittance into Bâloise Holding, which
also forms the basis for the distributions to shareholders, and
on four supplementary performance quality metrics: stra-
tegic customer targets, employee targets, a sustainability
assessment and an integral risk assessment.
The report also explains which factual criteria were applied
by the Remuneration Committee in its determination of the
performance pool factor (see page 71).
These are just two examples of the changes that the Remu-
neration Committee has adopted in the reporting year. We
are confident that the improved transparency and clearer
structure will meet the expectations of our shareholders.
On behalf of all members of the Remuneration Committee, I
would like to thank you, our esteemed shareholders, for your
interest and your trust.
Basel, March 2023
Christoph Mäder
Chairman of the Remuneration Committee
Dear shareholders,
I took over the role of Chairman of the Remuneration
Committee at the Annual General Meeting at the end of April
2022. Now, I am delighted to present to you the first remuner-
ation report of my tenure and to inform you about the activ-
ities of the Remuneration Committee in the reporting year.
At the 2022 Annual General Meeting, a binding vote was
held on the maximum total remuneration for the Board
of Directors and the Corporate Executive Committee, and
an advisory vote was held on the remuneration report, in
order to give our shareholders the opportunity to express
their opinion of our remuneration policies. The shareholders
approved the proposed remuneration figures for the Board
of Directors and the Corporate Executive Committee with a
large majority. In contrast, the advisory vote on the remu-
neration report returned an approval rate of 79.3 per cent.
This result prompted us to engage in a dialogue with our
investors and shareholder representatives in order to gain a
better understanding of their reservations about our remu-
neration policies. I personally participated in a number of
these conversations. The Remuneration Committee used
the insights gained during this process in order to imple-
ment measures to improve our remuneration system and
our disclosure practices.
An overview of the outcomes of these improvement meas-
ures is provided on the next three pages of this report. It
summarises the issues raised by our dialogue partners along
with information on how the Remuneration Committee
addressed each of them.
The structure of the remuneration report was also improved
as a result of this review process. It has now been subdivided
into a ‘static’ and a ‘dynamic’ part. Chapter 7 gives the reader
direct access to the remuneration data for the reporting year.
Chapters 3 to 6 describe our remuneration governance and
principles and the remuneration systems for the Board of
Directors and the Corporate Executive Committee in more
general terms, without reference to the actual remuneration
paid in any specific year.
54
Baloise Group Annual Report 2022
Remuneration Report
1. Shareholder engagement
At the 2022 Annual General Meeting, the remuneration report received an approval rate of 79.3 per cent. The Baloise Group
used this as an opportunity to enter into a dialogue with institutional shareholders and proxy advisors in order to under-
stand and address their concerns. The shareholders raised concerns about certain aspects of the remuneration systems
for the Corporate Executive Committee and the Board of Directors and our reporting on these systems. A summary of the
issues raised and the responses to each is provided below.
Shareholder concerns
Response from Baloise
Determination of the performance pool:
The process for the determination of the
performance pool (concept, performance
targets and results) is not explained in suffi-
cient detail.
n
o
i
t
a
r
e
n
u
m
e
r
f
o
e
r
u
s
o
c
s
i
D
l
Performance pool allocation:
The way in which the performance pool is
allocated across the members of the Corpo-
rate Executive Committee and the extent of
discretion used in the process are not made
transparent.
Disclosure of short-term variable remunera-
tion (STI) shares at the purchase price:
The STI shares awarded to the Corporate
Executive Committee and the restricted
shares granted to the Board of Directors are
stated at their discounted value in the remu-
neration tables.
m
e
t
s
y
s
n
o
i
t
a
s
n
e
p
m
o
C
We have improved the disclosure significantly by providing a
more detailed description of the performance pool mechanism.
This includes information on financial and non-financial key
performance indicators of relevance to the determination of
the performance pool and the reasons why these KPIs were
selected. In order to further increase transparency, we have
also decided to disclose the medium-term target linked to each
KPI, as well as information on the progress made towards each
target in the reporting year and the impact of this progress on
the performance pool for the Corporate Executive Committee.
Illustrations were added to make the performance pool mech-
anism easier to understand.
Personal performance pool payments are allocated to the
individual members of the Corporate Executive Committee by
means of a formalised process that is based on predefined
performance targets for teams and individuals. This report
provides more detailed information on the performance pool
allocation process and its outcomes in the reporting year.
Disclosure of the allocations of restricted shares to members of
the Corporate Executive Committee and members of the Board
of Directors is now based on the market value of the shares.
m
e
t
s
y
s
n
o
i
t
a
s
n
e
p
m
o
C
Baloise Group Annual Report 2022
55
Remuneration Report
Shareholder concerns
Response from Baloise
n
o
i
t
a
r
e
n
u
m
e
r
f
o
e
r
u
s
o
l
c
s
i
D
Remuneration mix:
Too much emphasis is placed on short-term
remuneration.
m
e
t
s
y
s
n
o
i
t
a
s
n
e
p
m
o
C
Long-term variable remuneration (LTI):
LTI is based on just one vesting condition, the
relative total shareholder return (TSR).
m
e
t
s
y
s
n
o
i
t
a
s
n
Payment of LTI:
e
p
m
If the relative performance level is below the
o
C
median of the peer group, the LTI payment
may be reduced to a partial payout.
Although the amount of short-term variable remuneration paid
is based on annual performance, members of the Corporate
Executive Committee receive at least 50 per cent of their short-
term variable remuneration (a high proportion compared with
industry peers) in the form of deferred shares that are subject
to a three-year closed period during which they are exposed to
the usual share price volatility. When also taking long-term vari-
able remuneration into account, the members of the Corporate
Executive Committee receive an expected proportion of 70 per
cent of their total variable remuneration in the form of deferred
shares or prospective entitlements, while only 30 per cent is
paid out directly in cash. The high proportion of remuneration in
shares (including prospective entitlement) sharpens the focus
on shareholder interests and underlines the long-term orienta-
tion of the remuneration system. We will review the weighting
of long-term variable remuneration in 2023.
The relative TSR measures the company’s ability to achieve
higher returns for its shareholders than peer companies. Conse-
quently, this vesting condition is strongly focused on share-
holder interests because executive remuneration is tied directly
to the return for shareholders. We will review the vesting condi-
tions for long-term variable remuneration in 2023.
Our remuneration philosophy follows an approach under which
a market-typical level of remuneration is paid for performance
that is in line with expectations (i. e. 100 per cent attainment).
Baloise’s aim is to design incentive plans with an appropriate
amount of scalability (no ‘all or nothing’ plans). This means
that a small payment can still be made even if performance
fell short of the agreed targets. Baloise thus recommends a
partial payout if the performance at least exceeds the first
quartile of the relevant peer group. By contrast, remuneration
for outstanding performance should be capped at 200 per
cent. This concept strikes a healthy balance between the Com-
pany’s pay-for-performance philosophy and its obligation to
use sustainable remuneration programmes that do not provide
inappropriate incentives. The statistical probability of a median
performance is 50 per cent. Making a median performance
level the threshold for any payout would therefore mean that
no payment would be awarded under the incentive plan in 50
per cent of all cases.
56
Baloise Group Annual Report 2022
Shareholder concerns
Response from Baloise
Remuneration Report
Policy on share ownership:
Performance share units (PSUs) are taken
into account in mandatory share ownership
compliance checks.
n
o
i
t
a
r
e
n
u
m
e
r
f
o
e
r
u
s
o
l
c
s
i
D
m
e
t
s
y
s
n
o
i
t
a
s
n
e
p
m
o
C
m
e
t
s
y
s
n
o
i
t
a
s
n
e
p
m
o
C
Reductions of variable remuneration
(malus) and clawback provisions:
Events prompting clawbacks are not dis
closed to a satisfactory level.
Annual General Meeting:
In respect of the long-term variable remu-
neration plan, shareholders can vote on the
value of the allocation, not on the maximum
payment upon conversion.
Baloise introduced mandatory share ownership requirements
in 2018 in order to align the interests of executives more closely
with the interests of shareholders. Currently, PSUs that have
not yet been converted still count towards the shares owned
by a member of the Corporate Executive Committee. This prac-
tice has drawn criticism. Going forward, PSUs that have been
awarded but are as yet unvested will not be taken into account
for the purposes of compliance with mandatory share owner-
ship rules, because these shares have not been converted. In
addition, the minimum share ownership requirement for the
Group CEO will be raised to 300 per cent of their annual basic
salary. This new policy applies with effect from 2023 and the
new requirements must be met within a period of five years.
Baloise has decided to add expiry and clawback provisions
to the short-term variable remuneration plan and to supple-
ment the existing expiry provisions of the long-term variable
remuneration plan with clawback provisions. In the event of a
restatement due to a material breach of applicable financial
reporting standards or an incident of misconduct on the part of
an individual, the new provisions will enable the Remuneration
Committee to reduce future variable remuneration elements
(malus) or claw back payments that have already been made.
For the members of the Corporate Executive Committee, these
provisions will apply to short-term and long-term remuneration
components granted in 2023.
The variable remuneration amount presented for shareholders
to vote on represents the maximum possible payout under
the short-term variable remuneration plan and the maximum
allocation value under the long-term variable remuneration
plan for the Corporate Executive Committee. This approach is
in line with the disclosures made in the remuneration report,
which comprise the actual payout under the short-term variable
remuneration plan for the reporting year and the value of the
allocation granted in the reporting year under the long-term
variable remuneration plan. By choosing an approach that is
aligned with the disclosures made in the remuneration report,
we ensure that shareholders can directly compare the remu-
neration amount they approved with the remuneration amount
that was actually paid out and reported. In the remuneration
report, we also disclose the maximum multiplier for the long-
term variable remuneration plan in the year of allocation, the
multiplier achieved in the year in which the awarded shares
vest, and the gain in value of each plan upon vesting (including
share price performance). Moreover, the remuneration report
is presented to the shareholders for an advisory vote at the
Annual General Meeting. This vote is a useful opportunity for
shareholders to express their opinion on the remuneration poli-
cies and programmes.
Baloise Group Annual Report 2022
57
Remuneration Report
2. Overview of remuneration
Remuneration system for the Board of Directors
The members of the Board of Directors receive fixed remu-
neration for their service as members of the board and its
committees, as set out in the table below. These amounts
provide appropriate compensation for the responsibility and
workload involved in their various functions and have not
been raised since 2008.
Board of Directors’ fees and mandatory share ownership
CHF
thousand /
year
of which shares
in Bâloise
Holding Ltd 1
Total fee – Chairman
Base fee – Member
Additional fee – Vice-Chairman
Additional fee – Chair of Committee
Additional fee – Committee Member
1,300
125
50
70
50
1/3
1/4
1/4
1/4
1/4
Mandatory share ownership
1,000 shares each
1 The share elements of the fee are blocked for three years, the 1,000 mandatory
shares until resignation.
social security contributions and Share Subscription Plan
discount) payable to the Board of Directors for 2022. The
amount paid out was CHF 3.4 million.
Remuneration system for the Corporate Executive
Committee
Members of the Corporate Executive Committee of the
Baloise Group receive fixed remuneration and variable remu-
neration that comprises a short-term component (perfor-
mance pool) and a long-term component (performance
share units, PSUs). At least 50 per cent of short-term variable
remuneration is awarded in shares. PSUs under the long-term
variable remuneration plan are prospective entitlements
to shares that are either converted and definitively allo-
cated after three years or expire at this point, depending on
whether or not the performance requirement has been met.
These elements ensure that remuneration is competitive
and reflective of performance. They also incentivise recipients
to achieve ambitious targets while simultaneously empha-
sising the importance of sustainable management practices.
In addition, they strengthen the Company’s ability to retain
high performers and to align their interests with those of
stakeholder groups, particularly the shareholders.
Remuneration paid to the members of the Board of Directors
for the reporting year
The Annual General Meeting held on 30 April 2021 approved
an amount of CHF 3.4 million for the remuneration (including
All elements of Corporate Executive Committee remuner-
ation are determined individually by the Remuneration
Committee in keeping with the maximum amounts approved
by the Annual General Meeting.
Remuneration paid to the members of the Corporate
Executive Committee for the reporting year
The Annual General Meeting held on 30 April 2021 approved
an amount of CHF 4.0 million for the fixed remuneration
(including social security contributions) payable to the Corpo-
rate Executive Committee for 2022. The amount paid out was
CHF 4.0 million. In addition, the Annual General Meeting held
on 29 April 2022 approved a maximum amount of CHF 4.8 million
for the variable remuneration (including social security contri-
butions and discounted subscriptions under the Share Subscrip-
tion Plan) payable for 2022. The total amount paid out was
CHF 3.6 million. The chart below shows the remuneration of the
individual members of the Corporate Executive Committee for
2022 and the breakdown by remuneration component.
Gert
De Winter
Dr Alexander
Bockelmann
Dr Matthias
Henny
Michael
Müller
Dr Carsten
Stolz
55%
56%
58%
54%
58%
2022
2022
2022
2022
2022
27%
18%
27%
17%
26%
16%
30%
17%
26%
17%
CHF 2.1 million
CHF 1.4 million
CHF 1.2 million
CHF 1.7 million
CHF 1.2 million
Fixed (includes basic salaries, non-cash remuneration
and employer contributions to the state-run social security
schemes and the occupational pension scheme)
Short-term variable remuneration (includes payments
from the performance pool in shares and cash)
Long-term variable remuneration
(includes allocations of shares)
58
DescriptionPurposeFixedremunerationShort-termvariableremunerationLong-termvariableremunerationBasic salaryFringe benefitsSocial security contributionsCompetitiveness in the marketplaceFairness and transparencyFinancial hedgingPerformance poolPaid in cash and restricted sharesRemuneration for the achievement of annual targets (Company, team and individual targets)Participation in the success of the businessPerformance share units (PSUs)Strengthening of senior managers’ loyalty, to the CompanyAlignment of senior managers’ interests with those of shareholdersBaloise Group Annual Report 2022
Remuneration Report
The Remuneration Committee’s main functions and respon-
sibilities are to:
● submit proposals to the Board of Directors on the struc-
ture of remuneration in the Baloise Group;
● submit proposals to the Board of Directors – for
approval by the Annual General Meeting – on the
maximum amount of remuneration for the Chairman
and members of the Board of Directors and for the
members of the Corporate Executive Committee;
● approve the basic salaries and the variable remuner-
ation paid to individual members of the Corporate
Executive Committee (in compliance with the pay caps
stipulated by the Annual General Meeting);
● specify the total amount available in the performance
pool and the total amount set aside for the allocation
of performance share units (PSUs);
● approve inducement payments and severance pack-
ages for senior managers that, in individual cases,
exceed CHF 100,000 (subject to the proviso that
members of the Board of Directors or the Corporate
Executive Committee may not be granted sever-
ance packages and may be granted an inducement
payment only in order to offset a verifiable financial
disadvantage).
The Remuneration Committee consists of at least three
members of the Board of Directors, who are elected every year
by the Annual General Meeting. Christoph Mäder (Chairman),
Prof. Dr Hans-Jörg Schmidt-Trenz (Deputy Chairman), Chris-
toph Gloor and Dr Karin Lenzlinger Diedenhofen were elected
to the Remuneration Committee by the Annual General
Meeting on 29 April 2022. The Remuneration Committee
maintains a regular dialogue with senior management
throughout the year and meets at least three times per year.
In addition to the committee secretary being present, these
meetings are usually also attended by the Group CEO and
the Head of Group Human Resources, who participate in an
advisory capacity. The Group CEO leaves the meeting when
his personal remuneration is being discussed and decided.
The Chairman of the Remuneration Committee reports to the
Board of Directors at its next meeting on the committee’s
activities.
3. Governance
Remuneration-related provisions in the Articles of
Association
Article 31 of the Articles of Association of Bâloise Holding
Ltd defines the approval process for the remuneration of
members of the Board of Directors and the Corporate Execu-
tive Committee. The process involves separate approvals of:
● the total amount of remuneration for the Board of Direc-
tors for the next financial year;
● the total amount of fixed remuneration for the Corporate
Executive Committee for the next financial year;
● the maximum amount of variable remuneration payable
to the Corporate Executive Committee for the current
financial year.
The Articles of Association of Bâloise Holding Ltd also stipu-
late the applicable remuneration principles and include the
following provisions:
● mandatory share ownership rules for the Board of Direc-
tors (Article 20)
● term of remuneration contracts (Article 29)
● additional amount for the remuneration paid to Corpo-
rate Executive Committee members appointed since the
last Annual General Meeting (Article 30)
● principles of variable remuneration (Article 32)
● loans and credit facilities (Article 34)
www.baloise.com/en/home/investors/shareholders/arti-
cles-ofassociation
Remuneration Committee of the Board of Directors
The Remuneration Committee is tasked with helping the Board
of Directors to frame the Company’s remuneration policy.
It has been vested with special powers and ensures, among
other things, that:
● the remuneration offered by Baloise is in line with the
going market rate and performance-related in order to
attract and retain individuals with the necessary skills
and character attributes;
● remuneration paid is demonstrably dependent on the
Company’s sustained success and individuals’ personal
contributions and does not create any false incentives;
● the structure and amount of overall remuneration are
consistent with Baloise’s risk policies and encourage risk
awareness.
Approval structure
Remuneration policies
Maximum total remuneration for the Board of
Directors and the Corporate Executive Committee
Remuneration for the Chairman of the Board
of Directors
Remuneration for the Group CEO
Remuneration for the Corporate Executive
Committee
Remuneration report
Group CEO
Chairman of the
Board of Directors
Remuneration
Committee
Board of
Directors
Annual General
Meeting
Proposal
Approval
Proposal
Review
Proposal
Approval
Approval
(binding vote)
Proposal
Proposal
Approval
Approval
Proposal
Approval
Advisory vote
Baloise Group Annual Report 2022
59
Fixed (includes basic salaries, non-cash remuneration
Short-term variable remuneration (includes payments
Long-term variable remuneration
and employer contributions to the state-run social security
from the performance pool in shares and cash)
(includes allocations of shares)
schemes and the occupational pension scheme)
Remuneration Report
4. Remuneration principles
The remuneration principles and parameters applied
across the Baloise Group have been set out in a Remuner-
ation Guideline. This Remuneration Guideline applies to all
employees throughout the Baloise Group. It is based on the
principles set out in the sections below.
Competitiveness in the marketplace
Baloise aims to pay basic salaries that are broadly in line
with the market, i. e. around the market median. Total remu-
neration should exceed the market median in the event of
outstanding performance by the Company and outstanding
individual performance. Baloise therefore regularly compares
the salaries paid to its employees with those paid in the wider
market in Switzerland and Europe. This involves taking part
in benchmarking surveys conducted by Willis Towers Watson
and Kienbaum. In 2021, Baloise participated in Willis Towers
Watson’s standard survey on executive compensation. As
surveys of this type cover a wide spectrum of companies,
the peer group used to benchmark the remuneration for
the Corporate Executive Committee is broad-based and
includes companies from outside the financial sector.
In 2022, a market analysis of executive remuneration
structures was carried out with support from PwC. Two
peer group data sets were used for this purpose. One set
comprised 26 SMIM companies, namely Adecco, Bachem,
BB Biotech, Clariant, EMS, Galenica, Kühne + Nagel, PSP,
SIG Combibloc, Straumann, Swiss Prime Site, Temenos,
Zur Rose, ams, Barry Callebaut, Cembra, Dufry, Flughafen,
Georg Fischer, Julius Baer, Lindt, Schindler, Sonova, Swatch,
Tecan and VAT (cross-sectoral peer group), while the other
comprised listed Swiss companies, namely Helvetia, Swiss
Life, Swiss Re and Zurich Insurance (insurance peer group).
Individual performance and the Company’s success
As a performance-driven organisation, Baloise always main-
tains a clear and transparent link between the Company’s
strategic targets, team targets and the targets of individual
employees. The amount of short-term variable remuneration
is influenced by the individual contributions to the achieve-
ment of these targets.
Fairness and transparency
In addition to the regular benchmarking of overall remuner-
ation against the market, Baloise also aims to ensure that
pay within the Company is fair when setting salary levels.
Baloise applies the fair-pay principle that people who do
the same job and have the same qualifications should be
paid the same amount. Baloise carried out a wage equality
analysis in Switzerland in 2013 and again in 2018. In both
cases, differences in pay that could not be objectively
explained were below the Swiss government’s defined toler-
ance threshold of 5 per cent. A further wage equality analysis
60
was conducted in 2021 in connection with the amended
Swiss Gender Equality Act. Baloise received support from
PwC with its EQUAL-SALARY method. The findings of the anal-
ysis confirmed that wage equality for women and men had
been maintained at Baloise in accordance with the provi-
sions of the Gender Equality Act. The findings were confirmed
both by Ernst & Young and by Baloise’s employee commission
in an independent audit.
Sustainable remuneration
Baloise attaches considerable importance to managing its
business sustainably and retaining high performers. It also
matters to Baloise that its remuneration not only is compet-
itive and achievement-oriented but also encourages mana-
gerial staff to align their long-term focus with the interests
of stakeholders, particularly shareholders. To this end, the
remuneration system provides for a significant portion of
the variable remuneration to be awarded in shares that are
restricted for three years and exposed to market risk during
this period. Furthermore, the three most senior function levels
receive performance share units, which means that a further
component of their salaries is paid out as prospective entitle-
ments; these PSUs must be held for three years before being
converted into shares as a form of deferred remuneration.
Both the proportion of variable remuneration in the total
pay package and the proportion of remuneration awarded
in restricted shares or as deferred remuneration increases
in line with employees’ scope of strategic responsibility
and influence.
Excessive remuneration is prevented by means of clearly
defined caps for the remuneration of the Board of Directors
and the Corporate Executive Committee that are approved
by the Annual General Meeting.
Remuneration structure of the three most senior
function levels
Corporate Executive
Committee
Function
level 2
Function
level 3
Basic salary
Expected value of variable remuneration paid in cash
Expected value of variable remuneration paid in deferred and restricted shares
Baloise Group Annual Report 2022
5. Remuneration system for the
Board of Directors
6. Remuneration system for the
Corporate Executive Committee
Remuneration Report
The members of the Board of Directors receive fixed remuner-
ation for their service as members of the board. The Chairman
of the Board of Directors performs his various functions on a
full-time basis, in return for which he is paid a fixed fee of CHF
1,300,000. He is not entitled to any variable remuneration.
The tasks of the Chairman are described in more detail in the
corporate governance report (pages 42 & 43).
All other members of the Board of Directors receive
CHF 125,000. The Vice-Chairman of the Board of Directors
receives an additional fee of CHF 50,000. The additional fee
for the chair of a committee is CHF 70,000, while committee
members receive an additional fee of CHF 50,000.
The members of the Board of Directors are obliged to
lodge 1,000 shares with the Company for the duration of
their term of appointment (Article 20 of the Articles of Asso-
ciation). They do not participate in any share ownership
programmes that are predicated on the achievement of
specific performance targets.
These amounts provide appropriate compensation for the
responsibility and workload involved in their various func-
tions and have not been raised since 2008.
One-third (Chairman) or one-quarter (other members) of
the annual remuneration is awarded in the form of shares
that remain restricted for three years. The subscription price
is based on the closing price on the first trading day in June,
on which the same 10 per cent discount is granted as on
shares under the Share Subscription Plan.
Shares received by members of the Board of
Directors 2022
Relevant closing
price
as at
CHF
01.06.2022
161.70
Shares received by members of the Board of
Directors 2021
01.06.2021
149.10
Remuneration structure
200 %
40 %
60 %
100 %
230 %
40 %
90 %
100 %
100 %
100 %
Minimum
remuneration
Expected value
Maximum
remuneration
Basic salary
100%
100%
100%
Short-term variable remuneration
(performance pool)
Long-term variable remuneration
(PSU, value at allocation)
0%
0%
60%
40%
90%
40%
Mandatory share
ownership
Shares equivalent to 200% (300% for the
Group CEO) of the basic salary (within five
years of taking office)
Basic salary
The basic salary constitutes the level of remuneration that is
commensurate with the functions and responsibilities of the
position concerned. A market comparison of basic salary is
carried out periodically. Fair pay within the Baloise Group is
also taken into consideration. The Baloise Group applies the
fair-pay principle that people who do the same job and have
the same qualifications should be paid the same amount.
Short-term variable remuneration: performance pool
Short-term variable remuneration is the reward for achieving
annual targets. It is distributed from the performance pool,
which is the total amount of short-term variable remuneration
that is to be distributed. The aim of the performance pool is
to reward members of the Corporate Executive Committee
and other eligible employees in a measure that reflects the
extent to which their achievements in the preceding year
have contributed to achieving the Company’s targets and
satisfying the interests of shareholders.
Members of the Corporate Executive Committee and
employees at senior management level are eligible for perfor-
mance pool payments.
Baloise Group Annual Report 2022
61
Remuneration Report
The variable remuneration paid to employees who perform
control functions (Risk Management, Compliance, Group
Internal Audit and the Appointed Actuary) is structured in
such a way that it is not determined directly by the profitability
of the unit being monitored or by the profitability of individual
products or transactions. The Remuneration Committee
reviews the remuneration paid to the heads of the control
functions on an annual basis.
Those entitled to receive short-term variable remuneration
generally have a choice as to what percentage of their remu-
neration is paid out and what proportion they receive in the
form of shares with a closed period of three years (see the
‘Share Subscription Plan’ section of this chapter). This choice
is limited for senior managers, who are obliged to subscribe for
shares on a sliding-scale basis. The members of the Corporate
Executive Committee must receive at least 50 per cent of their
short-term variable remuneration in the form of shares in order
to ensure that their own interests are more strongly aligned
with those of shareholders. This mandatory purchase of shares
ensures that, compared with the market as a whole, a signif-
icant proportion of their remuneration is granted in the form
of deferred shares. The expectation is that deferred shares
make up 70 per cent of variable remuneration, which equates
to 35 per cent of total remuneration (see chart on page 68).
The Remuneration Committee decides on the short-term
variable remuneration awarded to the individual members
of the Corporate Executive Committee from the available
performance pool. It uses team targets as well as personal
performance and development targets as a basis for these
decisions. Team targets are used to assess collaboration
across business units and national subsidiaries, and across
all functions and departments. The quantitative targets
include the achievement of the 2022 business plan of the
Baloise Group and the achievement of milestones for stra-
tegic goals regarding employee satisfaction, growth of the
customer base, and the cash remittance to Bâloise Holding
Ltd. The qualitative targets relate to the successful launch of
strategic initiatives.
The allocation is based on proposals submitted to the
Remuneration Committee by the Chairman of the Board of
Directors for the Group CEO and by the Group CEO for the
other members of the Corporate Executive Committee. The
Committee discusses each individual member, assessing their
performance during the year under review and any changes
compared with the prior year.
Short-term variable remuneration is measured on the basis of
the performance pool factor. The Remuneration Committee
determines the performance pool factor for the preceding
year. To this end, the Committee systematically analyses the
achievement of targets using the following indicator model.
62
Baloise Group Annual Report 2022
Remuneration Report
Indicator model, performance assessment and the resulting allocation of individual short-term variable remuneration
Performance pool factor
1
2
3
4a
Step 1:
Determination
Budgeted
performance pool
x
Financial assessment
Cash remittance
x
Quality assessment
Customers
Employees
Sustainability
Risk
Available
performance pool
=
100%
0% – 150%
80% – 120%
0% – 150%
4b
5
Appraisal of individual performance
Step 2:
Allocation
Individual share
of the available
performance pool
x
Team target
Individual business target
Individual development target
=
Individual
performance pool
payment
1 Budgeted performance pool:
Total sum of basic salary paid to the Corporate Executive Committee multiplied by the expected value of 60 per cent.
2 Financial assessment:
The financial assessment is based on the cash remittance to Bâloise Holding Ltd. This key figure is one of Baloise’s three
strategic targets and forms the basis for enabling investors to share in the Company’s success. The target achievement
rate for the financial assessment is capped at 150 per cent.
3 Quality assessment:
In addition to the assessment of financial performance, the quality of the results is assessed on the basis of four strategic
key factors – employee satisfaction, the sustainability strategy, risk management and the growth of our customer base.
The Company’s performance in these areas is evaluated annually, using medium-term ambitions as the benchmark. The
result of this quality-focused assessment (80–120 per cent) is multiplied by the result of the financial assessment.
4a Available performance pool:
The Remuneration Committee reviews and approves the final size of the performance pool based on the aforementioned
factors. The available performance pool is capped at 150 per cent of the budgeted performance pool. If the performance
pool factor is set at 100 per cent, this means that the targets have been met and short-term variable remuneration will be
allocated.
5 Assessment of individual performance and determination of personal performance pool allocations:
The Remuneration Committee discusses and evaluates the performance of each member of the Corporate Executive
Committee in the relevant year under review on the basis of a shared team target and individual performance and devel-
opment targets. This provides the Committee with a clear framework and a structured process within which it can use
its discretion to make well-founded decisions. The allocation from the available performance pool (see 4b in the chart) to
each member of the Corporate Executive Committee is determined in accordance with the appraisal of their individual
performance.
Baloise Group Annual Report 2022
63
Remuneration Report
Long-term variable remuneration: performance share units
The aim of long-term variable remuneration is to strengthen
senior managers’ loyalty to the Baloise Group and align the
interests of senior management with the interests of stake-
holder groups such as the shareholders. Long-term variable
remuneration is granted in the form of performance share
units (PSUs). PSUs are prospective entitlements to shares.
At the beginning of each vesting period, the participating
employees are granted rights in the form of PSUs, which
entitle them to receive a certain number of shares free of
charge after the vesting period has elapsed. The Remunera-
tion Committee specifies the grant date and applies its own
discretion in deciding which senior managers are eligible to
participate. It determines the total number of PSUs available
and decides how many are to be awarded to each member
of the Corporate Executive Committee.
The number of shares that can be subscribed after three
years – i. e. at the end of the vesting period – depends on the
total shareholder return (TSR) of Bâloise Holding Ltd relative
to a peer group. The peer group comprises the leading Euro-
pean insurance companies within the STOXX Europe 600
Insurance Index (see table below).
Companies in the STOXX Europe 600 Insurance Index (as at 31 December 2022)
ADMIRAL GRP
AEGON
AGEAS
ALLIANZ
BALOISE
BEAZLEY
LEGAL & GENERAL GRP
SCOR
MUENCHENER RUECK
STOREBRAND
DIRECT LINE INSURANCE GROUP
NN GROUP
SWISS LIFE HLDG
GJENSIDIGE FORSIKRING
PHOENIX GROUP HDG
SWISS REINSURANCE COMPANY
ASR NEDERLAND NV
HANNOVER RUECK
POSTE ITALIANE
TRYG
ASSICURAZIONI GENERALI
HELVETIA HLDG
AVIVA
AXA
HISCOX
HOMESERVE
Source: https: / / www.stoxx.com / index-details?symbol=SXIP
PRUDENTIAL
PZU GROUP
SAMPO
ZURICH INSURANCE GROUP
discretion, apply a ‘good leaver’ procedure which means
that only a proportion of awarded PSUs expire. In addition,
the Remuneration Committee has the powers to claw back
some or all of the PSUs allocated to an individual or to a
group of participants if there are specific reasons for doing
so (malus provision).
Share Subscription Plan
Members of the Corporate Executive Committee are obliged
to receive at least half of their short-term variable remuner-
ation in the form of shares. Through the Share Subscription
Plan, they can subscribe to dividend-bearing shares with a
closed period of three years at a preferential price (10 per
cent discount). The terms of the Share Subscription Plan are
defined by the Remuneration Committee.
In order to simplify the remuneration model for the Corpo-
rate Executive Committee, the previous Share Participation
Plan was discontinued with effect from 2022. The last alloca-
tion of shares under this plan was made in the spring of 2022
to award variable remuneration for 2021. Detailed information
on this plan can be found in the 2021 remuneration report.
One PSU generally represents an entitlement to one Baloise
share. This is the case if the Baloise TSR performs in line with
the median of the peer group during the vesting period. In
this scenario, the performance multiplier is 1.0. Participants
receive more shares in exchange for their PSUs if the Baloise
TSR for the vesting period is higher than the TSRs of the peer
group. The multiplier reaches the maximum of 2.0 if Baloise
has the highest TSR of all companies in the peer group.
The multiplier amounts to 0 if the Baloise TSR is in
the bottom quartile of companies in the peer group. If
this happens, no PSUs are converted into shares and the
prospective entitlements expire. Consequently, the perfor-
mance multiplier increases on a linear basis from the bottom
quartile upwards from 0.5 to 2.0 (see page 72).
The performance multiplier is based on the closing stock
market prices on the final trading day, taking account of
dividends paid.
Participants receive the pertinent number of shares once
the three-year vesting period has elapsed.
If an individual’s employment contract ends during the
vesting period, the PSUs expire without the person concerned
receiving any consideration or compensation. This does not
apply if the employment contract ends due to retirement,
disability or death. If the employment contract ends due
to termination, the Remuneration Committee can, at its
64
Baloise Group Annual Report 2022
Mandatory share ownership rules for the Corporate
Executive Committee
Each member of the Corporate Executive Committee is
required to hold at least 200 per cent of their basic salary
– or 300 per cent in the case of the Group CEO – in free
float or restricted shares within a period of five years from
the start of their term of office. From 2023, awarded but as
yet unvested PSUs will not be taken into account for the
purposes of compliance with mandatory share ownership
rules, because they have not been converted. In addition,
the minimum share ownership requirement for the Group
CEO has been raised to 300 per cent of their annual basic
salary. This new policy applies with effect from 2023 and the
new requirements must be met within a period of five years.
Reductions of variable remuneration (malus and
clawback provisions)
In the event of a restatement due to a material breach of
applicable financial reporting standards or an incident of
misconduct on the part of an individual, the Remuneration
Committee may recalculate the allocation of short-term
variable remuneration and use its discretion to reduce
outstanding remuneration entitlements or let a proportion
of allocated but as yet unvested PSUs expire (malus) for
members of the Corporate Executive Committee. The Remu-
neration Committee may also demand that an amount of
variable remuneration that has already been disbursed be
paid back in part or in full by the members of the Corporate
Executive Committee and/or that vested shares awarded
in previous vesting periods be returned to the Company
without consideration or compensation (clawback).
Employment contracts, change-of-control clauses,
inducement payments and severance packages
All members of the Corporate Executive Committee have
a notice period of twelve months. There are no change-of-
control clauses. No severance packages may be awarded
to members of the Corporate Executive Committee. Induce-
ment payments that do not compensate a demonstrable
loss of entitlement to remuneration are not allowed. Any
offsetting payments of this nature made at the start of an
employment contract must be approved by the Remunera-
tion Committee irrespective of the amount payable.
Remuneration Report
Baloise Group Annual Report 2022
65
Remuneration Report
7. Remuneration for the reporting year
A. Remuneration paid to the members of the Board of Directors
The Annual General Meeting held on 30 April 2021 approved an amount of CHF 3.4 million for the remuneration (including
social security contributions and Share Subscription Plan discount) payable to the Board of Directors for 2022. The amount
paid out was CHF 3.4 million.
Remuneration paid to the members of the Board of Directors
2021
CHF thousand
Dr Thomas von Planta
Fee for
additional
functions
Total
remune-
ration
Basic fee
Share
Subscrip-
tion Plan
discount
Social
security
contri-
butions
Of which:
in shares
Total
941.7
36.0
10.5
988.2
343.5
Chairman of the Board of Directors
(since 1 May 2021)
866.7
Member of the Board of Directors (until 30 April 2021)
41.7
Chairman’s Committee (until 30 April 2021)
Investment Committee (until 30 April 2021)
Dr Andreas Burckhardt (until 30 April 2021)
Chairman of the Board of Directors
Dr Andreas Beerli
Vice-Chairman of the Board of Directors
Chairman’s Committee
Chair of the Audit and Risk Committee
Christoph B. Gloor
Investment Committee
Audit and Risk Committee
Hugo Lasat
Investment Committee
Christoph Mäder
Remuneration Committee
Dr Markus R. Neuhaus
440.0
125.0
125.0
125.0
125.0
125.0
Remuneration Committee (since 1 May 2021)
Audit and Risk Committee
Dr Karin Lenzlinger Diedenhofen (since 1 May 2021)
83.3
Investment Committee
Thomas Pleines
Chair of the Remuneration Committee
Chairman’s Committee
Prof. Dr Hans-Jörg Schmidt-Trenz
Remuneration Committee
Prof. Dr Marie-Noëlle Venturi - Zen-Ruffinen
Audit and Risk Committee
Chairman’s Committee (since 1 May 2021)
Remuneration Committee (until 30 April 2021)
125.0
125.0
125.0
16.7
16.7
–
50.0
50.0
70.0
50.0
50.0
50.0
50.0
33.3
50.0
33.3
70.0
50.0
50.0
50.0
33.3
16.7
440.0
295.0
6.1
8.6
–
–
446.1
110.0
303.6
82.3
225.0
6.6
6.2
237.8
62.8
175.0
175.0
208.3
116.7
245.0
175.0
225.0
5.1
5.1
6.1
3.4
7.2
5.1
6.6
–
180.1
48.8
6.2
186.3
48.8
6.2
220.6
58.1
5.8
125.9
32.5
5.0
257.1
68.3
–
180.1
48.8
6.2
237.8
62.8
Total for the Board of Directors
2,431.7
790.0
3,221.7
95.9
46.1
3,363.6
966.6
Explanatory notes to the table
As of 2022, the value of subscribed shares is stated at the market price. The disclosure of remuneration for 2021 has been adjusted accordingly. As a result of the fact that this
report uses the closing price on 1 June 2022 (compared with the closing price on 31 May 2021 in the 2021 remuneration report), the reported total for the Board of Directors has
increased by CHF 4,907. This is attributable exclusively to the adjusted valuation of the shares. Social security contributions: The information disclosed for 2021 includes the
contributions that the employer is required by law to pay into the state-run social security schemes (up to the pensionable or insurable threshold in each case). Statutory em-
ployer contributions are made to a vocational pension scheme for the new Chairman of the Board of Directors, who was elected in April 2021 and works in this role on a full-time
basis. No contributions to vocational pension schemes are made for the other members of the Board of Directors. Shares: A proportion of the contractually agreed overall re-
muneration is paid in shares, which remain restricted for three years. In 2021, the previous Chairman of the Board of Directors received half of his share-based remuneration in
shares from the Share Subscription Plan for the Board of Directors (with a closed period of five years instead of the usual three years) and half in shares under the Share Partici-
pation Plan (excluding loan-financed shares). The new Chairman received all of his share-based remuneration under the Share Subscription Plan for the Board of Directors (with
a closed period of three years).
66
Baloise Group Annual Report 2022
Remuneration paid to the members of the Board of Directors
Remuneration Report
Fee for
additional
functions
Total
remune-
ration
Basic fee
Share
Subscrip-
tion Plan
discount
Social
security
contribu-
tions
Of which:
in shares
Total
1,300.0
1,300.0
44.3
12.5
1,356.8
477.5
125.0
255.0
6.5
6.2
267.7
70.2
2022
CHF thousand
Dr Thomas von Planta
Chairman of the Board of Directors
Christoph Mäder
Vice-Chairman of the Board of Directors
(since 30 April 2022)
Remuneration Committee (Member until 29 April
2022, Chair since 30 April 2022)
Strategy and Governance Committee
(since 30 April 2022)
Dr Maya Bundt (since 30 April 2022)
Audit Committee
Claudia Dill (since 30 April 2022)
Investment and Risk Committee
Christoph B. Gloor
Investment and Risk Committee
Audit Committee (until 29 April 2022)
Remuneration Committee (since 30 April 2022)
Hugo Lasat
Investment and Risk Committee
Dr Karin Lenzlinger Diedenhofen
Investment and Risk Committee (until 29 April 2022)
Remuneration Committee (since 30 April 2022)
Dr Markus R. Neuhaus
Audit Committee (Member until 29 April 2022,
Chair since 30 April 2022)
Strategy and Governance Committee
(since 30 April 2022)
Remuneration Committee (until 29 April 2022)
Prof. Dr Hans-Jörg Schmidt-Trenz
Remuneration Committee
Audit Committee (since 30 April 2022)
83.3
83.3
125.0
125.0
125.0
125.0
125.0
Prof. Dr Marie-Noëlle Venturi - Zen-Ruffinen
125.0
Strategy and Governance Committee
Audit Committee
Dr Andreas Beerli (until 29 April 2022) 1
41.7
Vice-Chairman of the Board of Directors
Chair of the Audit Committee
Strategy and Governance Committee
Thomas Pleines (until 30 April 2022)
Chair of the Remuneration Committee
Strategy and Governance Committee
41.7
33.3
63.3
33.3
33.3
33.3
50.0
16.7
33.3
50.0
16.7
33.3
63.3
33.3
16.7
50.0
33.3
50.0
50.0
16.7
23.3
16.7
23.3
16.7
116.7
116.7
225.0
175.0
175.0
3.0
3.0
5.7
4.5
4.5
5.8
125.5
32.0
5.8
125.5
32.0
6.2
236.9
61.9
–
179.5
48.2
6.2
185.7
48.2
238.3
6.1
6.2
250.6
65.7
208.3
5.3
–
213.7
57.4
225.0
5.7
6.2
236.9
61.9
98.3
2.5
–
100.8
27.0
81.7
2.1
3.1
86.8
22.5
Total for the Board of Directors
2,425.0
790.0
3,215.0
93.2
58.2
3,366.4
1,004.5
Explanatory notes to the table
1 Prior to 2012, newly elected members of the Board of Directors only received six months’ pay in the first calendar year. Remuneration for the first two months following election
to the Board of Directors (May and June) was only paid following their departure. Dr Beerli was elected in 2011 and thus received remuneration totalling CHF 42,099 following his
departure as remuneration for his first two months in the role in 2011. Since 2012, newly elected members of the Board of Directors receive a fee for the full eight months of their
first calendar year and in the year of their resignation they are paid for just four months. Social security contributions: The information disclosed for 2022 includes the contri-
butions that the employer is required by law to pay into the state-run social security schemes (up to the pensionable or insurable threshold in each case). Statutory employer
contributions are made to a vocational pension scheme for the Chairman of the Board of Directors, who works in this role on a full-time basis. No contributions to vocational
pension schemes are made for the other members of the Board of Directors. Shares: A proportion of the contractually agreed overall remuneration is paid in shares, which remain
restricted for three years. Shares are stated on the basis of the closing price on 1 June 2022 (CHF 161.70)
Baloise Group Annual Report 2022
67
Remuneration Report
Amounts receivable and remuneration on a
non-arm’s-length basis
No remuneration on a non-arm’s-length basis was paid to
former members of the Board of Directors or companies or
individuals who are related to members of the Board of Direc-
tors. Related parties are spouses or life partners; children
under 18 years or dependent family members; companies
owned or controlled by directors; individuals who act as
trustees for them; children, relatives, companies and trustees
of the spouse or life partner. No amounts receivable from
current or former members of the Board of Directors or any
of the aforementioned persons or companies have been
waived. No remuneration was paid to former members of
the Board of Directors.
B. Remuneration paid to the members of the Corporate
Executive Committee
Remuneration for 2022
The actual level of remuneration paid to the Corporate Exec-
utive Committee is determined in accordance with the table
below.
Type of remuneration
Determined by
Fixed remuneration for 2022 2021 Annual General Meeting
Variable remuneration for
2022
The remuneration paid to the members of the Corporate
Executive Committee for the 2021 and 2022 financial years is
set out in the tables below. The disclosure is made in accord-
ance with the accrual principle. The tables include all forms
of remuneration awarded for performance in each financial
year even if individual components are not paid until a later
date.
Distribution of remuneration for 2022
Remuneration
of the Group CEO
Average remuneration
of other members of
the Corporate Executive
Committee
36%
14%
50%
40%
11%
49%
– cap
2022 Annual General Meeting
Basic salary
Short-term variable remuneration paid in cash
Variable remuneration paid in deferred and restricted shares
– individual payment
Remuneration Committee in February
2022 for long-term variable remunera-
tion and in February 2023 for short-
term variable remuneration (in
compliance with the cap set by the
2022 Annual General Meeting)
Subject to approval by the Annual General Meeting of the
amendment to the Articles of Association, variable remu-
neration will be determined in advance for the following
financial year from 2023 onwards (in line with the procedure
for fixed remuneration).
The Annual General Meeting held on 30 April 2021 approved
an amount of CHF 4.0 million for the fixed remuneration
(including social security contributions) payable to the
Corporate Executive Committee for 2022. The amount paid
out was CHF 4.0 million. In addition, the Annual General
Meeting held on 29 April 2022 approved a maximum amount
of CHF 4.8 million for the variable remuneration (including
social security contributions and discounted subscriptions
under the Share Subscription Plan) payable for 2022. The
total amount paid out was CHF 3.6 million.
On 1 March 2022, the performance share units allocated in
2019 were converted into shares as scheduled. These PSUs
had a value of CHF 1.3 million at the time of allocation. The
actual value of the shares granted was CHF 0.8 million.
68
68
Baloise Group Annual Report 2022
Remuneration Report
Total
basic
salary
plus
variable
remuner-
ation
Variable
remuner-
ation as
percent-
age of
basic
salary
Non-
cash
benefits
Social
security
contri-
butions
Total
remu-
neration
Remuneration paid to the members of the Corporate Executive Committee
Basic
salary
Variable remuneration
Cash
payment
(fixed)
Cash
payment
(variable)
Share
Subscrip-
tion Plan
Share
Participa-
tion Plan
PSU
(granted
in 2021)
Total
variable
remu-
neration
2021
CHF thousand
Gert De Winter
Group CEO
950.0
313.6
329.0
–
380.0
1,022.5
1,972.5
108 %
Dr Alexander Bockelmann
600.0
59.5
207.8
138.6
240.1
645.9
1,245.9
108 %
Head of Corporate Division IT
–
–
219.2 2,191.7
179.5 1,425.4
Dr Matthias Henny
500.0
0.1
207.8
132.0
200.1
539.9
1,039.9
108 %
5.0
197.1 1,241.9
Head of Corporate Division
Asset Management
Michael Müller
700.0
184.9
290.9
Head of Corporate Division
Switzerland
Dr Carsten Stolz
500.0
165.1
173.1
–
–
280.1
755.8
1,455.8
108 %
7.0
198.3 1,661.1
200.1
538.2
1,038.2
108 %
5.0
197.1 1,240.3
Head of Corporate Division
Finance
Total for the Corporate
Executive Committee
3,250.0
723.1
1,208.4
270.6
1,300.3 3,502.3
6,752.3
108 %
16.9
991.2 7,760.4
Explanatory notes to the table
As of 2022, the value of subscribed shares under the Share Participation Plan is stated at the market price. The disclosure of remuneration for 2021 has been adjusted
accordingly. As a result of the fact that this report uses the closing price on 1 March 2022 (rather than the closing price on the cut-off date for choosing the proportion of
shares – 10 January 2022 – used in the 2021 remuneration report), the reported total for the Corporate Executive Committee has decreased by CHF 70,893. This is attributable
exclusively to the adjusted valuation of the shares.
Remuneration is disclosed in accordance with the accrual principle. The table includes all forms of remuneration awarded for performance in 2021
even if individual components are not paid until a later date. Amounts are gross, before deduction of social security contributions, etc.
Share Subscription Plan Proportion of variable remuneration received directly as shares, which are valued at their market value as per closing price on the date of transfer of
title, 1 March 2022 = CHF 150.00.
Share Participation Plan Proportion of variable remuneration received as shares (excluding loan-financed shares). In order to simplify the remuneration model for the
Corporate Executive Committee, the Share Participation Plan has been discontinued with effect from 2022. Detailed information on this plan can be found in the 2021
remuneration report.
PSU Disclosure at the value as at the date of allocation (CHF 174.72), measured using a Monte Carlo simulation that calculates a present value for the payout expected at the
end of the vesting period.
Non-cash benefits All remuneration elements required to be declared on the Swiss salary certificate, including long-service awards, taxable benefits relating to shares
received in connection with the Employee Incentive Plan (maximum of 100 shares per annum).
Social security contributions These comprise the employer contributions to the state-run social security schemes and the occupational pension scheme (up to the
pensionable or insurable threshold in each case). The members of the Corporate Executive Committee are insured under the pension scheme run by Baloise Insurance Ltd.
They are subject to the same terms and conditions as all other insured office-based members of staff.
Baloise Group Annual Report 2022
69
Remuneration Report
Remuneration paid to the members of the Corporate Executive Committee
Total
basic
salary
plus
variable
remuner-
ation
Variable
remuner-
ation as
percent-
age of
basic
salary
Non-
cash
benefits
Social
security
contri-
butions
Total
remu-
neration
Basic
salary
Variable remuneration
Cash
payment
(fixed)
Cash
payment
(variable)
Share
Subscrip-
tion Plan
PSU
(granted
in 2022)
Total
variable
remu-
neration
950.0
270.8
314.9
380.0
965.7
1,915.7
102 %
–
224.5 2,140.3
600.0
171.1
198.8
240.0
609.9
1,209.9
102 %
2.0
183.9 1,395.8
500.0
0.1
314.0
200.1
514.1
1,014.1
103 %
25.3
183.3 1,222.7
2022
CHF thousand
Gert De Winter
Group CEO
Dr Alexander Bockelmann
Head of Corporate Division IT
Dr Matthias Henny
Head of Corporate Division Asset
Management
Michael Müller
700.0
184.8
322.4
280.0
787.3
1,487.3
112 %
4.4
203.1 1,694.8
Head of Corporate Division Switzerland
Dr Carsten Stolz
500.0
142.5
165.7
200.1
508.3
1,008.3
102 %
4.4
186.7 1,199.5
Head of Corporate Division Finance
Total for the Corporate Executive
Committee
3,250.0
769.3
1,315.8
1,300.2
3,385.4 6,635.4
104 %
36.1
981.6 7,653.0
Explanatory notes to the table
Remuneration is disclosed in accordance with the accrual principle. The table includes all forms of remuneration awarded for performance in 2022
even if individual components are not paid until a later date. Amounts are gross, before deduction of social security contributions, etc.
Share Subscription Plan Proportion of variable remuneration received directly as shares, which are valued at their market value as at 1 March 2023 = CHF 156.20.
PSU Disclosure at the value as at the date of allocation (CHF 159.28), measured using a Monte Carlo simulation that calculates a present value for the payout expected
at the end of the vesting period.
Non-cash benefits All remuneration elements required to be declared on the Swiss salary certificate, including long-service awards, taxable benefits relating to shares
received in connection with the Employee Incentive Plan (maximum of 100 shares per annum).
Social security contributions These comprise the employer contributions to the state-run social security schemes and the occupational pension scheme (up to the
pensionable or insurable threshold in each case). The members of the Corporate Executive Committee are insured under the pension scheme run by Baloise Insurance Ltd.
They are subject to the same terms and conditions as all other insured office-based members of staff.
Performance pool factor for 2022
For 2022, the Remuneration Committee set a factor of
100 per cent for the performance pool. The outcomes of
the financial and quality assessments are explained in
greater detail in the following.
Amounts receivable and remuneration on a non-arm’s-
length basis
No remuneration on a non-arm’s-length basis was paid to
former members of the Corporate Executive Committee or
companies or individuals who are related to members of the
Corporate Executive Committee. Related parties are spouses
or life partners; children under 18 years or dependent family
members; companies owned or controlled by directors;
individuals who act as trustees for them; children, relatives,
companies and trustees of the spouse or life partner. No
amounts receivable from current or former members of the
Corporate Executive Committee or any of the aforemen-
tioned persons or companies have been waived.
7070
Baloise Group Annual Report 2022
Remuneration Report
Overall
status
110%
90%
Metrics
Targets
2022–2025
Results for 2022 /
annual performance
Performance appraisal by the
Remuneration Committee
1 Financial assessment
Cash
generation
CHF 2 billion
into Bâloise
Holding
2 Quality assessment
Customers
1.5 million
new customers
Employees
Top 5% of all
employers in
Europe by the
end of 2025
CHF 471 million
2000
1500
1000
500
0
2022
2023
2024
2025
173,000 new customers
1.5
1.2
0.9
0.6
0.3
0
2022
2023
2024
2025
Top 36% of all employers in Europe
Top 5
Top 10
Top 20
Top 30
Top 40
2022
2023
2024
2025
Sustainability
Upper mid-
level ranking
in the indices
published by
MSCI and
Sustainalytics,
the SAM Score
by S&P, and
RepTrak
MSCI: AA
80th percentile
Sustainalytics: 20.4
75th percentile
SAM Score: 43
46th percentile
RepTrak: 69.9
Risk
Positive
integral
qualitative risk
assessment
Overall assessment: good
In a challenging year characterised by
exceptional external conditions, we gene-
rated CHF 471 million in cash in 2022 and
thus achieved a solid contribution of 24 per
cent towards our strategic ambition in the
first year of this strategic phase. On this
basis, we are very confident in our ability
to achieve the overall target of CHF 2 billion
for Simply Safe: Season 2.
In spite of challenging market conditions in
2022, we were able to expand our customer
base, adding 173,000 new customers
through organic growth. This represents
slightly lower growth than we had originally
anticipated. Nonetheless, we continue to
work with confidence on growing and
strengthening the networks in our ecosys-
tems and placing even greater emphasis
on the needs of our customers in order to
achieve our ambition of adding 1.5 million
new customers by 2025.
As part of the Simply Safe: Season 2 strategic
phase, we are measuring satisfaction (‘em-
ployee happiness’) by asking our employees
“How happy are you to work at Baloise?”.
Nearly 80 per cent of employees provided a
positive response to this question in 2022,
whereas just 4 per cent of responses were
negative. Based on this new metric and the
expanded benchmark, Baloise ranked within
the top 36 per cent at the end of 2022. In a
challenging environment, this puts Baloise
within touching distance of the top third in the
ranking of the best employers in Europe.
Progress with the implementation of internal
processes and structures is reflected in
sustainability indices in the form of rating
improvements. In 2022, we were able to
improve our MSCI rating for the fourth time
since 2017, with an upgrade for Baloise from
A to AA. The Sustainalytics rating of Baloise
improved as well, while the SAM score
remained on a par with the previous year.
Our RepTrak score is at the threshold to
‘strong’.
Baloise’s positioning compared with the
overall market remains stable, in spite of
the improvements in specific areas.
The risk situation can be classified as ‘good’.
This classification is underpinned by the
Company’s excellent solvency, which improved
from an already high level and is reflected in
an impressive expected SST ratio of 230 per
cent, as well as by its strong compliance track
record and its positive external perception as
a very robustly capitalised business.
3 Performance pool factor for 2022
100%
Baloise Group Annual Report 2022
71
PSU-Plans
Price
when
granted
CHF
Price
when
converted
CHF
Perfor-
mance
multiplier
Value
when
converted
CHF
Total gain
in value
2015–2018
124.00
149.20
2016–2019
126.00
163.00
2017–2020
130.70
154.90
2018–2021
149.20
158.90
2019–2022
163.00
154.10
1.34
1.32
1.34
1.22
0.67
199.90
215.15
207.55
193.85
61%
71%
59%
30%
103.25
– 37%
The table shows the plans that expired in the past five years.
Remuneration Report
Assessment of the Corporate Executive Committee’s
performance in 2022
The team targets for the Corporate Executive Committee
comprise quantitative and qualitative targets. Alongside
the financial performance of the Group, the focus in 2022
was on the launch of Simply Safe: Season 2. This new stra-
tegic phase, which will last until 2025, was kicked off under
challenging external circumstances. Jointly, the members of
the Corporate Executive Committee acted as role models
for the transformation they are seeking to bring about and
handled the Group CEO’s absence due to illness commend-
ably. The Company ranked within the top 36 per cent of best
employers in Europe and thus remained within touching
distance of the top third. The customer base continued to
grow across all parts of the Group. Compared with previous
years, the cash remittance to Bâloise Holding Ltd increased
once again in 2022, rising to CHF 471 million.
PSUs for the period 2019 to 2022
During the calculation period, Baloise was ranked 25th out
of the 35 insurance companies in the STOXX Europe 600
Insurance Index. The company ranked first is the one with
the best TSR performance in the calculation period. Baloise’s
ranking equates to a performance multiplier of 0.67 (1st place
= performance multiplier of 2; 28th place = performance
multiplier of 0.5; 29th place to 35th place = performance
multiplier of 0).
Range for the performance multiplier and Baloise’s
ranking during the 2019–2022 calculation period
2.00
1.50
1.00
0.50
0.00
35th place 28th place 19th place 10th place
1st place
25th place (Baloise) equates to a performance multiplier of 0.67
Performance multiplier, dependent on the ranking within the peer group
The chart shows the possible range for the performance multiplier, depending on
Baloise’s ranking out of the 35 companies in the STOXX Europe 600 Insurance Index.
This means that a person who was granted, for example, a
prospective entitlement to 100 shares in 2019 will receive 67
shares upon conversion in 2022 based on the performance
multiplier of 0.67.
The value of PSUs is exposed to market risk until the end of
the vesting period and may, of course, fluctuate significantly,
as shown in the table below.
7272
Baloise Group Annual Report 2022 Remuneration Report
C. Loans and credit facilities granted to members of the Board of Directors and the Corporate Executive Committee
(as at 31 December)
Loans and credit facilities granted to members of the Board of Directors and the Corporate Executive Committee
(as at 31 December)
Mortgages
Loans pertaining
to the Share
Participation Plan
Other loans
Total
CHF thousand
Total for the Board of
Directors
Corporate Executive
Committee member
with the highest
outstanding loan:
Dr Alexander Bockelmann
Head of Corporate
Division IT
Dr Matthias Henny
Head of Corporate Division
Asset Management
Other members of the
Corporate Executive
Committee
Total for the Corporate
Executive Committee
2021
2022
2021
2022
2021
2022
2021
2022
–
–
–
–
–
–
–
–
–
2,190.5
2,024.7
–
1,700.0
1,700.0
1,752.2
2,086.7
1,700.0
1,700.0
3,776.9
4,277.2
–
–
–
–
–
–
–
–
–
–
–
–
–
2,190.5
2,024.7
–
3,452.2
3,786.7
5,476.9
5,977.2
Explanatory notes to the table
Loans and credit facilities No loans or credit facilities were granted at non-market terms and conditions
a) to former members of the Board of Directors or the Corporate Executive Committee;
b) to individuals or companies who are related to members of the Board of Directors or Corporate Executive Committee. Related parties are spouses or life partners; children
under 18 years or dependent family members; companies owned or controlled by directors; individuals who act as trustees for them; children, relatives, companies and trus-
tees of the spouse or life partner.
Mortgages of up to CHF 1 million are granted to staff at the following terms and conditions: 1 per cent below the customer interest rate for variable-rate mortgages and at a
preferential interest rate for fixed-rate mortgages.
Loans associated with the Share Participation Plan Loans for the purpose of leveraging the Share Participation Plan. Loans are subject to interest at a market rate (2022: 0.5
per cent) and have a term of three years.
Other loans There are no policy loans.
Baloise Group Annual Report 2022
73
Remuneration Report
D. Shares and options held
Shares held by members of the Board of Directors (as at 31 December)
Discretionary shares
Restricted shares
Total share ownership
Percentage of issued
share capital
2021
2022
2021
2022
2021
2022
2021
2022
Quantity
Dr Thomas von Planta
1,805
3,286
4,195
6,714
6,000
10,000
0.013 %
0.022 %
Chairman
Christoph Mäder
Vice-Chairman
(since 30 April 2022)
Dr Maya Bundt
(since 30 April 2022)
Member
Claudia Dill
(since 30 April 2022)
Member
Christoph B. Gloor
Member
Hugo Lasat
Member
Dr Karin Lenzlinger
Diedenhofen
Member
Dr Markus R. Neuhaus
Member
Prof. Dr Hans-Jörg
Schmidt-Trenz
Member
Prof. Dr Marie-Noëlle
Venturi - Zen-Ruffinen
Member
Dr Andreas Beerli
(until 29 April 2022)
Vice-Chairman
Thomas Pleines
(until 29 April 2022)
Member
Total for the Board
of Directors
Percentage of issued
share capital
733
733
1,682
2,116
2,415
2,849
0.005 %
0.006 %
–
–
–
–
–
–
1,198
1,198
–
–
1,198
1,198
–
–
0.003 %
0.003 %
8,976
9,410
2,312
2,261
11,288
11,671
0.025 %
0.025 %
686
1,024
2,020
1,980
2,706
3,004
0.006 %
0.007 %
0
0
0
0
0
1,218
1,516
1,218
1,516
0.003 %
0.003 %
1,745
2,151
1,745
2,151
0.004 %
0.005 %
338
2,020
2,037
2,020
2,375
0.004 %
0.005 %
686
1,024
2,216
2,261
2,902
3,285
0.006 %
0.007 %
3,695
5,264
2,720
1,388
6,415
6,652
0.014 %
0.015 %
3,106
4,579
2,429
1,095
5,535
5,674
0.012 %
0.012 %
19,687
25,658
22,557
25,915
42,244
51,573
0.092 %
0.113 %
0.043 %
0.056 %
0.049 %
0.057 %
0.092 %
0.113 %
Explanatory notes to the table
Shareholdings Includes shares held by related parties (spouses or life partners; children under 18 years or dependent family members; companies owned or controlled by directors;
individuals who act as trustees for them; children, relatives, companies and trustees of the spouse or life partner).
Restricted shares received in connection with share-based remuneration programmes are subject to a closed period of three years. The closed period for shares received by the
former Chairman of the Board of Directors in connection with the Share Subscription Plan was five years. The closed period for the new Chairman is the same as for the other
members of the Board of Directors, i. e. three years. Article 20 of the Articles of Association also requires all members of the Board of Directors to lodge 1,000 shares with the Com-
pany for the duration of their term of appointment (mandatory share ownership).
Options Members of the Board of Directors do not hold any options on Baloise shares.
7474
Baloise Group Annual Report 2022
Remuneration Report
Shares held by members of the Corporate Executive Committee (as at 31 December)
Discretionary
shares Restricted shares
Total share
ownership
Percentage of
issued
share capital
Prospective
entitlements
(PSUs)
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
30,852
32,073
6,148
6,139
37,000 38,212
0.081 % 0.083 %
6,861
6,980
–
880
13,846
21,856
13,846 22,736
0.030 % 0.050 %
4,215
4,409
13,377
13,522
20,941
20,975
34,318 34,497
0.075 % 0.075 %
3,611
3,674
Quantity
Gert De Winter
Group CEO
Dr Alexander Bockelmann
Head of Corporate Division IT
Dr Matthias Henny
Head of Corporate Division Asset
Management
Michael Müller
27,799
28,115
7,339
6,682
35,138 34,797
0.077 % 0.076 %
5,057
5,144
Head of Corporate Division Switzerland
Dr Carsten Stolz
5,768
2,290
5,923
3,247
11,691
5,537
0.026 % 0.012 %
3,611
3,674
Head of Corporate Division Finance
Total for the members
of the Corporate Executive Committee
Percentage of issued
share capital
77,796
76,880
54,197
58,899
131,993 135,779 0.288 % 0.296 % 23,355
23,881
0.170 % 0.168 % 0.118 % 0.129 % 0.288 % 0.296 %
Explanatory notes to the table
Shareholdings Includes shares held by related parties (spouses or life partners; children under 18 years or dependent family members; companies owned or controlled by directors;
individuals who act as trustees for them; children, relatives, companies and trustees of the spouse or life partner).
Restricted shares Includes loan-financed shares connected with the Share Participation Plan. Shares received in connection with share-based remuneration programmes are
subject to a closed period of three years.
Options held in connection with the Share Participation Plan are not reported here because they were written in order to hedge loans and do not originate from a separate option
plan. Each put option is also offset by a countervailing call option.
Prospective entitlements (PSUs) Number of allocated performance share units (granted as at 1 March 2020, 1 March 2021 and 1 March 2022).
Baloise Group Annual Report 2022
75
Remuneration Report
E. Total remuneration at the Baloise Group
As requested by circular 10/1 issued by the Swiss Financial Market Supervisory Authority on the subject of remuneration,
Baloise has published the amounts of total remuneration and variable remuneration and has disclosed the total amounts
of outstanding deferred remuneration and the inducement payments and severance packages granted. These figures in the
table below include all forms of remuneration awarded for 2022 even if individual components are not paid until a later date.
Total and variable remuneration in the Baloise Group
2021
2022
Cash
Shares
Prospective
entitlements
Total
Cash
Shares
Prospective
entitlements
Total
CHF million
Total remuneration
821.6
5.7
4.9
832.2
822.4
5.2
5.4
833.0
Total variable remuneration
(total pool)
152.5
5.7
4.9
163.1
153.1
5.2
5.4
163.7
Number of beneficiaries
5,150
255
68
5,814
276
78
Total outstanding
deferred remuneration
Debits / credits for remuneration
for previous reporting periods
recognised in profit or loss
Total inducement payments
made
Number of beneficiaries
Total severance payments
made
Number of beneficiaries
–
109.7
14.8
124.6
–
110.0
14.9
124.9
– 0.3
0.1
10
5.5
56
–
–
–
–
–
–
–
–
–
–
– 0.3
– 0.0
0.1
5.5
0.2
26
3.1
56
–
–
–
–
–
– 0.0
0.2
3.1
–
–
–
–
–
Explanatory notes to the table
The table includes all forms of remuneration awarded for each year even if individual components are not paid until a later date.
Total remuneration All taxable benefits that the financial institution provides to persons directly or indirectly for the work they have performed for it in connection with their
employment or directorship. They include cash payments, non-cash benefits, expenditure that creates or increases entitlements to pension benefits, pensions, allocation of
shareholdings, conversion rights and warrants, and debt waivers.
Variable remuneration Part of total remuneration, the amount or payment of which is at the discretion of the financial institution or which depends on the occurrence of agreed
conditions. It includes performance-related and profit-based remuneration such as fees and commissions. Inducement and severance payments also fall under the definition of
variable remuneration.
Total pool All the variable remuneration that a financial institution allocates for a year regardless of its form, any contractual undertaking in respect of grant dates or payout
dates and any terms and conditions attached. Inducement and severance payments made in the relevant year should be included in the total pool.
Inducement payment One-off payment agreed when an employment contract is signed. Payments to compensate for lost entitlement to remuneration from a former employer
also count as inducement pay. For members of the Board of Directors and the Corporate Executive Committee, such payments are allowable only if they compensate for lost
entitlement to remuneration.
Severance payment Remuneration agreed in connection with the termination of an employment contract. Severance packages are paid only in individual justified cases, but
not to members of the Board of Directors or the Corporate Executive Committee.
7676
Baloise Group Annual Report 2022
Appendix 2: Report of the statutory auditor to the Annual General Meeting of
Bâloise Holding Ltd, Basel
Remuneration Report
Ernst & Young Ltd
Ernst & Young AG
Aeschengraben 27
Aeschengraben 27
P.O. Box
Postfach
CH-4002 Basel
CH-4002 Basel
Phone:
Telefon
Fax:
Fax
www.ey.com/ch
www.ey.com/ch
+41 58 286 86 86
+41 58 286 86 86
+41 58 286 30 04
+41 58 286 86 00
To the General Meeting of
An die Generalversammlung der
Bâloise Holding AG, Basel
Bâloise Holding AG, Basel
Basel, 22 March 2023
Basel, 24. März 2021
Report of the statutory auditor on the audit of the remuneration report
Bericht der Revisionsstelle über die Prüfung des Vergütungsberichts
Opinion
Wir haben den beigefügten Vergütungsbericht der Bâloise Holding AG für das am 31.
We have audited the remuneration report of Bâloise Holding AG (the Company) for the year
Dezember 2020 abgeschlossene Geschäftsjahr geprüft.
ended 31.12.2022. The audit was limited to the information on remuneration, loans and
advances pursuant to Art. 14-16 of the Ordinance against Excessive Remuneration in Listed
Verantwortung des Verwaltungsrates
Companies Limited by Shares (Verordnung gegen übermässige Vergütungen bei
Der Verwaltungsrat ist für die Erstellung und sachgerechte Gesamtdarstellung des
börsenkotierten Aktiengesellschaften, VegüV) in the tables on pages 66 to 76 of the
Vergütungsberichts in Übereinstimmung mit dem Gesetz und der VegüV verantwortlich.
remuneration report.
Zudem obliegt ihm die Verantwortung für die Ausgestaltung der Vergütungsgrundsätze und
die Festlegung der einzelnen Vergütungen.
In our opinion, the information on remuneration, loans and advances in the remuneration
report complies with Swiss law and Art. 14-16 VegüV.
Verantwortung des Prüfers
Unsere Aufgabe ist es, auf der Grundlage unserer Prüfung ein Urteil zum beigefügten
Basis for opinion
Vergütungsbericht abzugeben. Wir haben unsere Prüfung in Übereinstimmung mit den
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-
Schweizer Prüfungsstandards durchgeführt. Nach diesen Standards haben wir die
CH). Our responsibilities under those provisions and standards are further described in the
beruflichen Verhaltensanforderungen einzuhalten und die Prüfung so zu planen und
“Auditor’s responsibilities for the audit of the remuneration report” section of our report. We
durchzuführen, dass hinreichende Sicherheit darüber erlangt wird, ob der Vergütungsbericht
are independent of the Company in accordance with the provisions of Swiss law and the
dem Gesetz und den Art. 14–16 der VegüV entspricht.
requirements of the Swiss audit profession, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
Eine Prüfung beinhaltet die Durchführung von Prüfungshandlungen, um Prüfungsnachweise
für die im Vergütungsbericht enthaltenen Angaben zu den Vergütungen, Darlehen und
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
Krediten gemäss Art. 14–16 VegüV zu erlangen. Die Auswahl der Prüfungshandlungen liegt
a basis for our opinion.
im pflichtgemässen Ermessen des Prüfers. Dies schliesst die Beurteilung der Risiken
wesentlicher – beabsichtigter oder unbeabsichtigter – falscher Darstellungen im
Other information
Vergütungsbericht ein. Diese Prüfung umfasst auch die Beurteilung der Angemessenheit der
The Board of Directors is responsible for the other information. The other information
angewandten Bewertungsmethoden von Vergütungselementen sowie die Beurteilung der
comprises the information included in the annual report, but does not include the tables on
Gesamtdarstellung des Vergütungsberichts.
pages 66 to 76 of the remuneration report, the consolidated financial statements, the stand-
alone financial statements and our auditor’s reports thereon.
Wir sind der Auffassung, dass die von uns erlangten Prüfungsnachweise ausreichend und
geeignet sind, um als Grundlage für unser Prüfungsurteil zu dienen.
Our opinion on the remuneration report does not cover the other information and we do not
express any form of assurance conclusion thereon.
Baloise Group Annual Report 2022
77
Remuneration Report
Page 2
In connection with our audit of the remuneration report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the audited financial information in the remuneration report or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Board of Directors’ responsibilities for the remuneration report
The Board of Directors is responsible for the preparation of a remuneration report in
accordance with the provisions of Swiss law and the Company's articles of incorporation, and
for such internal control as the Board of Directors determines is necessary to enable the
preparation of a remuneration report that is free from material misstatement, whether due to
fraud or error. The Board of Directors is also responsible for designing the remuneration
system and defining individual remuneration packages.
Auditor's responsibilities for the audit of the remuneration report
Our objectives are to obtain reasonable assurance about whether the information on
remuneration, loans and advances pursuant to Art. 14-16 VegüV is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Swiss law and SA-CH will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of this remuneration report.
As part of an audit in accordance with Swiss law and SA-CH, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement in the remuneration report,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made.
78
Baloise Group Annual Report 2022
Remuneration Report
Page 3
We communicate with the Board of Directors or its relevant committee regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or
safeguards applied.
Ernst & Young Ltd
Christian Fleig
Licensed audit expert
(Auditor in charge)
Patrick Schwaller
Licensed audit expert
This audit report is a translation of the audit report issued in German. Please also refer to the disclosure on page 269 “Information
on the Baloise Group” referencing the fact that only the German text of the annual report is legally binding.
Baloise Group Annual Report 2022
79
80
Baloise Group Geschäftsbericht 2022
Baloise Group Geschäftsbericht 2022
81
Financial Report
Consolidated balance sheet
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated cash flow statement
Consolidated statement of changes in equity
Notes to the consolidated
annual financial statements
1. Basis of preparation
82
84
85
86
88
90
90
Notes to the consolidated
income statement
27. Premiums earned and policy fees
28. Income from investments for
own account and at own risk
213
213
213
29. Realised gains and losses on investments
214
30. Income from services rendered
31. Other operating income
32. Classification of expenses
33. Personnel expenses
217
217
218
218
2. Application of new financial reporting standards 90
34. Gains or losses on financial contracts
219
220
221
222
224
224
228
228
232
233
234
3. Consolidation principles and accounting
policies
4. Key accounting judgements, estimates and
assumptions
99
120
35. Reconciliation of effective tax rate
36. Earnings per share
37. Other comprehensive income
5. Management of insurance risk and financial risk 123
6. Basis of consolidation
7. Segment reporting
164
165
Other disclosures
38. Long-term equity investments and structure
of the Baloise Group
Notes to the consolidated balance sheet
170
39. Related party transactions
40. Contingent and future liabilities
41. Leases
42. Events after the balance sheet date
Report of the statutory auditor
to the annual general meeting of
Bâloise Holding Ltd, Basel
8. Property, plant and equipment
170
9.
Intangible assets
10. Investment property
11. Financial assets
12. Mortgages and loans
13. Derivative financial instruments
14. Receivables
15. Reinsurance assets
16. Receivables from reinsurers
17. Employee benefits
18. Deferred taxes
19. Other assets
20. Non-current assets and disposal groups
classified as held for sale
21. Share capital
22. Technical reserves (gross)
23. Liabilities arising from banking business
and financial contracts
24. Financial liabilities
25. Non-technical provisions
26. Insurance liabilities
172
175
175
180
181
183
183
184
185
195
197
198
199
200
209
210
212
212
80
Baloise Group Geschäftsbericht 2022
Baloise Group Geschäftsbericht 2022
Baloise Group Annual Report 2022
81
81
Financial Report
Consolidated balance sheet
CHF million
Assets
Property, plant and equipment
Intangible assets
Investments in associates
Investment property
Financial instruments with characteristics of equity
Available for sale
Recognised at fair value through profit or loss
Financial instruments with characteristics of liabilities
Held to maturity
Available for sale
Recognised at fair value through profit or loss
Mortgages and loans
Carried at cost
Recognised at fair value through profit or loss
Derivative financial instruments
Reinsurance assets
Receivables from reinsurers
Insurance receivables
Receivables from employee benefits
Other receivables
Receivables from investments
Deferred tax assets
Current income tax assets
Other assets
Cash and cash equivalents
Non-current assets and disposal groups classified as held for sale
Total assets
Note
31.12.2021
31.12.2022
8
9
38
10
11
11
12
13
15
16
17
14
14
18
19
20
419.5
411.5
1,180.4
1,405.9
316.0
344.7
8,464.5
8,495.1
4,681.7
4,093.1
14,490.3
12,182.8
6,375.5
5,809.6
28,502.8
23,421.3
2,083.2
2,153.3
15,117.5
14,676.4
981.5
902.1
823.9
170.7
450.0
5.9
271.3
334.9
73.7
66.7
193.5
826.4
812.9
650.6
98.4
507.4
7.4
254.7
324.0
217.9
65.0
177.8
4,073.5
3,370.2
–
243.8
89,979.0
80,550.1
82
Baloise Group Annual Report 2022
CHF million
Equity and liabilities
Equity
Share capital
Capital reserves
Treasury shares
Unrealised gains and losses (net)
Retained earnings
Equity before non-controlling interests
Non-controlling interests
Total equity
Liabilities
Technical reserves (gross)
Liabilities arising from banking business and financial contracts
With discretionary participation features
Measured at amortised cost
Recognised at fair value through profit or loss
Financial liabilities
Non-technical provisions
Derivative financial instruments
Insurance liabilities
Liabilities arising from employee benefits
Other accounts payable
Deferred tax liabilities
Current income tax liabilities
Other liabilities
Liabilities included in non-current assets and disposal groups classified as held for sale
Total liabilities
Total equity and liabilities
Financial Report
Note
31.12.2021
31.12.2022
21
22
23
24
25
13
26
17
18
20
4.6
376.8
– 84.9
178.9
4.6
377.6
– 71.6
– 2,811.2
6,809.7
7,040.1
7,285.1
4,539.5
14.8
12.6
7,299.9
4,552.1
48,661.4
44,605.2
4,038.5
8,189.7
3,935.3
7,976.6
14,654.2
12,664.4
2,425.7
2,609.6
77.0
89.8
59.0
136.1
1,770.1
1,740.3
926.1
706.1
1,002.0
41.2
97.4
–
640.0
746.7
590.6
32.8
84.1
177.4
82,679.1
75,998.1
89,979.0
80,550.1
Baloise Group Annual Report 2022
83
Financial Report
Consolidated income statement
CHF million
Income
Premiums earned and policy fees (gross)
Reinsurance premiums ceded
Premiums earned and policy fees (net)
Investment income
Realised gains and losses on investments
For own account and at own risk
For the account and at risk of life insurance policyholders and third parties
Income from services rendered
Share of profit (loss) of associates
Other operating income
Income
Expense
Claims and benefits paid (gross)
Change in technical reserves (gross)
Reinsurers' share of claims incurred
Acquisition costs
Operating and administrative expenses for insurance business
Investment management expenses
Interest expenses on insurance liabilities
Gains or losses on financial contracts
Other operating expenses
Expense
Profit before borrowing costs and taxes
Borrowing costs
Profit before taxes
Income taxes
Profit for the period
Attributable to:
Shareholders
Non-controlling interests
Earnings / loss per share
Basic (CHF)
Diluted (CHF)
Note
2021
2022
27
27
27
28
29
30
38
31
32
32
32
34
32
24
7,416.2
– 326.5
7,089.7
7,109.5
– 317.8
6,791.7
1,159.5
1,157.2
370.5
124.0
1,534.2
– 2,057.9
130.6
4.9
213.2
130.0
4.9
178.2
10,502.5
6,328.1
– 5,813.4
– 6,350.5
– 1,184.7
529.6
– 655.6
– 856.7
– 124.4
– 13.6
– 1,168.3
– 493.0
929.0
251.7
– 596.6
– 867.0
– 122.9
– 11.6
1,609.9
– 464.8
– 9,780.0
– 5,622.8
722.5
705.3
– 24.7
697.9
– 22.4
682.9
35
– 114.6
– 138.4
583.3
544.5
36
588.4
– 5.1
548.0
– 3.5
13.06
13.05
12.13
12.12
84
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
85
Consolidated statement of
comprehensive income
CHF million
Profit for the period
Items not to be reclassified to the income statement
Change in reserves arising from reclassification of investment property
Change in reserves arising from assets and liabilities of post-employment benefits
(defined benefit plans)
Change arising from shadow accounting
Exchange differences
Deferred taxes
Total items not to be reclassified to the income statement
Financial Report
2021
2022
583.3
544.5
11.5
350.8
– 35.2
4.6
– 57.7
274.1
–
222.0
– 96.8
4.0
– 31.8
97.4
Items to be reclassified to the income statement
Change in unrealised gains and losses on available-for-sale financial assets
– 432.8
– 5,688.4
Change in unrealised gains and losses on associates
Change in hedging reserves for derivative financial instruments held as hedges
of a net investment in a foreign operation
Change in reserves arising from reclassification of held-to-maturity financial assets
Change arising from shadow accounting
Exchange differences
Deferred taxes
Total items to be reclassified to the income statement
Other comprehensive income
Comprehensive income
Attributable to:
Shareholders
Non-controlling interests
2.9
– 35.4
– 0.8
221.0
– 128.7
73.7
0.3
– 12.4
– 0.8
2,139.5
– 177.5
651.4
– 300.1
– 3,088.0
– 26.0
– 2,990.6
557.3
– 2,446.1
563.6
– 6.3
– 2,441.5
– 4.6
84
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
85
Financial Report
Consolidated cash flow statement
CHF million
Cash flow from operating activities
Profit before taxes
Adjustments for
Note
2021
2022
697.9
682.9
Depreciation, amortisation and impairment of property, plant and equipment and of intangible
assets
8/9
102.0
Realised gains and losses on property, plant and equipment and on intangible assets
Income from investments in associates
Realised gains and losses on financial assets, investment property and associates
Amortised cost valuation of financial instruments
Share-based payments
Change in assets and liabilities from operating acitivities
Deferred Acquisition Costs
Technical reserves
Reinsurers' share of technical reserves
Receivables and liabilities arising from banking business and financial contracts
Receivables from investments
Receivables and liabilities arising from insurance business and from reinsurers
Change in other assets and other liabilities from operating acitivities
Change in operating assets and liabilities
Purchase of investment property
Sale of investment property
Purchase of financial assets of an equity nature
Sale of financial assets of an equity nature
Purchase of financial assets of a debt nature
Sale of financial assets of a debt nature
Addition of mortgages and loans
Disposal of mortgages and loans
Addition of derivative financial instruments
Disposal of derivative financial instruments
Borrowing costs
Taxes paid
Cash flow from operating activities
98.2
– 0.2
– 4.9
0.5
– 5.3
– 1,889.0
1,913.1
31.7
5.3
11.0
6.0
9
– 94.7
– 98.0
1,078.9
– 1,136.0
– 176.9
129.0
2,249.2
– 1,609.7
25.3
– 87.4
167.6
3.3
– 99.2
17.8
10
10
24
– 101.6
238.5
– 142.0
92.1
– 2,994.0
– 2,982.8
2,190.3
3,246.5
– 6,344.2
– 5,288.8
4,777.0
4,368.9
– 51,640.7
– 14,256.3
52,389.6
14,601.2
– 282.7
210.8
24.7
– 95.7
477.0
– 242.4
354.9
22.4
– 74.7
– 388.0
86
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
87
CHF million
Cash flow from investing activities
Purchase of property, plant and equipment
Sale of property, plant and equipment
Purchase of intangible assets
Sale of intangible assets
Acquisition of companies, net of cash and cash equivalents
Disposal of companies, net of cash and cash equivalents
Purchase of investments in associates
Sale of investments in associates
Dividends from associates
Cash flow from investing activities
Cash flow from financing activities
Capital reductions
Additions to financial liabilities
Disposals of financial liabilities
Borrowing costs paid
Repayments of principal in connection with leases
Purchase of treasury shares1
Sale of treasury shares1
Purchase and sale of options on treasury shares 1
Dividends attributable to non-controlling interests
Dividends paid
Cash flow from financing activities
Financial Report
Note
2021
2022
8
9
38
38
21
24
24
24
24
– 14.0
7.3
– 35.4
0.6
–
–
– 14.6
4.1
– 31.3
0.7
–
–
– 59.7
– 40.1
–
7.0
0.1
6.9
– 94.3
– 74.3
–
450.0
– 375.0
– 25.5
– 13.3
– 37.7
47.3
4.0
– 0.4
– 288.4
– 238.9
–
534.7
– 350.0
– 20.7
– 12.1
– 42.2
54.5
– 3.1
– 0.4
– 316.5
– 155.8
Total cash flow
143.8
– 618.1
Cash and cash equivalents
Balance as at 1 January
Change during the financial year
Effect of changes in exchange rates on cash and cash equivalents
Balance as at 31 December
Breakdown of cash and cash equivalents at the balance sheet date
Cash and bank balances
Cash equivalents
Cash and cash equivalents for the account and at the risk
of life insurance policyholders
Balance as at 31 December
Of which: restricted cash and cash equivalents
Supplemental disclosures on cash flow from operating activities
Interest received
Dividends received
Interest paid
4,004.0
143.8
– 74.3
4,073.5
– 618.1
– 85.2
4,073.5
3,370.2
2,577.2
2,045.1
0.1
0.0
1,496.2
1,325.1
4,073.5
3,370.2
223.4
89.9
594.3
38.3
– 23.5
543.2
63.9
– 14.8
86
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
87
1 The prior-year figures in the cash flow statement were adjusted slightly due to the more detailed presentation of the options on treasury shares. Further details can be found
in the consolidated statement of changes in equity.
Financial Report
Consolidated statement of changes in equity
Note
Share
capital
Capital
reserves
Treasury
shares
Other
changes
in equity
Retained
earnings
Equity
before non-
controlling
interests
Non-
con-
trolling
interests
4.9
370.2
– 578.0
203.7
6,983.0
6,983.7
–
588.4
– 24.8
– 24.8
–
588.4
588.4
– 24.8
563.6
Total
equity
6,985.7
583.3
– 26.0
557.3
2.0
– 5.1
– 1.2
– 6.3
2021
CHF million
Balance as at 1 January
Profit for the period
Other comprehensive income
37
Comprehensive income
Other changes in equity
Dividend
Capital increase / repayment
21
Purchase of treasury shares 1
Sale of treasury shares 1
Purchase and sale of options on
treasury shares 1
Share-based payments
Allocation of treasury shares as part
of share-based remuneration
programmes 1
Cancellation of (treasury) shares
21
– 0.3
Increase / decrease in non-controlling
interests due to change in the scope
of consolidation
Increase / decrease in non-controlling
interests due to change in the
percentage of shareholding
Other
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.1
23.1
4.0
4.9
– 25.4
–
–
–
–
–
–
–
–
–
– 37.8
24.2
–
25.4
481.4
–
–
–
–
–
–
–
–
–
–
–
–
–
– 288.4
– 288.4
– 0.4
– 288.8
–
–
–
–
–
– 481.1
–
–
– 37.7
47.3
4.0
–
–
–
–
– 37.7
47.3
4.0
4.9
0.4
5.3
–
–
–
–
–
–
–
–
–
7.9
7.9
19.0
26.9
–
–
–
–
Balance as at 31 December
4.6
376.8
– 84.9
178.9
6,809.7
7,285.1
14.8
7,299.9
1 The statement of changes in equity was adjusted as a result of the more detailed presentation of options on treasury shares. This resulted in a minor shift within capital
reserves between the purchase / sale of treasury shares and the purchase / sale of options on treasury shares. This change has no impact on total equity.
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Note
Share
capital
Capital
reserves
Treasury
shares
Other
changes
in equity
Retained
earnings
Equity
before non-
controlling
interests
Non-
con-
trolling
interests
Total
equity
2022
CHF million
Balance as at 1 January
Profit for the period
Other comprehensive income
37
Comprehensive income
Other changes in equity
Dividend
Capital increase / repayment
21
Purchase of treasury shares
Sale of treasury shares
Purchase and sale of options on
treasury shares
Share-based payments
Allocation of treasury shares as part of
share-based remuneration programmes
Cancellation of (treasury) shares
21
Increase / decrease in non-controlling
interests due to change in the scope
of consolidation
Increase / decrease in non-controlling
interests due to change in the
percentage of shareholding
Other
4.6
376.8
– 84.9
178.9
6,809.7
–
548.0
7,285.1
548.0
14.8
– 3.5
7,299.9
544.5
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
25.4
– 3.1
4.9
– 26.4
–
–
–
–
–
–
–
–
–
– 42.2
29.1
–
–
26.4
–
–
–
–
– 2,989.5
–
– 2,989.5
– 1.1
– 2,990.6
– 2,989.5
548.0
– 2,441.5
– 4.6 – 2,446.1
–
–
–
–
–
–
–
–
–
–
– 316.5
– 316.5
– 0.4
– 316.9
–
–
–
–
–
–
–
–
–
– 42.2
54.5
– 3.1
–
–
–
–
–
– 42.2
54.5
– 3.1
4.9
1.1
6.0
–
–
–
–
–
–
–
–
–
– 2.0
– 2.0
1.7
– 0.3
– 0.6
0.8
0.2
–
0.2
Balance as at 31 December
4.6
377.6
– 71.6
– 2,811.2
7,040.1
4,539.5
12.6
4,552.1
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Notes to the consolidated annual financial
statements
1. Basis of preparation
The Baloise Group is a European direct insurer operating in virtually every segment of the life and non-life insurance business.
Its holding company is Bâloise Holding Ltd, a Swiss corporation based in Basel whose shares are listed in the Regulatory
Standard for Equity Securities (Sub-Standard: International Reporting) of the SIX Swiss Exchange. Its subsidiaries are active
in the direct insurance markets in Switzerland, Liechtenstein, Germany, Belgium and Luxembourg. Its banking business
is conducted by subsidiaries in Switzerland. In addition, the Baloise Group has several fund management companies in
Luxembourg.
The Baloise Group’s consolidated annual financial statements are based on the historical cost principle and recognise
adjustments resulting from the regular fair value measurement of investment property and of financial assets and finan-
cial liabilities that are classified as available for sale or recognised at fair value through profit or loss. These consolidated
annual financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS),
which comply with Swiss law. IFRS 4 deals with the recognition and disclosure of insurance and reinsurance contracts. The
measurement of these contracts is based on local financial reporting standards. All amounts shown in these consolidated
annual financial statements are stated in millions of Swiss francs (CHF million) and have been rounded to one decimal
place. Consequently, the sum total of amounts that have been rounded may in isolated cases differ from the rounded total
shown in this report.
At its meeting on 22 March 2023 the Bâloise Holding Ltd Board of Directors approved the annual financial statements
and the Financial Report and authorised them for issue. The financial statements have yet to be approved by the Annual
General Meeting of Bâloise Holding Ltd.
2. Application of new financial reporting standards and restatements
Newly applied IFRSs and interpretations
2.1
IFRS 9 Financial Instruments (deferral approach selected latest until 31 December 2022)
The Baloise Group is utilising the temporary exemption from IFRS 9 in connection with the amendments to IFRS 4 Insurance
Contracts. It qualifies for a temporary exemption from IFRS 9 because liabilities relating to the insurance business constituted
87 per cent of the total carrying amount of all liabilities as at 31 December 2015 (CHF 63.7 billion of totally CHF 73.3 billion).
There have been no changes to business activities since then, so 31 December 2015 continues to be the relevant date for
calculating the proportion of liabilities relating to the insurance business. The qualitative factors within the meaning of
IFRS 4.20F(b) are, firstly, Baloise’s assignment to the STOXX Europe 600 Insurance Index under stock-market law and, secondly,
Bâloise Holding AG’s regulatory categorisation by FINMA as an insurance group.
By opting to apply the temporary exemption, the Baloise Group is adopting the deferral approach, which enables it to
adopt IFRS 9 and IFRS 17 simultaneously with effect from 1 January 2023. Until these standards are adopted, there will be
no effect on profit for the period or on balance sheet line items.
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Financial assets for own account and at own risk
31.12.
CHF million
Financial instruments with characteristics of equity
Equities
Equity funds
Mixed funds
Bond funds
Real estate funds
Private equity
Hedge funds
Financial instruments with characteristics of liabilities
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Mortgages and loans
Mortgages
Promissory notes and
registered bonds
Time deposits
Employee loans
Reverse repurchase agreements
Other loans
Derivative financial instruments
Interest rate instruments
Equity instruments
Foreign currency instruments
Receivables
Receivables from financial contracts
Other receivables
Receivables from investments
Cash and cash equivalents
Voluntarily measured at amortised cost
or fair value through other comprehen-
sive income under IFRS 9
Mandatorily measured at fair value
through profit or loss under IFRS 9
Carrying
amount
Fair value
Change in
fair value
balance
compared
with
Carrying
amount
Fair value
Change in
fair value
balance com-
pared with
2022
2022
2021
2022
2022
2021
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
16,036.5
15,942.3
6,191.6
5,480.7
1,223.1
5.0
6,191.6
5,453.3
1,223.1
5.0
– 4,629.5
– 1,260.3
– 1,192.8
– 15.0
– 5.3
11,255.3
10,870.2
– 740.6
1,568.0
1,568.0
– 704.9
121.1
646.3
301.2
742.2
121.1
646.3
301.2
742.2
1,240.7
1,240.7
0.0
0.0
5.6
88.1
206.6
–
–
–
5.6
88.1
206.6
–
–
–
– 31.5
– 10.0
149.8
29.0
4.0
– 0.2
5.6
60.2
6.3
–
–
–
3,057.9
2,556.5
– 1,374.1
18.8
18.8
14.5
211.3
33.0
465.0
297.7
–
–
–
–
211.3
32.8
465.0
294.8
–
–
–
–
– 354.8
3.6
280.0
90.9
–
–
–
–
254.7
324.0
257.0
324.0
– 16.0
– 10.9
2,045.1
2,045.1
– 532.2
–
–
–
7.7
403.1
9.4
99.7
–
–
–
–
–
–
–
7.3
403.1
9.4
99.7
–
–
–
–
–
–
–
– 1.5
– 3.3
– 26.6
– 41.2
–
–
–
–
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Credit ratings of financial assets for own account and at own risk at amortised cost
or fair value through other comprehensive income under IFRS 9
as at 31.12.2022
AAA
AA
A
BBB
Lower than
BBB
or no rating
Carrying
amount
Impairment
Fair Value
lower than
BBB
or no rating
CHF million
Financial assets of a debt
nature
Public corporations
5,151.6
7,600.7
44.8
3,327.1
–
–
455.3
299.7
–
5.0
105.5
1,085.5
1,167.4
1,209.9
8,971.6
235.6
–
–
–
2.6
1.1
94.0
–
–
55.0
28.9
13.8
81.1
1,645.5
2,261.1
1,103.8
–
–
54.0
–
–
65.5
41.0
Industrial enterprises
Financial institutions
Private debt
Other
Mortgages and loans
Mortgages
Promissory notes and
registered bonds
Time deposits
Employee loans
Reverse repurchase
agreements
Other loans
Other receivables
Other receivables
Receivables from
investments
Cash and cash
equivalents
1,409.9
1,486.1
565.5
–
–
953.9
340.6
–
–
–
228.7
16,036.5
1,944.4
184.6
1,223.1
–
56.8
186.2
157.3
33.0
410.0
6,191.6
5,480.7
1,223.1
5.0
11,255.3
3,057.9
211.3
33.0
465.0
– 23.2
– 13.4
– 1.5
–
–
– 24.6
–
–
–
–
228.7
1,944.4
184.6
1,223.1
–
55.8
181.3
157.3
32.8
410.0
120.8
23.7
121.7
297.7
– 0.5
119.7
879.3
373.3
556.3
9.7
36.3
44.1
164.7
71.5
254.7
324.0
– 2.7
– 1.3
164.7
71.5
192.1
2,045.1
–
192.1
The carrying amount of the financial asset before impairment pursuant to IFRS 4.39G(a) is obtained by adding together the carrying amounts and impairment losses shown in
the table above.
IFRSs and interpretations not yet applied
2.2
The following new standards and interpretations relevant to the Baloise Group have been published by the IASB but have
not yet come into effect and, therefore, have not been applied in the 2022 consolidated annual financial statements:
Standard /
Inter-
pretation
IFRS 9
IFRS 17
Content
Financial instruments
Insurance contracts
Applicable
to annual periods
beginning
on or after
1.1.2023
1.1.2023
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IFRS 9 Financial Instruments
Following the end of the temporary exemption from applying IFRS 9 (see also chapter 2.1), the Baloise Group began applying
IFRS 9 Financial Instruments on 1 January 2023 with retrospective effect from 1 January 2022. IFRS 9 sets out rules on the
classification and measurement of financial instruments, the impairment of assets and hedge accounting.
Classification of a financial asset is based on the entity’s business model on the one hand and, on the other, the char-
acteristics of the contractual cash flows of the financial asset in question. To be classified in a model of measurement at
amortised cost (AC) or at fair value through other comprehensive income (FVOCI), the contractual cash flows must meet
the criteria of being solely payments of principal and interest (SPPI). This is the case if all the payments to be received are
made either as (partial) repayment of the capital or as interest for the time value of the money invested and credit risk.
Within its business models, the Baloise Group will measure investments at fair value through profit or loss (FVPL, particu-
larly financial instruments that do not meet the SPPI criteria), at fair value through other comprehensive income (FVOCI,
particularly in the Non-Life operating segment) and at amortised cost (AC, particularly in the Non-Life operating segment).
In the Life operating segment, investments are designated as at FVPL in exercise of the option provided in IFRS 9 to avoid
accounting mismatches between assets and liabilities. Derivatives are measured at FVPL. In the Non-Life operating segment
and in respect of Baloise Bank’s shareholdings, the FVOCI option is used for equity instruments, which means that gains
and losses realised on these investments are recognised solely in other comprehensive income (OCI) and not in the income
statement.
Taking account of the requirements of IFRS 9, the investments are classified so as to avoid accounting mismatches
between assets and liabilities as far as possible and, overall, to reduce volatility in the income statement.
Measurement effects are expected to arise primarily as a result of the changes compared with IAS 39 in the measure-
ment of held-to-maturity financial instruments, mortgages and loans that were previously measured at AC but, in the Life
operating segment, will now be measured at FVPL.
Under IAS 39, credit losses were recognised only when the loss event occurred. Under the new impairment model in IFRS
9, however, a loss allowance for expected credit losses (ECLs) is now recognised. The IFRS 9 model consists of three stages
that determine the amount at which the loss allowance is recognised and the recognition of interest. At the time of initial
recognition, expected losses must be recognised in the amount of the present value of the twelve-month expected credit
loss (stage 1). If the credit risk has risen significantly, the loss allowance has to be increased to the amount of the lifetime
expected credit losses (stage 2). If objective evidence of impairment arises, interest has to be recognised on the basis of
the net carrying amount (stage 3).
The expected credit losses are calculated for the investments measured at FVOCI or AC, with the exception of the equity
instruments for which the FVOCI option is exercised. Given the high credit quality of the investments held by the Baloise
Group, no material effect is expected as a result of applying the new impairment model in connection with the first-time
adoption of IFRS 9.
The Baloise Group will also recognise hedges as cash flow hedges, fair value hedges and hedges of a net investment
in a foreign operation under IFRS 9.
IFRS 17 Insurance Contracts
IFRS 17 establishes uniform principles, consistent with the rules in other IFRSs, for the measurement, presentation and
disclosure of insurance contracts and reinsurance contracts. The introduction of IFRS 17 involves material conceptual and
structural changes compared with the rules in IFRS 4. The objective is to improve the presentation of the insurance business
and make it possible to compare earnings from insurance contracts across the insurance industry. The Baloise Group will
start applying IFRS 17 (in the version issued by the IASB) on 1 January 2023 with retrospective effect from 1 January 2022.
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The main changes and their impact on the Baloise Group’s IFRS consolidated financial statements are presented below.
Comprehensive, finalised quantitative disclosures on the effects of the first-time adoption of IFRS 17 on the Baloise Group’s
opening balance sheet were not possible at the time of publication of the consolidated financial statements for the year
ended 31 December 2022.
Definition of an insurance contract
Irrespective of its treatment in accordance with regulatory requirements or tax law, an insurance contract pursuant to IFRS
17 is defined as “a contract under which one party (the issuer) accepts significant insurance risk from another party (the
policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely
affects the policyholder”. In this context, an insurance risk is any directly insured or reinsured risk that is not a financial risk.
As a rule, insurance contracts entered into by the Baloise Group are fully recognised in accordance with IFRS 17 or, if they
do not meet the definition of an insurance contract, as a financial instrument in accordance with IFRS 9.
The measurement unit for insurance contracts
Groups of insurance contracts rather than the individual contracts are measured under IFRS 17. These groups constitute
the smallest unit in the financial reporting. Initially, those insurance contracts that are subject to similar risk and managed
together are collected together. These portfolios are then divided into groups on the basis of the contracts’ year of issue
and the profitability of the contracts expected at the time of issue. Overall, this results in an extremely granular breakdown
of the Baloise Group’s insurance contract portfolio.
Measurement models for insurance contracts
IFRS 17 provides for three measurement models: the general measurement model (GMM), the variable fee approach (VFA)
and the premium allocation approach (PAA), whose use depends on certain requirements. Under IFRS 17, the GMM and the
PAA are modified in the case of outward reinsurance contracts.
The bulk of the Baloise Group’s insurance contracts are not measured using the GMM. Instead, the PAA (almost the entire
portfolio of non-life insurance contracts) and VFA (life insurance contracts in Switzerland and Germany) are used. The
GMM is used for insurance contracts in Belgium and Luxembourg and for life reinsurance contracts. As a rule, unit-linked
contracts in other countries (e. g. Luxembourg) were classified as financial contracts under IAS 39 and will be classified
under IFRS 9 in future.
General measurement model (GMM)
The GMM comprises the following elements:
● Estimates of future cash flows that originated within the IFRS 17 contract boundary
● Adjustment to reflect the time value of money and the financial risk (‘risk-appropriate discounting’)
● Risk adjustment (RA) for non-financial risk
● Contractual service margin (CSM) representing the unearned profit that will be recognised as the services are
provided in the future
The sum of the first three elements is also referred to as fulfilment cash flows. Measurement is based on projections of the
net cash flows from the grouped insurance contracts. The projections are updated on an ongoing basis. These cash flows
are discounted using current, risk-appropriate discount rates and undergo a risk adjustment (RA) in order to take account
of the price of taking on non-financial risk.
For the purpose of discounting, the current, risk-appropriate discount rates are determined using a bottom-up approach
in which risk-free swap curves (SARON and Euribor) are adjusted by applying a specific spread. The spread takes account
of the illiquidity of the insurance contracts and is oriented to investments held by Baloise.
The risk adjustment for non-financial risk is based on a percentile approach (75 per cent) for all insurance contracts of
the Baloise Group.
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For the fulfilment cash flows calculated in this way, the methods used for measurement on initial recognition and for
subsequent measurement are identical.
If the measurement with the fulfilment cash flows gives rise to a positive margin for the insurance services and investment
services still to be performed, this margin is not recognised as immediate profit. Instead, it is recognised as a CSM in the
form of deferred income and is then systematically recognised in profit or loss over the remaining period of service on the
basis of the coverage unit (CU). The CU describes the profile of the insurance services and investment services performed.
If, on initial measurement, it becomes clear that a group of insurance contracts will give rise to a loss (onerous), this
expected loss must be recognised immediately in profit or loss as a loss component and disclosed separately, i. e. the contrac-
tual service margin cannot contain negative margins. In the case of onerous insurance contracts, all changes resulting
from subsequent measurement must be recognised in the income statement immediately until such time as a CSM arises.
Upon subsequent measurement under the GMM, any resulting changes to the outstanding fulfilment cash flows that
are not attributable to financial influences and any delays to payments for non-distinct investment components in the
contracts trigger a corresponding adjustment to the CSM. This updated CSM is released to profit or loss on the basis of the CU.
Changes to the discount rate do not affect the CSM. Changes resulting from financial influences are recognised in
insurance finance income or expenses.
Measurement of insurance contracts in accordance with the variable fee approach (VFA)
Insurance contracts with statutory or contractually defined direct participation features (policyholders’ dividends) are
accounted for under the VFA.
The differences between the VFA and GMM with regard to measurement of the technical reserves relate exclusively to
the recognition of the CSM. In the case of VFA contracts, a significant portion of the financial risk is shared with the policy-
holders. Consequently, the CSM is also adjusted as a result of margin changes that are due to financial influences.
Measurement of insurance contracts in accordance with the premium allocation approach (PAA)
IFRS 17 gives the option to simplify the measurement of the actuarial reserve (liability for remaining coverage, LRC) – i. e. the
part of the total reserve that relates to the liability for the unexpired portion of the insurance coverage – for certain groups
of contracts. This simplification, also known as the premium allocation approach (PAA), can be used if the coverage period
of each contract in the group – the period in which insurance coverage and other services are provided – is one year or
less. The PAA may also be used for groups of insurance contracts where the PAA would produce a measurement of the LRC
that would not be materially different to the measurement under the GMM.
Baloise intends to use the PAA as a simplified measurement method for all contracts with a short term, i. e. mainly mate-
rial portfolios in the non-life insurance business (including the related reinsurance business). Here, measurement of the
insurance contracts in respect of the remaining coverage largely follows the same approach as under IFRS 4 and is based
on accruals for premiums not yet earned. The main changes for non-life insurance contracts are thus limited to the claims
reserve (liability for incurred claims, LIC), for which discounting and the risk adjustment for non-financial risk are obligatory.
Presentation of assets/liabilities arising from insurance contracts and reinsurance contracts on the balance sheet
IFRS 17 affects some of the line items that were previously recognised on the balance sheet in connection with insurance
contracts under IFRS 4:
● Cash flows from policy loans are considered to be part of the insurance contract and are no longer recognised as
separate financial instruments.
● Furthermore, the amounts previously recognised separately on the balance sheet as receivables from policyholders
will now be treated as a component of technical reserves.
● The present values of future profits on insurance contracts acquired, which were previously recognised as intangible
assets, are an integral element of the measurement of insurance contracts under IFRS 17.
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● This also applies to cash flows for future policyholders’ dividends, which are therefore no longer shown in a separate
reserve. This also means that the Baloise Group will stop using shadow accounting because IFRS 17 provides for the
adequate allocation of the cash flows from the realisation of measurement differences to fulfilment cash flows and
the CSM.
● Acquisition costs (insurance acquisition cash flows, IACF) in the Non-Life operating segment that are paid for future
contract renewals, i. e. that are outside the contract boundary, continue to be deferred as before, but as part of the
liabilities and no longer as a separate asset.
● As a rule, IACF for life insurance policies are not recognised as an asset. Instead, they are included in full in the fulfil-
ment cash flows, which means that they are also directly recognised in the assets and liabilities arising from insur-
ance contracts.
Assets and liabilities from insurance business are recognised separately under assets and liabilities on the balance sheet,
broken down into coverage underwritten by the Baloise Group itself and outward reinsurance. Furthermore, the disclosures
for all types of insurance contract are broken down into the actuarial reserve (liability for remaining coverage, LRC) and the
claims reserve (liability for incurred claims, LIC).
The Baloise Group anticipates that, on the date of transition to IFRS 17, the liabilities from life insurance business will
increase due to discounting at current discount rates, the consideration of expected policyholders’ dividends beyond the
overall contract boundary and the explicit CSM as part of the liabilities.
For non-life business, the liabilities from insurance business are currently expected to remain at a similar level as under
IFRS 4 upon transition to IFRS 17. This is due to countervailing effects resulting from the reduction in the liabilities owing to
the discounting on the one hand and, on the other, from the increase in the liabilities owing to the explicit risk adjustment
for non-financial risk.
Overall, the Baloise Group expects the first-time adoption of IFRS 17 to lead to a reduction in equity, mainly because of
the remeasurement of the insurance contracts in the Life operating segment in accordance with the VFA and, on a smaller
scale, in accordance with the GMM. This means that some of the unrealised gains in the form of the CSM, which were previ-
ously recognised in equity, will be reported as part of the liabilities from insurance contracts in future.
In the Non-Life operating segment, no significant impact on equity is expected at the time of the first-time adoption of
IFRS 17 due to the countervailing effects of discounting the contracts and taking account of the risk adjustment.
Recognition of insurance contracts in the income statement
Under IFRS 17, the statement of comprehensive income for insurance contracts is broken down into three disclosure groups.
In the same way as for the presentation on the balance sheet, gross insurance business and outward reinsurance contracts
are presented separately. The three disclosure groups are as follows:
● Insurance revenue
● Insurance service expenses (referred to in combination with insurance revenue as the insurance service result;
explained in more detail below)
● Insurance finance income or expenses: an item comprising the sum of all changes in the measurement of insurance
contracts arising from the effect of, and changes in, the time value of money, and from the effect of, and changes in,
financial risk
The IFRS 17 model for insurance revenue essentially follows the general approach used in IFRS 15 for revenue, and revenue
is no longer reported on the basis of the receipt of premiums. Instead, the revenue for the period is essentially measured
in the amount of the expected expenses for insurance services and other services and the release to profit of loss of the
risk adjustment (RA) for non-financial risk and the CSM. Furthermore, the part of the policyholder benefits that has to be
granted regardless of the occurrence of an insured event (non-distinct investment component) is eliminated from the
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income statement. The revenue calculated in this way is set against the associated non-financial expenses actually
incurred (the insurance service expenses), which include the insurance benefits and all costs that are directly attributable
to the insurance contracts and that, like the insurance revenue and in the same amount, are also reduced by benefits for
non-distinct investment components.
The elimination of the non-distinct investment components from the income statement will result in significantly lower
volumes in the life insurance business.
No material changes in terms of revenue in the Non-Life operating segment are expected in comparison with IFRS 4
because it is determined in accordance with the PAA and, moreover, the contracts do not include a non-distinct investment
component. As before, the insurance revenue arises mainly from the premium components received.
Regardless of the timing of payment, acquisition costs for insurance contracts are allocated on a systematic basis over
the coverage period for recognition as revenue and at all times in the same amount for recognition as an expense. A longer-
term deferral of acquisition costs already paid, but not yet recognised as an expense, is carried out only if the acquisition
costs were paid for expected future renewals of existing contracts.
The change in the presentation of acquisition costs is not expected to result in material differences in current insurance
business after IFRS 17 has been implemented in full.
Expected impact on the insurance service result
As far as the insurance service result is concerned (see the next section for information about insurance finance income or
expenses), the Baloise Group anticipates that application of the long-term life insurance contracts measured in accord-
ance with the GMM will result in a reliable component in the insurance service result because the CSM is released over the
coverage period. This consists of the release of the expected margins (CSM and RA) and experience adjustments for the
period, provided these are not due as policyholders’ dividends as a result of participation features.
When the VFA is applied, the shares of experience adjustments attributable to the shareholder will initially be transferred
to the CSM and then progressively recognised in profit or loss. This typically results in less volatile profit or loss. Non-distinct
investment components will no longer influence the insurance service result in future.
In the Non-Life operating segment, no material impact on the insurance service result is expected due to application of
the PPA. There will be effects from the discounting of claims reserves and the subsequent unwinding of the discount, but
these are recognised in insurance finance income or expenses.
Expected impact on insurance finance income or expenses
All financial effects from insurance contracts – primarily the impact of discounting and the impact of financial effects on
the amount of the fulfilment cash flows – are reported separately in the statement of comprehensive income. For portfolios
of insurance contracts and reinsurance contracts, IFRS 17 provides the option to recognise the effects of changed financial
assumptions on the LRC and LIC in other comprehensive income (OCI). Baloise exercises this option for all life insurance
contracts measured with the GMM, for the non-life claims reserve and for selected VFA contracts. When non-VFA contracts
are derecognised from these portfolios, the relevant OCI components are recycled to the income statement.
For contracts recognised under the VFA, all financial effects on fulfilment cash flows and the CSM are offset by the gains
and losses on investments attributable to these contracts, while the contributions to profit or loss for the period and to
OCI also offset each other. Irrespective of the contributions to profit or loss for the period and to OCI, financial effects from
experience adjustments in the period are – in the same way as for the insurance service result – initially added to the CSM.
This helps to stabilise profit or loss for the period, even in the case of financial effects.
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Transition
Generally, IFRS 17 must be applied retrospectively, i. e. each group of insurance contracts must be accounted for as if IFRS
17 had always been applied. This is known as the fully retrospective approach (FRA). If this approach is impractical, IFRS 17
permits exceptions (modified retrospective approach (MRA) and fair value approach (FVA)).
For the implementation of IFRS 17, the Baloise Group will use the fully retrospective approach for the entire Non-Life
operating segment. In the Life operating segment, all entities in the Baloise Group will use the fully retrospective approach
for the period starting between 2016 and 2019 (depending on the availability of data) until the time of transition. For earlier
periods, the fair value approach will be used for certain portfolios (life insurance business in Germany and Belgium and
unit-linked business in Luxembourg) and the modified retrospective approach for all other business. For the purposes of the
fair value approach, the difference between the fair value of the group of insurance contracts under IFRS 13 and the group’s
fulfilment cash flows calculated in accordance with IFRS 17 will be reported as the CSM for the transition.
Use of the transitional provisions will have an influence on the effect of the first-time adoption of IFRS 17 on the Baloise
Group’s financial position and financial performance. This is because, although the fulfilment cash flows will be calculated
prospectively, the CSM will be updated over time and therefore will be partly recognised as a past realisation in equity and
partly, as the existing CSM, will not affect the insurance service result and equity until further into the future.
Similarly, the determination of historical discount rates has an impact, particularly on the effects of unwinding the
discount on long-term life insurance contracts. The Baloise Group has retrospectively calculated the yield curves up to 2016
on an exact basis and calculated the yield curves for the more recent past up to 2020 on an approximate basis. To do so,
it calculated the basic yield curves and applied a spread that remained unchanged over time.
Key figures for the application of IFRS 17
In future, the Baloise Group will mainly use the following insurance key figures: combined ratio, CSM and new business
margin. For information purposes, the volume of business will continue to be disclosed even though this is no longer included
in the income statement.
IFRS 17 and IFRS 9 implementation project
In connection with the introduction of IFRS 17 and IFRS 9, the Baloise Group initiated the IFRS 17/9 & Finance Transformation
implementation project in 2018. This Group-wide project encompasses the methodology and the structure of data flows and
the related infrastructure. The project’s aim is to enable the Baloise Group to comply with the relevant financial reporting
requirements and, in addition, optimise its financial systems and financial processes. The project work is at an advanced
stage. IFRS 9 and IFRS 17 are required to be applied from 1 January 2023, with the related IFRS reporting to be provided for
the first time in the 2023 half-year report.
At the time of preparation of this report, Baloise did not yet have any finalised quantitative information regarding the
effects on the consolidated annual financial statements of implementing IFRS 17 and IFRS 9. The Baloise Group has therefore
not yet published any comprehensive quantitative information in the Financial Report for the year ended 31 December 2022.
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3. Consolidation principles and accounting policies
Method of consolidation
Subsidiaries
3.1
3.1.1
The consolidated annual financial statements comprise the financial statements of Bâloise Holding Ltd and its subsidiaries,
including any structured entities. A subsidiary is consolidated if the Baloise Group controls it either directly or indirectly. As
a rule, this is the case if the Baloise Group has exposure or rights to variable profit components as a result of its involvement
with the investee and, because of legal positions, has the ability to influence the investee’s business activities that are
critical to its financial success and, therefore, to affect the amount of the variable profit components.
Companies acquired during the reporting period are included in the consolidated annual financial statements from
the date on which control is effectively assumed, while all companies sold remain consolidated until the date on which
control is ceded. Acquisitions of entities are accounted for under the acquisition method (previously known as the “purchase
method”). Transaction costs are charged to the income statement as an expense. The identifiable assets and liabilities of
the entity concerned are measured at fair value as at the date of first-time consolidation. Non-controlling interests arising
from business combinations are measured either at their fair value or according to their share of the acquiree’s identifiable
net assets. The Baloise Group decides which measurement method to apply to each individual business combination.
The acquisition cost corresponds to the fair value of the consideration paid to the previous owners on the date of the
acquisition. If investments in the form of financial instruments or associates were already held before control was acquired,
these investments are remeasured and any difference is recognised in profit or loss. Any contingent consideration recognised
as part of the consideration paid for the acquiree is measured at fair value on the transaction date. Any subsequent changes
in the fair value of a contingent consideration are recognised in the income statement. If the acquisition cost exceeds the
fair value of assets and liabilities plus non-controlling interests, the difference is recognised as goodwill. Conversely, if the
identified net assets exceed the acquisition cost then the difference is recognised directly through profit or loss as other
operating income. All intercompany transactions and the resultant gains and losses are eliminated.
The consolidation of subsidiaries ends on the date on which control is ceded. If only some of the shares in a subsidiary
are sold, the retained interest is measured at fair value on the date that control is lost. Gains or losses on the disposal of
(some of) the subsidiary’s shares are recognised in the income statement as either other operating income or other oper-
ating expenses.
The acquisition of additional investments in subsidiaries after assuming control and the disposal of investments in
subsidiaries without ceding control are both recognised directly in equity as transactions with owners.
3.1.2 Structured entities
Structured entities are consolidated provided the criteria for control pursuant to IFRS 10 are met. If control over a structured
entity is lost, it is removed from the basis of consolidation. The consolidation of investment funds depends on the fund’s
control arrangements and on the characteristics of the fund units. Investment fund units held by third parties, where these
units are puttable instruments that include a contractual obligation for the issuer to take back the units, are included in
the basis of consolidation in accordance with the criteria in IAS 32. If there is no such obligation for the issuer to take back
the units, the units held by third parties are recognised as non-controlling interests in consolidated equity in accordance
with the criteria in IFRS 10.
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Joint arrangements
3.1.3
Joint arrangements are contractual agreements over which two or more parties have joint control. A joint arrangement
is classified as either a joint operation or a joint venture. In a joint operation, the involved parties have direct rights and
obligations in respect of the assets and liabilities and the income and expenses. By contrast, the parties involved in a joint
venture do not have a direct entitlement to the assets and liabilities and, instead, have rights in respect of the net assets
of the joint venture owing to their position as investors.
Joint ventures are accounted for using the equity method, i. e. the Baloise Group initially recognises the joint ventures at
cost (fair value at the date of acquisition) and thereafter recognises them under the equity method (the Baloise Group’s
share of the entity’s profit or loss for the period and other comprehensive income). In the case of joint operations, the Baloise
Group includes directly in its consolidated financial statements the share of the assets, liabilities, income and expenses of
the joint operation that is attributable to the Baloise Group.
3.1.4 Associates
Associates are initially carried at cost (fair value at the date of acquisition) and thereafter are measured under the equity
method (the Baloise Group’s share of the entity’s profit or loss for the period and other comprehensive income) in cases
where the Baloise Group can exert a significant influence over the management of the entity concerned. Changes in the fair
value of associates are generally recognised in profit or loss and take account of any dividend flows. If the Baloise Group’s
share of the losses exceeds the value of the associate, no further losses are recognised. Goodwill paid for associates is
included in the carrying amount of the investment.
Currency translation
Functional currency and reporting currency
3.2
3.2.1
Each subsidiary prepares its annual financial statements in its functional currency, which is the currency of its primary
economic environment. The consolidated Financial Report is presented in CHF millions, which is the Baloise Group’s reporting
currency.
3.2.2 Translation of transaction currency into functional currency at Group companies
Income and expenses in foreign currency are measured using the rates applicable on the transaction date. Non-monetary
items measured at historical cost are measured using historical rates. Monetary and non-monetary balance sheet line
items measured at fair value that arise in Group companies’ foreign-currency transactions are measured using closing rates.
Exchange differences are generally recognised in profit or loss. The exceptions are exchange differences relating to avail-
able-for-sale non-monetary financial instruments, cash flow hedges and hedges of net investments in foreign operations,
which are recognised in other comprehensive income.
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3.2.3 Translation of functional currency into reporting currency
The annual financial statements of all entities that have not been prepared in Swiss francs are translated as follows when
the consolidated financial statements are being prepared:
● Assets and liabilities at the closing rate
● Income and expenses at the average rate for the year.
The resultant exchange differences are aggregated and recognised directly in equity. When subsidiaries are sold, any
exchange differences arising on the disposal are recognised in the income statement as a transaction gain or loss.
3.2.4 Key exchange rates
CHF
1 EUR (euro)
1 USD (US dollar)
Balance sheet
Income statement
31.12.2021
31.12.2022
Ø 2021
Ø 2022
1.04
0.91
0.99
0.92
1.08
0.91
1.00
0.96
Property, plant and equipment
3.3
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses. The acquisition cost of property, plant and equipment includes all directly attributable costs. Subse-
quent acquisition costs are only capitalised if future economic benefits associated with the property, plant and equipment
will flow to the entity concerned and these costs can be measured reliably. All other repairs and maintenance costs are
expensed as incurred.
Land is not depreciated. Other items of property, plant and equipment are depreciated on a straight-line basis over
the following estimated useful lives:
● Owner-occupied buildings: 25 to 50 years
● Office furniture, equipment, fixtures and fittings: 5 to 10 years
● Machinery, furniture and vehicles: 4 to 10 years
● Computer hardware: 3 to 5 years
At each balance sheet date the Baloise Group tests all items of property, plant and equipment for impairment and reviews
the suitability of their useful lives.
An impairment loss is immediately recognised on items of property, plant and equipment if their recoverable amount
is lower than their carrying amount.
Gains or losses on the sale of property, plant and equipment are immediately taken to the income statement as either
other operating income or other operating expenses.
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Leases
3.4
3.4.1 Baloise as a lessee
The Baloise Group leases real estate for office space and warehousing that it recognises on its balance sheet. Initial
measurement of the corresponding lease liability is at the present value of the lease payments made during the term of
the lease, discounted at the weighted average incremental borrowing rate of interest. The lease liability is subsequently
measured at amortised cost using the effective interest method; it consists of an interest component and a principal
component. The right-of-use asset is initially measured in the same amount as the initial lease liability, adjusted for any
initial direct costs or incentives granted by the lessor. The right-of-use asset is depreciated over the shorter of the term of
the lease and the useful life of the underlying asset. Both the formation of new leases and terminations of existing leases
generate non-cash transactions in right-of-use assets and lease liabilities. Right-of-use assets are recognised under the
line item ’Property, plant and equipment’ and the lease liabilities under ’Financial liabilities’ on the balance sheet.
Short-term leases with a remaining term of less than twelve months and leases where the underlying asset is of low value
are not recognised because the option pursuant to IFRS 16.6 is exercised. The payments for these leases are expensed in
the income statement on a straight-line basis over the term of the lease. Short-term assets and low-value assets relate to
operating equipment, parking spaces and other property, plant and equipment.
3.4.2 Baloise as a lessor
Investment property let on operating leases is reported as investment property on the consolidated balance sheet.
Intangible assets
3.5
3.5.1 Goodwill
Goodwill represents the excess of an acquiree’s acquisition cost over the fair value of its assets and liabilities plus the acqui-
sition-date amount of any non-controlling interests in the acquiree and the acquisition-date fair value of the acquirer’s
previously held equity interest in the acquiree. Goodwill is reported as an intangible asset. Goodwill is tested for impairment
in the second half of each year. An impairment test may also be conducted in the first half of the year if there are objective
indications that goodwill may be permanently impaired. When a new investment is acquired, the date for conducting
future impairment tests is fixed and these tests are subsequently carried out at the same time each year. When entities
are sold, their share of goodwill is recognised in their profit or loss. Goodwill is allocated to cash-generating units (CGUs)
for the purposes of impairment testing.
3.5.2 Present value of future profits (PVFP) on insurance contracts acquired
The present value of future profits on insurance contracts acquired arises from the purchase of life insurance companies or
life insurance portfolios. It is initially measured in accordance with actuarial principles and is amortised on a straight-line
basis. It is regularly tested for impairment as part of a liability adequacy test (see section 3.19.2 for further details).
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3.5.3 Deferred acquisition costs (DACs)
Costs directly incurred by the conclusion of insurance contracts or financial contracts with discretionary participation
features (DPFs) – such as commissions – are capitalised and amortised over the term of these contracts or, if shorter,
over the premium payment period. Deferred acquisition costs are tested for impairment at each balance sheet date
(see section 3.19.3 for further details).
3.5.4 Software and other intangible assets
In addition to software (including internally developed assets), other intangible assets primarily comprise external IT
consultancy (in connection with software development) and identified assets from business acquisitions (e. g. brands,
customer relationships). Both software and other intangible assets are recognised at cost and amortised over their useful
life using the straight-line method. Software has a maximum useful life of ten years. Intangible assets with indefinite
useful lives are not amortised and are carried at cost less accumulated impairment losses.
All financing for intangible assets is generally obtained from the Baloise Group’s own financial resources. If funding from
external sources is required, interest accrued during the assets’ development is capitalised as incurred.
Investment property
3.6
Investment property comprises land and / or buildings held to earn rental income or for capital appreciation (or both).
If mixed-use properties cannot be broken down into owner-occupied property and property used by third parties, the
entire property is classified according to the purpose for which most of its floor space is used. If, owing to a change of
use, an investment property held by the Baloise Group becomes the latter’s owner-occupied property, it is reclassified
as property, plant and equipment. Any such reclassification is based on the property’s fair value at the reclassification
date. By contrast, if one of the Baloise Group’s owner- occupied properties becomes an investment property owing to
reclassification, then, on the date this change of use takes effect, the difference between the property’s carrying amount
and its fair value is recognised in profit or loss in the event of an impairment; or, if the property’s fair value exceeds its
carrying amount, then the difference is recognised directly in equity as other comprehensive income. If an investment
property that was reclassified in a previous period is sold, the amount recognised directly in equity is reclassified to
retained earnings. Investment property is measured at fair value under the discounted cash flow (DCF) method. The
current fair value of a property determined under the DCF method equals the sum total of all net income expected in
future and discounted to its present value (before interest payments, taxes, depreciation and amortisation) and includes
capital expenditure and renovation costs. The net income is determined individually for each property, depending on the
opportunities and risks associated with it, and is discounted in line with market rates and on a risk-adjusted basis. The
measurement is carried out internally each year by experts using market-based assumptions that have been verified by
respected consultancies. In addition, the properties are assessed by external valuation specialists at regular intervals;
roughly 10 per cent of the fair value of the real estate portfolio is subject to such assessments each year. Changes in fair
value are taken to income as realised accounting gains or losses in the period in which they occur.
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Financial assets
3.7
The term “investments” (Kapitalanlagen in German) is used in some places and headings in the Financial Report for clari-
ty’s sake. The term “investments” as used in the Financial Report covers financial assets, mortgages and loans, derivative
financial instruments, cash, cash equivalents and investment property.
The following asset classes are reported as financial instruments with characteristics of equity: shares, share certificates,
units in funds investing in equities, bonds, precious metals or real estate and alternative financial assets such as private
equity investments and hedge funds. Financial instruments with characteristics of equity are generally more frequently
exposed to price volatility than financial instruments with characteristics of liabilities.
The term financial instruments with characteristics of liabilities covers securities such as bonds and other fixed-income
securities. They are usually interest-bearing and are issued for a fixed or determinable amount.
The Baloise Group classifies its financial instruments with characteristics of equity and its financial instruments with
characteristics of liabilities as either “recognised at fair value through profit or loss”, “held to maturity” or “available for sale”.
The classification of the financial instruments concerned is determined by the purpose for which they have been acquired.
Mortgages and loans are generally carried at cost. In pursuing its strategy of using natural hedges, however, the Baloise
Group applies the fair value option to designate parts of its portfolio as “recognised at fair value through profit or loss”.
Appropriately designated derivative financial instruments are used to hedge these parts of the portfolio.
Financial assets recognised at fair value through profit or loss
3.7.1
This category consists of two sub-categories: held-for-trading financial assets (trading portfolio) and financial assets that
are designated to this category. Financial instruments are classified in this category if they have principally been acquired
with the intention of selling them in the short term, or if they form part of a portfolio for which there have recently been
indications that a gain could be realised in the short term, or if they have been designated to this category. Derivative
financial instruments are classified as “held for trading” (trading portfolio) with the exception of derivatives that have been
designated for hedge accounting purposes. Also designated to this category are structured products, i. e. equity instru-
ments and debt instruments which, in addition to the host contract, contain embedded derivatives that are not bifurcated
and measured separately. Financial assets held under investment-linked life insurance contracts are also designated as
“recognised at fair value through profit or loss”.
3.7.2 Held-to-maturity financial assets
Held-to-maturity financial assets are non-derivative financial instruments involving fixed or determinable payments.
However, they do not include mortgages, loans (section 3.8) or receivables (section 3.9) that the Baloise Group can – and
intends to – hold until maturity.
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3.7.3 Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial instruments that have been classified as “available for sale”
or have not been designated to any of the above-mentioned categories and are not classified as mortgages, loans or
receivables.
Alternative financial assets – such as private equity investments and hedge funds – are mainly classified as “available
for sale”.
3.7.4 Recognition, measurement and derecognition
All customary purchases of financial assets are recognised on the trade date. Financial assets are initially measured at fair
value. Transaction costs form part of the acquisition cost (with the exception of financial assets recognised at fair value
through profit or loss).
Financial assets are derecognised if the rights pertaining to the cash flows from the financial instrument have expired
or if the financial instrument has been sold and substantially all the associated risks and rewards have been transferred.
Cash outflows from reverse repurchase (repo) transactions are offset by corresponding receivables. The financial assets
received as collateral security from the transaction are not recognised. The relevant transaction is recognised on the
balance sheet on the settlement date. The financial assets transferred as collateral security under repurchase agreements
continue to be recognised as financial assets. The pertinent cash flows are offset by corresponding liabilities. In its stock
lending operations the Baloise Group only engages in securities lending. The borrowed financial instruments continue to be
recognised as financial assets. The securities provided as cover for repos, reverse repos and securities lending transactions
are measured daily at their current fair value.
Available-for-sale financial assets and financial assets recognised at fair value through profit or loss are measured at fair
value. Held-to-maturity financial assets are measured at amortised cost using the effective interest method. Realised and
unrealised gains and losses on financial assets recognised at fair value through profit or loss are taken to income. Unrealised
gains and losses on available-for-sale financial assets are recognised directly in equity. If available-for-sale financial assets
are sold or impaired, the cumulative amount recognised directly in equity is recognised in the income statement as a realised
gain or loss on financial assets. Changes in the fair value of financial assets’ risks that are covered by fair value hedges
are recognised in the income statement for the duration of these hedges irrespective of the financial assets’ classification.
The fair value of listed financial assets is based on prices in active markets as at the balance sheet date. If no such prices
are available, fair value is estimated using generally accepted methods (such as the present-value method), independent
assessments based on comparisons with the market prices of similar instruments or the prevailing market situation.
Derivative financial instruments are measured using models or on the basis of publicly quoted prices.
If no publicly quoted prices are available for private equity investments, they are measured on the basis of their net asset
value using non-public information from independent external providers. These providers use various methods for their
estimates (e. g. analysis of discounted cash flows and reference to similar, fairly recent arm’s-length transactions between
knowledgeable, willing parties). If the fair value of hedge funds cannot be determined on the basis of publicly quoted prices,
then prices quoted by independent external parties are used for measurement purposes.
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Mortgages and loans
3.8
Mortgages and loans (including policy loans) are financial instruments involving fixed or determinable payments that are
not traded in an active market. Mortgages and loans classified as “carried at cost” are measured at amortised cost using
the effective interest method. They are regularly tested for impairment.
Mortgages and loans held as part of fair value hedges (natural hedges) are designated as “at fair value through profit
or loss”. Present-value models are used to measure these portfolios.
Receivables
3.9
Other receivables are recognised at amortised cost less any impairment losses recognised for non-performing receivables.
Amortised cost is usually the same as the nominal amount of the receivables.
3.10 Permanent impairment
3.10.1 Financial assets measured under the amortised-cost method (mortgages, loans, receivables and
held-to-maturity financial assets)
The Baloise Group determines at each balance sheet date whether there is any objective evidence that a financial asset or
a group of financial assets may be permanently impaired. A financial asset or a group of financial assets is only impaired if,
as a result of one or more events, there is objective evidence of impairment that has an impact on the expected future
cash flows from the financial asset that can be reliably estimated. Objective evidence of a financial asset’s impairment
includes observable data on the following cases:
● Serious financial difficulties on the part of the borrower
● Breaches of contract, such as a borrower in default or arrears with the payment of principal and / or interest
● Greater probability that the borrower will file for bankruptcy or undergo some other form of restructuring
● Observable data that indicates a measurable reduction in the expected future cash flows from a group of financial
assets since their initial recognition
Analysts’ reports from banks and evaluations by credit rating agencies are also used to assess the need for impairment losses.
If there is objective evidence that loans and receivables or held-to-maturity financial assets may be permanently impaired,
the impairment loss represents the difference between the asset’s carrying amount and the present value of future cash
flows, which are discounted using the financial asset’s relevant effective interest rate. If the amount of the impairment
loss decreases in a subsequent reporting period and if this decrease can be attributed to an event that has objectively
occurred since the impairment was recognised, the previously recognised impairment loss is reversed.
The mortgage portfolio is regularly tested for impairment. If there is objective evidence that the full amount owed under
the original contractual terms and conditions or the relevant proceeds of a receivable cannot be recovered, an impairment
loss is recognised. Loan exposures are individually evaluated based on the nature of the borrower concerned, its financial
position, its credit history, the existence of any guarantors and the realisable value of any collateral security.
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3.10.2 Financial assets measured at fair value
The Baloise Group determines at each balance sheet date whether there is any objective evidence that available-for-sale
financial assets may be permanently impaired. This category includes financial instruments with characteristics of equity. An
impairment loss must be recognised on financial instruments with characteristics of equity whose fair value at the balance
sheet date is more than 50 per cent below their acquisition cost or whose fair value is consistently below their acquisition
cost throughout the twelve-month period preceding the balance sheet date. The need for an impairment loss is examined
and, where necessary, such a loss is recognised on securities whose fair value at the balance sheet date is between 20 per
cent and 50 per cent below their acquisition cost.
If an impairment loss is recognised, the cumulative net loss recognised directly in equity is taken to the income statement.
Impairment losses on available-for-sale financial instruments with characteristics of equity that have been recognised
in profit or loss cannot be reversed and taken to income. Any further reduction in the fair value of financial instruments
with characteristics of equity on which impairment losses were recognised in previous periods must be charged directly
to the income statement.
An impairment loss is recognised on available-for-sale financial instruments with characteristics of liabilities if their fair
value is significantly impaired by default risk.
If the fair value of an available-for-sale financial instrument with characteristics of liabilities rises in a subsequent
reporting period and this increase can be objectively attributed to an event that has occurred since an impairment loss
was recognised in profit or loss, the impairment loss is reversed and taken to income.
3.10.3 Impairment losses on non-financial assets
Goodwill and any assets with indefinite useful lives are tested for impairment at the same time each year or whenever
there is objective evidence of impairment. Goodwill is allocated to cash-generating units (CGUs) for the purposes of impair-
ment testing. Insurance companies that sell both life and non-life products (so-called composite insurers) test goodwill
for impairment at this level. When impairment tests are performed, a CGU’s value in use is determined on the basis of the
maximum discounted future cash flows (usually dividends) that could potentially be returned to the parent company. This
process takes appropriate account of legal requirements and internally specified capital adequacy limits. The long-term
financial planning approved by management forms the basis for this calculation of the value in use for a period of at least
three years and no more than five years. These values are extrapolated for the subsequent period using an annual growth
rate. The growth rate is based on the expected inflation rates of the individual countries. The discount rates include the risk
mark-ups for the individual operating segments. Permanent impairment losses are recognised in the income statement
as other operating expenses. All other non-financial assets are tested for impairment whenever there is objective evidence
of such impairment.
Impairment losses recognised in previous reporting periods on assets with finite useful lives are reversed if the estimates
used to determine the recoverable amount have changed since the most recent impairment loss was recognised. This increase
constitutes a reversal of impairment losses. Impairment losses recognised in previous reporting periods on goodwill are not
reversed. Impairment losses recognised in previous reporting periods on assets with indefinite useful lives are reversed and
taken to income; however, the amount to which they are reversed must be no more than the amount recognised prior to
the impairment losses.
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3.11 Derivative financial instruments
Derivative financial instruments include swaps, futures, forward contracts and options whose value is primarily derived
from the underlying interest rates, exchange rates, commodity prices or share prices. The acquisition cost of derivatives is
usually either very low or non-existent. These instruments are carried at fair value on the balance sheet. At the time they are
purchased they are classified as either fair value hedges, cash flow hedges, hedges of a net investment in a foreign operation
or trading instruments. Derivative financial instruments that do not qualify as hedges under IFRS criteria despite performing
a hedging function as part of the Baloise Group’s risk management procedures are treated as trading instruments.
The Baloise Group’s hedge accounting system documents the effectiveness of hedges as well as the objectives and
strategies pursued with each hedge. Hedge effectiveness is constantly monitored from the time the pertinent derivative
financial instruments are purchased. Derivatives that no longer qualify as hedges are reclassified as trading instruments.
3.11.1 Structured products
Structured products are financial instruments whose repayment value depends on the performance of one or more under-
lying instruments (such as equities, interest rates or currencies). Structured products contain embedded derivatives in
addition to the underlying instruments. Provided that the economic characteristics and risks of the embedded derivative
differ from those of the host contract and that this derivative qualifies as a derivative financial instrument, the embedded
derivative is bifurcated from the host contract and is separately recognised, measured and disclosed. If the derivative and
the host contract are not bifurcated, the structured product is designated as a host contract that is recognised at fair
value through profit or loss.
3.11.2 Fair value hedges
When the effective portion of hedges is being accounted for, changes in the fair value of derivative financial instruments
classified as fair value hedges – plus the hedged portion of the fair value of the asset or liability concerned – are reported
in the income statement. The ineffective portion of hedges is recognised separately in profit or loss.
3.11.3 Cash flow hedges
When the effective portion of hedges is being accounted for, changes in the fair value of derivative financial instruments
classified as cash flow hedges are recognised directly in equity. The amounts reported in equity as “other comprehensive
income” are taken to the income statement at a later date in line with the hedged cash flows. The ineffective portion of
hedges is recognised in profit or loss.
If a hedging instrument is sold, terminated or exercised or it no longer qualifies as a hedge, the cumulative gains and
losses continue to be recognised directly in equity until the forecasted transaction materialises. If the forecasted transaction
is no longer expected to materialise, the cumulative gains and losses recognised in equity are taken to income.
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3.11.4 Hedges of a net investment in a foreign operation
Hedges of a net investment in a foreign operation are treated as cash flow hedges. When the effective portion of hedges
is being accounted for, gains or losses on hedging instruments are recognised directly in equity. The ineffective portion
of hedges is recognised in profit or loss.
If the foreign operation – or part thereof – is sold, the gain or loss recognised directly in equity is taken to the income
statement.
3.11.5 Derivative financial instruments that do not qualify as hedges
Changes in the fair value of derivative financial instruments that do not qualify as hedges are recognised in the income
statement as “realised gains and losses on investments”.
3.12 Netting of receivables and liabilities
Receivables and liabilities are offset against each other and shown as a net figure on the balance sheet provided that an
offsetting option is available and the Baloise Group intends to realise these assets and liabilities simultaneously.
3.13 Non-current assets and disposal groups classified as held for sale
Non-current assets (or disposal groups) held for sale that meet the criteria stipulated in IFRS 5 “Non-current Assets Held for Sale
and Discontinued Operations” are shown separately on the balance sheet. Those assets described in the standard are meas-
ured at the lower of their carrying amount and fair value less costs to sell. Any resultant impairment losses are taken to income.
Any depreciation or amortisation is discontinued from the reclassification date.
Details of discontinued operations – if applicable – are disclosed in chapter 20.
3.14 Other assets
Development projects earmarked for subsequent sale (such as apartments in blocks of apartments with multiple owner-
ship) are recognised at the lower of investment cost and recoverable value pursuant to IAS 2 Inventories. The revenue is
recognised under Other income at the time of the transfer of title (transfer of benefits and risk).
3.15 Cash and cash equivalents
Cash and cash equivalents essentially consist of cash, demand deposits and cash equivalents. Cash equivalents are
predominantly short-term liquid investments with residual terms of no more than three months.
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Equity
3.16
Equity instruments are classified as equity unless the Baloise Group is contractually obliged to repay them or to cede other
financial assets. Transaction costs relating to equity transactions are deducted and all associated income tax assets are
recognised as deductions from equity.
3.16.1 Share capital
The share capital shown on the balance sheet represents the subscribed share capital of Bâloise Holding Ltd, Basel. This
share capital consists solely of registered shares. No shares carry preferential voting rights.
3.16.2 Capital reserves
Capital reserves include the paid-up share capital in excess of par value (share premium), Bâloise Holding Ltd share options
and gains and losses on the sale of treasury shares.
3.16.3 Treasury shares
Treasury shares held either by Bâloise Holding Ltd or by subsidiaries are shown in the consolidated financial statements
at their acquisition cost (including transaction costs) as a deduction from equity. Their carrying amount is not constantly
restated to reflect their fair value. If the shares are resold, the difference between their acquisition cost and their sale price
is recognised as a change in the capital reserves. Only Bâloise Holding Ltd shares are classified as treasury shares.
3.16.4 Unrealised gains and losses (net)
This item includes changes in the fair value of available-for-sale financial instruments, the net effect of cash flow hedges,
the net effect of hedges of a net investment in a foreign operation, exchange differences and gains on the reclassification
of the Baloise Group’s owner-occupied property as investment property. Furthermore, cumulative actuarial gains and losses
under defined benefit pension plans are included in this line item.
Deductions from these unrealised gains and losses include the pertinent deferred taxes and, in the case of life insurance
companies, also the funds that will be used in future to amortise acquisition costs and to finance policyholders’ dividends
(shadow accounting). Any non-controlling interests are also deducted from these items.
3.16.5 Retained earnings
Retained earnings include the Baloise Group’s undistributed earnings and its profit for the period. Dividends paid to the
shareholders of Bâloise Holding Ltd are only recognised once they have been approved by the Annual General Meeting.
3.16.6 Non-controlling interests
Non-controlling interests constitute the proportion of Group companies’ equity attributable to third parties outside the
Baloise Group on the basis of their respective shareholdings.
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Insurance contracts
3.17
An insurance contract is defined as a contract under which one party (the insurer) accepts a significant insurance risk
from another party (the policyholder) to pay compensation, should a specified contingent future event (the insured event)
adversely affect the policyholder. An insurance risk is any directly insured or reinsured risk that is not a financial risk.
The significance of insurance risk is assessed according to the amount of additional benefits to be paid by the insurer
if the insured event occurs.
Contracts that pose no significant insurance risk are financial contracts. Such financial contracts may include a discre-
tionary participation feature (DPF), which determines the accounting policies to be applied.
The effective interest method is generally used to calculate receivables and liabilities arising from financial contracts (DPF
included). The effective interest rate is determined as the internal rate of return based on the estimated amounts and timing of
the expected payments. If the amounts or timing of the actual payments differ from those expected or if expectations change, the
effective interest rate must be re-determined. The deposit account balance is then remeasured as if this new effective interest
rate had applied from the outset, and the change in the value of the deposit account is recognised as interest income or interest
expense. Otherwise, the insurance cover financed from the deposit account is amortised over the expected term of the
deposit account.
The Baloise Group considers an insurance risk to be significant if, during the term of the contract and under a plausible
scenario, the payment triggered by the occurrence of the insured event is 5 per cent higher than the contractual benefits
payable if the insured event does not occur.
A discretionary participation feature (DPF) exists if the policyholder is contractually or legally entitled to receive benefits
over and above the benefits guaranteed and if
● the benefits received are likely to account for a significant proportion of the total benefits payable under the contract,
● the timing or amount of the benefits payable is contractually at the discretion of the insurer, and the benefits received
are contractually contingent on the performance of either a specified portfolio of contracts or a specified type of
contract, on the realised and / or unrealised capital gains on a specified portfolio of investments held by the insurer, or
on the profit or loss reported by the insurer.
Captive insurance policies are derecognised from the annual financial statements. This also applies to contracts involving
proprietary pension plans, provided that the employees covered by these plans work for the Baloise Group.
In addition, IFRS 4 makes exceptions for the treatment of embedded derivatives that form part of insurance contracts or
financial contracts with discretionary participation features. If such embedded derivatives themselves qualify as insurance
contracts, they do not have to be either separately measured or disclosed. In the case of the Baloise Group this affects,
among other things, certain guarantees provided for annuity conversion rates and further special exceptions such as
specific guaranteed cash surrender values for traditional policies.
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3.18 Non-life insurance contracts
All standardised non-life products contain sufficient insurance risk to be classified as insurance contracts under IFRS 4.
The non-life business conducted by the Baloise Group is broken down into seven main segments:
• Accident
All standard product lines typical of each relevant market are available in the accident insurance business. The Belgian
market and Switzerland in particular also offer specific government-regulated occupational accident products that
differ from the other products usually available.
• Health
The Baloise Group writes health insurance business in Switzerland and Belgium only. The benefits paid by the products
in this segment cover the usual cost of treatment and also include a daily sickness allowance; they are available to
individuals as well as small and medium-sized businesses in the form of so-called group insurance.
• General liability
In addition to conventional personal liability insurance the Baloise Group also sells third-party indemnity policies for
certain professions. In Switzerland and Germany it offers policies – especially combined products – for small and
medium-sized enterprises and for industrial partners that include features such as product liability.
• Motor
The two standardised products common in the market – comprehensive and third-party liability insurance – are sold in
this segment. In some countries there are also products that have been specially designed for collaborations with
motoring organisations and individual automotive companies.
• Fire and other property insurance
In addition to conventional home contents insurance this segment offers an extensive range of property policies that
include fire insurance, buildings insurance and water damage insurance in all the varieties commonly available.
• Marine
Marine insurance is mainly sold in Switzerland, Germany and Belgium. These products may include a third-party liability
component in addition to the usual cargo insurance.
• Miscellaneous
This category generally comprises small segments such as credit protection insurance and legal expenses insurance.
Provided that financial guarantees qualify as insurance contracts, they are treated as credit protection insurance policies.
3.18.1 Premiums
The gross premiums written are the premiums that have fallen due during the reporting period. They include the amount
needed to cover the insurance risk plus all surcharges. Premium contributions that are attributable to future reporting
periods are deferred by contract and – together with health insurance reserves for old age and any deferred unearned
premiums – constitute the unearned premium reserves shown on the balance sheet. Owing to the specific nature of marine
insurance, premiums are deferred not by contract but on the basis of estimates. Premiums that are actually attributable
to the reporting period are recognised as premiums earned. Their calculation is based on the premiums written and the
change in unearned premium reserves.
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3.18.2 Claims reserve including claims handling costs
At the end of each financial year the Baloise Group attaches great importance to setting aside sufficient reserves for all
claims that have occurred by this date.
In addition to the reserves that it recognises in respect of the payments to be made for claims that have occurred, it also
sets aside reserves to cover the costs incurred during the claims settlement process. In order to calculate these reserves as
realistically as possible, the Baloise Group uses the claims history of recent years, generally accepted mathematical-sta-
tistical methods and all the information available to it at the time – especially knowledge about the expertise of those
entrusted with the handling of claims.
The total claims reserve consists of three components. Reserves calculated using actuarial methods form the basis of
the total claims reserve. The second component comprises reserves for those complex special cases and events that do
not lend themselves to purely statistical evaluation. These are generally rare claims that are fairly atypical of the sector
concerned – usually sizeable claims whose costs have to be estimated by experts on a case-by-case basis. Neither of these
components is subject to discounting. The third component consists of reserves for annuities that are discounted using
basic actuarial principles such as mortality and the technical interest rate and are largely derived from claims in the motor,
liability and accident insurance businesses.
Actuarial methods are used to calculate by far the largest proportion of claims reserves. To this end, the Baloise Group
selects actuarial forecasting methods that are appropriate for each sector, insurance product and existing claims history.
Additional market data and assumptions obtained from insurance rates are used if the claims history available on a
customer is inadequate. The Baloise Group mainly applies the chain-ladder method, which is the most widely used, tried-
and-tested procedure. This method involves estimating the number and amounts of claims incurred over time and the
proportion of claims that are reported to the insurer either with a time lag or after the balance sheet date. The proportion
of these so-called incurred-but-not-reported (IBNR) claims is exceptionally important, especially in operating segments
involving third-party liability insurance. These estimates naturally factor in emerging claims trends as well as recoveries.
The mean ratio of costs incurred to claims actually paid is essentially used to calculate reserves for claims handling costs.
The forecasting methods used cannot eliminate all the uncertainties inherent in making predictions about future devel-
opments and trends. Nonetheless, systematic monitoring of the reserves recognised in a given financial year enables the
Baloise Group to spot discrepancies as soon as possible and, consequently, to adjust the level of reserves and modify
the forecasting method where necessary. This analysis is based on the so-called “run-off triangles” presented in aggre-
gated form in section 5.4.5. The relevant calculations for typical property policies such as storm and tempest insurance or
home contents insurance are usually based on the payments made over the past ten years. Larger amounts of data and,
consequently, claims triangles that go further back in time and are based on both payments and expenses (payments
plus reserves) are used for insurance segments with longer run-off periods, such as third-party liability. To supplement the
Baloise Group’s various internal control mechanisms, its reserves – and the methods used to calculate them – are regularly
reviewed by external specialists. Mention should be made here of the liability adequacy test described in detail in section
3.18.4. The Baloise Group takes great care to ensure that it complies with the pertinent financial reporting standard by
performing the regularly required profitability analysis and examining whether, at the balance sheet date, it can actually
meet all the liabilities that it has taken on as an insurer. It immediately offsets any shortfall in its reserves that it identifies.
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3.18.3 Policyholders’ dividends and participation in profits
Insurance contracts can provide customers with a share of the surpluses and profits generated by their policies (especially
those arising from their claims history). The expenses incurred by policyholders’ dividends and participation in profits are
derived from the dividends paid plus the changes in the pertinent reserves.
3.18.4 Liability adequacy test (LAT)
A LAT is carried out at each balance sheet date to ascertain whether – taking all known developments and trends into
consideration – the Baloise Group’s existing reserves are adequate.
To this end, all existing reserves – both claims reserves (including reserves for claims handling costs) and annuity reserves in
the non-life segment – are first analysed and, if a shortfall is identified, the relevant reserves are then strengthened accordingly.
This analysis explicitly includes IBNR claims, thereby ensuring that adequate reserves are available for all claims that have
already occurred.
The liability adequacy test required by IFRS must also examine whether the Baloise Group has incurred any further
liabilities for subsequent periods (future business) besides all its existing contracts maintained during the reporting period.
Such business arises, for example, when contracts are automatically extended at the end of the year on the same terms
and conditions. Taking account of all the latest data and trends, Baloise conducts a profitability analysis of its insurance
business during the reporting year in order to check whether an adequate level of premiums has been charged and,
implicitly, whether these liabilities are therefore covered. This amounts to an analysis of unearned premium reserves and
an impairment test of deferred acquisition costs at the same time. If a loss is expected to be incurred (also applies to other
loss-making insurance contracts in existence at the balance sheet date), the deferred acquisition costs are initially reduced
by the respective amount. If the total amount of deferred acquisition costs is insufficient or if the resultant liability cannot
be covered in full, a separate provision for impending losses equivalent to the residual amount is recognised under other
technical reserves.
Life insurance contracts and financial contracts with discretionary participation features
3.19
The following life insurance products offered by the Baloise Group contain sufficient insurance risk to be classified as insur-
ance contracts under IFRS 4:
● Endowment policies (both conventional and unit-linked life insurance)
● Swiss group life business (BVG)
● Term insurance
● Immediate annuities
● Deferred annuities with annuity conversion rates that are guaranteed at the time the policy is purchased
● All policy riders such as premium waiver, accidental death and disability.
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3.19.1 General accounting policies
The accounting policies applied to traditional life insurance vary according to the type of profit participation agreed.
Premiums are recognised as income and benefits are recognised as expense at the time they fall due. The amount of
reserves set aside in each case is determined by actuarial principles or by the net premium principle, which ensures that
the level of reserves generated from premiums remains consistent over time. The actuarial assumptions used to calculate
reserves at the time that contracts are signed either constitute best estimates with explicit safety margins for specific
business lines or they are determined in accordance with local loss reserving practice and thus also factor in safety margins.
The assumptions used are locked in throughout the term of the contract unless a liability adequacy test reveals that the
resultant reserves need to be strengthened after the deferred acquisition costs (DACs) and the present value of future
profits (PVFP) on acquired insurance contracts have been deducted. Unearned premium reserves, reserves for final divi-
dend payments and certain unearned revenue reserves (URRs) are also recognised as components of the actuarial reserve.
A liability adequacy test is performed on all life insurance business at each balance sheet date. This involves calcu-
lating a reserve at the measurement date that factors in all future cash flows (such as insurance benefits, surpluses and
contract-related administrative expenses) based on the best estimates available for the assumptions used at the time. If the
minimum reserve calculated in this way for individual business lines exceeds the reserve available at the time, any existing
deferred acquisition cost or present value of future profits is reduced and, if this is not enough, the reserve is immediately
increased to the minimum level and this increase is recognised in profit or loss.
3.19.2 Present value of future profits (PVFP) on insurance contracts acquired
The present value of future profits on insurance contracts acquired constitutes an identifiable intangible asset that arises
from the purchase of a life insurance company or life insurance portfolio. It is initially measured in accordance with actuarial
principles and is amortised on a straight-line basis. It is regularly tested for impairment as part of a liability adequacy test.
3.19.3 Deferral of acquisition costs
Acquisition costs are deferred. They are amortised either over the premium payment period or over the term of the insur-
ance policy, depending on the type of contract involved. They are tested for impairment as part of a liability adequacy test.
3.19.4 Unearned revenue reserve (URR)
The unearned revenue reserve comprises premiums that are charged for services rendered in future periods. These premiums
are deferred and amortised in the same way as deferred acquisition costs.
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3.19.5 Policyholders’ dividends
A large proportion of life insurance contracts confer on policyholders the right to receive dividends.
Surpluses are reimbursed in the form of increased benefits, reduced premiums or final policyholders’ dividends or are
accrued at interest to a surplus account. Surpluses already distributed and accrued at interest are reported as policyholders’
dividends credited and reserves for future policyholders’ dividends (chapter 22). The relevant interest expense is reported
as interest expenses on insurance liabilities. Surpluses that have been used to finance an increase in insurance benefits
are recognised in actuarial reserves. All investment income derived from unit-linked life insurance contracts is credited to
the policyholder.
IFRS 4 introduces the concept of a discretionary participation feature (DPF), which is of relevance not only for the clas-
sification of contracts but also for the disclosure of surplus reserves according to policyholders’ share of the unrealised
gains and losses recognised directly in equity under IFRS and their share of the increases and decreases recognised in
profit or loss in the consolidated financial statements compared with the financial statements prepared in accordance
with local accounting standards. IFRS 4 states here that the portion of an insurance contract’s liability that is attributable
to a discretionary participation feature (“DPF component”) must be reported separately. This standard does not provide
any clear guidance as to how this DPF component should be measured and disclosed.
When accounting for contracts that contain discretionary participation features, the Baloise Group treats measurement
differences that are attributable to such contracts and are credited to policyholders according to a legal or contractual
minimum quota as a DPF component. Distributable retained earnings and eligible unrealised gains and losses of fully
consolidated subsidiaries are allocated pro rata to the DPF components of the life insurance company concerned. The
DPF component calculated in this way is reported as part of the reserves for future policyholders’ dividends (chapter 22).
These reserves include policyholders’ dividends that are unallocated and have been set aside as a reserve under local
accounting standards.
If no legal or contractual minimum quota has been stipulated, the Baloise Group defines a discretionary participation
feature as the currently available reserve for premium refunds after allowing for final policyholders’ dividends. Unless a
minimum quota has been stipulated, all other measurement differences between the financial statements prepared in
accordance with local accounting standards and IFRS financial statements are recognised directly in equity.
The applicable minimum quotas prescribed by law, contract or Baloise’s articles of association vary from country to
country.
Life insurance companies operating in Germany and in some areas of Swiss group life business are required by law to
distribute a minimum proportion of their profits to policyholders in the form of dividends.
Policyholders in Germany must receive a share of the profits generated. Certain losses incurred are borne by the Company.
Policyholders are entitled to 90 per cent of investment income (minus the technical interest rate), 90 per cent of the net
profit on risk exposures and 50 per cent of other surpluses. The articles of association of Basler Lebensversicherungs-AG,
Germany, additionally stipulate a minimum quota of 95 per cent for part of its insurance portfolio.
Minimum quotas are also applied to some of the Baloise Group’s Swiss occupational pensions (BVG) business, which is
subject to the legal quotas of 100 per cent for changes in liabilities and 90 per cent for changes in assets.
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3.20 Reinsurance
Reinsurance contracts are insurance contracts between insurance companies and / or reinsurance companies. There must
be a transfer of risk for a transaction to be recognised as reinsurance; otherwise the transaction is treated as a financial
contract.
Inward reinsurance is recognised in the same period as the initial risk. The relevant technical reserves are reported as
gross unearned premium reserves or gross claims reserves for non-life insurance and as gross actuarial reserves for life
insurance. In non-life insurance they are estimated as realistically as possible based on empirical values and the latest
information available, while in life insurance they are recognised as a reserve to cover the original transaction.
Outward reinsurance is the business ceded to insurance companies outside the Baloise Group and includes transactions
ceded from direct life and non-life business and from inward insurance.
Assets arising from outward reinsurance are calculated over the same periods and on the same basis as the original
transaction and are reported as reinsurance assets (chapter 15). Impairment losses are recognised in profit or loss for assets
deemed to be at risk owing to the impending threat of insolvency.
Liabilities arising from banking business and financial contracts
3.21
3.21.1 With discretionary participation features
Financial contracts with discretionary participation features are capital accumulated by customers that entitles them to
receive policyholders’ dividends. The accounting principles applied to these financial contracts are the same as those for
life insurance contracts; the accounting policies for life insurance are described in section 3.19.
3.21.2 Measured at amortised cost
Liabilities measured at amortised cost include savings deposits, medium-term bonds, mortgage-backed bonds, other
liabilities and payment obligations that do not qualify as insurance contracts. They are initially measured at their acqui-
sition cost (fair value).
The difference between acquisition cost and redemption value is recognised in profit or loss over the term of the liability
as “gains or losses on financial contracts” under the amortised-cost method and the effective interest method.
3.21.3 Recognised at fair value through profit or loss
This item includes financial contracts for which the holder bears the entire investment risk as well as banking liabilities
that are designated as “at fair value through profit or loss” as part of the Baloise Group’s strategy of using natural hedges.
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Financial liabilities
3.22
Financial liabilities include not only bonds issued in the capital markets but also lease liabilities.
Financial liabilities are initially measured at their acquisition cost (fair value). Acquisition cost includes transaction
costs. The difference between acquisition cost and redemption value is recognised in profit or loss over the term of the liability
as borrowing costs under the amortised-cost method and the effective interest method.
Lease liabilities are initially measured at the present value of the lease payments, discounted at the weighted average
incremental borrowing rate of interest. Lease liabilities are subsequently measured at amortised cost using the effective
interest method, including both an interest component and a principal component.
Employee benefits
3.23
The benefits that the Baloise Group grants to its employees comprise all forms of remuneration that is paid in return for
work performed or in special circumstances.
The benefits available include short-term benefits (such as wages and salaries), long-term benefits (such as long-service
bonuses), termination benefits (such as severance pay and social compensation plan benefits) and post-employment
benefits. The benefits described below may be especially significant owing to their scale and scope.
3.23.1 Post-employment benefits
The main post-employment benefits provided are retirement pensions, employer contributions to mortgage payments and
certain insurance benefits. Although these benefits are paid after employees have ceased to work for the Baloise Group,
they are funded while the staff members concerned are still actively employed. All the pension benefits currently provided
by the Baloise Group are defined benefit plans. The projected unit credit method is used to calculate the pertinent pension
liabilities.
Assets corresponding to these liabilities are only recognised if they are ceded to an entity other than the employer (such
as a foundation). Such assets are measured at fair value. Changes to assumptions, discrepancies between the planned and
actual returns on plan assets, and differences between the benefit entitlements effectively received and those calculated
using actuarial assumptions give rise to actuarial gains and losses that must be recognised directly in other comprehen-
sive income.
The Baloise Group’s pension plan agreements are tailored to local conditions in terms of enrolment and the range of
benefits offered.
3.23.2 Share-based payments
The Baloise Group offers its employees and management team members the chance to participate in various plans
under which shares are granted as part of their overall remuneration packages: the Employee Incentive Plan, the Share
Subscription Plan and the Share Participation Plan as well as Performance share units (PSU). The PSU programme and the
Employee Incentive Plan are equity-settled share-based payment plans. By contrast, the Share Subscription Plan and the
Share Participation Plan are share-based payment plans with a choice of settlement.
In addition, FRIDAY Insurance S. A. offers its employees a Employee Stock Option Programme (ESOP), which is a equity-
settled remuneration programme.
Equity-settled plans, as well as plans with a choice of settlement method, are measured and disclosed in compliance
with IFRS 2 Share-based Payment. Plans that are settled with shares in Bâloise Holding Ltd or FRIDAY Insurance S. A. are
measured at fair value on the grant date and are charged as personnel expenses during the vesting period and recognised
under equity.
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3.24 Non-technical provisions
Non-technical provisions for restructuring or legal claims are recognised for present legal or constructive obligations when
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and a
reliable estimate can be made of the amounts of the obligations. The amount recognised as a provision is the best estimate
of the expenditure expected to be required to settle the obligation. If the amount of the obligation cannot be estimated
with sufficient reliability, it is reported as a contingent liability.
Taxes
3.25
Provisions for deferred taxes are recognised under the liability method, which means that they are based either on the
current tax rate or on the rate expected in future. Deferred taxes reflect the tax-related impact of temporary differences
between the assets and liabilities reported in the IFRS financial statements and those reported for tax purposes. When
deferred taxes are calculated, tax loss carryforwards are only recognised to the extent that sufficient taxable profit is likely
to be earned in future.
Deferred tax assets and liabilities are offset against each other and shown as a net figure in cases where the criteria
for such offsetting have been met. This is usually the case if the tax jurisdiction, the taxable entity and the type of taxation
are identical.
3.26 Revenue recognition
Revenue and income are recognised at the fair value of the consideration received or receivable. Intercompany transactions
and the resultant gains and losses are eliminated. Recognition of revenue and income is described below.
3.26.1 Income from services rendered
Income from services rendered is recognised over a period of time, because the customer receives the benefit of the service
provided by the Baloise Group while he or she is using it.
3.26.2 Interest income
Interest income from financial instruments that are not recognised at fair value through profit or loss is recognised under
the effective interest method. If a receivable is impaired, it is written down to its recoverable amount, which corresponds
to the present value of estimated future cash flows discounted at the contract’s original interest rate.
3.26.3 Dividend income
Dividend income from financial assets is recognised as soon as a legal entitlement to receive payment arises.
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4. Key Accounting Judgements, estimates and assumptions
The Baloise Group’s consolidated annual financial statements contain assumptions and estimates that can impact on
the annual financial statements for the following financial year. Estimates and the exercise of discretion by management
are kept under constant review and are based on empirical values and other factors – including expectations about future
events – that are deemed to be appropriate on the date that the balance sheet is prepared.
Fair value of various balance sheet line items
4.1
Where available, prices in active markets are used to determine fair value. If no publicly quoted prices are available or if
the market is judged to be inactive, fair value is either estimated based on the present value or is determined using meas-
urement methods. These methods are influenced to a large extent by the assumptions used, which include discount rates
and estimates of future cash flows. The Baloise Group primarily uses fair values; if no such values are available, it applies
its own models. Detailed information about fair value measurement can be found in chapter 5.7.
The following asset classes and financial liabilities are measured at fair value:
•
Investment property
The DCF method is used to determine the fair value of investment property. The assumptions and estimates used for
this purpose are described in section 3.6.
• Financial instruments with characteristics of equity and financial instruments with characteristics of liabilities
(available for sale or recognised at fair value through profit or loss)
Fair value is based on prices in active markets. If no quoted market prices are available, fair value is estimated using
generally accepted methods (such as the present-value method), independent assessments based on comparisons with
the market prices of similar instruments or the prevailing market situation. Derivative financial instruments are measured
using models or on the basis of quoted market prices. If no publicly quoted prices are available for private equity
investments, they are measured on the basis of their net asset value using non-public information from independent
external providers. These providers use various methods for their estimates (e. g. analysis of discounted cash flows and
reference to similar, fairly recent arm’s-length transactions between knowledgeable, willing parties). If such estimates
do not enable financial assets to be reliably measured, the assets are recognised at cost and disclosed accordingly.
Publicly quoted prices are used to determine the fair value of hedge funds. If no such prices are available, prices quoted
by independent third parties are used to determine fair value.
• Mortgages and loans (recognised at fair value through profit or loss)
Mortgages and loans are designated as “at fair value through profit or loss” as part of the Baloise Group’s strategy of
using natural hedges. Present-value models are used to measure these portfolios.
• Derivative financial instruments
Models or quoted market prices are used to determine the fair value of derivative financial instruments.
• Liabilities arising from banking business and financial contracts (recognised at fair value through profit or loss)
Liabilities arising from investment-linked life insurance contracts involving little or no transfer of risk are measured at
fair value based on the capitalised investments underlying these liabilities.
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Financial instruments with characteristics of liabilities (held to maturity)
4.2
The Baloise Group applies the provisions of IAS 39 when classifying non-derivative financial instruments with fixed or
determinable payments as “held to maturity”. To this end, it assesses its intention and ability to hold these financial instruments
to maturity.
If – contrary to its original intention – these financial instruments are not held to maturity (with the exception of specific
circumstances such as the disposal of minor investments), the Baloise Group must reclassify all held-to-maturity financial
instruments as “available for sale” and measure them at fair value. Chapter 11 contains information on the fair values of
the financial instruments with characteristics of liabilities that are classified as “held to maturity”.
Impairment
4.3
The Baloise Group determines at each balance sheet date whether there is any objective evidence that financial assets
may be permanently impaired.
• Financial instruments with characteristics of equity (available for sale)
An impairment loss must be recognised on available-for-sale financial instruments with characteristics of equity whose
fair value at the balance sheet date is more than 50 per cent below their acquisition cost or whose fair value is
consistently below their acquisition cost throughout the twelve-month period preceding the balance sheet date. The
Baloise Group examines whether it needs to recognise impairment losses on securities whose fair value at the balance
sheet date is between 20 per cent and 50 per cent below their acquisition cost. Such assessments of the need to
recognise impairment losses consider various factors such as the volatility of the securities concerned, credit ratings,
analysts’ reports, economic conditions and sectoral prospects.
• Financial instruments with characteristics of liabilities (available for sale or held to maturity)
Objective evidence of a financial asset’s impairment includes observable data on the following cases:
•
•
•
•
Serious financial difficulties on the part of the borrower
Breaches of contract, such as a borrower in default or arrears with the payment of principal and / or interest
Greater probability that the borrower will file for bankruptcy or undergo some other form of restructuring
Observable data that indicates a measurable reduction in the expected future cash flows from a group of
financial assets since their initial recognition
Analysts’ reports from banks and evaluations by credit rating agencies are also used to assess the need for impairment
losses
• Mortgages and loans (carried at cost)
The mortgage portfolio is regularly tested for impairment. The methods and assumptions used in these tests are also
regularly reviewed in order to minimise any discrepancies between the actual and expected probabilities of default.
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Deferred taxes
4.4
Unused tax loss carryforwards and other deferred tax assets are recognised if it is more likely than not that they will be
realised. To this end, the Baloise Group makes assumptions about the recoverability of these tax assets; these assumptions
are based on the financial track record and future income of the taxable entity concerned.
Estimate uncertainties specific to insurance
4.5
Estimate uncertainties pertaining to actuarial risk are discussed from chapter 5.4 onwards.
Non-technical provisions
4.6
The measurement of non-technical provisions requires assumptions to be made about the probability, timing and amount
of any outflows of resources embodying economic benefits. A provision is recognised if such an outflow of resources is
probable and can be reliably estimated.
Employee benefits
4.7
In calculating its defined benefit obligations towards its employees, the Baloise Group makes assumptions about the
expected return on plan assets, the economic benefits embodied in assets, future increases in salaries and pension benefits,
the discount rate applicable and other parameters. The most important assumptions are derived from past experience of
making estimates. The assumptions factored into these calculations are discussed in chapter 17.2.8.
Goodwill impairment
4.8
Goodwill is tested for impairment in the second half of each year or whenever there is objective evidence of impairment.
Such impairment tests involve calculating a value in use that is largely based on estimates such as the financial planning
approved by management and the discount rates and growth rates mentioned in chapter 9.1.
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5. Management of insurance risk and financial risk
Baloise offers their customers non-life insurance, life insurance and banking products (the latter in Switzerland). Conse-
quently, Baloise is exposed to a range of risks directly linked to this business.
The main risks in the non-life insurance sector are natural disasters, major industrial risks, third-party liability and personal
injury. The insurance business as a whole is examined regularly by means of extensive analytical studies. The results of
this analysis are taken into account when setting aside reserves, fixing insurance rates and structuring insurance products
and reinsurance contracts.
The predominant risks in the life insurance sector are biometric risks, such as longevity risk, mortality risk and disability
risk. The companies in the Baloise Group review and analyse these risks, along with the frequency with which the policies
are cancelled, invalidated and reactivated, on a decentralised basis. For this analysis, they generally use standard market
statistics that are compiled by actuaries and include adequate safety margins. The information they gather is used to ensure
that rates are adequate and to set aside sufficient reserves to meet future insurance liabilities. The risks in this context
are manageable because rates have to be calculated conservatively by law and the statistical basis is relatively good.
Baloise is also exposed to interest-rate risk as a result of issuing interest-rate guarantees and to liquidity risk due to the
existence of implicit financial guarantees and options.
Due to its investments, Baloise is also exposed to market risk that may arise as a result of the fluctuation of market
prices in certain asset classes and to credit risk arising from changes in creditworthiness, as measured by credit quality
or credit rating, for example.
To limit risk from investments, the investments are stress-tested using defined capital market scenarios and the effects
are monitored on a monthly basis. The capital market scenarios and limits used are reviewed and approved at least once
a year.
The main risk categories to which the Banking division of Baloise is exposed are credit risk, interest rate risk and liquidity
risk. These risks are identified and managed locally by the bank. The loan portfolio is reviewed and analysed on an ongoing
basis. A range of tools is used for this purpose, including standardised credit regulations and procedures, scoring and
rating procedures, focusing on low-risk markets and the use of an automated arrears system. The information obtained is
incorporated into credit decisions. Balance sheet risks (interest rate and liquidity risks) are managed by the bank’s asset
and liability management (ALM) committee. The data and key figures required are determined and calculated using a
specialist IT application.
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Financial Report
Organisation of risk management in the Baloise Group
5.1
The Baloise Group’s insurance and banking activities in various European countries, as well as its global investments, expose
it to market risks such as currency risk, interest rate risk, liquidity risk and credit risk.
A comprehensive Group-wide risk management system is in place in all insurance units and the banking business in
order to manage these risks. Its Group-wide Risk Management Standards focus on the following areas:
● Organisation and responsibilities
● Methods, regulations and limits
● Risk control
An overall set of rules governs all activities directly connected with risk management and ensures that they are compatible
with one another.
At the highest level, internal and external risk bands restrict and manage the overall risks incurred by the Baloise Group
and the individual business units. This ensures that the risks taken on by the individual business units and the Group as
a whole are within acceptable and monitored limits. Risks are treated differently, depending on their type. Business risk
and investment risk represent Baloise’s core business and, to a certain degree, are taken on deliberately. Operational risk,
however, is only accepted to the extent that it cannot be further reduced, avoided, or transferred in a cost-effective way.
Within the Baloise Group and within each business unit, a risk owner is responsible for each individual risk that has been
identified. Risk owners are allocated according to a hierarchy of responsibility. The Group’s overall risk owner is the Chief
Executive Officer of the Baloise Group. Alongside the risk owners, defined risk controllers are responsible for independently
assessing the risks. When selecting risk controllers, particular care is taken to ensure that their role is independent of the
risk they control. Risk control within the Baloise Group focuses on investment risk, business risk (actuarial and banking risks),
risks to the Group’s financial structure and operational risks including compliance. The overall risk controller is the Chief
Executive Officer of the Baloise Group.
The Baloise Group’s risk map is a categorisation of the risks it has identified. The risks are divided into three levels:
● Category of risk
● Sub-category of risk
● Type of risk
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Financial Report
The business-risk, investment-risk and financial-structure-risk categories relate directly to the Baloise Group’s core businesses.
These risks are deliberately incurred, managed and optimised by the management team and various risk committees.
Analysis of these risks is model-based and it ultimately results in an aggregate overview.
Business-environment risk, operational risk and management and information risk arise as direct or indirect results of
the business operations, business environment or strategic activities of each company. Risks of this type are also identi-
fied, assessed on a qualitative / quantitative basis and managed accordingly. The assessment also serves to analyse the
significance of the risk in question in the context of the overall risk situation of the Baloise Group and the individual Group
company.
The Baloise Group’s central risk management team forms part of Corporate Division Finance and reports to the Group
Chief Risk Officer, who in turn reports to the Group CFO. It coordinates intra-Group policies, risk reporting and the technical
development of suitable risk management processes and tools. Every month, it tracks developments in the financial markets
and their impact on the risk portfolio and the individual risk capacity of all the business units and the Group as a whole.
An annual reporting is undertaken for each identified risk category. To this end, each business unit compiles an ORSA
(Own Risk and Solvency Assessment) report. Senior management signs off the ORSA reporting and takes account of business
strategy and risk strategy considerations in its decisions.
Life and non-life underwriting strategies
5.2
Baloise primarily underwrites insurance risk for private individuals and small and medium-sized enterprises in selected
countries in mainland Europe. Industrial insurance policies in the property and liability, marine and technical insurance
divisions are mainly offered by Baloise Insurance Ltd in Basel, Baloise Sachversicherung AG in Bad Homburg (Germany)
and Baloise Belgium NV in Antwerp.
Every business unit in the Baloise Group issues regulations regarding underwriting and risk review. They include clear
authorisation levels and underwriting limits for each sector. Underwriting limits are approved by a business unit’s highest
decision- making body. In the industrial insurance unit, the maximum net underwriting limit for property insurance amounts
to CHF 150 million for Switzerland and EUR 100 million for Germany, Belgium and Luxembourg. The only other comparable
underwriting limits in the Group are for marine and liability insurance. Tools for setting the basic premium and for risk-
based management of the total portfolio are also used to manage industrial insurance risk.
For its exposure to natural hazards the Baloise Group has purchased reinsurance cover for the whole Group amounting
up to CHF 500 million. In addition, Baloise Insurance Ltd in Switzerland purchased reinsurance cover of up to CHF 1 billion
for earthquakes and Baloise Belgium NV purchased reinsurance cover of up to CHF 700 million for storm and tempests.
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Risk Map
Business Risks
Investment Risks
Financial Structure Risks
Business Environment Risks
Operational Risks
Actuarial Risks Life
● Parameter Risks
● Catastrophe Risks
Actuarial Risks Non-Life
● Premiums
● Claims
● Catastrophe Risks
● Reserving
Reinsurance
● Premiums / Pricing
● Reinsurance Default
● Active Reinsurance
Market Risks
● Interest rates
● Equities
● Currencies
● Real Estate
● Market Liquidity
● Derivatives
● Alternative investments
Credit Risks
Asset-Liability Risks
● Interest Rate Change Risk
● (Re)Financing, Liquidity
Risk Concentration
● Accumulation Risks
● Cluster Risks
Balance Sheet Structure and
Capital Requirements
● Solvency
● Other Regulatory Requirements
Change in Standards
Competition Risks
External Events
Investors
Leadership and
Information Risk
Organizational Structure
Corporate Culture
Business Strategy
● Business Portfolio
● Risk Steering
● Sustainability
Merger and Acquisitions
External Communication
● Reputation Management
Project Portfolio
Internal Misinformation
IT Risks
● IT Governance
● IT Architecture
● IT Operations
● Cyber Security
HR Risks
● Skills / Capacities
● Availability of Knowledge
● Incentive System
Legal Risks
● Contracts
● Tax
Business Processes
● Process Risks
● Project Risks
● In- / Outsourcing
Risk Analysis and Risk Reporting
● Risk Analysis and Risk
Assessment
● Risk Reporting
● Liability and Litigations
● External Reporting
Compliance
Financial Statements, Forecast, Planning
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Risk Map
Actuarial Risks Life
● Parameter Risks
● Catastrophe Risks
Actuarial Risks Non-Life
● Premiums
● Claims
● Catastrophe Risks
● Reserving
Reinsurance
● Premiums / Pricing
● Reinsurance Default
● Active Reinsurance
Business Risks
Investment Risks
Financial Structure Risks
Business Environment Risks
Operational Risks
Market Risks
● Interest rates
● Equities
● Currencies
● Real Estate
● Market Liquidity
● Derivatives
Credit Risks
● Alternative investments
Asset-Liability Risks
● Interest Rate Change Risk
● (Re)Financing, Liquidity
Risk Concentration
● Accumulation Risks
● Cluster Risks
Balance Sheet Structure and
Capital Requirements
● Solvency
● Other Regulatory Requirements
Change in Standards
Competition Risks
External Events
Investors
IT Risks
● IT Governance
● IT Architecture
● IT Operations
● Cyber Security
HR Risks
● Skills / Capacities
● Availability of Knowledge
● Incentive System
Legal Risks
● Contracts
● Liability and Litigations
● Tax
Financial Report
Leadership and
Information Risk
Organizational Structure
Corporate Culture
Business Strategy
● Business Portfolio
● Risk Steering
● Sustainability
Merger and Acquisitions
External Communication
● External Reporting
● Reputation Management
Compliance
Financial Statements, Forecast, Planning
Project Portfolio
Internal Misinformation
Business Processes
● Process Risks
● Project Risks
● In- / Outsourcing
Risk Analysis and Risk Reporting
● Risk Analysis and Risk
Assessment
● Risk Reporting
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Life and non-life reinsurance strategies
5.3
The Baloise Group’s non-life treaty reinsurance for all business units in the Group is structured and placed in the market
by Group Reinsurance, part of Corporate Division Finance. When structuring the programme, Group Reinsurance focuses
on the risk-bearing capacity of the Group as a whole. To date, the Group has only placed non-proportional reinsurance
programmes. The local Baloise Group business units also use additional facultative reinsurance cover on a case-by-case
basis. This type of reinsurance is dependent on the individual risk in each case and it is therefore placed by the business
units themselves.
Reinsurance contracts may only be entered into with counterparties that have been authorised in advance by Corporate
Division Finance. Reinsurers must generally have a minimum rating of A – from Standard & Poor’s, but in exceptional cases
– and in specific circumstances – a rating lower than A or a comparable rating from another recognised rating agency is
permitted. However, reinsurers of this rating would be used for short-dated business in the property insurance segment
only. This rule does not apply to captives and pools that are active reinsurance companies because they do not generally
have ratings.
Reinsurer credit risk is reviewed on a regular basis. A watch list is kept of reinsurers that are bankrupt or in financial diffi-
culties. The list contains details of all relationships the Group has with these reinsurers, receivables due to the Group that
are outstanding or have been written off and provisions the Group has recognised. The watch list is updated periodically.
The same requirements for reinsurers apply to life insurance as to non-life insurance, although reinsurance is a less
important instrument for ceding risk in life insurance business.
5.4
Non-Life
5.4.1 Actuarial risk
Baloise primarily underwrites insurance risk for private individuals and small and medium-sized enterprises in selected
countries in mainland Europe. Business with industrial clients is also conducted in Switzerland and Germany. Underwriting
risk is limited by monitoring and adjusting rates and maintaining underwriting policies and limits appropriate to the size
of each portfolio and the country in which it is located.
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5.4.2 Assumptions
• Claims reserves and claims settlement
The portfolios on the Group’s books must be structured in such a way that the data available is sufficiently
homogeneous to enable the use of certain analytical actuarial processes to determine the claims reserves required.
One of the assumptions made is that extrapolation of the typical claims settlement pattern of recent years is
meaningful. Only cases such as extreme anomalies in settlement behaviour require additional assumptions to be made
on a case-by-case basis.
• Claims handling costs
The ratio of the average claims handling costs incurred in recent years to the payouts made in the same period is used
to calculate the level of claims handling reserves to be recognised based on current claims reserves.
• Annuities
The factors on which annuity calculations are based (mortality tables, interest rates, etc.) are normally specified or
approved by the authorities in each country. However, because certain parameters can change relatively quickly, the
adequacy of these annuity reserves is reviewed every year (by conducting a liability adequacy test or LAT) and, if there
is a shortfall, the reserves are strengthened accordingly.
5.4.3 Changes to assumptions
The assumptions on which claims reserves are based generally remain constant, but the factors on which annuity calcu-
lations are based are adjusted from time to time over the years, particularly with regard to the latest longevity data.
5.4.4 Sensitivity analysis
As well as the natural volatility inherent in insurance business, there are parameters for determining technical reserves
that can significantly impact on the annual earnings and equity of an insurance company. In the non-life sector, sensitivity
analysis has been used to investigate the effect on consolidated annual earnings and consolidated equity exerted by
errors in estimating claims reserves – including claims incurred but not reported (IBNR) – and reserves for run-off business.
At the end of 2022, the Baloise Group’s total reserves calculated using actuarial methods or recognised separately for
special claims (including large claims but not run-off or actuarial reserves for annuities) amounted to CHF 4,577.3 million
(2021: CHF 4,738.5 million). A variation of 10 per cent in either direction in the requirement for these reserves would result in
a rise or fall of around CHF 353.8 million (2021: CHF 365.4 million) in claims payments (after taxes) before reinsurance.
Following the disposal of the ’London market’ subportfolio, Baloise’s run-off portfolio in the non-life business consists
of the hospital liability business in Germany, which was transferred to the Group’s run-off portfolio in 2018. At the time of
preparation of this report, an agreement was reached on the transfer and sale of this run-off portfolio to a third party.
Baloise is awaiting the supervisory authority’s final response in connection with this agreement.
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5.4.5 Claims settlement
Analysis of gross claims settlement (before reinsurance) broken down by strategic business unit
The proportion reinsured was low and would not affect the information given in the claims settlement tables below.
Estimated cumulative claims incurred in Switzerland
Year in which the claims occurred
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Total
CHF million
At the end of the year
in which the claims
occurred
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Estimated claims
incurred
768.2
764.1
764.7
756.3
752.1
752.3
743.8
735.1
733.4
733.4
768.5
733.6
707.8
704.8
729.5
759.4
761.7
861.4
861.8
849.1
715.7
701.2
695.9
688.5
681.2
678.4
675.5
670.8
–
667.8
657.6
650.9
646.0
643.9
635.8
643.1
–
–
689.5
675.0
673.0
669.1
667.0
664.7
–
–
–
728.9
707.4
708.2
712.8
712.3
–
–
–
–
762.6
754.0
750.7
756.4
–
–
–
–
–
761.7
754.6
755.5
–
–
–
–
–
–
841.0
849.8
–
–
–
–
–
–
–
877.7
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
670.8
643.1
664.7
712.3
756.4
755.5
849.8
877.7
849.1
7,512.7
–
–
–
–
–
–
–
–
–
–
Claims paid
– 696.5
– 628.5
– 597.8
– 627.8
– 655.7
– 690.3
– 693.6
– 775.9
– 744.0
– 454.3 – 6,564.4
Gross claims reserves
36.9
42.3
45.3
36.9
56.5
66.1
61.9
73.9
133.7
394.8
Gross claims reserves
prior to 2012 (including
large claims and
assumed business)
Gross provision
for annuities
(non-life, including
IBNR)
Reinsurers’ share
Net claims reserves
948.4
346.0
615.7
– 71.0
1,839.1
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Financial Report
To provide greater clarity (no currency effects), the following analysis of claims trends is shown in euros.
Estimated cumulative claims incurred in Germany
Year in which the claims occurred
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Total
EUR million
At the end of the year
in which the claims
occurred
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Estimated claims
incurred
370.3
371.0
379.3
379.8
380.8
377.9
376.3
375.7
344.4
344.4
367.7
306.0
303.2
318.6
340.5
345.5
325.1
336.0
477.5
408.1
316.1
319.9
320.4
314.5
313.3
311.8
312.7
312.3
–
304.9
304.5
301.4
301.8
301.8
303.5
304.9
–
–
314.3
313.6
307.4
305.4
305.3
304.2
–
–
–
331.2
327.8
322.4
321.6
317.8
–
–
–
–
335.7
332.6
332.5
325.9
–
–
–
–
–
325.7
327.1
318.0
–
–
–
–
–
–
335.1
320.6
–
–
–
–
–
–
–
485.4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
312.3
304.9
304.2
317.8
325.9
318.0
320.6
485.4
408.1
3,441.4
–
–
–
–
–
–
–
–
–
–
Claims paid
– 338.6
– 300.6
– 291.4
– 292.1
– 301.7
– 306.8
– 297.8
– 276.9
– 347.2
– 164.9 – 2,918.1
Gross claims reserves
5.8
11.6
13.4
12.1
16.0
19.1
20.2
43.6
138.2
243.2
Gross claims reserves
prior to 2012 (including
large claims and
assumed business)
Gross provision
for annuities
(non-life, including
IBNR)
Reinsurers’ share
Net claims reserves
523.2
268.2
133.4
– 178.6
746.3
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Estimated cumulative claims incurred in Belgium
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Total
Year in which the claims occurred
403.6
483.7
459.9
470.3
446.8
495.0
643.8 1
682.3 2
820.3
782.4
402.5
398.0
396.7
394.4
388.2
491.9 1
511.4 2
486.4 1
499.8 2
494.3
488.7
483.4
479.1
489.2
488.6
–
476.0
480.7
478.9
495.4
492.4
–
–
478.9
470.5
483.9
580.8 1
527.2 1
592.3 2
493.3 1
526.6 2
519.4
516.6
–
–
–
–
504.3
513.3
–
–
–
591.5
583.0
–
–
–
–
–
684 2
677.7
676.2
–
–
–
–
–
–
710.2
739.9
–
–
–
–
–
–
–
875.4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
488.6
492.4
513.3
516.6
583.0
676.2
739.9
875.4
782.4
6,065.6
Six years later
395.2 1
493.3 2
Seven years later
404.1 2
Eight years later
Nine years later
Estimated claims
incurred
401.4
397.9
397.9
EUR million
At the end of the year
in which the claims
occurred
One year later
Two years later
Three years later
Four years later
Five years later
–
–
–
–
–
–
–
–
–
–
Claims paid
– 369.7
– 452.6
– 427.1
– 441.6
– 440.8
– 489.9
– 575.1
– 555.2
– 629.5
– 371.7 – 4,753.2
Gross claims reserves
28.1
36.0
65.3
71.7
75.8
93.1
101.1
184.7
246.0
410.6
1,312.4
Gross claims reserves
prior to 2012 (including
large claims and
assumed business)
Gross provision
for annuities
(non-life,
including IBNR)
Reinsurers’ share
Net claims reserves
1 The increase in the total estimated claims incurred is primarily due to the addition of Fidea NV.
2 The increase in the total estimated claims incurred is primarily due to the addition of Athora.
489.4
293.9
– 540.2
1,555.5
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Estimated cumulative claims incurred in Luxembourg
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Total
Year in which the claims occurred
EUR million
At the end of the year
in which the claims
occurred
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Estimated claims
incurred
23.6
36.8 1
43.8 2
49.8
49.6
50.3
50.3
42.0
65.6
55.3
37.8 1
41.2 2
40.5
40.7
40.6
40.4
40.0
40.0
40.0
40.0
40.8 2
40.5
40.8
40.5
40.2
39.7
39.5
39.6
–
39.6
44.0
44.3
43.9
43.4
43.2
43.0
43.2
–
–
47.2
46.3
45.8
45.4
45.2
45.4
–
–
–
46.3
46.0
45.2
45.2
45.6
–
–
–
–
50.6
50.1
50.3
50.3
–
–
–
–
–
49.9
50.0
50.1
–
–
–
–
–
–
42.4
42.2
–
–
–
–
–
–
–
58.2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
43.2
45.4
45.6
50.3
50.1
42.2
58.2
55.3
469.9
–
–
–
–
–
–
–
–
–
–
Claims paid
– 39.9
– 39.5
– 42.9
– 45.0
– 44.9
– 49.4
– 48.6
– 40.3
– 53.5
– 31.2
– 435.1
Gross claims reserves
0.1
0.1
0.3
0.4
0.6
0.9
1.5
1.9
4.7
24.1
Gross claims reserves
prior to 2012 (including
large claims and
assumed business)
Gross provision
for annuities
(non-life,
including IBNR)
Reinsurers’ share
Net claims reserves
1 The increase in the total estimated claims incurred is primarily due to the addition of P&V Assurances.
2 The increase in the total estimated claims incurred is primarily due to the addition of HDI Gerling Assurances S. A.
34.8
81.2
–
– 63.5
52.4
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Life
5.5
5.5.1 Actuarial risk
Traditional life insurance is called fixed-sum insurance because payments are not made for losses. Instead, a fixed sum
is paid on occurrence of an insured event, which can be survival or death. In the case of term insurance, capital and / or
pension benefits are insured against premature death (whole-life insurance) or disability (disability insurance), while capital
redemption insurance focuses on savings for old age. Endowment life insurance combines risk protection with savings.
Average technical interest rate
31.12.2021
CHF million
Switzerland
individual
life
Switzerland
group life
Germany
Belgium Luxembourg
Technical reserves without guaranteed returns
Technical reserves with 0 % guaranteed returns
Technical reserves with guaranteed positive returns
Average technical interest rate of guaranteed positive returns
877.8
467.4
2,895.1
509.3
5,974.0
16,356.8
2.3 %
1.3 %
4,241.2
134.3
5,809.9
2.9 %
41.9
140.7
3,310.0
2.9 %
449.3
19.2
544.7
1.9 %
31.12.2022
CHF million
Switzerland
individual
life
Switzerland
group life
Germany
Belgium Luxembourg
Technical reserves without guaranteed returns
Technical reserves with 0 % guaranteed returns
Technical reserves with guaranteed positive returns
Average technical interest rate of guaranteed positive returns
816.1
384.9
1,599.6
488.0
5,782.3
15,899.6
2.3 %
1.2 %
3,270.1
146.5
5,495.0
2.7 %
38.7
142.7
3,125.0
2.8 %
458.3
16.8
537.3
1.8 %
The guaranteed technical interest rate is one of the risks inherent in traditional life insurance and group life business.
If interest rates rise, there is the risk that more policies will be cancelled, and the payment of surrender values could
cause liquidity problems. This risk can be reduced by imposing surrender charges. In the past, no significant correlation
has been observed between rises in interest rates and the number of major policies cancelled.
When interest rates fall, there is the risk that investment income may no longer be sufficient to fund the technical interest
rate. This risk can be mitigated by means of asset and liability management (ALM) and, in some cases, by adjusting poli-
cyholders’ dividends.
Unit-linked life insurance generally involves endowment life insurance or a deferred annuity in which the policyholder
has more flexibility regarding the investment process. During the deferment period, unit-linked annuities behave in a similar
way to endowment life insurance, but during the payout period the policy converts into a traditional annuity.
If the policyholder dies, the beneficiary receives the sum insured or the fund assets, if the latter exceed the sum insured.
A risk premium is periodically charged to the fund to finance the death benefit cover if there is capital at risk (i. e. the positive
difference between the sum insured and the fund assets).
Depending on the product, the fund underlying the savings process is selected from a range of funds that match the
policyholder’s investment profile. The policyholder usually bears the entire investment risk and may benefit from a positive
return.
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Neither the cash surrender value nor the maturity value of unit-linked life insurance is guaranteed, but the maturity value is
partly secured by the choice of fund. The funds are typically those with the type of investment strategy (e. g. the proportion of
equities falls if share prices fall) that guarantees the maturity value for a specific policy term. This type of business is offered
in Switzerland and Germany. The guaranteed maturity value of these specific life insurance policies may differ somewhat
from the fund value because of the way the policies are structured. This risk has been factored into actuarial calculations.
In Switzerland, there is a closed sub-portfolio with a guaranteed interest rate. The guarantee was issued as part of the
statutory pension scheme (Pillar 3a). On the endowment date, the policyholder receives the value of the fund units or the
net investment premium plus accrued interest at the technical interest rate (3.25 per cent), whichever is the greater. The
funds approved for these policies have a low equity ratio and are therefore not exposed to high volatility. A corresponding
actuarial reserve has been recognised for the guarantee.
Some closed-end funds in Belgium and Switzerland also offer a guaranteed maturity value. The funds are managed and
the guarantees are provided by banks outside the Baloise Group. In Switzerland there is also a closed-end Baloise fund with
a guaranteed maturity value which is hedged via investments in bonds issued by banks outside the Group.
Baloise has a number of variable annuities products including unit-linked and, in some cases, guaranteed whole-life
annuities in its units in Switzerland and in Luxembourg / Liechtenstein. Financial hedges are provided using external rein-
surance.
Switzerland
Germany
Belgium
Luxembourg
2021
2022
2021
2022
2021
2022
2021
2022
867.7
762.3
2,493.8
2,036.8
42.0
38.8
441.0
449.1
as at 31.12.
CHF million
Actuarial reserves
from unit-linked
life insurance contracts
The major risks accruing from term insurance include epidemics and terrorist attacks but also changes in lifestyle such
as lack of exercise. Endowment policies incur significant risks arising from the increase in life expectancy, which is likely to
continue due to medical advances and rising living standards. The risks listed above do not vary greatly within this area
of activity.
Our group life business in Switzerland and Belgium focuses on the provision of occupational pensions which, like individual
life insurance, covers the risks of death, disability and survival. The distinctive feature of group life business is the influence
of political decisions. In Switzerland, the government sets the minimum rate of interest to be paid on savings, and the
conversion rate at which accumulated capital is converted into an annuity to provide a pension. However, these regula-
tions only apply to the minimum portion of accumulated capital that is required to provide initial finance for an annuity.
Actuarially appropriate annuity conversion rates are used for all of the accumulated retirement assets, while ensuring
that the legal minimum requirements for conversion are complied with in respect of the minimum accumulated capital
stipulated by law. Any change to the minimum interest rate would also affect the existing statutory portfolio, not just
new business, which would normally be the case for individual life business. The technical interest rate for Belgian group
life business – unlike individual life business – is also set by the government. However, it is the companies – and not their
insurers – that are obliged to guarantee this technical interest rate. Occasionally, Baloise Insurance in Belgium offers group
life insurance policies with interest rates that are lower than the rate stipulated by the government.
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Disability insurance relates to policy riders, i. e. premiums being waived if holders of life insurance policies that require peri-
odic payments of premiums become disabled, and to separate disability insurance. Measured against total actuarial
reserves, disability risk represents around 5 per cent of our business.
Traditional insurance
Longevity risk
Mortality risk
Disability risk
BVG retirement assets
Sub-total
Unit-linked
Longevity risk
Mortality risk
Sub-total
Total
Actuarial reserves
31.12.2021
Actuarial reserves
31.12.2022
CHF
million
Share (%)
CHF
million
Share (%)
12,312.6
8,535.9
1,651.5
11,309.1
33,809.0
2,170.6
1,680.8
3,851.5
32.7
22.7
4.4
30.0
89.8
5.8
4.5
12,302.4
7,942.3
1,658.0
10,674.9
32,577.6
1,789.1
1,503.3
10.2
3,292.5
34.3
22.1
4.6
29.8
90.8
5.0
4.2
9.2
37,660.5
100.0
35,870.1
100.0
Actuarial reserves were allocated to the categories above by product, i. e. each product was assigned a risk category and
actuarial reserves were not split into different risks within one product. Allocation to a category was generally determined
by the mortality table used in each case.
5.5.2 Assumptions
Actuarial reserves are calculated in accordance with the factors that applied on the date a policy was signed. When
setting rates for life insurance products, safety margins are built into these factors to anticipate any adverse trends in the
future, principally with regard to technical interest rates and mortality tables. These built-in safety margins, combined with
counter-selection effects, explain why annuity tables differ from mortality tables. Cancellations are not factored in when
recognising reserves.
The principles applied are reviewed on an ongoing basis by conducting liability adequacy tests (LATs) which ensure
that sufficient reserves have been set aside. The underlying assumptions for conducting these tests are best estimates.
The two main assumptions for these tests are expected future investment income and mortality rates. Expected future
investment income is calculated using the current investment portfolio and the target investment portfolio (strategic
asset allocation). The returns on new money invested are based on capital-market interest rates. Depending on the size of
the portfolio, mortality rates are based on publicly available tables adjusted to reflect our own experience or on mortality
tables produced inhouse.
Cancellations are factored into LATs using assumptions based on the experience of our companies. Changes in assump-
tions regarding cancellations usually have a negligible impact on LATs.
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5.5.3 Sensitivities
Sensitivity analysis shows the consequences of realistic changes in risk parameters to which Baloise is exposed at the
balance sheet date. These consequences impact on its consolidated equity and its profit for the period. When sensitivities
were investigated, only the assumption being tested was varied. The other parameters were kept constant. One exception
to this rule was policyholders’ dividends, which were adjusted accordingly. In general, sensitivities do not behave in a linear
fashion, so it is not possible to extrapolate from them because they relate to a specific balance sheet date. To identify
sensitivities, we investigated the effect of changes in assumptions on profit for the period and on equity, after shadow
accounting, deferred gains / losses and deferred taxes (excluding reinsurance effects which were immaterial) had been
taken into account. The assumptions on which liability adequacy testing is based were changed for each calculation.
The following scenarios were run:
● 10 per cent increase in mortality
● 10 per cent fall in mortality (i. e. increase in longevity)
● 50 basis-point increase in receipts of new money
● 50 basis-point fall in receipts of new money
10 per cent increase in mortality
A mortality increase of 10 per cent had only a marginal effect in Germany, Belgium, Luxembourg and Liechtenstein. This
was true of the impact on both the income statement and on equity. In the Swiss life insurance business, an increase in
mortality caused a lower amount to be allocated to strengthen annuity reserves. This effect improved profitability by around
CHF 22 million (2021: CHF 44 million). the effect on equity in Switzerland was minor.
10 per cent fall in mortality
Similar to the aforementioned scenario of an increase in mortality, the effects of a reduction in mortality were negligible for
the life insurance companies in Germany, Belgium, Luxembourg and Liechtenstein. This was true of the impact on both the
income statement and on equity. A reduction in mortality in the Swiss life insurance business – with policyholders’ dividends
adjusted accordingly – had a negative impact of approximately CHF 61 million (2021: CHF 65 million) on the income state-
ment. In line with the aforementioned scenario of an increase in mortality, the effect on equity in Switzerland was minor.
50 basis-point increase in receipts of new money
This scenario was based on the assumption that receipts of new money (including amounts reinvested) were 50 basis
points higher in 2022. In Germany, this scenario resulted in marginal changes in DACs, in the reserve for final policy-
holders’ dividends and in the URR (2021: marginal effect). The negative effect recognised directly in equity amounted
to approximately CHF 13 million (2021: CHF 12 million). In Belgium, this scenario resulted in a marginal increase in DACs
(2021: marginal effect). The negative effect on unrealised gains amounted to CHF 137 million (2021: CHF 169 million).
In Luxembourg, this scenario produced a marginal effect on the income statement and a negative effect of roughly
CHF 15 million on the unrealised gains and losses recognised in equity (2021: CHF 19 million). The resultant effect on the
profitability and equity of Baloise Life (Liechtenstein) AG was negligible. In Switzerland, this scenario resulted in a reversal
of DAC write-downs and a reduction in technical provisions, which had an overall positive effect of CHF 13 million on the
income statement (2021: CHF 29 million). The negative effect recognised directly in equity amounted to approximately
CHF 198 million (2021: CHF 204 million).
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50 basis-point fall in receipts of new money
This scenario was based on the assumption that receipts of new money (including amounts reinvested) were 50 basis points
lower in 2022. In Germany, this scenario resulted in marginal changes in DACs, in the reserve for final policyholders’ dividends
and in the URR (2021: marginal effect). The positive effect recognised directly in equity amounted to CHF 12 million (2021:
CHF 12 million). In Belgium, this scenario resulted in an additional DAC write-down. The effect on the income statement is
marginal (2021: CHF 1 million). The positive effect on unrealised gains amounted to CHF 145 million (2021: CHF 227 million).
In Luxembourg, this scenario produced a marginal effect on the income statement (2021: marginal effect) and a positive
effect of roughly CHF 16 million on the unrealised gains and losses recognised in equity (2021: CHF 22 million). At Baloise Life
(Liechtenstein) AG, the increase in provisions had a marginally negative effect on the income statement (2021: marginally
negative effect). The resulting effect on equity was negligible. In Switzerland, this scenario resulted in higher DAC write-downs
and an increase in technical provisions. The overall negative effect was CHF 16 million (2021: CHF 40 million). The positive
effect recognised directly in equity amounted to approximately CHF 199 million (2021: CHF 197 million).
5.5.4 Changes to assumptions
Expected future investment income is constantly adjusted in line with market circumstances. Other assumptions, such as
cancellation rates and mortality rates, are updated on an ongoing basis.
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Management of market risk
5.6
Market risk is reflected by losses that arise from changes or fluctuations in market prices that may result in impairment
of the value of assets held. The degree of risk depends on the extent to which market prices fluctuate and on the level of
exposure.
As part of their life insurance business, Baloise also provides investment-linked life insurance contracts for the account of
and at the risk of policyholders. The financial liabilities generated in this connection are backed by assets – generally invest-
ment fund units – arising from these policies. Because the market risk attaching to the assets underlying these contracts
is borne by the policyholder, they are shown separately in the notes to the consolidated annual financial statements.
The following sections specifically address the interest rate risk, currency risk, credit risk, liquidity risk and equity price
risk that are relevant to assets held by the Group.
Interest rate risk
5.6.1
Interest rate risk is the risk that a company’s interest margin, and therefore its income, may be reduced by fluctuations in
money- market and capital-market interest rates (income effect), or that the fair value of a portfolio of interest-rate-sensi-
tive products may decline (asset-price effect). As well as the financial risk generated by holding assets and liabilities with
non-matching maturities, variations in accounting policy may result in accounting risk.
Consequently, the impact of a movement in interest rates or in the interest rate curve may be a significant deterioration
in terms and conditions if funding has to be rolled over. Benchmark-based maturity management is practised in the non-life
units, while maturity management in the life units is driven by the structure of the obligations.
Under the Group-wide risk management standards of Baloise, interest rate risk is managed through investment planning
and appropriate asset liability management with due regard to the available risk-bearing capacity.
Additional stress tests are also designed and run for this purpose. They act as an early-warning system and their impact
can be simulated for all areas of the Group and their performance.
The effect of stress-testing key financial figures is measured on a monthly basis. The underlying stress scenario (potential
loss arising from a risk) is reviewed regularly and modified as necessary.
The life insurance companies of Baloise manage their risk associated with changes in interest rates directly, by means
of appropriate strategic asset allocation. Specific factors such as risk-bearing capacity and the ability to fund guarantees
are taken into account when allocating assets. The decision-making process also incorporates the asset managers’ expec-
tations regarding the development of capital markets and customers’ expectations regarding life insurance.
The Baloise Group’s Chief Investment Officer (CIO) reviews strategic asset allocation with each business unit twice a
year and when the need arises.
The bank also use an appropriate asset and liability management system to monitor and manage interest rate risk.
Interest rate risk is incurred only in proportion to business volume and business activities. Interest rate risk is measured
using software based on gap, duration and interest rate sensitivity methods. The asset and liability mismatch at Baloise
Bank AG a is also actively managed by the use of appropriate interest rate derivatives.
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If all interest rates had fallen by 50 basis points on the balance sheet date but all other variables had remained constant,
the profit for the period (after deferred gains / losses and deferred taxes) would have been lower by CHF 14 million (2021:
CHF 41 million). Including the impact on profit for the period, equity (after shadow accounting, deferred gains / losses and
deferred taxes) would have risen by CHF 432 million (2021: CHF 328 million). If all interest rates had risen by 50 basis points on
the balance sheet date but all other variables had remained constant, the profit for the period (after deferred gains / losses
and deferred taxes) would have been higher by CHF 12 million (2021: CHF 30 million). Including the impact on profit for the
period, equity (after shadow accounting, deferred gains / losses and deferred taxes) would have fallen by CHF 455 million
(2021: CHF 347 million).
5.6.2 Currency risk
Currency risk describes the potential financial loss generated by changes in the exchange rates between currencies. The
extent of the effective currency risk depends on:
● net foreign exchange exposure, i. e. the net position between assets and liabilities denominated in foreign currencies,
● the volatility of the currencies involved and
● the correlation of currencies with other risk parameters in a portfolio.
Because the Baloise Group invests in foreign currency bonds (particularly those denominated in euros and US dollars) for
investment or diversification purposes, there may be currency effects in the income statement for both realised and unre-
alised positions. To ensure compliance with the risk budget set for currency effects recognised in the income statement,
the foreign exchange management team first calculates adequate target hedge ratios, then implements the necessary
hedging strategies taking into account these target hedge ratios and the discretionary ranges allowed. It also takes
advantage of phases when exchange rates are overreacting by deliberately underweighting or overweighting the hedge
ratios in relation to the defined benchmark. These hedging strategies are implemented using forward FX contracts and FX
options or combinations of options in which the selection of the instruments to be used in each case depends on factors
such as volatility and expected exchange rate movements.
The currency effect of foreign currency bonds or insurance-related foreign currency liabilities and changes in the fair
value of derivative financial instruments held for hedging purposes are always recognised in the income statement.
The Group-wide Risk Management Standards require currency risk and the effectiveness of the currency derivatives
transacted to be monitored on a continuous basis. The currency risk incurred must be proportionate to the potential superior
return generated by the diversification effect achieved in the portfolio.
The Swiss franc and the euro are used almost exclusively for the Baloise Group’s insurance activities, with the result that
technical reserves are also mainly in these currencies. There are also small technical liabilities in US dollars. These reserves
are generally covered by investments in the same currencies (natural hedges).
Assuming that all other variables remain constant, fluctuations between transactional currencies and the functional
currency in financial balance sheet items (after deferred gains / losses and deferred taxes) in the amount of +/– CHF 0.01
(1 centime) would have resulted in a change of +/– CHF 1.8 million (2021: +/– CHF 3.8 million) in the profit for the period; a
positive (+) change of CHF 0.01 would have generated a currency gain and a negative (–) change of CHF 0.01 would have
generated a currency loss.
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Derivative financial instruments used as currency hedges of a net investment in a foreign operation
The Group’s own companies, Baloise Private Equity (Luxembourg) SCS, Baloise Alternative Invest S. A. SICAV-RAIF and Baloise
Private Assets S. C.S SICAF-RAIF, manage the substantial investments in alternative financial assets such as private equity,
senior secured loans and infrastructure debt.
The Baloise Group’s FX managers enter into currency hedging transactions in the form of forward contracts to limit
the currency risk exposure of its net investment in these foreign entities whose reporting currency is the US dollar. The
limitation to forward exchange transactions in the implementation of hedging strategies makes it easier to document
the hedging efficiency and apply hedge accounting (for investments of Swiss entities).
as at 31.12.
CHF million
Forward contracts
Swaps
OTC options
Other
Traded options
Traded futures
Total
CHF million
Amount recognised directly in equity
Hedge ineffectiveness reclassified to the income statement
Fair value assets
Fair value liabilities
2021
2022
2021
2022
17.0
67.6
3.0
1.1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
17.0
67.6
3.0
1.1
2021
2022
– 34.8
– 11.9
–
–
Because equity investments are actively managed, additions to and deductions from equity are carried out on a regular
basis during the year. Consequently, the year-on-year effects underlying hedge accounting and the recognition of cash
flows in profit or loss are recognised on a pro-rata basis.
The Swiss companies hold exposures in foreign currencies for the purposes of international diversification (risk-spreading)
and because of the greater liquidity available in certain non-Swiss financial markets. The non-Swiss Baloise Group entities
do not have any material currency exposure because the non-euro exposure is hedged within the Luxembourg entities.
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5.6.3 Credit risk
Credit risk relating to assets held by insurance companies refers to the total potential downside risk arising from a deteri-
oration in the credit quality of a borrower or issuer, or from impairment in the value of collateral. Credit risk is managed by
monitoring the credit quality of each individual counterparty and relying heavily on credit ratings.
The maximum default risk of financial assets is equivalent to their carrying amount. The Baloise Group tracks counter-
party exposures at all times and monitors default risk – broken down by country, sector and issuer – on a Group-wide basis.
Because the credit risk incurred by Group is spread across sectors and geographic regions and among a large number
of counterparties and customers, Baloise is not exposed to material credit risk arising from a single counterparty or a
specific sector or geographic region.
In order to restrict the credit / accumulation risk in the Baloise Group, the proportion that may be invested by Group
companies in a single issuer or borrower is strictly limited in the Group-wide Risk Management Standards. The relevant
rules are explicitly defined in the Group investment policy. In addition, there are guarantees and collateral for the benefit
of third parties, which are described in chapter 40.1.2.
As a rule, investments in interest-bearing securities or loans need to have an investment-grade issue rating or be backed
by a corresponding third-party guarantee or by a mortgage. If any financial instrument in the portfolio becomes sub-in-
vestment grade due to a ratings downgrade, it must be sold within twelve months. Approval is required for any exceptions.
Financial derivatives are only permitted to be transacted with issuers holding a rating of at least “A –” or with whom there
is a special collateral agreement.
Please refer to the table of secured financial instruments with characteristics of liabilities in chapter 11.
Financial assets exceeding 10 % of consolidated equity
CHF million
Swiss Confederation
Kingdom of Belgium
Republic of France
Federal Republic of Germany
Pfandbriefbank schweizerischer Hypothekarinstitute AG
Kingdom of Spain
Pfandbriefzentrale der schweizerischen Kantonalbanken AG
Kingdom of the Netherlands
31.12.2021
4,155.1
2,923.6
1,767.8
1,681.1
1,521.0
997.0
969.3
770.6
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Financial assets exceeding 10 % of consolidated equity
CHF million
Swiss Confederation
Kingdom of Belgium
Republic of France
Pfandbriefbank schweizerischer Hypothekarinstitute AG
Federal Republic of Germany
Pfandbriefzentrale der schweizerischen Kantonalbanken AG
Kingdom of Spain
Kingdom of the Netherlands
Republic of Ireland
Financial Report
31.12.2022
3,145.8
2,185.1
1,307.4
1,281.2
1,256.1
886.7
702.5
589.8
486.0
The management and control of credit risk arising from mortgage business are set out in instructions and written proce-
dures in which mandatory lending regulations are specified. These lending regulations lay down strict procedures for the
immediate identification, accurate assessment, proper authorisation and continuous monitoring of credit risk. Standard
credit documentation is used to record and review loan applications, which are all logged and managed centrally. The
relevant credit documentation reflects or incorporates all evaluation criteria and policies.
Because a running total of mortgage transactions is kept, it is possible to monitor compliance with credit policy, and
corrective action can be taken if necessary. All mortgages are also managed by periodically auditing exposure, including
records of overdue interest. Procedures and audit intervals are set out in a separate directive. Senior management regularly
receive detailed risk reports on the composition of the mortgage portfolio and risk trends.
Policies, directives and authorisation levels set out the terms and conditions for granting mortgages, which consist of
the amount, the credit quality of the counterparty, collateral and the term of the transaction.
There are special instructions for valuing collateral and calculating loan-to-value ratios. The purpose of these provisions
is to ensure that a standard procedure is used to determine the applicable value of collateral when assessing mortgages.
The calculation of the fair value of the financed assets, the loan value and the assessment of affordability are of critical
importance, particularly with regard to mortgage business. One of the objectives of the active management of mortgages
is the early identification of potential downside risk.
The mortgage portfolio comprises loans to individuals and to legal entities. The type and degree of risk that may be incurred,
together with collateralisation and quality requirements, are set out in directives and authorisation levels. To mitigate risk,
the portfolio is as geographically diverse as possible.
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Credit ratings of financial assets that were neither overdue nor impaired
as at 31.12.2021
CHF million
Financial assets of a debt nature
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Mortgages and loans
Mortgages
Policy loans
Time deposits
Employee loans
Reverse repurchase agreements
Other loans
Derivative financial instruments
Receivables from financial contracts
Reinsurance assets
Receivables from reinsurers
Insurance receivables
Other receivables
Receivables from investments
Cash and cash equivalents
Total
AAA
AA
A
BBB
5,867.3
108.9
4,100.8
–
–
8,986.7
554.2
412.1
–
10.0
2,350.8
2,735.0
1,401.3
–
–
103.1
1,140.9
8,945.5
–
–
–
–
–
2.5
147.1
–
–
–
–
1.0
104.8
–
–
–
27.6
6.0
–
316.0
33.1
2.0
17.6
86.6
–
476.1
–
–
–
115.3
117.9
–
395.2
44.3
10.2
58.5
45.6
Lower
than BBB
or no rating
Total
328.9
19,364.5
2,097.3
181.2
1,238.1
–
57.3
153.7
266.8
566.1
28.8
185.0
39.7
277.1
–
86.3
93.4
322.9
184.1
42.6
199.4
7,479.8
6,793.8
1,238.1
10.0
11,179.1
153.7
3,688.2
566.1
28.8
185.0
207.8
583.3
–
801.8
170.7
335.1
270.0
316.7
2,577.3
1,830.7
1,984.4
698.5
–
–
932.3
–
468.9
–
–
–
22.6
35.2
–
4.3
0.0
–
8.7
37.3
16.6
1,269.7
394.8
696.8
12,961.9
13,207.3
17,392.5
6,039.4
6,348.9
55,950.0
Promissory notes and registered bonds
1,256.7
1,219.7
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Lower
than BBB
or no rating
Total
228.7
16,042.1
1,953.3
191.4
1,223.1
–
50.0
156.1
205.1
157.3
33.0
410.0
69.2
234.6
–
74.7
48.7
337.8
163.6
45.8
192.1
6,279.7
5,687.3
1,223.1
5.0
11,169.6
156.1
3,076.7
211.3
33.0
465.0
245.3
512.2
–
619.1
97.8
343.0
253.7
298.3
2,045.1
AAA
AA
A
BBB
5,151.6
7,600.7
44.8
3,330.0
–
–
455.3
309.9
–
5.0
1,651.1
2,287.1
1,215.6
–
–
105.5
1,167.4
8,892.7
–
–
–
235.6
54.0
–
–
120.8
177.1
–
286.4
23.0
2.6
65.5
41.0
–
–
–
2.6
95.7
–
–
–
–
1.1
94.0
879.3
–
–
55.0
28.9
3.6
–
246.5
25.9
2.6
13.8
81.1
1,409.9
1,539.2
640.3
–
–
953.9
–
340.6
–
–
–
23.7
1.2
–
11.4
0.2
–
9.7
36.3
44.1
373.3
556.3
10,790.3
11,579.0
15,608.9
5,010.5
5,774.6
48,763.3
Credit ratings of financial assets that were neither overdue nor impaired
Promissory notes and registered bonds
1,085.5
1,209.9
as at 31.12.2022
CHF million
Financial assets of a debt nature
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Mortgages and loans
Mortgages
Policy loans
Time deposits
Employee loans
Reverse repurchase agreements
Other loans
Derivative financial instruments
Receivables from financial contracts
Reinsurance assets
Receivables from reinsurers
Insurance receivables
Other receivables
Receivables from investments
Cash and cash equivalents
Total
Standard & Poor’s and Moody’s ratings are generally used to assess the credit quality of securities. The lower of the two is
used for disclosure.
Because the two agencies do not cover the entire Swiss financial market, the SBI composite rating is applied as and
when necessary.
The credit quality of mortgage assets arising from Swiss insurance business is reviewed using risk management processes.
Credit ratings are assigned on this basis. Mortgage assets that show no signs of impaired credit quality receive an A rating.
Those that show signs of impaired credit quality are rated lower than BBB or are not rated at all.
In 2022, financial assets amounting to CHF 0.0 million (2021: CHF 1.7 million) and cash and cash equivalents of 0.0 million
(2021: CHF 0.1 million) from collateral received were used.
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Financial assets impaired
as at 31.12.
CHF million
Financial assets of a debt nature
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Mortgages and loans
Mortgages
Policy loans
Promissory notes and registered bonds
Time deposits
Employee loans
Reverse repurchase agreements
Other loans
Receivables from financial contracts
Reinsurance assets
Receivables from reinsurers
Insurance receivables
Other receivables
Receivables from investments
Total
Gross
amount
Impairment
Carrying
amount
Gross
amount
Impairment
Carrying
amount
2021
2022
–
10.7
6.5
–
–
–
– 10.7
– 6.5
–
–
–
–
–
–
–
23.2
13.4
4.7
–
–
– 23.2
– 13.4
– 4.7
–
–
–
–
–
–
–
113.7
– 23.6
90.2
107.0
– 24.6
82.4
–
–
–
–
–
1.2
–
–
1.1
103.7
2.4
20.0
259.2
–
–
–
–
–
– 1.2
–
–
– 1.1
– 44.8
– 1.7
– 1.8
– 91.3
–
–
–
–
–
0.0
–
–
0.0
58.9
0.7
18.1
167.9
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
60.6
– 0.5
60.1
–
–
2.2
152.9
3.5
27.0
394.6
–
–
– 1.6
– 43.2
– 2.7
– 1.3
– 115.2
–
–
0.6
109.8
0.8
25.7
279.4
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< 3 months 3–6 months 7–12 months > 12 months
Total
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
21.2
0.4
–
21.6
13.0
0.0
–
13.0
–
–
–
–
–
–
–
–
–
–
–
–
–
9.9
–
10.3
0.0
–
20.2
–
–
–
–
–
–
–
–
–
–
–
–
–
12.1
–
11.6
0.1
–
23.9
–
–
–
–
–
–
–
–
–
–
–
–
–
22.0
–
56.1
0.6
–
78.7
Financial assets overdue but not impaired
as at 31.12.2021
CHF million
Financial assets of a debt nature
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Mortgages and loans
Mortgages
Policy loans
Promissory notes and registered bonds
Time deposits
Employee loans
Reverse repurchase agreements
Other loans
Receivables from financial contracts
Reinsurance assets
Receivables from reinsurers
Insurance receivables
Other receivables
Receivables from investments
Total
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Financial assets overdue but not impaired
as at 31.12.2022
CHF million
Financial assets of a debt nature
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Mortgages and loans
Mortgages
Policy loans
Promissory notes and registered bonds
Time deposits
Employee loans
Reverse repurchase agreements
Other loans
Receivables from financial contracts
Reinsurance assets
Receivables from reinsurers
Insurance receivables
Other receivables
Receivables from investments
Total
< 3 months 3–6 months 7–12 months > 12 months
Total
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
23.1
0.1
–
23.2
13.4
0.0
–
13.4
–
–
–
–
–
3.3
–
–
–
–
–
–
–
15.4
–
10.3
0.0
–
29.0
–
–
–
–
–
–
–
–
–
–
–
–
–
16.1
–
7.8
0.1
–
24.0
–
–
–
–
–
3.3
–
–
–
–
–
–
–
31.5
–
54.6
0.2
–
89.6
5.6.4 Liquidity risk
Banks as well as insurance companies incur latent liquidity risk. This refers to the risk of rapid outflows of large volumes
of liquidity that cannot be offset by asset sales or for which alternative funding cannot be implemented quickly enough.
In extreme cases, a lack of liquidity can result in insolvency. Legal provisions apply and the Group-wide Risk Management
Standards require each business unit to plan its liquidity centrally. This is carried out with the close collaboration of the
investment, actuarial, underwriting and finance departments of each business unit.
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Liquidity management must take account of the maturity structure of liabilities as follows:
Maturities of financial liabilities 1
Liquidity risk as at 31.12.2021
< 1 year 2
1–3 years
4–5 years
> 5 years
Total
Carrying
amount
CHF million
Liabilities arising from banking business
and financial contracts
With discretionary participation features
Measured at amortised cost
Recognised at fair value through profit or loss
Financial liabilities
Derivative financial instruments (net cash flows)
Insurance liabilities
Other liabilities
Total
Guarantees and future liabilities
Guarantees
Future Liabilities
Total
3,942.6
6,369.6
1,339.3
381.9
64.4
1,137.8
694.5
2.1
327.6
–
712.6
1.2
632.0
23.5
1.7
345.3
92.1
1,147.3
4,038.5
8,189.7
4,038.5
8,189.7
1.5
13,313.3
14,654.2
14,654.2
490.4
13.4
0.0
3.4
917.6
2,502.5
2,425.7
10.9
0.2
14.2
89.8
1,770.1
735.6
89.8
1,770.1
732.2
13,930.1
1,698.9
855.7
15,495.6
31,980.3
31,900.2
44.6
788.0
832.6
1.9
940.9
942.8
0.4
16.0
16.3
12.0
9.6
21.6
58.9
1,754.5
1,813.4
–
–
–
Liquidity risk as at 31.12.2022
< 1 year 2
1–3 years
4–5 years
> 5 years
Total
Carrying
amount
CHF million
Liabilities arising from banking business
and financial contracts
With discretionary participation features
Measured at amortised cost
Recognised at fair value through profit or loss
Financial liabilities
Derivative financial instruments (net cash flows)
Insurance liabilities
Other liabilities
Total
Guarantees and future liabilities
Guarantees
future liabilities
Total
1 Based on undiscounted contractual cash flows.
2 All demand deposits are included in the first maturity band.
3,843.3
5,863.6
1,193.6
560.2
88.0
1,118.5
728.7
1.7
360.2
4.7
390.1
0.3
621.6
26.0
1.7
382.6
10.3
509.2
1.9
–
3.2
88.5
1,370.2
3,935.3
7,976.6
3,935.3
7,976.6
11,455.7
12,664.4
12,664.4
1,256.1
2,715.5
45.9
0.2
12.3
136.1
1,740.3
770.2
2,609.6
136.1
1,740.3
767.2
13,396.0
1,404.6
908.9
14,229.0
29,938.5
29,829.5
33.2
1,316.2
1,349.4
1.9
697.0
698.9
0.4
9.1
9.5
10.2
7.3
17.5
45.8
2,029.6
2,075.3
–
–
–
Please refer to the tables in chapter 22 for the maturities of technical reserves.
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In accordance with the Group-wide Risk Management Standards, asset and liability management committees have been
introduced in all strategic business units in the Baloise Group. These asset and liability management committees analyse
maturity schedules and the income generated by assets or required for liabilities.
As part of tactical and strategic investment planning, care is taken when allocating the assets held by the individual
life and non-life insurance units in the Baloise Group to ensure that sufficient liquidity is available to carry out investment
activity and for the operational settlement of all business processes. The level of liquidity required is determined on the
basis of the maturity structure of investments versus the payout schedule for insurance-related liabilities. Investment
planning explicitly includes exceptionally large incoming or outgoing payments that are known in advance. Maintenance
of liquidity levels and access to further liquidity via the repo market ensure sufficiently high reserves for payments needed
at short notice, such as large claim settlements, until such as time as the reinsurer assumes the costs.
If these precautions fail to meet the need for liquidity, Baloise holds financial assets that can be sold at short notice
without significant price losses. They include all equities (excluding long-term equity investments). Because the Group holds
a substantial portfolio of government and quasi-government bonds, it is possible to sell relatively large holdings of avail-
able-for-sale bonds even in crisis situations. Mortgages and loans are generally held to maturity; early redemption is not
considered at present. Private-equity investments have to be considered illiquid in this context, and it is not possible to sell
investment property to generate immediate liquidity.
5.6.5 Equity price risk
Baloise is exposed to equity price risk because it holds financial instruments with characteristics of equity classed as
“recognised at fair value through profit or loss” and “available for sale”. Equity price risk is significantly reduced by means
of international diversification, i. e. by spreading risk across sectors, countries and currencies. Active overlay management
using derivatives also mitigates equity price risk. Most financial instruments with characteristics of equity are publicly listed.
If the market price of all financial instruments with characteristics of equity were to move by +/– 10 per cent on the
balance sheet date, the following impact would be observed – after shadow accounting, deferred gains / losses, deferred
taxes, derivative hedges and the effect of the impairment rules mentioned in section 3.10.3:
CHF million
Market price plus 10 %
Market price minus 10 %
Impact on profit for the
period
Impact on equity
(including profit for the
period)
2021
2022
2021
2022
38.9
– 49.2
45.7
– 57.7
302.7
– 305.8
269.9
– 276.2
Because these impairment criteria produce different effects due to assumed changes in market prices if there is a rise
compared with an analogous fall, these effects are divergent. The compensatory effects of hedging using derivatives behave
in a similar manner.
Adjustments in the fair value of financial instruments with characteristics of equity that are classed as “recognised
at fair value through profit or loss” have an impact on the profit for the period. Unrealised gains and losses vary due to
changes in the fair value of financial instruments with characteristics of equity which are classed as “available for sale”. In
a life insurance company, policyholders participate in the firm’s profits, depending on their policy and local circumstances
(see section 3.19.5). The table above takes account of this profit-sharing scheme.
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Fair value measurement
5.7
Where available, quoted market prices are used to determine the fair value of assets and liabilities. They are defined as
available if quoted prices can be obtained easily and frequently on an exchange, from a dealer, broker, trade association,
pricing service or regulatory authority, provided these prices are current, in sufficient volume and represent regularly occur-
ring arm’s-length transactions in the market.
If no quoted market prices are available (e. g. because a market is inactive), the fair value is determined using a market-
based measurement process. Market-based means that the measurement method is based on a significant quantity of
observable market data (as available).
Fair value measurement is divided into the following three hierarchy levels:
• Fair value determined by publicly quoted prices (level 1)
Fair value is based on prices in active markets on the balance sheet date and it is not adjusted or compiled in any other
way.
• Fair value determined by using observable market data (level 2)
Fair value is estimated using generally recognised methods (discounted cash flow, etc.). In this case, measurement
incorporates a significant quantity of observable market data (interest rates, index performance, etc.).
• Fair value determined without the use of observable market data (level 3)
Fair value is estimated using generally recognised methods (discounted cash flow, etc.), although it is measured without
reference to any observable market data (or only to a very minor degree), either because this data is not available or
because it does not permit any reliable conclusions to be drawn with regard to fair value.
Detailed information about measurement principles and the measurement methods used can be found in chapters 3 and 4.
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Details of the methods used to measure level 2 and level 3 assets and liabilities
The table below gives an overview of the measurement methods that the Baloise Group uses to determine the fair value
of balance sheet line items classified as level 2 or level 3. The table shows the individual measurement methods, the key
input factors used for measurement purposes and – where practicable – the range within which these input factors vary.
Balance sheet line item
Measurement method
Key input factors used for
measurement purposes
Range of input
factors
Level 2
Financial instruments
with characteristics of equity
Available for sale
At fair value through profit or loss
Financial instruments with characteristics of liabilities
Internal
measurement
methods
Net asset value
Net asset value
Price of underlying instrument,
liquidity discount, balance sheet
and income statement figures
n. a.
n. a.
Available for sale
Present-value model
At fair value through profit or loss
Present-value model
Net asset value
Yield curve,
swap rates, default risk
Interest rate, credit spread,
market price
n. a.
Present-value model
Interest rate, credit spread
Present-value model
Black-Scholes
option pricing model
SARON, swap rates
Money market interest rate, volatility,
price of underlying instrument,
exchange rates
Black-76
Volatility, forward interest rate
Stochastic
present-value model
Present-value model
Investment fund prices,
interest rates, cancellation rate
SARON, swap rates
Mortgages and loans
Carried at cost
At fair value through profit or loss
Derivative financial instruments
Liabilities arising from banking business
and financial contracts
At fair value through profit or loss
Level 3
Financial instruments
with characteristics of equity
Mortgages and loans
Carried at cost
Investment property
Financial instruments with characteristics of liabilities
Present-value model
Interest rate, credit spread
Net asset value
n. a.
n. a.
Present-value model
Swap curve, individual spread
DCF method
Discount rate 1
2.25 % – 4.20 % 3
Rental income 2 300 – 320 CHF million 3
Vacancy costs 1
12 – 19 CHF million 3
Running costs 1
29 – 36 CHF million 3
Maintenance costs 1
27 – 34 CHF million 3
Capital expenditure 2
20 – 50 CHF million 3
–
–
–
–
–
–
–
–
–
–
–
–
1 The lower these key input factors are, the higher the fair value of the investment property is.
2 The higher these key input factors are, the lower the fair value of the investment property is.
3 The input factor ranges shown essentially relate to the real estate portfolios held by the Baloise Group’s Swiss entities.
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Determining the fair value of assets and liabilities classified as level 3
Baloise organises its operating activities into strategic business units, which are generally combined under a single manage-
ment team for each region. The financial and management information needed for all relevant executive decisions is held
by these strategic business units. This organisational structure is also used to delegate authority and responsibility for
proper implementation of, and compliance with, financial reporting standards within the Baloise Group to the individual
strategic business units.
The organisation of these individual units varies in terms of how they determine the fair value of financial instruments
classified as level 3. This process essentially involves the regular discussion of measurement methods, measurement incon-
sistencies and classification issues by formal or informal committees at each reporting date. Appropriate adjustments are
made where necessary.
Financial instruments with characteristics of equity classed as “available for sale” or “recognised at fair value through
profit or loss” and classified as level 3 are primarily private-equity investments and alternative investments held by Baloise
as well as non-controlling interests in real estate companies. The fair value of such investments is usually determined by
fund managers (external providers) based on their net asset value (NAV). These external providers generally use non-public
information to calculate the individual investments’ NAV.
Financial instruments with characteristics of liabilities that are assigned to level 3 are predominantly corporate bonds
originating from private placements and for which third-party prices are not available. A present-value model is used to
measure their fair value.
The measurement of investment property classified as level 3 is carried out internally each year by experts using market-
based assumptions that have been verified by respected external consultancies. This property is also assessed by external
valuation specialists at regular intervals.
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Fair value of assets and liabilities
for own account and at own risk
31.12.2021
CHF million
Assets measured on a recurring basis
Financial instruments with characteristics of equity
Available for sale
Recognised at fair value through profit or loss
Financial instruments with characteristics of liabilities
Held to maturity
Available for sale
Mortgages and loans
Carried at cost
Recognised at fair value through profit or loss
Derivative financial instruments
Other receivables
Carried at cost
Receivables from investments
Carried at cost
Investment property
Liabilities measured on a recurring basis
Liabilities arising from banking business and financial contracts
Measured at amortised cost
Recognised at fair value through profit or loss
Derivative financial instruments
Financial liabilities 1
1 Excluding leasing liabilities.
Total
carrying
amount
Total fair
value
Level 1
Level 2
Level 3
4,681.7
501.6
4,681.7
501.6
2,505.6
424.4
357.5
77.2
6,375.5
7,635.8
7,635.8
–
28,502.8
28,502.8
25,606.0
2,896.9
1,818.5
–
–
–
–
15,117.5
15,714.3
981.5
583.3
981.5
583.3
271.3
273.0
334.9
8,464.5
334.9
8,464.5
8,189.7
8,260.2
741.4
89.8
741.4
89.8
2,399.1
2,503.9
2,503.9
7.9
–
–
10.7
–
248.7
–
–
–
14.4
10,814.5
4,899.9
981.5
572.6
–
–
–
273.0
14.8
–
71.4
8,464.5
8,226.8
33.4
741.4
75.4
–
–
–
–
Recognised at fair value through profit or loss
7.9
7.9
–
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Total
carrying
amount
Total fair
value
Level 1
Level 2
Level 3
4,093.1
526.4
4,093.1
526.4
1,911.8
409.2
328.8
117.2
5,809.6
5,688.0
5,688.0
–
23,421.3
23,421.3
20,697.5
2,723.8
1,852.5
–
–
–
–
14,676.4
13,758.7
826.4
512.2
826.4
512.2
254.7
257.0
6.3
–
–
8.7
–
10,508.9
3,249.7
826.4
503.5
–
–
–
257.0
324.0
8,495.1
324.0
8,495.1
231.7
–
26.8
–
65.5
8,495.1
7,976.6
7,592.5
613.8
136.1
613.8
136.1
–
–
0.9
2,583.8
2,397.1
2,397.1
7,560.2
32.3
613.8
135.2
–
–
–
–
Fair value of assets and liabilities
for own account and at own risk
31.12.2022
CHF million
Assets measured on a recurring basis
Financial instruments with characteristics of equity
Available for sale
Recognised at fair value through profit or loss
Financial instruments with characteristics of liabilities
Held to maturity
Available for sale
Mortgages and loans
Carried at cost
Recognised at fair value through profit or loss
Derivative financial instruments
Other receivables
Carried at cost
Receivables from investments
Carried at cost
Investment property
Liabilities measured on a recurring basis
Liabilities arising from banking business and financial contracts
Measured at amortised cost
Recognised at fair value through profit or loss
Derivative financial instruments
Financial liabilities 1
1 Excluding leasing liabilities.
Recognised at fair value through profit or loss
6.3
6.3
–
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Fair value of assets and liabilities
for the account and at the risk of life insurance policyholders and third parties
31.12.2021
CHF million
Assets measured on a recurring basis
Financial instruments with characteristics of equity
Total
carrying
amount
Total fair
value
Level 1
Level 2
Level 3
Recognised at fair value through profit or loss
13,988.7
13,988.7
13,625.1
–
363.7
Financial instruments with characteristics of liabilities
Recognised at fair value through profit or loss
2,075.3
2,075.3
1,728.0
216.9
130.5
Mortgages and loans
Recognised at fair value through profit or loss
Derivative financial instruments
–
318.8
–
318.8
–
0.0
–
318.8
Liabilities measured on a recurring basis
Liabilities arising from banking business and financial contracts
Recognised at fair value through profit or loss
13,912.8
13,912.8
13,695.9
Derivative financial instruments
–
–
–
216.9
–
–
–
–
–
156
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Financial Report
Fair value of assets and liabilities
for the account and at the risk of life insurance policyholders and third parties
31.12.2022
CHF million
Assets measured on a recurring basis
Financial instruments with characteristics of equity
Total
carrying
amount
Total fair
value
Level 1
Level 2
Level 3
Recognised at fair value through profit or loss
11,656.4
11,656.4
11,250.0
–
406.5
Financial instruments with characteristics of liabilities
Recognised at fair value through profit or loss
2,147.1
2,147.1
1,830.1
204.9
112.1
Mortgages and loans
Recognised at fair value through profit or loss
Derivative financial instruments
–
300.7
–
300.7
–
–
–
300.7
Liabilities measured on a recurring basis
Liabilities arising from banking business and financial contracts
Recognised at fair value through profit or loss
12,050.6
12,050.6
11,845.7
Derivative financial instruments
–
–
–
204.9
–
–
–
–
–
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157
Financial Report
Assets and liabilities measured at fair value on a recurring basis
for own account and at own risk and classified as Level 3
2021
CHF million
Assets and liabilities measured on a recurring basis
Balance as at 1 January
Additions
Additions arising from change in the scope of consolidation
Disposals
Disposals arising from change in the scope of consolidation
Reclassified to level 3
Reclassified from level 3
Reclassification to non-current assets classified as held for sale
Changes in fair value recognised in profit or loss 1
Changes in fair value not recognised in profit or loss
Exchange differences
Balance as at 31 December
Financial
instruments with
characteristics
of equity
Derivative
financial
instruments
(liabilities)
Investment
property
Total
Recognised at
fair value
through
profit or loss
Available for sale
1,506.4
176.3
–
– 156.0
–
–
–
–
21.4
288.5
– 18.0
1,818.5
8,410.3
101.6
–
– 238.5
–
2.5
– 0.4
–
239.6
11.5
– 62.1
8,464.5
– 13.1
–
–
–
–
–
–
–
–
13.1
–
–
–
9,903.5
277.9
–
– 394.5
–
2.5
– 0.4
–
260.9
313.1
– 80.1
10,283.0
239.8
Changes in fair value of financial instruments held at the balance sheet
date and recognised in profit or loss
9.6
230.2
1 Changes in fair value recognised in profit or loss arise from realised gains and losses on investments, impairment losses or the reversal of impairment losses.
158
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159
Financial Report
Assets and liabilities measured at fair value on a recurring basis
for own account and at own risk and classified as Level 3
Financial
instruments with
characteristics
of equity
Derivative
financial
instruments
(liabilities)
Investment
property
Total
2022
CHF million
Assets and liabilities measured on a recurring basis
Balance as at 1 January
Additions
Additions arising from change in the scope of consolidation
Disposals
Disposals arising from change in the scope of consolidation
Reclassified to level 3
Reclassified from level 3
Reclassification to non-current assets classified as held for sale
Changes in fair value recognised in profit or loss 1
Changes in fair value not recognised in profit or loss
Exchange differences
Balance as at 31 December
Recognised at
fair value
through
profit or loss
Available
for sale
1,818.5
166.4
–
– 108.2
–
–
–
–
– 1.9
26.8
– 49.1
1,852.5
8,464.5
142.0
–
– 92.1
–
–
– 24.1
– 168.4
242.7
–
– 69.6
8,495.1
Changes in fair value of financial instruments held at the balance sheet
date and recognised in profit or loss
– 21.0
240.7
–
–
–
–
–
–
–
–
– 3.1
3.1
–
–
–
10,283.0
308.4
–
– 200.3
–
–
– 24.1
– 168.4
237.7
29.9
– 118.7
10,347.5
219.7
1 Changes in fair value recognised in profit or loss arise from realised gains and losses on investments, impairment losses or the reversal of impairment losses.
158
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159
Financial Report
Assets and liabilities measured at fair value on a recurring basis
for the account and at the risk of life insurance policyholders and third parties and classified as Level 3
2021
CHF million
Assets and liabilities measured on a recurring basis
Balance as at 1 January
Additions
Additions arising from change in the scope of consolidation
Disposals
Disposals arising from change in the scope of consolidation
Reclassified to level 3
Reclassified from level 3
Changes in fair value recognised in profit or loss 1
Exchange differences
Balance as at 31 December
Changes in fair value of financial instruments
held at the balance sheet date and recognised in profit or loss
Financial
instruments with
characteristics
of equity
Financial
instruments with
characteristics
of liabilities
Total
Recognised at
fair value through
profit or loss
Recognised at
fair value through
profit or loss
303.9
70.6
–
– 39.5
–
0.4
–
43.8
– 15.5
363.7
43.8
124.5
22.5
–
– 11.5
–
0.2
– 0.1
0.5
– 5.6
130.5
428.4
93.1
–
– 51.1
–
0.6
– 0.1
44.2
– 21.0
494.1
0.5
44.2
1 Changes in fair value recognised in profit or loss arise from realised gains and losses on investments, impairment losses or the reversal of impairment losses.
160
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161
Financial Report
Assets and liabilities measured at fair value on a recurring basis
for the account and at the risk of life insurance policyholders and third parties and classified as Level 3
2022
CHF million
Assets and liabilities measured on a recurring basis
Balance as at 1 January
Additions
Additions arising from change in the scope of consolidation
Disposals
Disposals arising from change in the scope of consolidation
Reclassified to level 3
Reclassified from level 3
Changes in fair value recognised in profit or loss 1
Exchange differences
Balance as at 31 December
Changes in fair value of financial instruments
held at the balance sheet date and recognised in profit or loss
Financial
instruments with
characteristics
of equity
Financial
instruments with
characteristics
of liabilities
Total
Recognised at
fair value through
profit or loss
Recognised at
fair value through
profit or loss
363.7
58.3
–
– 33.4
–
1.3
– 0.1
35.3
– 18.6
406.5
35.3
130.5
17.9
–
– 32.3
–
2.8
–
– 0.7
– 6.0
112.1
494.1
76.2
–
– 65.6
–
4.1
– 0.1
34.6
– 24.6
518.6
– 0.7
34.6
1 Changes in fair value recognised in profit or loss arise from realised gains and losses on investments, impairment losses or the reversal of impairment losses.
160
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Financial Report
Reclassification of assets and liabilities from level 1 to level 2 and vice versa
Assets and liabilities measured at fair value are generally reclassified from level 1 to level 2 if there is no longer deemed to
be an active market in these instruments owing to their low daily trading volumes or lack of liquidity or if the instruments
concerned have been de-listed. Financial instruments are reclassified from level 2 to level 1 for the exact opposite reasons.
No significant amounts of assets or liabilities measured at fair value were reclassified from level 1 to level 2 or vice versa
during the reporting period or in 2021.
Reclassification of assets and liabilities to and from level 3
The reclassification of investment property from level 3 in 2022 was due to the change of use of a property in Switzerland.
In 2021, the reclassifications made from and to investment properties were attributable to the changes of use of a
property and of Baloise Park in Basel.
Discrepancy between a non-financial asset’s highest and best use and its current use
The fair value of investment property is determined on the basis of its highest and best use.
This periodic analysis – which was based on criteria such as the potential to increase a property’s market value by
converting it into apartments, the repurposing of some or all of an existing property, the availability of a significant amount
of land for further building and development, and the unlocking of added value by demolishing an existing property and
building a new one revealed for the reporting period that the highest and best use of only individual investment properties
in the Swiss portfolio differed from their current use.
Capital management
5.8
The general parameters regarding the amount of capital employed are set by regulatory requirements and internal risk
management policies. While the aim of regulatory requirements is primarily the protection of policyholders, internal policies
are largely derived from the risk-based management of operating activities.
5.8.1 Swiss Solvency Test
For the purposes of the Swiss Solvency Test (SST), Baloise defines its risk-bearing capital and target capital (capital require-
ment) using a model approved by FINMA.
Risk-bearing capital is calculated on the basis of a consolidated balance sheet measured using market values. The
difference between the assets and liabilities measured at market value gives the risk-bearing capital after any capital
deductions and including any eligible supplementary capital. As a result, all capital items that can be deployed to cover
losses in the event of adverse business developments are taken into consideration.
Risk-bearing capital is compared with target capital. The capital requirement covers market risk, credit risk and actuarial
risk and is determined using an expected shortfall approach that takes account of diversification effects. The actuarial
capital requirement is a measurement of the operational funding required to cover actuarial risk. At the same time, the
investment required to smooth fluctuations in investment value and returns for a given probability is also calculated. Anal-
ysis of these risks is based on quantitative models that use statistical methods to evaluate historical data and place it in
the context of current exposure. Various extreme scenarios are also evaluated, and their potential impact on risk-bearing
capacity is analysed. The SST ratio (ratio of risk-bearing capital to target capital, after deduction of the market value margin
in both cases) is calculated for the strategic business units and the Group.
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163
Financial Report
The results of the Swiss Solvency Test for Baloise are disclosed annually in the financial condition report, which is published
at the end of April.
5.8.2 Requirements under local legislation
Individual Group companies are also subject to regulation under local legislation (in particular the Swiss Solvency Text and
Solvency II). The ability of the business units, and therefore also of the parent company, to pay dividends is closely linked
to the priority placed on meeting these local requirements. Compliance with local solvency requirements is monitored on
an ongoing basis. Appropriate action is taken if solvency falls short of these regulations.
The relevant requirements for the banking operations of Baloise Bank are defined by Basel III regulations.
5.8.3 Monitoring the solvency situation
The risk owner and risk controller responsible for each business unit and for the Group as a whole participate in a regular
reporting process. Key figures relating to Solvency I, Solvency II and key figures relating to banking operations are
reported on a monthly basis, which enables the solvency situation to be monitored in a timely manner, providing the basis
for risk-based management decisions within the whole organisation. It also enables Baloise to meet external reporting
requirements at all times.
162
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Financial Report
6. Basis of consolidation
2021 financial year
6.1
6.1.1 Acquisitions and foundations
Baloise Participation Holding AG was founded in Basel in the first half of 2021. The purpose of this company is to buy, sell,
hold and manage long-term equity investments in businesses, particularly in the Baloise Group’s growth areas and in new
technologies.
As part of the Simply Safe strategy, FRIDAY Insurance S. A. set up a branch in France in the first half of 2021.
6.1.2 Disposals
No companies were sold during 2021.
6.1.3 Other changes in the group of consolidated companies
The shares held by GMPVC German Media Pool GmbH in FRIDAY Insurance S. A. were repurchased in the first half of 2021;
SevenVentures GmbH now remains as the only minority shareholder, with a holding of 12.59 per cent.
2022 financial year
6.2
6.2.1 Acquisitions and foundations
No companies were acquired or founded in 2022.
6.2.2 Disposals
No companies were sold during the year under review.
6.2.3 Other changes in the group of consolidated companies
Baloise Finance (Jersey) Ltd. was liquidated in the first half of 2022.
The long-term equity investment in FRIDAY Insurance S. A. increased by 1.2 per cent to a total of 88.61 per cent in 2022 as
a result of an additional capital transaction.
164
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165
Financial Report
7. SEGMENT REPORTING
The Baloise Group organises its operating activities into strategic business units, which are generally combined under a
single management team for each region. The financial and management information needed for all relevant executive
decisions is held by these strategic business units. This is also the organisational level at which the chief operating deci-
sion-makers are situated. Regardless of where they are headquartered, all Baloise Group entities are therefore assigned
to one of the reportable segments
● Switzerland
● Germany
● Belgium
● Luxembourg
The “Luxembourg” segment also includes Baloise Life Liechtenstein unit.
The “Group business” segment comprises the units engaged in intercompany reinsurance and financing, Group IT, the
holding companies, the German hospital liability business, which was transferred to the Group’s run-off portfolio in 2018,
and a portfolio of variable annuities products.
The revenue generated by the Baloise Group is broken down into the Non-Life, Life, Banking (including asset management)
and Other activities operating segments.
The Non-Life segment offers accident and health insurance as well as products relating to liability, motor, property and
marine insurance. These products are tailored to the specific needs of our customers – primarily retail clients – and the core
competences of the relevant companies in the Baloise Group.
The Life segment provides individuals and companies with a wide range of endowment policies, term insurance, invest-
ment-linked products and private placement life insurance.
The “Asset Management &Banking” operating segment encompasses banking-related areas of asset management as
well as the actual banking area.
The “Other activities” operating segment includes equity investment companies, real estate firms and financing companies.
The accounting policies applied to the presentation of the segment reporting are those used throughout the rest of the
Financial Report. No intersegment relationships recognised either on the balance sheet or in the income statement – with
the exception of income from long-term equity investments – are offset against each other.
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Financial Report
7.1
Segment reporting by strategic business unit
CHF million
Income
Switzerland
Germany
Belgium
Luxembourg
Sub-total
Group business
Eliminated
Total
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
Premiums earned and policy fees (gross)
Reinsurance premiums ceded
Premiums earned and policy fees (net)
4,115.2
– 99.0
4,016.1
3,939.7
– 100.6
3,839.2
1,214.1
1,189.9
– 98.2
– 98.8
1,115.9
1,091.1
1,821.9
– 182.5
1,639.5
1,728.9
– 188.6
1,540.3
219.8
– 24.4
195.5
208.2
– 24.7
183.6
7,371.1
– 404.1
6,967.0
7,066.8
– 412.7
6,654.1
163.8
– 41.1
122.8
176.4
– 38.9
137.6
– 118.7
118.7
0.0
– 133.7
133.7
0.0
7,416.2
– 326.5
7,089.7
7,109.5
– 317.8
6,791.7
Investment income
743.9
755.7
177.4
169.5
229.6
221.4
18.1
19.3
1,169.0
1,165.9
17.2
17.9
– 26.7
– 26.6
1,159.5
1,157.2
Realised gains and losses on investments
For own account and at own risk
For the account and at the risk
of life insurance policyholders and third parties
Income from services rendered
Share of profit (loss) of associates
Other operating income
Income
Intersegment income
Income from associates
Expense
194.1
42.6
107.8
– 2.8
108.7
52.1
– 116.4
116.4
0.4
96.8
169.6
376.0
8.6
8.2
50.3
66.6
– 309.1
4.8
6.8
23.9
34.5
89.5
5.6
– 0.6
28.7
24.5
– 143.0
5.9
– 0.2
28.2
5,210.4
4,744.2
1,906.0
1,053.6
2,026.8
1,677.2
1,269.9
– 1,174.2
10,413.1
6,300.7
10,502.5
6,328.1
– 34.0
– 2.5
– 40.2
0.4
14.5
8.2
17.3
6.8
59.7
– 0.5
71.9
– 0.2
Claims and benefits paid (gross)
– 3,591.2
– 4,249.4
Change in technical reserves (gross)
Reinsurers’ share of claims incurred
Acquisition costs
Operating and administrative expenses
for insurance business
Investment management expenses
Interest expenses on insurance liabilities
Gains or losses on financial contracts
Other operating expenses
Expense
– 257.2
82.1
– 54.2
743.4
35.4
– 16.9
– 447.9
– 457.0
– 80.6
– 0.2
– 19.1
– 84.2
– 0.3
101.6
– 257.4
– 276.0
– 912.2
– 718.3
252.9
– 190.6
– 163.2
– 29.8
– 13.1
– 3.2
– 86.1
– 900.4
– 1,107.6
– 1,033.2
– 124.6
– 107.5
– 5,735.7
– 6,290.5
– 152.4
– 156.3
– 5,813.4
– 6,350.5
288.3
63.5
– 210.0
– 160.0
– 25.1
– 11.1
– 1.7
– 66.0
– 182.5
211.2
– 384.5
– 164.1
– 21.6
– 0.2
– 154.4
– 74.1
– 191.0
217.8
– 344.0
– 169.4
– 18.2
– 0.1
73.5
– 62.8
– 4,625.9
– 4,203.3
– 1,863.5
– 1,022.5
– 1,877.8
– 1,527.5
– 1,257.3
1,188.0
– 9,624.5
– 5,565.3
– 9,780.0
– 5,622.8
Profit / loss before borrowing costs and taxes
584.6
540.9
42.5
31.1
149.0
149.7
12.5
13.8
788.7
735.4
– 66.1
– 30.1
722.5
705.3
Borrowing costs
Profit / loss before taxes
Income taxes
Profit / loss for the period (segment result)
– 10.3
574.2
– 78.3
495.9
– 10.3
530.6
– 78.7
451.9
0.0
42.5
– 20.6
21.9
0.0
31.0
– 7.5
23.6
0.0
149.0
– 28.4
120.6
0.0
149.7
– 28.6
121.1
Segment assets as at 31.12.
47,902.3
44,065.3
13,069.3
11,348.2
14,745.7
12,596.6
14,482.2
12,564.6
90,199.4
80,574.7
2,552.3
2,493.8
– 2,772.7
– 2,518.4
89,979.0
80,550.1
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167
5.6
2.2
403.8
145.4
993.1
– 1,435.7
1,501.2
– 2,004.2
370.5
124.0
1,534.2
– 2,057.9
21.3
–
36.3
9.4
–
– 70.6
36.2
– 19.6
– 70.7
– 2.0
– 0.2
– 971.2
– 34.6
– 0.1
12.5
4.3
16.8
21.8
–
34.6
10.3
–
43.6
10.1
– 21.5
– 67.5
– 1.7
– 1.3
143.2
4.9
224.0
49.5
5.3
– 1,228.6
582.4
– 648.9
– 845.9
– 134.0
– 13.7
1,368.6
– 1,147.9
– 34.8
– 452.2
148.9
7.1
183.5
59.3
7.1
884.3
326.7
– 592.4
– 853.8
– 129.2
– 12.8
1,541.9
– 439.6
0.0
13.7
0.9
14.7
– 10.5
778.2
– 10.4
725.1
– 122.9
655.3
– 113.9
611.2
– 33.3
33.0
168.6
29.5
337.7
– 297.8
–
–
27.1
38.7
– 8.3
– 9.3
– 7.7
– 0.2
– 47.1
– 244.6
– 403.8
– 14.2
– 80.3
8.3
– 72.0
– 21.4
– 53.7
161.9
– 2.2
34.8
274.9
– 306.9
– 2.2
32.6
33.4
– 5.6
– 11.8
– 8.6
–
41.3
– 230.0
– 305.1
– 12.1
– 42.2
– 24.5
– 66.8
– 181.3
– 180.8
– 40.3
– 248.3
248.3
– 40.0
– 247.5
247.5
– 91.5
– 108.4
–
–
–
–
–
–
–
–
–
74.7
16.8
1.5
– 1.5
17.4
0.3
26.8
203.8
248.3
–
–
–
–
–
–
–
–
–
96.3
12.1
1.4
– 1.4
14.9
1.2
26.7
204.8
247.5
130.6
4.9
213.2
–
5.3
– 1,184.7
529.6
– 655.6
– 856.7
– 124.4
– 13.6
– 1,168.3
– 493.0
130.0
4.9
178.2
–
4.9
929.0
251.7
– 596.6
– 867.0
– 122.9
– 11.6
1,609.9
– 464.8
– 24.7
697.9
– 22.4
682.9
– 114.6
583.3
– 138.4
544.5
Financial Report
7.1
Segment reporting by strategic business unit
CHF million
Income
Realised gains and losses on investments
For own account and at own risk
For the account and at the risk
of life insurance policyholders and third parties
Income from services rendered
Share of profit (loss) of associates
Other operating income
Income
Intersegment income
Income from associates
Expense
Change in technical reserves (gross)
Reinsurers’ share of claims incurred
Acquisition costs
for insurance business
Investment management expenses
Interest expenses on insurance liabilities
Gains or losses on financial contracts
Other operating expenses
Expense
Borrowing costs
Profit / loss before taxes
Income taxes
Profit / loss for the period (segment result)
Operating and administrative expenses
– 447.9
– 457.0
52.1
– 116.4
169.6
376.0
66.6
– 309.1
194.1
42.6
107.8
– 2.8
108.7
– 34.0
– 2.5
– 257.2
82.1
– 54.2
– 80.6
– 0.2
– 19.1
116.4
0.4
96.8
– 40.2
0.4
743.4
35.4
– 16.9
– 84.2
– 0.3
101.6
– 257.4
– 276.0
– 10.3
574.2
– 78.3
495.9
– 10.3
530.6
– 78.7
451.9
34.5
89.5
5.6
– 0.6
28.7
59.7
– 0.5
– 182.5
211.2
– 384.5
– 164.1
– 21.6
– 0.2
– 154.4
– 74.1
0.0
149.0
– 28.4
120.6
24.5
– 143.0
5.9
– 0.2
28.2
71.9
– 0.2
– 191.0
217.8
– 344.0
– 169.4
– 18.2
– 0.1
73.5
– 62.8
0.0
149.7
– 28.6
121.1
8.6
8.2
50.3
14.5
8.2
– 912.2
– 718.3
252.9
– 190.6
– 163.2
– 29.8
– 13.1
– 3.2
– 86.1
0.0
42.5
– 20.6
21.9
4.8
6.8
23.9
17.3
6.8
288.3
63.5
– 210.0
– 160.0
– 25.1
– 11.1
– 1.7
– 66.0
0.0
31.0
– 7.5
23.6
Switzerland
Germany
Belgium
Luxembourg
Sub-total
Group business
Eliminated
Total
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
Premiums earned and policy fees (gross)
Reinsurance premiums ceded
Premiums earned and policy fees (net)
4,115.2
– 99.0
4,016.1
3,939.7
– 100.6
3,839.2
1,214.1
1,189.9
– 98.2
– 98.8
1,115.9
1,091.1
1,821.9
– 182.5
1,639.5
1,728.9
– 188.6
1,540.3
219.8
– 24.4
195.5
208.2
– 24.7
183.6
7,371.1
– 404.1
6,967.0
7,066.8
– 412.7
6,654.1
163.8
– 41.1
122.8
176.4
– 38.9
137.6
– 118.7
118.7
0.0
– 133.7
133.7
0.0
7,416.2
– 326.5
7,089.7
7,109.5
– 317.8
6,791.7
Investment income
743.9
755.7
177.4
169.5
229.6
221.4
18.1
19.3
1,169.0
1,165.9
17.2
17.9
– 26.7
– 26.6
1,159.5
1,157.2
5,210.4
4,744.2
1,906.0
1,053.6
2,026.8
1,677.2
1,269.9
– 1,174.2
10,413.1
6,300.7
9.4
–
10.3
–
49.5
5.3
59.3
7.1
5.6
2.2
403.8
145.4
993.1
– 1,435.7
1,501.2
– 2,004.2
21.3
–
36.3
21.8
–
34.6
143.2
4.9
224.0
148.9
7.1
183.5
– 33.3
33.0
168.6
–
29.5
337.7
– 297.8
–
– 21.4
– 53.7
161.9
– 2.2
34.8
274.9
– 306.9
– 2.2
–
–
–
–
370.5
124.0
1,534.2
– 2,057.9
– 181.3
– 180.8
–
– 40.3
– 248.3
248.3
–
–
– 40.0
– 247.5
247.5
–
130.6
4.9
213.2
130.0
4.9
178.2
10,502.5
6,328.1
–
5.3
–
4.9
Claims and benefits paid (gross)
– 3,591.2
– 4,249.4
– 900.4
– 1,107.6
– 1,033.2
– 124.6
– 107.5
– 5,735.7
– 6,290.5
– 152.4
– 156.3
– 4,625.9
– 4,203.3
– 1,863.5
– 1,022.5
– 1,877.8
– 1,527.5
– 1,257.3
1,188.0
– 9,624.5
– 5,565.3
– 70.6
36.2
– 19.6
– 70.7
– 2.0
– 0.2
– 971.2
– 34.6
43.6
10.1
– 21.5
– 67.5
– 1.7
– 1.3
– 1,228.6
582.4
– 648.9
– 845.9
– 134.0
– 13.7
1,368.6
– 1,147.9
– 34.8
– 452.2
884.3
326.7
– 592.4
– 853.8
– 129.2
– 12.8
1,541.9
– 439.6
27.1
38.7
– 8.3
– 9.3
– 7.7
– 0.2
– 47.1
– 244.6
– 403.8
32.6
33.4
– 5.6
– 11.8
– 8.6
–
41.3
– 230.0
– 305.1
Profit / loss before borrowing costs and taxes
584.6
540.9
42.5
31.1
149.0
149.7
12.5
13.8
788.7
735.4
– 66.1
– 30.1
– 0.1
12.5
4.3
16.8
0.0
13.7
0.9
14.7
– 10.5
778.2
– 10.4
725.1
– 122.9
655.3
– 113.9
611.2
– 14.2
– 80.3
8.3
– 72.0
– 12.1
– 42.2
– 24.5
– 66.8
74.7
16.8
96.3
12.1
– 91.5
– 108.4
1.5
– 1.5
17.4
0.3
26.8
203.8
248.3
–
–
–
–
–
1.4
– 1.4
14.9
1.2
26.7
204.8
247.5
–
–
–
–
–
– 5,813.4
– 6,350.5
– 1,184.7
529.6
– 655.6
– 856.7
– 124.4
– 13.6
– 1,168.3
– 493.0
929.0
251.7
– 596.6
– 867.0
– 122.9
– 11.6
1,609.9
– 464.8
– 9,780.0
– 5,622.8
722.5
705.3
– 24.7
697.9
– 22.4
682.9
– 114.6
583.3
– 138.4
544.5
Segment assets as at 31.12.
47,902.3
44,065.3
13,069.3
11,348.2
14,745.7
12,596.6
14,482.2
12,564.6
90,199.4
80,574.7
2,552.3
2,493.8
– 2,772.7
– 2,518.4
89,979.0
80,550.1
166
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
167
Financial Report
7.2
Segment reporting by operating segment
CHF million
Income
Premiums earned and policy fees (gross)
Reinsurance premiums ceded
Premiums earned and policy fees (net)
Investment income
Realised gains and losses on investments
For own account and at own risk
For the account and at the risk
of life insurance policyholders and third parties
Income from services rendered
Share of profit (loss) of associates
Other operating income
Income
Intersegment income
Income from associates
Expense
Claims and benefits paid (gross)
Change in technical reserves (gross)
Reinsurers’ share of claims incurred
Acquisition costs
Operating and administrative expenses for insurance business
Investment management expenses
Interest expenses on insurance liabilities
Gains or losses on financial contracts
Other operating expenses
Expense
Non-Life
Life
Asset Management & Banking
Other activities
Eliminated
Total
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
4,026.5
– 279.1
3,747.4
3,948.7
– 280.9
3,667.8
3,389.7
– 47.4
3,342.3
3,160.8
– 36.9
3,123.9
151.9
157.3
936.1
928.4
82.0
82.1
15.5
15.5
– 26.1
– 26.1
1,159.5
1,157.2
32.6
–
48.2
– 1.3
47.5
4,026.4
– 48.6
– 1.2
29.6
–
53.9
– 0.2
52.4
3,960.7
– 52.5
– 0.2
– 2,541.8
– 2,518.8
– 227.8
498.0
– 622.1
– 564.6
– 32.4
– 0.3
– 16.8
73.6
222.6
– 581.6
– 572.0
– 28.5
– 0.2
– 14.3
– 214.6
– 3,722.6
– 219.7
– 3,639.0
372.5
1,501.4
22.7
1.4
179.7
6,356.1
– 39.8
1.4
– 3,271.6
– 956.8
31.6
– 33.6
– 292.0
– 111.5
– 13.2
– 1,128.6
– 173.6
– 5,949.4
139.1
– 2,004.8
23.4
3.2
136.8
2,350.0
– 37.3
3.2
– 3,831.8
855.4
29.2
– 15.0
– 295.0
– 104.7
– 11.4
1,527.3
– 127.4
– 1,973.3
Profit / loss before borrowing costs and taxes
303.9
321.7
406.7
376.7
– 70.5
– 56.5
722.5
705.3
Borrowing costs
Profit / loss before taxes
Income taxes
Profit / loss for the period (segment result)
– 0.3
303.6
– 32.9
270.7
– 0.2
321.5
– 74.5
247.0
– 10.2
396.5
– 74.4
322.1
– 10.2
366.5
– 50.7
315.8
168
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
169
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 16.6
– 43.6
166.3
– 0.3
17.6
249.1
– 87.3
160.5
0.0
17.8
216.8
– 82.7
0.0
– 2.7
– 99.8
– 166.6
82.5
0.0
82.4
– 12.0
70.4
29.4
– 114.2
– 153.3
63.5
0.0
63.5
– 9.9
53.6
– 18.0
32.7
181.2
5.1
14.4
231.0
– 184.3
5.1
–
–
–
–
–
–
–
–
–
– 1.1
– 53.1
169.0
2.0
15.2
147.5
– 174.3
2.0
–
–
–
–
–
–
–
–
–
– 14.1
– 84.6
4.7
– 79.9
– 12.0
– 68.5
– 3.4
– 71.9
– 287.9
– 276.8
– 46.1
– 360.0
360.0
– 43.9
– 346.8
346.8
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
7,416.2
– 326.5
7,089.7
7,109.5
– 317.8
6,791.7
370.5
1,534.2
124.0
– 2,057.9
10,502.5
6,328.1
130.6
4.9
213.2
–
5.3
– 5,813.4
– 1,184.7
529.6
– 655.6
– 856.7
– 124.4
– 13.6
– 1,168.3
– 493.0
– 9,780.0
– 24.7
697.9
– 114.6
583.3
130.0
4.9
178.2
–
4.9
– 6,350.5
929.0
251.7
– 596.6
– 867.0
– 122.9
– 11.6
1,609.9
– 464.8
– 5,622.8
– 22.4
682.9
– 138.4
544.5
– 64.1
– 68.5
– 0.1
– 0.1
83.7
78.9
– 46.2
– 255.2
– 301.5
41.3
– 245.2
– 204.0
26.1
250.3
360.0
26.2
241.7
346.8
7.2
Segment reporting by operating segment
CHF million
Income
Premiums earned and policy fees (gross)
Reinsurance premiums ceded
Premiums earned and policy fees (net)
Investment income
Realised gains and losses on investments
For own account and at own risk
For the account and at the risk
of life insurance policyholders and third parties
Income from services rendered
Share of profit (loss) of associates
Other operating income
Income
Intersegment income
Income from associates
Expense
Claims and benefits paid (gross)
Change in technical reserves (gross)
Reinsurers’ share of claims incurred
Acquisition costs
Investment management expenses
Interest expenses on insurance liabilities
Gains or losses on financial contracts
Other operating expenses
Expense
Borrowing costs
Profit / loss before taxes
Income taxes
Profit / loss for the period (segment result)
Operating and administrative expenses for insurance business
4,026.5
– 279.1
3,747.4
32.6
–
48.2
– 1.3
47.5
4,026.4
– 48.6
– 1.2
– 227.8
498.0
– 622.1
– 564.6
– 32.4
– 0.3
– 16.8
– 0.3
303.6
– 32.9
270.7
3,948.7
– 280.9
3,667.8
29.6
–
53.9
– 0.2
52.4
3,960.7
– 52.5
– 0.2
73.6
222.6
– 581.6
– 572.0
– 28.5
– 0.2
– 14.3
– 0.2
321.5
– 74.5
247.0
– 2,541.8
– 2,518.8
– 214.6
– 3,722.6
– 219.7
– 3,639.0
3,389.7
– 47.4
3,342.3
372.5
1,501.4
22.7
1.4
179.7
6,356.1
– 39.8
1.4
– 3,271.6
– 956.8
31.6
– 33.6
– 292.0
– 111.5
– 13.2
– 1,128.6
– 173.6
– 5,949.4
– 10.2
396.5
– 74.4
322.1
3,160.8
– 36.9
3,123.9
139.1
– 2,004.8
23.4
3.2
136.8
2,350.0
– 37.3
3.2
– 3,831.8
855.4
29.2
– 15.0
– 295.0
– 104.7
– 11.4
1,527.3
– 127.4
– 1,973.3
– 10.2
366.5
– 50.7
315.8
Profit / loss before borrowing costs and taxes
303.9
321.7
406.7
376.7
Financial Report
Non-Life
Life
Asset Management & Banking
Other activities
Eliminated
Total
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
151.9
157.3
936.1
928.4
82.0
82.1
15.5
15.5
– 26.1
– 26.1
1,159.5
1,157.2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
7,416.2
– 326.5
7,089.7
7,109.5
– 317.8
6,791.7
– 16.6
–
166.3
– 0.3
17.6
249.1
– 87.3
–
–
–
–
–
–
– 64.1
–
– 2.7
– 99.8
– 166.6
82.5
0.0
82.4
– 12.0
70.4
– 43.6
–
160.5
0.0
17.8
216.8
– 82.7
0.0
–
–
–
–
–
– 68.5
–
29.4
– 114.2
– 153.3
63.5
0.0
63.5
– 9.9
53.6
– 18.0
32.7
181.2
5.1
14.4
231.0
– 184.3
5.1
–
–
–
–
–
– 0.1
–
– 46.2
– 255.2
– 301.5
– 1.1
– 53.1
169.0
2.0
15.2
147.5
– 174.3
2.0
–
–
–
–
–
– 0.1
–
41.3
– 245.2
– 204.0
– 70.5
– 56.5
– 14.1
– 84.6
4.7
– 79.9
– 12.0
– 68.5
– 3.4
– 71.9
–
–
–
–
– 287.9
– 276.8
–
– 46.1
– 360.0
360.0
–
– 43.9
– 346.8
346.8
–
–
–
–
–
–
83.7
–
26.1
250.3
360.0
–
–
–
–
–
–
–
–
–
–
–
78.9
–
26.2
241.7
346.8
–
–
–
–
–
370.5
1,534.2
130.6
4.9
213.2
124.0
– 2,057.9
130.0
4.9
178.2
10,502.5
6,328.1
–
5.3
–
4.9
– 5,813.4
– 1,184.7
529.6
– 655.6
– 856.7
– 124.4
– 13.6
– 1,168.3
– 493.0
– 9,780.0
– 6,350.5
929.0
251.7
– 596.6
– 867.0
– 122.9
– 11.6
1,609.9
– 464.8
– 5,622.8
722.5
705.3
– 24.7
697.9
– 114.6
583.3
– 22.4
682.9
– 138.4
544.5
168
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
169
Financial Report
Notes to the consolidated balance sheet
8. Property, plant and equipment
2021
CHF million
Land
Buildings
Operating
equipment
Machinery,
furniture
and vehicles
Hardware
Right-of-use
assets
Balance as at 1 January
65.4
270.7
Additions
Additions arising from change
in the scope of consolidation
Disposals
Disposals arising from change
in the scope of consolidation
Reclassification
Reclassification to non-current assets
classified as held for sale
Depreciation and impairment
Depreciation
Impairment losses recognised in
profit or loss
Reversal of impairment
losses recognised
in profit or loss
Exchange differences
Balance as at 31 December
Acquisition costs
Accumulated depreciation and
impairment
–
–
– 0.3
–
– 2.1
–
–
–
–
– 0.5
62.6
63.6
– 0.9
3.7
–
– 6.5
–
0.0
–
48.0
3.0
–
– 0.2
–
– 0.1
–
20.9
3.3
–
– 0.6
–
–
–
22.7
3.9
–
38.5
2.0
–
0.0
– 0.9
–
–
–
–
–
–
Total
466.2
16.0
–
– 8.5
–
– 2.1
–
– 9.2
– 8.1
– 4.9
– 11.0
– 12.8
– 46.0
–
–
– 4.5
254.2
530.9
– 276.7
–
–
– 0.2
42.4
114.0
– 71.6
–
–
– 0.3
18.5
66.4
–
–
– 0.2
15.5
80.5
–
–
– 0.6
26.3
70.9
–
–
– 6.1
419.5
926.4
– 48.0
– 65.1
– 44.7
– 506.9
Balance as at 31 December
62.6
254.2
42.4
18.5
15.5
26.3
419.5
Depreciation and impairment form part of other operating expenses.
In 2021, the reclassifications made from and to owner-occupied properties (land, buildings and operating equipment) were
attributable to the changes of use of a property and of Baloise Park in Basel.
170
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
171
Financial Report
2022
CHF million
Balance as at 1 January
Additions
Additions arising from change
in the scope of consolidation
Disposals
Disposals arising from change
in the scope of consolidation
Reclassification
Reclassification to non-current assets
classified as held for sale
Depreciation and impairment
Depreciation
Impairment losses recognised in
profit or loss
Reversal of impairment
losses recognised
in profit or loss
Exchange differences
Balance as at 31 December
Acquisition costs
Accumulated depreciation and
impairment
Land
Buildings
Operating
equipment
Machinery,
furniture
and vehicles
Hardware
Right-of-use
assets
254.2
1.6
–
– 2.5
–
24.1
–
– 8.5
– 5.5
62.6
0.1
–
– 0.5
–
–
–
–
–
–
–
–
– 0.5
61.7
62.6
– 0.9
– 5.0
258.5
541.7
– 283.2
– 0.2
35.9
114.8
– 78.8
42.4
3.0
–
18.5
5.3
–
15.5
4.6
–
26.3
12.6
–
– 0.6
– 0.3
0.0
– 0.8
–
–
–
– 8.0
– 0.8
–
–
–
–
–
–
–
–
–
– 4.5
– 8.8
– 11.7
–
–
– 0.4
18.6
67.4
–
–
– 0.2
11.0
79.2
–
–
– 0.6
25.7
81.3
Total
419.5
27.3
–
– 4.6
–
24.1
–
– 41.5
– 6.3
–
– 6.9
411.5
947.1
– 48.8
– 68.2
– 55.6
– 535.5
Balance as at 31 December
61.7
258.5
35.9
18.6
11.0
25.7
411.5
Depreciation and impairment form part of other operating expenses.
170
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
171
Financial Report
9. Intangible assets
2021
CHF million
Balance as at 1 January
Additions arising from change
in the scope of consolidation
Additions
Capitalisation of acquisition costs
Disposals
Disposals arising from change
in the scope of consolidation
Reclassification
Reclassification to non-current assets
classified as held for sale
Amortisation and impairment
Amortisation
Write-ups
Impairment losses recognised
in profit or loss
Reversal of impairment losses
recognised in profit or loss
Changes due to impending losses
Change due to unrealised gains
and losses on financial instruments
(shadow accounting)
Exchange differences
Balance as at 31 December
Acquisition costs
Accumulated amortisation
and impairment
Balance as at 31 December 1
Segment as at 31 December 2021
Switzerland
Germany
Belgium
Luxembourg
Group business
Total for geographic regions
Present
value
of gains on
insurance
contracts
acquired
Goodwill
Deferred
acquisition
cost
(life)
Deferred
acquisition
cost
(non-life)
Software
and other
intangible
assets
103.1
3.7
689.3
167.6
–
–
–
–
–
–
–
–
–
–
–
–
–
– 3.2
99.9
265.0
– 165.1
–
–
–
–
–
–
–
– 0.8
–
–
–
–
–
– 0.1
2.8
–
–
–
–
–
–
130.9
358.9
–
–
–
–
– 33.5
1.7
–
–
–
– 6.5
– 27.9
754.0
–
–
–
–
–
–
– 358.8
–
–
–
– 4.6
–
– 5.3
157.8
–
–
191.7
–
35.4
–
– 0.8
–
–
–
– 52.1
–
– 3.1
–
–
–
– 5.2
165.9
695.5
– 529.6
Total
1,155.4
–
35.4
489.8
– 0.8
–
–
–
– 445.2
1.7
– 3.1
–
– 4.6
– 6.5
– 41.8
1,180.4
–
–
99.9
2.8
754.0
157.8
165.9
1,180.4
25.6
15.1
37.2
22.0
0.0
99.9
–
2.8
–
–
–
101.4
649.0
1.2
2.3
–
33.7
33.3
86.3
4.6
–
37.6
0.8
74.9
8.0
44.6
198.4
700.9
199.6
36.9
44.6
2.8
754.0
157.8
165.9
1,180.4
1 With the possible exception of goodwill, the Baloise Group has no intangible assets with indefinite useful lives.
172
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173
Financial Report
Present
value
of gains on
insurance
contracts
acquired
Goodwill
Deferred
acquisition
cost
(life)
Deferred
acquisition
cost
(non-life)
Software
and other
intangible
assets
Total
99.9
2.8
754.0
157.8
165.9
1,180.4
–
–
–
–
0.2
–
–
–
–
–
–
–
–
– 3.8
96.3
241.8
– 145.5
–
–
–
–
–
–
–
– 0.8
–
–
–
–
–
– 0.1
1.9
–
–
–
–
–
–
– 14.9
2.0
–
–
–
197.0
– 34.1
1,007.7
–
–
–
–
–
–
103.8
333.0
–
31.3
–
– 0.8
–
–
–
–
31.3
436.8
– 0.8
0.2
–
–
–
–
–
–
– 332.4
– 49.7
– 397.7
–
–
–
6.5
–
– 6.2
158.8
–
–
–
–
–
–
–
2.0
–
–
6.5
197.0
– 5.6
141.1
696.3
– 555.2
– 49.8
1,405.9
–
–
96.3
1.9
1,007.7
158.8
141.1
1,405.9
25.6
14.3
35.4
20.9
–
96.3
–
1.9
–
–
–
241.9
649.7
104.0
12.1
–
31.8
32.7
87.2
4.6
2.5
1.9
1,007.7
158.8
34.6
1.0
57.6
4.9
43.0
141.1
333.9
699.7
284.2
42.6
45.5
1,405.9
2022
CHF million
Balance as at 1 January
Additions arising from change
in the scope of consolidation
Additions
Capitalisation of acquisition costs
Disposals
Disposals arising from change
in the scope of consolidation
Reclassification
Reclassification to non-current assets
classified as held for sale
Amortisation and impairment
Amortisation
Write-ups
Impairment losses recognised
in profit or loss
Reversal of impairment losses
recognised in profit or loss
Changes due to impending losses
Change due to unrealised gains
and losses on financial instruments
(shadow accounting)
Exchange differences
Balance as at 31 December
Acquisition costs
Accumulated amortisation
and impairment
Balance as at 31 December 1
Segment as at 31 December 2022
Switzerland
Germany
Belgium
Luxembourg
Group business
Total for geographic regions
172
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173
1 With the possible exception of goodwill, the Baloise Group has no intangible assets with indefinite useful lives.
Financial Report
Assumptions used to test the impairment of significant goodwill items
9.1
Assumptions used to forecast future business developments and trends have been reviewed by the local management teams
and take account of macroeconomic conditions. The input factors are described in note 3.10.3 (Impairment losses on non-
financial assets)
Baloise Versicherung AG
Baloise Financial Services GmbH
Baloise Vie Luxembourg S. A.
Baloise Assurances Luxembourg S. A.
Baloise Belgium NV
Goodwill as at 31.12.
CHF million
Discount rate
per cent
Growth rate
per cent
2021
2022
2021
2022
2021
2022
25.6
13.1
6.5
14.9
36.1
25.6
12.5
7.7
12.8
34.3
7.8
6.8
7.0
7.0
7.0
7.1
7.1
7.7
7.7
7.6
1.5
1.0
2.5
2.5
2.6
1.0
1.0
2.5
2.5
2.5
The impairment test in 2022 did not reveal any need to recognise impairment losses.
The management is of the opinion that a possible change in the assumptions based on the exercise of appropriate
discretion would not have led, either in 2022 or in 2021, to the carrying amount of an entity being significantly higher than
its recoverable value.
174
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175
10. Investment property
CHF million
Balance as at 1 January
Additions
Additions arising from change in scope of consolidation
Disposals
Disposals arising from change in scope of consolidation
Reclassification
Reclassification to non-current assets classified as held for sale
Change in fair value
Exchange differences
Balance as at 31 December
Operating expenses arising from investment property that generates rental income
Operating expenses arising from investment property that does not generate rental income
Financial Report
2021
2022
8,410.3
8,464.5
101.6
–
– 238.5
–
2.1
–
251.1
– 62.1
142.0
–
– 92.1
–
– 24.1
– 168.4
242.7
– 69.6
8,464.5
8,495.1
78.9
–
82.3
–
The additions to investment properties recognised in 2022 predominantly related to the purchase of properties in Switzer-
land (CHF 92.0 million) and Belgium (CHF 41.0 million). The disposals largely resulted from properties sold in Germany (CHF
79.2 million). The reclassification of investment property from level 3 in 2022 was due to the change of use of a property in
Switzerland.
In 2021, the reclassifications made to and from investment properties were attributable to the changes of use of a
property and of Baloise Park in Basel.
11. Financial assets
CHF million
Financial assets of an equity nature
Available for sale
Recognised at fair value through profit or loss
Financial assets of a debt nature
Held to maturity
Available for sale
Recognised at fair value through profit or loss
Financial assets for own account and at own risk
Financial assets for the account and at the risk of life insurance policyholders and third parties
Recognised at fair value through profit or loss 1
Financial assets as reported on the balance sheet
31.12.2021
31.12.2022
4,681.7
4,093.1
501.6
526.4
6,375.5
5,809.6
28,502.8
23,421.3
7.9
6.3
40,069.5
33,856.6
16,064.0
13,803.5
56,133.5
47,660.1
1 Of which financial assets totalling CHF 86.3 million (2021: CHF 114.8 million) involved insurance policies that had not been fully reviewed by the balance sheet date.
174
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175
Financial Report
Financial assets for own account and at own risk
as at 31.12.
CHF million
Financial assets of an equity nature
Publicly listed
Not publicly listed
Total
Financial assets of a debt nature
Publicly listed, fixed-interest rate
Publicly listed, variable interest rate
Not publicly listed, fixed-interest rate
Not publicly listed, variable interest rate
Total
Held to maturity
Available for sale
Total
Recognised at
fair value
through profit or
loss
Trading portfolio
Designated
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
–
–
–
–
–
–
6,375.5
5,809.6
–
–
–
–
–
–
6,375.5
5,809.6
28,502.8
23,421.3
2,505.6
2,176.1
4,681.7
1,911.8
2,181.3
4,093.1
25,350.4
255.5
2,896.9
–
20,465.3
232.2
2,723.8
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
424.4
77.2
501.6
7.9
–
–
–
7.9
409.2
117.2
526.4
2,930.0
2,253.3
5,183.3
2,320.9
2,298.5
4,619.4
6.3
–
–
–
6.3
31,726.0
26,274.9
263.4
2,896.9
–
238.4
2,723.8
–
34,886.3
29,237.1
No impairment losses had to be recognised on held-to-maturity financial instruments with characteristics of liabilities, during
either the reporting year or the prior year.
176
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Baloise Group Annual Report 2022
177
Financial Report
Financial assets for own account and at own risk
Financial assets of an equity nature
as at 31.12.
CHF million
Publicly listed
Not publicly listed
Total
Financial assets of a debt nature
Publicly listed, fixed-interest rate
Publicly listed, variable interest rate
Not publicly listed, fixed-interest rate
Not publicly listed, variable interest rate
Total
Held to maturity
Available for sale
Recognised at
fair value
through profit or
loss
Total
Trading portfolio
Designated
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
–
–
–
–
–
–
–
–
–
–
–
–
6,375.5
5,809.6
2,505.6
2,176.1
4,681.7
1,911.8
2,181.3
4,093.1
25,350.4
255.5
2,896.9
–
20,465.3
232.2
2,723.8
–
6,375.5
5,809.6
28,502.8
23,421.3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
424.4
77.2
501.6
–
7.9
–
–
7.9
409.2
117.2
526.4
2,930.0
2,253.3
5,183.3
2,320.9
2,298.5
4,619.4
–
6.3
–
–
6.3
31,726.0
26,274.9
263.4
2,896.9
–
238.4
2,723.8
–
34,886.3
29,237.1
176
Baloise Group Annual Report 2022
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177
Financial Report
Financial assets for own account and at own risk
as at 31.12.
CHF million
Equities
Equity funds
Mixed funds
Bond funds
Real estate funds
Private equity
Hedge funds
Financial assets of an equity nature
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Held to maturity
Available for sale
Total
Recognised at
fair value
through profit or
loss
Trading portfolio
Designated
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,750.3
–
615.3
–
10.0
5,290.0
–
514.6
–
5.0
Financial assets of a debt nature
6,375.5
5,809.6
28,502.8
23,421.3
6.3
34,886.3
29,237.1
Total
6,375.5
5,809.6
33,184.5
27,514.3
509.5
532.6
40,069.5
33,856.6
Secured financial assets of a debt nature
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Total
10.4
–
588.7
–
–
–
–
493.1
–
–
599.1
493.1
6,532.8
5,650.9
7,131.9
6,144.0
The private debt investments are investments in a Dutch mortgage investment fund. This is a fund for joint account (FGR)
under Dutch law that is managed by an AIFM-authorised, regulated manager (DMF Investment Management).
Secured financial instruments with characteristics of liabilities are fixed-income securities for which a mortgage or a
government bond has been securitised as collateral.
2,272.9
1,568.0
2,272.9
1,568.0
13,614.3
10,752.1
19,364.5
16,042.1
501.6
526.4
105.6
214.6
141.6
710.1
1,236.7
0.2
4,681.7
7,479.8
6,170.6
1,238.1
–
89.8
1,605.4
3,599.5
1,238.1
–
76.5
176.0
291.3
740.6
1,240.7
0.0
4,093.1
6,279.7
5,166.4
1,223.1
–
44.4
1,452.6
2,930.8
1,223.1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
47.0
441.7
9.8
3.1
7.9
7.9
–
–
–
–
–
–
–
–
–
–
–
–
–
44.6
470.3
9.9
1.6
6.3
–
–
–
–
–
–
–
–
–
–
–
–
152.6
656.3
151.4
713.1
1,236.7
0.2
5,183.3
7,479.8
6,793.8
1,238.1
10.0
100.2
1,605.4
4,188.2
1,238.1
–
121.1
646.3
301.2
742.2
1,240.7
0.0
4,619.4
6,279.7
5,687.3
1,223.1
5.0
44.4
1,452.6
3,423.9
1,223.1
–
178
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
179
Financial Report
Held to maturity
Available for sale
Recognised at
fair value
through profit or
loss
Total
Trading portfolio
Designated
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
–
–
–
–
–
–
–
–
–
–
–
–
–
615.3
514.6
10.0
6,375.5
5.0
5,809.6
10.4
588.7
493.1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,272.9
1,568.0
105.6
214.6
141.6
710.1
1,236.7
0.2
4,681.7
76.5
176.0
291.3
740.6
1,240.7
0.0
4,093.1
5,750.3
5,290.0
13,614.3
10,752.1
7,479.8
6,170.6
1,238.1
–
6,279.7
5,166.4
1,223.1
–
28,502.8
23,421.3
6,375.5
5,809.6
33,184.5
27,514.3
599.1
493.1
6,532.8
5,650.9
89.8
1,605.4
3,599.5
1,238.1
–
44.4
1,452.6
2,930.8
1,223.1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
47.0
441.7
9.8
3.1
–
–
–
44.6
470.3
9.9
1.6
–
–
501.6
526.4
2,272.9
1,568.0
152.6
656.3
151.4
713.1
1,236.7
0.2
5,183.3
121.1
646.3
301.2
742.2
1,240.7
0.0
4,619.4
–
–
7.9
–
–
7.9
–
–
6.3
–
–
6.3
19,364.5
16,042.1
7,479.8
6,793.8
1,238.1
10.0
6,279.7
5,687.3
1,223.1
5.0
34,886.3
29,237.1
509.5
532.6
40,069.5
33,856.6
–
–
–
–
–
–
–
–
–
–
–
–
100.2
1,605.4
4,188.2
1,238.1
–
44.4
1,452.6
3,423.9
1,223.1
–
7,131.9
6,144.0
The private debt investments are investments in a Dutch mortgage investment fund. This is a fund for joint account (FGR)
under Dutch law that is managed by an AIFM-authorised, regulated manager (DMF Investment Management).
Secured financial instruments with characteristics of liabilities are fixed-income securities for which a mortgage or a
government bond has been securitised as collateral.
Fair value of financial assets classified as held to maturity
as at 31.12.
CHF million
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Total
Carrying amount
Fair value
2021
2022
2021
2022
5,750.3
5,290.0
6,957.6
5,195.7
–
615.3
–
10.0
–
514.6
–
5.0
–
667.9
–
10.3
–
487.3
–
5.0
6,375.5
5,809.6
7,635.8
5,688.0
Baloise Group Annual Report 2022
179
Financial assets for own account and at own risk
as at 31.12.
CHF million
Equities
Equity funds
Mixed funds
Bond funds
Real estate funds
Private equity
Hedge funds
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Total
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Total
Financial assets of an equity nature
Financial assets of a debt nature
Secured financial assets of a debt nature
178
Baloise Group Annual Report 2022
Financial Report
12. Mortgages and loans
as at 31.12.
CHF million
Mortgages and loans
carried at cost
Mortgages
Policy loans
Promissory notes and
registered bonds
Time deposits
Employee loans
Reverse repurchase
agreements
Other loans
Sub-total
Mortgages and loans
recognised at fair value
through profit or loss
Mortgages
Policy loans
Sub-total
Gross amount
Impairment
Carrying amount
Fair value
2021
2022
2021
2022
2021
2022
2021
2022
10,311.5
10,453.6
– 23.6
– 24.6
10,287.9
10,429.0
10,629.5
10,043.9
153.6
3,688.2
156.0
3,076.7
566.1
28.8
185.0
211.3
33.0
465.0
–
–
–
–
–
–
–
–
–
–
153.6
156.0
156.9
128.2
3,688.2
3,076.7
3,934.9
2,575.4
566.1
28.8
185.0
211.3
33.0
465.0
566.1
29.2
185.0
211.3
32.8
465.0
209.0
305.9
15,142.2
14,701.5
– 1.2
– 24.7
– 0.5
– 25.1
207.8
305.4
212.8
302.1
15,117.5
14,676.4
15,714.3
13,758.7
981.4
0.1
981.5
826.3
0.1
826.4
–
–
–
–
–
–
981.4
0.1
981.5
826.3
0.1
826.4
981.4
0.1
981.5
826.3
0.1
826.4
Mortgages and loans
16,123.7
15,527.9
– 24.7
– 25.1
16,098.9
15,502.8
16,695.8
14,585.0
180
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
181
Financial Report
2021
2022
– 19.7
0.1
1.0
– 6.1
–
–
–
0.0
– 24.7
– 24.7
–
5.2
– 5.6
–
–
–
0.0
– 25.1
Fair value assets
Fair value liabilities
2021
2022
2021
2022
583.3
318.8
512.2
300.7
89.8
–
136.1
–
Impairment of mortgages and loans
CHF million
Balance as at 1 January
Usage not recognised in profit or loss
Unused provisions reversed through profit or loss
Increases and additional provisions recognised in profit or loss
Disposal arising from change in scope of consolidation
Reclassification
Reclassification to non-current assets classified as held for sale
Currency translation
Balance as at 31 December
13. Derivative financial instruments
as at 31.12.
CHF million
Derivative financial instruments for own account and at own risk
Derivative financial instruments for the account and at the risk
of life insurance policyholders and third parties
Derivative financial instruments as reported on the balance sheet
902.1
812.9
89.8
136.1
180
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
181
Financial Report
as at 31.12.
CHF million
Interest rate instruments
Forward contracts
Swaps
OTC options
Other
Traded options
Traded futures
Sub-total
Equity instruments
Forward contracts
OTC options
Traded options
Traded futures
Sub-total
Foreign currency instruments
Forward contracts
Swaps
OTC options
Traded options
Traded futures
Sub-total
Total
Of which: designated as fair value hedges
Of which: designated as cash flow hedges
Of which: designated as hedges
of a net investment in a foreign operation
Contract value
Fair value assets
Fair value liabilities
2021
2022
2021
2022
2021
2022
–
–
1,244.2
1,155.8
–
3.9
–
–
–
4.3
–
–
–
16.2
–
–
75.4
–
390.3
327.7
–
–
–
–
–
17.3
–
47.3
–
–
–
47.9
–
37.8
–
–
1,248.1
1,160.1
406.4
403.1
64.6
85.7
–
–
1,942.2
1,157.1
161.6
–
33.4
–
2,103.8
1,190.5
–
25.3
10.7
–
36.0
–
6.9
2.4
–
9.4
–
–
14.4
–
14.4
–
–
0.9
–
0.9
7,683.4
8,247.2
140.9
99.7
10.9
49.5
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
7,683.4
8,247.2
140.9
99.7
10.9
49.5
11,035.3
10,597.8
583.3
512.2
–
–
–
–
–
–
–
–
1,637.3
1,951.8
17.0
67.6
89.8
–
–
3.0
136.1
–
–
1.1
The contract value or notional amount is used for derivative financial instruments whose principal may be swapped at
maturity (options, futures and currency swaps) and for instruments whose principal is only nominally lent or borrowed
(interest rate swaps). The contract value or notional amount is disclosed in order to express the aggregate amount of
derivative transactions in which the Baloise Group is involved.
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Financial Report
Gross amount
Impairment
Carrying amount
Fair value
2021
2022
2021
2022
2021
2022
2021
2022
336.7
325.3
273.0
609.7
257.4
582.7
– 1.8
– 1.7
– 3.5
– 1.3
334.9
324.0
334.9
324.0
– 2.7
– 4.0
271.3
606.2
254.7
578.7
273.0
607.9
257.0
581.0
14. Receivables
as at 31.12.
CHF million
Receivables carried
at cost
Receivables from
investments
Other receivables
Receivables
Impairment of receivables
CHF million
Balance as at 1 January
Usage not recognised in profit or loss
Unused provisions reversed through profit or loss
Increases and additional provisions recognised in profit or loss
Disposal arising from change in scope of consolidation
Reclassification to non-current assets classified as held for sale
Currency translation
Balance as at 31 December
15. Reinsurance assets
CHF million
Reinsurers' share of technical reserves as at 1 January
Change in unearned premium reserves
Benefits paid
Interest on and change in liability
Additions / disposals arising from change in scope of consolidation
Impairment
Reclassification to non-current assets classified as held for sale
Exchange differences
Reinsurers' share of technical reserves as at 31 December
2021
2022
– 2.8
– 0.3
1.4
– 1.9
–
–
0.0
– 3.5
– 3.5
– 0.2
1.5
– 1.8
–
–
0.0
– 4.0
2021
2022
677.7
– 7.3
– 331.9
515.4
–
–
–
– 30.0
823.9
823.9
3.4
– 373.9
241.9
–
–
– 11.4
– 33.2
650.6
182
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183
Financial Report
16. Receivables from reinsurers
CHF million
Reinsurance deposits as at 1 January
Additions
Disposals
Additions / disposals arising from change in scope of consolidation
Reclassification to non-current assets and disposal groups classified as held for sale
Exchange differences
Reinsurance deposits as at 31 December
Other reinsurance receivables as at 1 January
Additions
Disposals
Additions / disposals arising from change in scope of consolidation
Reclassification to non-current assets classified as held for sale
Exchange differences
Other reinsurance receivables as at 31 December
Impairment of receivables from reinsurers as at 1 January
Usage not recognised in profit or loss
Unused provisions reversed through profit or loss
Increases and additional provisions recognised in profit or loss
Disposal arising from change in scope of consolidation
Reclassification to non-current assets classified as held for sale
Currency translation
Impairment of receivables from reinsurers as at 31 December
2021
2022
13.7
1.2
– 0.2
–
–
– 0.6
14.1
14.1
0.6
– 0.1
–
–
– 0.7
13.9
105.2
355.8
157.8
421.1
– 302.0
– 491.1
–
–
– 1.1
157.8
– 1.1
– 0.1
0.0
–
–
–
0.0
– 1.1
–
–
– 1.7
86.1
– 1.1
–
–
– 0.5
–
–
–
– 1.6
Receivables from reinsurers as at 31 December
170.7
98.4
184
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Financial Report
17. Employee benefits
17.1
Receivables and liabilities arising from employee benefits
as at 31.12.
CHF million
Type of benefit
Short-term employee benefits
Post-employment benefits – defined contribution plans
Post-employment benefits – defined benefit plans
Other long-term employee benefits
Termination benefits
Total
Receivables from
employee benefits
Liabilities arising from
employee benefits
2021
2022
2021
2022
5.9
–
–
–
–
5.9
5.2
–
2.2
–
–
7.4
76.9
–
815.6
27.7
5.8
926.1
77.8
–
533.3
23.8
5.2
640.0
Post-employment benefits – defined benefit plans
17.2
The Baloise Group provides a range of pension benefits, which vary from country to country in line with local circumstances.
The funded – or partially funded – liabilities relate to the occupational pension provision offered in Switzerland and partially
in Belgium.
Switzerland has the largest plans. The employer and employee each contribute to these plans; the contributions are
used to cover benefits paid in the event of death or invalidity as well as being saved up to fund a pension. The employee
has the option of receiving all or part of the accumulated capital as a one-off payment. Some of the benefits granted
in this way are governed by binding statutory regulations that are applicable to all Swiss employers and, in particular,
stipulate certain minimum benefits. The pensions are the responsibility of separate legal entities (foundations) that are
run by a committee consisting of employer and employee representatives.
In other countries, the benefits are either granted by the employer directly or covered by an insurance policy that, as a
rule, is funded by the employer. Directly granted benefits are particularly relevant in Germany, where benefits are agreed
between the employer and the employee representatives.
The pension benefits on offer also comprise special benefits that the Baloise Group grants to retirees (especially those
in Switzerland). These benefits include subsidised mortgages. These benefits and concessions are classified as defined
benefit pension obligations under IAS 19.
Baloise Group Annual Report 2022
185
Financial Report
17.2.1 Fair value of plan assets
CHF million
Balance as at 1 January
Interest rate effect
Return on plan assets
Employees’ savings and purchases
Exchange differences
Employer contribution
Employee contribution
Benefits paid
Cash flow between Baloise Group and plan assets
(excl. benefits paid to employees and employer contribution)
Additions / disposals arising from change in scope of consolidation
Reclassification to non-current assets classified as held for sale
Gains and losses on plan settlements
Balance as at 31 December
17.2.2 Partially funded liabilities under defined benefit plans
CHF million
Balance as at 1 January
Current service cost
Interest rate effect
Employee contribution
Employees' savings and purchases
Actuarial gains / losses on defined benefit obligations arising from
changes in financial assumptions
changes in demographic assumptions
experience adjustments
Exchange differences
Unrecognised past service cost
Benefits paid
Additions / disposals arising from change in scope of consolidation
Reclassification to non-current assets classified as held for sale
Gains and losses on plan settlements
Balance as at 31 December
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Baloise Group Annual Report 2022
2021
2022
2,764.2
2,899.1
7.0
145.5
42.1
– 2.4
64.5
42.0
10.9
– 120.8
39.5
– 2.5
64.1
43.2
– 163.7
– 153.2
–
–
–
–
–
–
–
–
2,899.1
2,780.3
2021
2022
– 3,080.4
– 2,931.1
– 56.8
– 7.4
– 42.0
– 40.4
40.0
110.8
– 21.2
2.8
–
163.7
–
–
–
– 52.8
– 10.2
– 43.2
– 39.5
678.9
– 6.2
– 33.1
3.0
– 5.6
153.2
–
–
–
– 2,931.1
– 2,286.7
17.2.3 Unfunded liabilities under defined benefit plans
CHF million
Balance as at 1 January
Current service cost
Interest rate effect
Employee contribution
Employees' savings and purchases
Actuarial gains / losses on defined benefit obligations arising from
changes in financial assumptions
changes in demographic assumptions
experience adjustments
Exchange differences
Unrecognised past service cost
Benefits paid
Additions / disposals arising from change in scope of consolidation
Reclassification to non-current assets classified as held for sale
Gains and losses on plan settlements
Balance as at 31 December
17.2.4 Asset ceiling
CHF million
Balance as at 1 January
Interest rate effect
Effect of the asset ceiling (excluding interest rate effect)
Exchange differences
Balance as at 31 December
17.2.5 Net actuarial liabilities under defined benefit plans
CHF million
Fair value of plan assets
Present value of (partially) funded liabilities
Present value of unfunded liabilities
Effect of the asset ceiling
Net actuarial liabilities under defined benefit plans
Financial Report
2021
2022
– 905.5
– 16.7
– 3.0
– 0.9
– 0.4
72.2
0.9
2.8
32.2
– 0.6
35.3
–
–
–
– 783.6
– 14.0
– 6.6
– 0.9
–
227.1
– 0.5
– 25.7
32.5
–
45.7
–
–
–
– 783.6
– 526.2
2021
2022
–
–
–
–
–
–
– 0.9
– 497.7
–
– 498.6
31.12.2021
31.12.2022
2,899.1
2,780.3
– 2,931.1
– 2,286.7
– 783.6
–
– 815.6
– 526.2
– 498.6
– 531.2
Baloise Group Annual Report 2022
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Financial Report
17.2.6 Asset allocation
CHF million
Cash and cash equivalents
Real estate
Equities and investment funds
publicly listed
not publicly listed
Fixed-interest assets
publicly listed
not publicly listed
Mortgages and loans
Derivatives
publicly listed
not publicly listed
Other
Fair value of plan assets
Of which: Bâloise Holding Ltd shares (fair value)
Of which: real estate leased to the Baloise Group
The line item ’Equities and investment funds’ predominantly consists of fixed-income funds.
17.2.7 Expenses for defined benefit plans recognised in the income statement
CHF million
Current service cost
Net interest cost
Unrecognised past service cost
Gains and losses on plan settlements
Expected return on reimbursement rights
Total expenses for defined benefit plans recognised in the income statement
31.12.2021
31.12.2022
41.4
626.5
52.7
645.4
1,562.3
1,562.2
103.5
33.1
122.2
4.6
389.5
–
– 0.2
49.4
76.9
–
376.1
–
4.5
29.6
2,899.1
2,780.3
29.8
–
28.5
–
2021
2022
– 73.5
– 3.5
– 0.6
–
–
– 77.6
– 66.8
– 6.8
– 5.6
–
–
– 79.3
188
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189
17.2.8 Actuarial assumptions
Per cent
Discount rate
Expected wage and salary increases
Expected increase in pension benefits
Weighted annuity option take-up rate
Years
Average life expectancy of a 65-year-old woman
Average life expectancy of a 65-year-old man
Financial Report
2021
2022
0.5
1.3
0.3
70.3
24.3
22.1
2.7
1.4
0.3
61.5
24.4
22.3
When calculating liabilities and expenses for defined benefit plans, the Baloise Group is required to make actuarial and
other assumptions that are determined on a company-by-company and country-by-country basis. The assumptions
shown above are weighted averages.
17.2.9 Sensitivity analysis for liabilities under defined benefit plans
CHF million
Total defined benefit obligation
Discount rate plus 0.5 % age points
Discount rate minus 0.5 % age points
Expected wage and salary increases plus 0.5 % age points
Expected wage and salary increases minus 0.5 % age points
Expected pension benefits increases plus 0.5 % age points
Expected pension benefits increases minus 0.5 % age points
Mortality probabilities for 65-year-olds plus 10.0 % age points
Mortality probabilities for 65-year-olds minus 10.0 % age points
Weighted share of annuity option plus 10.0 % age points
31.12.2021
31.12.2022
3,714.7
2,812.9
– 254.8
– 154.4
289.2
24.7
– 25.4
198.0
– 42.7
– 79.8
90.3
18.2
170.4
15.6
– 15.0
113.4
– 23.5
– 45.2
50.5
– 3.5
The Baloise Group determines the sensitivities of liabilities under defined benefit plans by recalculating them using the same
models as used for the calculation of the effective value. In this calculation, only one parameter of the base scenario
is changed. Possible interaction between individual parameters is not taken into consideration. The effect resulting from
various parameters occurring simultaneously may vary from the sum total of individually determined differences.
The sensitivity is only calculated for the liability. A possible simultaneous impact on plan assets is not investigated.
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Financial Report
17.2.10 Funding of plan benefits
The plan assets of the Swiss plans are funded jointly by the employer and employee. The amount of individual contributions
depends largely on an employee’s remuneration and age. Statutory regulations require employers to contribute a minimum
of 50 per cent of the total contributions for part of the insured benefits.
17.2.11 Estimated employer contribution
The employer’s contribution for the following year can only be predicted with a limited degree of certainty. The Baloise
Group expects to pay employer contributions of approximately CHF 75.0 million for the 2023 financial year.
17.2.12 Maturity profile
The maturity profile of liabilities under pension plans differs depending on whether benefits are prospective or current
entitlements. For prospective benefit entitlements, the average expected remaining service period is 9.5 years; the average
present value factor for current benefit entitlements under pension commitments is 12.4 years.
17.3 Other long-term employee benefits
Benefits granted to current employees that are payable twelve months or more after the end of the financial year are
accounted for separately and according to specific rules. The accounting policies applied are similar to those used for
pension liabilities, except that actuarial gains and losses are recognised in profit or loss.
Long-service bonuses constitute the principal benefit paid. The present value of liabilities as at 31 December 2022 totalled
CHF 23.8 million (2021: CHF 27.7 million). There were no disposals of plan assets for long-term employee benefits. Benefits
paid out amounted to CHF 2.7 million (2021: CHF 3.2 million).
Share-based payment plans
17.4
For some time now, the Baloise Group has offered employees and management team members the chance to participate
in various plans under which shares are granted as part of their overall remuneration packages: the Employee Incentive
Plan, the Share Subscription Plan and the Share Participation Plan as well as Performance share units (PSU). The PSU
programme and the Employee Incentive Plan are equity-settled share-based payment plans. By contrast, the Share
Subscription Plan and the Share Participation Plan are share-based payment plans with a choice of settlement. The textual
explanations of these individual compensation programs are contained in Chapters 4,5 and 6 of the Compensation Report.
In 2022, a sum of CHF 27.4 million (2021: CHF 25.7 million) was recognised as an expense in profit or loss in connection
with the following share-based payment plans. The most important quantitative information is listed in tabular form below.
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191
17.4.1 Employee Incentive Plan
Employee Incentive Plan
Number of shares subscribed
Restricted until
Subscription price per share (CHF)
Value of shares subscribed (CHF million)
Fair value of subscribed shares on subscription date (CHF million)
Employees entitled to participate
Participating employees
Subscribed shares per participant (average)
17.4.2 Share Subscription Plan
Share subscription plan for senior managers (SSP) 1
Number of shares subscribed
Restricted until
Subscription price per share (CHF)
Value of shares subscribed (CHF million)
Fair value of subscribed shares on subscription date (CHF million)
Employees entitled to participate
Participating employees
SSP portion of variable remuneration
Financial Report
2021
2022
214,804
223,477
31.08.2024
31.08.2025
73.00
15.7
31.4
3,373
2,427
88.5
74.40
16.6
31.6
3,419
2,506
89.2
2021
2022
18,363
23,229
29.02.2024
28.02.2025
143.46
142.92
2.6
2.9
1,048
114
12 %
3.3
3.6
1,073
125
12 %
1 Members of the management team entitled to receive shares under this plan include the most senior level of management across the entire Group and the middle
management tier in Switzerland.
Share subscription plan for the Board of Directors
Number of shares subscribed
Restricted until
Subscription price per share (CHF)
Value of shares subscribed (CHF million)
Fair value of subscribed shares on subscription date (CHF million)
Participating members of the Board of Directors
2021
6,134
2022
6,282
31.05.2024
31.05.2025
133.47
146.70
0.8
0.9
11
0.9
1.0
12
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191
Financial Report
17.4.3 Share participation plan
Share Participation Plan (SPP)
Number of shares subscribed 1
Restricted until
Subscription price per share 2 (CHF)
Value of shares subscribed 2 (CHF million)
Fair value of subscribed shares on subscription date (CHF million)
Employees entitled to participate
Participating employees
SPP portion of variable remuneration
1 Including shares financed by loans.
2 Net of the discounted dividend right over three years.
17.4.4 Performance share units
2021
2022
75,022
102,281
29.02.2024
28.02.2025
139.73
137.34
10.5
11.9
1,026
136
7 %
14.0
15.8
1,051
173
8 %
The value of PSUs is exposed to market risk until the end of the vesting period and may, of course, fluctuate significantly,
as shown in the table below:
PERFORMANCE SHARE UNIT
(PSU) PLAN
2018
2019
2020
2021
2022
PSUs granted
PSUs converted
Change
in value
Date Price (CHF) 1
Date
Multiplier Price (CHF) 1 Value (CHF) 2
3
1 Mar 2018
1 Mar 2019
1 Mar 2020
1 Mar 2021
1 Mar 2022
149.20
163.00
154.90
158.90
154.10
1 Mar 2021
1 Mar 2022
1 Mar 2023
1 Mar 2024
1 Mar 2025
1.22
0.67
0.56 4
0.00 4
0.70 4
158.90
154.10
142.70 4
142.70 4
142.70 4
193.86
103.25
79.28 4
0.00 4
99.27 4
30 %
– 37 %
– 49 % 4
– 100 % 4
– 36 % 4
1 Price = price of Baloise shares at the PSU grant date or conversion date.
2 Value = value of one PSU at the conversion date (share price at the conversion date times the multiplier).
3 Change in value = difference between the value at the conversion date (multiplier times the share price at the conversion date) and the share price at the grant date,
expressed as a percentage of the share price at the grant date; example of the PSU plan in 2019: ([{0.67*154.10} – 163.00] / 163.00) * 100 = – 37 %.
4 Interim measurement as at 31 December 2022.
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193
Financial Report
Measurement of the PSU at their issue date is based on a Monte Carlo simulation, which calculates a present value for the
payout expected at the end of the vesting period. This measurement incorporates the following parameters:
● interest rate of 1 per cent;
● the volatilities of all shares in the peer group and their correlations with each other (measured over a three-year track
record);
● empirical data on how long eligible programme participants remain with the Company.
Performance share units (PSU)
Employees entitled to participate at launch of programme
Number of allocated PSU
Of which: expired (departures in 2020)
Number of active PSUs as at 31 December 2020
Of which: expired (departures in 2021)
Number of active PSUs as at 31 December 2021
Of which: expired (departures in 2022)
Number of active PSUs as at 31 December 2022
Value of allocated PSUs on issue date (CHF million)
PSU expense incurred by the Baloise Group for 2020 (CHF million)
PSU expense incurred by the Baloise Group for 2021 (CHF million)
PSU expense incurred by the Baloise Group for 2022 (CHF million)
Plan 2020
Plan 2021
Plan 2022
71
68
78
32,321
28,045
33,914
– 407
31,914
– 898
–
–
– 504
31,016
27,541
– 319
– 315
–
–
–
–
–
30,697
27,226
33,914
5.1
1.3
1.5
1.6
4.9
–
1.1
1.5
5.4
–
–
1.4
192
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193
Financial Report
17.4.5 Employee stock option programm
FRIDAY Insurance S. A., a subsidiary of Baloise Luxembourg Holding S. A., offers selected employees an Employee Stock
Option Programme (ESOP) that was launched in 2021. It replaced the existing Phantom Stock Option Programme (PSOP),
which was dissolved ahead of its scheduled termination date. The equity instruments allocated become vested over a
period of five years from the allocation date. Allocations can be made each quarter. The fair value of the granted ESOPs is
determined using a Black-Scholes model and recognised in profit or loss during the vesting period. The vested options will
be exercised either when an exit event takes place or, at the latest, when the maturity event takes place after seven years.
The shares under the dissolved PSOP were calculated and valued pro rata as at 31 December 2020. The resulting amount
will be paid out in three tranches by mid-2023, of which CHF 2.1 million was paid in 2022 (2021: CHF 0.5 million).
Phantom Stock Option Program
Participating employees
Total liabilities arising from the allocated PSOPs (CHF million)
Total liabilities arising from the vested PSOPs (CHF million)
PSOP expense / income (CHF million)
Employee Stock Option Program
Participating employees
Number of allocated options
Of which: expired (departures in 2021)
Of which: expired (departures in 2022)
Number of active options as at 31 December 2022
ESOP expense (CHF million)
2021
2022
18
2.6
2.6
– 0.3
8
0.3
0.3
– 0.1
2021
61
2022
65
2,715,434
3,571,653
416,260
–
416,260
518,213
2,299,174
2,637,180
0.5
1.1
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195
Financial Report
18. Deferred taxes
18.1 Deferred tax assets and liabilities
Deferred tax assets
2021
CHF million
Financial assets
Other investments
Other comprehensive income
Tax credits and losses carried forward
Insurance receivables
Technical reserves
Insurance liabilities
Liabilities arising from banking business
and financial contracts
Liabilities arising from employee benefits
Other
Total
2022
CHF million
Financial assets
Other investments
Other comprehensive income
Tax credits and losses carried forward
Insurance receivables
Technical reserves
Insurance liabilities
Liabilities arising from banking business
and financial contracts
Liabilities arising from employee benefits
Other
Total
Balance
as at
1 January
Change
recognised
in profit
or loss
Change
recognised
directly
in equity
Change in
the scope
of consoli-
dation
Reclassifi-
cation in
accordance
with IFRS 5
Exchange
differences
Balance
as at
31 December
29.7
48.0
110.2
62.4
13.2
434.4
1,009.3
247.3
49.5
57.6
2,061.6
24.3
– 8.6
–
23.1
– 3.8
74.1
21.5
50.3
– 3.4
– 5.7
171.8
–
–
– 57.9
–
–
–
–
–
–
–
– 57.9
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 2.2
0.0
– 1.9
– 2.4
0.0
– 14.6
– 42.3
– 8.2
– 1.7
– 1.1
– 74.4
51.8
39.4
50.5
83.2
9.4
493.9
988.4
289.3
44.4
50.9
2,101.1
Balance
as at
1 January
Change
recognised
in profit
or loss
Change
recognised
directly
in equity
Change in
the scope
of consoli-
dation
Reclassifi-
cation in
accordance
with IFRS 5
Exchange
differences
Balance
as at
31 December
51.8
39.4
50.5
83.2
9.4
493.9
988.4
289.3
44.4
50.9
2,101.1
5.0
13.7
–
– 3.7
– 0.5
30.0
21.3
– 38.8
– 1.0
1.3
27.2
–
–
483.4
–
–
–
–
–
–
–
483.4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.1
0.1
– 0.4
– 0.4
– 2.6
0.0
– 8.1
– 2.6
0.0
– 16.5
– 48.1
– 8.8
– 1.9
– 1.2
54.2
53.1
525.7
76.9
8.9
507.4
961.6
241.7
41.5
50.6
– 89.9
2,521.6
194
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195
Financial Report
Deferred tax liabilities
2021
CHF million
Depreciable assets
Other intangible assets
Deferred acquisition costs
Long-term equity investments
Investment property
Financial assets
Other investments
Other comprehensive income
Insurance receivables
Technical reserves
Other
Total
2022
CHF million
Depreciable assets
Other intangible assets
Deferred acquisition costs
Long-term equity investments
Investment property
Financial assets
Other investments
Other comprehensive income
Insurance receivables
Technical reserves
Other
Total
Balance
as at
1 January
Change
recognised
in profit
or loss
Change
recognised
directly
in equity
Change in
the scope
of consoli-
dation
Reclassifi-
cation in
accordance
with IFRS 5
Exchange
differences
Balance
as at
31 December
10.4
5.6
263.6
76.1
356.2
21.1
45.4
381.4
2.0
1,765.1
47.3
– 2.2
– 0.7
25.1
– 10.6
111.5
9.9
– 10.4
–
– 0.8
77.1
14.6
–
–
–
–
–
–
–
– 74.0
–
–
–
2,974.1
213.5
– 74.0
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 0.2
– 0.2
– 10.6
– 0.6
– 7.4
– 0.7
– 0.7
– 5.9
0.0
– 57.7
– 0.3
– 84.2
8.0
4.7
278.1
64.9
460.4
30.2
34.3
301.5
1.1
1,784.6
61.6
3,029.5
Balance
as at
1 January
Change
recognised
in profit
or loss
Change
recognised
directly
in equity
Change in
the scope
of consoli-
dation
Reclassifi-
cation in
accordance
with IFRS 5
Exchange
differences
Balance
as at
31 December
8.0
4.7
278.1
64.9
460.4
30.2
34.3
301.5
1.1
1,784.6
61.6
3,029.5
0.7
6.2
23.1
20.1
30.1
– 2.4
0.0
–
0.7
10.0
10.0
98.5
–
–
–
–
–
–
–
– 136.2
–
–
–
– 136.2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 2.5
–
–
–
–
–
–
– 2.5
– 0.2
– 0.3
– 12.3
– 1.0
– 8.3
– 0.7
– 0.6
– 5.9
0.0
– 65.2
– 0.3
– 94.9
8.5
10.6
288.9
84.0
479.6
27.1
33.6
159.4
1.8
1,729.4
71.3
2,894.3
196
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197
Financial Report
The Baloise Group reports its deferred taxes on a net basis. Deferred tax assets and liabilities are offset against each other
in cases where the criteria for such offsetting have been met. This is usually the case if the tax jurisdiction, the taxable entity
and the type of taxation are identical.
The Baloise Group had recognised deferred tax assets on tax loss carryforwards totalling CHF 283.3 million as at
31 December 2022 (2021: CHF 287.8 million) that will expire after five years or more.
The Baloise Group had a tax credit of CHF 110.4 million as at 31 December 2022 (2021: CHF 112.3 million) on which no deferred
tax assets had been recognised because the offsetting criteria were not met.
No deferred tax assets had been recognised on tax loss carryforwards amounting to CHF 396.0 million as at 31 December 2022
(2021: CHF 355.2 million) because the relevant offsetting criteria had not been met. Of this total, CHF 1.4 million will expire
after one year (2021: CHF 1.1 million), CHF 20.1 million after two to four years (2021: CHF 26.2 million) and CHF 374.5 million
will expire after five years or more (2021: CHF 327.9 million).
18.2 Deferred taxes
CHF million
Deferred tax assets
Deferred tax liabilities
Total (net)
Of which: recognised as deferred tax assets
Of which: recognised as deferred tax liabilities
19. Other assets
CHF million
Accrued income
Tax credits indirect taxes (withholding tax etc.)
Prepaid insurance benefits
Development properties
Other assets
Impairments
Other assets
31.12.2021
31.12.2022
2,101.1
2,521.6
– 3,029.5
– 2,894.3
– 928.3
73.7
– 1,002.0
– 372.7
217.9
– 590.6
31.12.2021
31.12.2022
45.7
39.4
55.3
19.3
36.1
– 2.2
193.5
39.2
50.7
56.1
3.0
31.3
– 2.5
177.8
196
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197
Financial Report
20. Non-current assets and disposal groups classified as held for sale
CHF million
Property, plant and equipment
Intangible assets
Investment property
Financial assets
Other investments
Receivables
Other assets
Total assets
Technical reserves
Liabilities arising from banking business and
financial contracts
Other financial obligations
Other liabilities
Total equity and liabilities
Unrealised gains directly associated with non-current
assets and disposal groups classified as held for sale
Disposal
groups
Non-current
assets
Total
Disposal
groups
Non-current
assets
Total
31.12.2021
31.12.2022
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
107.0
–
107.0
175.3
–
–
–
175.3
5.3
–
–
–
–
136.8
136.8
–
–
–
–
–
–
107.0
–
136.8
243.8
–
–
–
2.2
2.2
–
175.3
–
–
2.2
177.4
5.3
Baloise intends to dispose of the German run-off portfolio for hospital liability insurance and regards the IFRS 5 criteria as
having been met at the end of the first half of 2022. In accordance with IFRS 5, the reclassification of the updated assets
and technical reserves was retained as at 31 December 2022. The reclassification relates to the Group business segment.
Four of the properties that were classified as held for sale in the first half of 2022 were sold in the second half of 2022.
The remaining 13 properties of Baloise Insurance Ltd and Baloise Life Ltd have a total fair value of CHF 136.8 million. Baloise
intends to sell them in the first half of 2023.
198
198
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Baloise Group Annual Report 2022
199
Financial Report
Number of
treasury
shares
Number of
shares in
circulation
Number of
shares issued
Share capital
(CHF million)
3,750,453
45,049,547
48,800,000
– 101,723
101,723
–
– 3,000,000
–
–
–
–
– 3,000,000
648,730
45,151,270
45,800,000
4.9
–
–
– 0.3
4.6
Number of
treasury
shares
Number of
shares in
circulation
Number of
shares issued
Share capital
(CHF million)
648,730
45,151,270
45,800,000
– 103,094
103,094
–
–
–
–
–
–
–
545,636
45,254,364
45,800,000
4.6
–
–
–
4.6
21. Share capital
2021
Balance as at 1 January
Purchase / sale of treasury shares
Capital increases
Share buy-back and cancellation
Balance as at 31 December
2022
Balance as at 1 January
Purchase / sale of treasury shares
Capital increases
Share buy-back and cancellation
Balance as at 31 December
The share capital of Bâloise Holding Ltd totals CHF 4.6 million and is divided into 45,800,000 registered, fully paid-up
registered shares with a par value of CHF 0.10 each (2021: CHF 0.10). As far as individuals, legal entities and partnerships
are concerned, entry in the share register with voting rights is limited to 2 per cent of the registered share capital entered
in the commercial register. The Baloise Group buys and sells its own shares for employee share ownership programmes.
The Annual General Meeting held on 29 April 2022 voted in favour of a total dividend distribution of CHF 320.6 million
for the 2021 financial year. This amounts to a gross dividend of CHF 7.00 per share. Excluding the treasury shares held by
Bâloise Holding Ltd at the time that the dividend was paid, the total distribution effectively amounted to CHF 316.5 million.
The reduction of share capital by cancelling 3,000,000 registered treasury shares, each with a nominal value of CHF 0.10,
which was approved by the shareholders of Bâloise Holding Ltd at the Annual General Meeting on 30 April 2021, was
completed in July 2021.
For the 2022 financial year, a total dividend distribution of CHF 338.9 million will be proposed for approval at the Annual
General Meeting on 28 April 2023. This amounts to a gross dividend of CHF 7.40 per share. The dividend distribution will be
recognised upon approval at the Annual General Meeting.
198
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199
Financial Report
22. Technical reserves (gross)
CHF million
Unearned premium reserves (gross)
Claims reserve including claims handling costs (gross)
Other technical reserves
Technical reserves (non-life)
Actuarial reserves (gross)
Policyholders’ dividends credited and provisions for future policyholders’ dividends (gross)
Technical reserves (life)
Technical reserves (gross)
22.1
Technical reserves (non-life)
31.12.2021
31.12.2022
854.1
841.8
5,942.0
5,474.0
78.0
77.1
6,874.0
6,392.8
38,153.3
36,291.8
3,634.1
1,920.5
41,787.4
38,212.3
48,661.4
44,605.2
Reinsurance
assets
Gross
Net
Gross
Reinsurance
assets
Net
31.12.2021
31.12.2022
CHF million
Unearned premium reserves
Claims reserve
Provision for claims handling costs
854.1
5,444.7
497.3
9.3
863.4
–
–
–
–
841.8
5,023.7
450.3
5.7
847.5
–
–
–
–
Claims reserve including claims handling costs
5,942.0
– 787.5
5,154.5
5,474.0
– 604.7
4,869.2
Other technical reserves
78.0
–
78.0
77.1
–
77.1
Total technical reserves (non-life)
6,874.0
– 778.2
6,095.9
6,392.8
– 599.1
5,793.8
200
Baloise Group Annual Report 2022
Financial Report
22.1.1 Maturity structure of technical reserves
CHF million
Unearned premium reserves
Up to 1 year
More than 1 year
No determinable residual term
Total unearned premium reserves
Reinsurance
assets
Gross
Net
Gross
Reinsurance
assets
Net
31.12.2021
31.12.2022
799.8
8.8
45.5
854.1
8.7
0.6
–
9.3
808.4
9.5
45.5
863.4
797.8
8.4
35.6
841.8
5.2
0.5
–
5.7
803.0
8.9
35.6
847.5
Claims reserve including claims handling costs
Up to 1 year
More than 1 year
No determinable residual term
Total claims reserve including claims handling costs
1,167.6
3,804.8
969.6
5,942.0
– 163.2
– 164.6
– 459.7
– 787.5
1,004.4
3,640.2
509.9
1,129.7
3,584.2
760.1
– 87.7
– 115.0
– 402.0
1,041.9
3,469.2
358.1
5,154.5
5,474.0
– 604.7
4,869.2
All figures relating to maturities are based on best estimates. The line item “No determinable residual term” mainly
comprises old-age health insurance reserves and annuity reserve funds.
22.1.2 Unearned premium reserves
CHF million
Balance as at 1 January
Netted premiums
Less: premiums earned
during the reporting period
Additions arising from acquisition
of policy portfolios
and insurance companies
Disposals arising from sale of policy
portfolios and insurance companies
Reclassification to non-current assets
classified as held for sale
Exchange differences
Balance as at 31 December
Reinsurance
assets
Gross
Net
Gross
Reinsurance
assets
2021
Net
2022
845.5
4,063.4
2.2
847.7
– 271.8
3,791.6
854.1
3,969.1
9.3
863.4
– 284.3
3,684.8
– 4,026.5
279.1
– 3,747.4
– 3,948.7
280.9
– 3,667.8
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– 28.3
854.1
– 0.2
9.3
– 28.5
863.4
– 32.7
841.8
– 0.2
5.7
– 33.0
847.5
Apart from the actual unearned premium reserves, this item includes health insurance reserves for old age and deferred
unearned premiums.
Baloise Group Annual Report 2022
201
Financial Report
22.1.3 Other technical reserves
CHF million
Balance as at 1 January
Less: expenditures during
the reporting period
Additional provisions recognised
and unused provisions reversed
through profit or loss
Additions arising from acquisition
of policy portfolios
and insurance companies
Disposals arising from sale of policy
portfolios and insurance companies
Reclassification to non-current assets
classified as held for sale
Exchange differences
Balance as at 31 December
Reinsurance
assets
Gross
Net
Gross
Reinsurance
assets
2021
93.2
– 32.9
78.0
– 34.7
19.1
35.4
–
–
–
–
–
–
– 1.4
78.0
– 1.6
77.1
–
0.0
0.0
–
–
–
–
–
–
0.0
0.0
–
–
–
–
–
93.2
– 33.0
19.1
–
–
–
– 1.4
78.0
Net
2022
78.0
– 34.7
35.4
–
–
–
– 1.6
77.1
202
Baloise Group Annual Report 2022
22.1.4 Claims reserve (including claims handling costs)
CHF million
Balance as at 1 January (gross)
Reinsurers’ share
Balance as at 1 January (net)
Claims incurred (including claims handling costs)
For the reporting period
For previous years
Total
Payments for claims and claims handling costs
For the reporting period
For previous years
Total
Other changes
Additions / disposals arising from changes in scope of consolidation
Reclassification to non-current assets classified as held for sale
Exchange differences
Total
Balance as at 31 December (net)
Reinsurers’ share
Balance as at 31 December (gross)
Financial Report
2021
2022
5,895.6
5,942.0
– 636.7
5,258.9
– 787.5
5,154.5
2,364.8
– 112.2
2,252.5
2,291.8
– 104.5
2,187.3
– 1,124.7
– 890.3
– 1,098.3
– 1,265.9
– 2,223.0
– 2,156.2
–
–
– 133.9
– 133.9
–
– 167.0
– 149.4
– 316.4
5,154.5
4,869.2
787.5
604.7
5,942.0
5,474.0
In accordance with IFRS 5, the obligation arising from the hospital liability business was reclassified to non-current assets
and disposal groups classified as held for sale.
Baloise Group Annual Report 2022
203
Financial Report
22.2
Technical reserves (life)
CHF million
Actuarial reserves from traditional life insurance contracts 1
Actuarial reserves from unit-linked life insurance contracts
Reserves for final policyholders’ dividends
Unearned revenue reserve
Structure of actuarial reserves (life)
Policyholders’ dividends credited and provisions for future policyholders’ dividends
Total technical reserves (life)
1 The actuarial reserves include unearned premium reserves and claims reserves.
31.12.2021
31.12.2022
33,809.0
32,577.6
3,851.5
3,292.5
135.4
357.4
102.2
319.5
38,153.3
36,291.8
3,634.1
1,920.5
41,787.4
38,212.3
204
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Baloise Group Annual Report 2022
205
22.2.1 Maturity structure of technical reserves
CHF million
Actuarial reserves from non-unit-linked life insurance contracts
Up to 1 year
1 to 5 years
5 to 10 years
More than 10 years
No determinable residual term
Business from Swiss occupational pension plans 1
Total actuarial reserves from non-unit-linked life insurance contracts
Actuarial reserves from unit-linked life insurance contracts
Up to 1 year
1 to 5 years
5 to 10 years
More than 10 years
No determinable residual term
Total actuarial reserves from unit-linked life insurance contracts
Policyholders’ dividends credited
Up to 1 year
1 to 5 years
5 to 10 years
More than 10 years
No determinable residual term
Total policyholders’ dividends credited
Provisions for future policyholders’ dividends
Up to 1 year
No determinable residual term
Total provisions for future policyholders’ dividends
Financial Report
31.12.2021
31.12.2022
1,012.0
3,047.3
3,258.2
5,244.5
9,938.0
1,038.5
2,924.7
3,042.3
5,016.5
9,880.7
11,309.1
10,674.9
33,809.0
32,577.6
242.7
347.3
362.7
465.1
2,433.7
3,851.5
49.1
169.2
169.3
157.0
116.8
661.4
64.3
311.3
339.3
659.0
1,918.7
3,292.5
45.8
153.1
156.1
133.3
99.3
587.7
102.7
2,870.1
2,972.7
114.7
1,218.2
1,332.9
1 The Swiss pensions business is disclosed separately owing to its specific features. It comprises group contracts which may be cancelled annually by either party, whereas the
coverage period for the individuals enrolled is significantly longer.
All figures relating to maturities are based on the residual terms of contracts. The line item “No determinable residual term”
mainly comprises deferred and current annuities.
204
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205
Financial Report
22.2.2 Actuarial reserves from non-unit-linked life insurance contracts
CHF millionCHF million
Balance as at 1 January
Change in actuarial reserves
Additions arising from acquisition of policy portfolios and insurance companies
Disposals arising from sale of policy portfolios and insurance companies
Reclassification to non-current assets classified as held for sale
Exchange differences
Balance as at 31 December
Of which: for DPF business
Of which: for non-DPF business
2021
2022
34,092.8
33,809.0
122.0
– 773.9
–
–
–
–
–
–
– 405.8
– 457.5
33,809.0
32,577.6
33,493.1
32,264.9
316.0
312.7
The actuarial reserves include unearned premium reserves and claims reserves.
The actuarial reserves for assumed business (inward reinsurance) as at 31 December 2022 came to CHF 13.4 million (31 December 2021: CHF 13.5 million).
22.2.3 Actuarial reserves from unit-linked life insurance contracts
CHF millionCHF million
Balance as at 1 January
Additions
Disposals
Fees
Interest on and change in liabilities
Additions arising from acquisition of policy portfolios and insurance companies
Disposals arising from sale of policy portfolios and insurance companies
Reclassification to non-current assets classified as held for sale
Exchange differences
Balance as at 31 December
2021
2022
3,421.0
3,851.5
260.6
– 238.6
– 6.2
540.5
–
–
–
252.6
– 200.9
– 5.8
– 467.1
–
–
–
– 126.0
– 137.7
3,851.5
3,292.5
206
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
207
22.2.4 Reserve for final policyholders’ dividends
CHF million
Balance as at 1 January
Adjustment arising from unrealised gains and losses as at 1 January (shadow accounting)
Interest on and change in liability
Final policyholders’ dividends paid
Additions arising from acquisition of policy portfolios and insurance companies
Disposals arising from sale of policy portfolios and insurance companies
Reclassification to non-current assets classified as held for sale
Adjustment arising from unrealised gains and losses as at 31 December (shadow accounting)
Exchange differences
Balance as at 31 December
22.2.5 Unearned revenue reserve
CHF million
Balance as at 1 January
Reserved during the reporting period
Change in balance
Change due to unrealised gains and losses on investments (shadow accounting)
Additions arising from acquisition of policy portfolios and insurance companies
Disposals arising from sale of policy portfolios and insurance companies
Reclassification to non-current assets classified as held for sale
Exchange differences
Balance as at 31 December
Financial Report
2021
2022
144.2
– 4.4
8.1
– 12.7
–
–
–
3.6
– 3.5
135.4
135.4
– 3.6
– 1.5
– 10.3
–
–
–
– 14.0
– 3.8
102.2
2021
2022
368.8
14.1
– 10.7
0.1
–
–
–
357.4
14.5
– 40.4
4.5
–
–
–
– 14.9
357.4
– 16.4
319.5
206
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Baloise Group Annual Report 2022
207
Financial Report
22.2.6 Policyholders’ dividends credited and reserves for future policyholders’ dividends
CHF million
Policyholders’ dividends credited as at 1 January
Dividends credited to policyholders during the reporting period
Policyholders’ dividends paid
Additions arising from acquisition of policy portfolios and insurance companies
Disposals arising from sale of policy portfolios and insurance companies
Reclassification to non-current assets and disposal groups classified as held for sale
Exchange differences
Balance as at 31 December
Provisions for future policyholders’ dividends as at 1 January
Adjustment arising from unrealised gains and losses as at 1 January
Additions
Withdrawals
Change in measurement differences between IFRS and national accounting standards
recognised in profit or loss
2021
2022
739.8
33.0
– 92.1
–
–
–
661.4
29.8
– 82.4
–
–
–
– 19.3
661.4
– 21.1
587.7
2,984.0
– 875.7
138.0
– 122.0
223.8
2,972.7
– 674.7
115.7
– 114.5
251.7
Adjustment arising from unrealised gains and losses as at 31 December (shadow accounting)
674.7
– 1,160.3
Additions arising from acquisition of policy portfolios and insurance companies
Disposals arising from sale of policy portfolios and insurance companies
Reclassification to non-current assets classified as held for sale
Exchange differences
Balance as at 31 December
Policyholders’ dividends credited and provisions for future policyholders’ dividends
as at 31 December
–
–
–
–
–
–
– 50.1
– 57.8
2,972.7
1,332.9
3,634.1
1,920.5
208
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Baloise Group Annual Report 2022
209
Financial Report
23. Liabilities arising from banking business and financial contracts
as at 31.12.
CHF million
Carrying amount
Fair value
2021
2022
2021
2022
With discretionary participation features (DPFs)
Financial contracts with discretionary participation features (DPFs) 1
Sub-total
4,038.5
4,038.5
3,935.3
3,935.3
–
–
–
–
Measured at amortised cost
Liabilities to banks
Repurchase agreements
Liabilities arising from time deposits
Loans
Mortgages
Savings and customer deposits
Medium-term bonds
Mortgage-backed bonds
Other financial contracts
Sub-total
575.1
250.0
–
7.3
26.1
41.2
250.0
–
6.6
18.9
578.6
250.0
–
7.3
26.1
42.8
250.0
–
6.6
18.9
5,367.6
5,443.0
5,387.4
5,251.9
64.9
95.6
66.1
92.9
1,898.7
2,112.5
1,944.7
1,922.5
0.0
8.9
0.0
6.8
8,189.7
7,976.6
8,260.2
7,592.5
Recognised at fair value through profit or loss (designated)
Other financial contracts
Sub-total
14,654.2
12,664.4
14,654.2
12,664.4
14,654.2
12,664.4
14,654.2
12,664.4
Total liabilities arising from banking business and financial contracts
26,882.4
24,576.3
–
–
1 There are currently no internationally accepted mathematical methods available for determining the fair value of financial contracts with discretionary participation features
(DPFs).
Savings deposits and customer deposits essentially consist of savings accounts, business accounts and deposit accounts held
by Swiss banking clients. The mortgage-backed bonds reported have all been issued by Pfandbriefbank schweizerischer
Hypothekarinstitute AG.
The other financial contracts designated as at fair value through profit or loss largely relate to the life insurance liability
arising from investment-linked life insurance contracts involving little or no transfer of risk. The year-on-year change in this
liability consists entirely of the funds flowing into and out of the pertinent investment portfolio, the latter’s market-related
price fluctuations and exchange-rate movements.
208
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209
Financial Report
24. Financial liabilities
CHF million
Senior and hybrid debt
Leasing liabilities
Total
24.1
Senior debt
CHF million
Balance as at 1 January
Issue price of newly issued bonds
Disposals and repayments
Interest expenses
Borrowing costs paid
Accrued borrowing costs
Interest costs (sub-total)
31.12.2021
31.12.2022
2,399.1
2,583.8
26.5
25.9
2,425.7
2,609.6
Senior debt Hybrid debt
Total
Senior debt Hybrid debt
Total
2021
498.0
2,324.4
–
–
10.2
– 9.7
–
0.5
450.0
– 375.0
24.2
– 25.5
0.9
– 0.3
1,826.4
450.0
– 375.0
14.1
– 15.8
0.9
– 0.8
1,900.6
534.7
– 350.0
12.0
– 11.1
– 1.5
– 0.6
498.5
–
–
10.2
– 9.7
–
0.5
2022
2,399.1
534.7
– 350.0
22.1
– 20.7
– 1.5
– 0.1
Balance as at 31 December
1,900.6
498.5
2,399.1
2,084.7
499.0
2,583.8
On 16 February 2022, Bâloise Holding Ltd placed an additional bond issue on behalf of the Baloise Group with a total volume
of CHF 200 million and a coupon of 0.30 per cent (maturity period: 2022–2027, ISIN CH1148728210) as part of its funding
activities.
Furthermore, a green bond with a volume of CHF 110 million was issued on 19 July 2022. The green bond was issued with
a maturity date of July 2028 and a coupon of 1.9 per cent (ISIN: CH1199322350). The capital raised with the issuance of the
green bond will be used to finance green properties under Baloise’s existing green bond framework.
Also in the second half of the year, a further bond of CHF 225 million with a coupon of 2.2 per cent (maturity period:
2022–2029, ISIN CH1206367661) was issued on 30 November 2022.
After the balance sheet date, on 30 January 2023, Bâloise Holding Ltd issued a further senior green bond on behalf of the
Baloise Group with a volume of CHF 175 million and a coupon of 2.20 per cent (maturity period: 2023–2032, ISIN CH1232107180)
as part of its funding activities.
On 15 February 2021, Bâloise Holding Ltd placed an additional bond issue on behalf of the Baloise Group with a total volume
of CHF 250 million and a coupon of 0.15 per cent (maturity period: 2021–2031, ISIN CH0593641068) as part of its funding
activities. In addition, Bâloise Holding Ltd issued a senior green bond of CHF 200 million with a coupon of 0.125 per cent
(maturity period: 2021–2030, ISIN CH1130818839) on 27 September 2021.
210
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211
Financial Report
Terms & conditions governing debt outstanding as at 31.12.2022
(Bonds Bâloise Holding Ltd and Baloise Life Ltd)
Issuer
Face value
(CHF million)
Interest rate
Redemption value
Year of issue
Repayment date
ISIN
Issuer
Face value
(CHF million)
Interest rate
Redemption value
Year of issue
Repayment date
ISIN
Bâloise
Holding Ltd
Bâloise
Holding Ltd
Baloise
Life Ltd
Baloise
Life Ltd
Bâloise
Holding Ltd
Bâloise
Holding Ltd
Bâloise
Holding Ltd
225
150
300
200
200
100
125
1.750 %
1.125 %
1.750 %
2.200 %
0.500 %
0.000 %
0.000 %
100 %
2013
100 %
2014
100 %
2017
100 %
2017
100 %
2019
100 %
2019
100 %
2019
26.04.2023
19.12.2024
perpetual
19.06.2048
28.11.2025
25.09.2026
25.09.2029
CH0200044821
CH0261399064
CH0379610998
CH0379611004
CH0458097976
CH0496692978
CH0496692986
Bâloise
Holding Ltd
Bâloise
Holding Ltd
Bâloise
Holding Ltd
Bâloise
Holding Ltd
Bâloise
Holding Ltd
Bâloise
Holding Ltd
Bâloise
Holding Ltd
175
125
250
200
200
110
225
0.250 %
0.500 %
0.150 %
0.125 %
0.300 %
1.900 %
2.200 %
100 %
2020
100 %
2020
100 %
2021
100 %
2021
100 %
2022
100 %
2022
100 %
2022
16.12.2026
16.12.2030
17.02.2031
27.06.2030
16.2.2027
19.7.2028
30.5.2029
CH0553331817
CH0553331825
CH0593641068
CH1130818839
CH1148728210
CH1199322350
CH1206367661
24.2
Leasing liabilities
CHF million
Balance as at 1 January
Additions
Additions arising from change in scope of consolidation
Disposals
Disposals arising from change in scope of consolidation
Interests expenses
Cash outflow due to redemption
Exchange differences
Balance as at 31 December
2021
2022
38.9
2.0
–
– 0.9
–
0.4
– 13.3
– 0.6
26.5
26.5
12.6
–
– 0.8
–
0.3
– 12.1
– 0.6
25.9
210
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211
Financial Report
25. Non-technical provisions
CHF million
Balance as at 1 January
Addition arising from change
in scope of consolidation
Disposal arising from change
in scope of consolidation
Reclassification
Reclassification to non-current assets
classified as held for sale
Increases and additional provisions recognised
in profit or loss
Unused provisions reversed through profit or loss
Usage not recognised in profit or loss
Unwinding of discount
Exchange differences
Balance as at 31 December
Restructuring
Other
Total Restructuring
Other
Total
2021
2022
13.2
44.3
57.5
8.7
68.3
77.0
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2.8
33.4
36.3
2.6
4.5
7.1
– 3.2
– 3.8
–
– 0.4
8.7
– 8.1
– 0.1
–
– 1.2
68.3
– 11.3
– 3.9
–
– 1.6
77.0
–
– 2.8
–
– 0.4
8.1
– 15.9
– 4.7
–
– 1.3
50.9
– 15.9
– 7.5
–
– 1.7
59.0
The balance shown for other non-technical provisions includes typical amounts for legal advice and litigation risks. The restruc-
turing provisions largely relate to the German entities. The other non-technical provisions largely relate to the Swiss entities.
26. Insurance liabilities
CHF million
Liabilities to policyholders
Liabilities to brokers and agents
Liabilities to insurance companies
Other insurance liabilities
Total insurance liabilities
31.12.2021
31.12.2022
1,298.0
1,265.1
133.1
295.9
43.0
139.7
287.1
48.3
1,770.1
1,740.3
212
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213
Financial Report
Notes to the consolidated income statement
27. Premiums earned and policy fees
CHF million
Gross premiums written and policy fees
Change in unearned premium reserves
Premiums earned and policy fees (gross)
Reinsurance premiums ceded
Reinsurers’ share of change
in unearned premium reserves
Total premiums earned
and policy fees (net)
Non-Life
Life
Total
Non-Life
Life
Total
4,063.4
– 36.9
4,026.5
– 271.8
– 7.3
3,389.7
–
3,389.7
– 47.4
–
2021
7,453.1
– 36.9
7,416.2
– 319.2
– 7.3
3,969.1
– 20.5
3,948.7
– 284.3
3.4
3,160.8
–
3,160.8
– 36.9
–
2022
7,130.0
– 20.5
7,109.5
– 321.2
3.4
3,747.4
3,342.3
7,089.7
3,667.8
3,123.9
6,791.7
28. Income from investments for own account and at own risk
CHF million
Investment property
Financial assets of an equity nature
Available for sale
Recognised at fair value through profit or loss
Financial assets of a debt nature
Held to maturity
Available for sale
Recognised at fair value through profit or loss
Mortgages and loans
Carried at cost
Recognised at fair value through profit or loss
Cash and cash equivalents
2021
2022
286.4
279.7
119.0
2.1
163.7
387.5
0.1
190.2
12.7
– 2.3
121.9
4.9
146.0
416.8
0.2
176.1
12.3
– 0.8
Total investment income for own account and at own risk
1,159.5
1,157.2
Income from investment property consists mainly of rental income. Income from financial instruments with characteristics
of equity primarily comprises dividend income, while income from financial instruments with characteristics of liabilities
essentially contains interest income and net income from the recognition and reversal of impairment losses owing to
application of the effective interest method. Income from mortgages and loans and from cash and cash equivalents
is mainly derived from the interest paid on these assets.
Interest income of CHF 1.3 million had been recognised on impaired investments at the balance sheet date (2021:
CHF 1.7 million).
212
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213
Financial Report
29. Realised gains and losses on investments
29.1
Realised gains and losses on investments for own account and at own risk
2021
CHF million
Realised gains on sales and book profits
Investment property
Held to maturity 1
Available for sale
Recognised at fair value through profit or loss
Carried at cost
Sub-total
Realised losses on sales and book losses
Investment property
Held to maturity 1
Available for sale
Recognised at fair value through profit or loss
Carried at cost
Sub-total
Impairment losses recognised in profit or loss
Held to maturity
Available for sale
Carried at cost
Reversal of impairment losses recognised in profit
or loss
Held to maturity
Available for sale
Carried at cost
Sub-total
Investment
property
Financial
assets of an
equity nature
Financial
assets of
a debt
nature
Mortgages
and loans
Derivative
financial
instruments
347.2
–
–
–
–
347.2
– 107.6
–
–
–
–
–
–
231.5
47.8
–
279.3
–
–
– 19.5
– 3.2
–
–
0.8
168.5
1.0
–
170.3
–
– 46.2
– 260.8
0.0
–
– 107.6
– 22.7
– 307.0
–
–
–
–
–
–
–
–
– 25.7
–
– 0.4
–
–
–
–
–
–
–
–
– 25.7
– 0.4
–
–
–
0.0
22.9
22.9
–
–
–
– 22.1
– 2.0
– 24.2
–
–
– 6.1
–
–
1.0
– 5.1
Total
347.2
0.8
400.0
493.8
22.9
–
–
–
445.0
–
445.0
1,264.7
–
–
–
– 401.5
–
– 107.6
– 46.2
– 280.3
– 426.9
– 2.0
– 401.5
– 863.0
–
–
–
–
–
–
–
–
– 26.0
– 6.1
–
–
1.0
– 31.1
Total realised gains and losses on investments
239.6
230.9
– 137.0
– 6.3
43.4
370.5
1 Currency effects relating to held-to-maturity financial assets of a debt nature are reported as realised book profits and / or realised book losses.
214
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215
Financial Report
2022
CHF million
Realised gains on sales and book profits
Investment property
Held to maturity 1
Available for sale
Recognised at fair value through profit or loss
Carried at cost
Sub-total
Realised losses on sales and book losses
Investment property
Held to maturity 1
Available for sale
Recognised at fair value through profit or loss
Carried at cost
Sub-total
Impairment losses recognised in profit or loss
Held to maturity
Available for sale
Carried at cost
Reversal of impairment losses recognised in profit
or loss
Held to maturity
Available for sale
Carried at cost
Sub-total
Investment
property
Financial
assets of an
equity nature
Financial
assets of
a debt
nature
Mortgages
and loans
Derivative
financial
instruments
289.8
–
–
–
–
–
–
–
0.0
402.3
137.8
2.4
–
–
–
289.8
404.7
137.8
– 47.0
–
–
–
–
–
–
– 44.4
– 52.8
–
–
– 50.4
– 373.8
– 1.3
–
– 47.0
– 97.1
– 425.5
–
–
–
–
–
–
–
–
– 71.8
–
–
–
–
–
– 31.6
–
–
1.4
–
– 71.8
– 30.2
–
–
–
–
10.7
10.7
–
–
–
– 73.9
– 14.5
– 88.3
–
–
– 5.6
–
–
5.2
– 0.4
Total
289.8
0.0
540.1
593.3
10.7
–
–
–
590.9
–
590.9
1,434.0
–
–
–
– 549.6
–
– 47.0
– 50.4
– 418.2
– 677.5
– 14.5
– 549.6
– 1,207.6
–
–
–
–
–
–
–
–
– 103.4
– 5.6
–
1.4
5.2
– 102.3
Total realised gains and losses on investments
242.7
235.8
– 317.8
– 78.0
41.3
124.0
1 Currency effects relating to held-to-maturity financial assets of a debt nature are reported as realised book profits and / or realised book losses.
214
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215
Financial Report
29.2
Impairment losses on financial assets recognised in profit or loss
CHF million
Impairment losses on financial assets of an equity nature recognised in profit or loss
Equities
Equity funds
Mixed funds
Bond funds
Real estate funds
Private equity
Hedge funds
Sub-total
Impairment losses on financial assets of a debt nature recognised in profit or loss
Public corporations
Industrial enterprises
Financial institutions
Private debt
Other
Sub-total
Impairment losses on mortgages and loans recognised in profit or loss
Mortgages
Policy loans
Promissory notes and registered bonds
Time deposits
Employee loans
Reverse repurchase agreements
Other loans
Sub-total
Total impairment losses on financial assets recognised in profit or loss
2021
2022
– 15.9
– 43.0
–
– 2.2
–
0.0
– 7.5
0.0
– 25.7
–
– 0.4
–
–
–
– 0.3
– 2.5
0.0
0.0
– 25.9
0.0
– 71.8
– 23.2
– 8.3
–
–
–
– 0.4
– 31.6
– 6.0
– 5.2
–
–
–
–
–
–
–
–
–
–
– 0.1
– 6.1
– 0.4
– 5.6
– 32.1
– 108.9
216
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217
Financial Report
29.3 Currency gains and losses
Excluding exchange-rate losses on transactions involving financial instruments that are recognised at fair value through
profit or loss, a currency loss of CHF 277.2 million was reported for 2022 (2021: loss of CHF 197.2 million).
A gross currency loss of CHF 134.3 million was recognised directly in equity for the reporting year (2021: loss of CHF 80.7 million).
Allowing for hedges of a net investment in a foreign operation (hedge accounting), a net loss of CHF 146.7 million was recog-
nised for 2022 (2021: net loss of CHF 116.1 million).
30. Income from services rendered
CHF million
Asset management
Services
Banking services
Investment management
Income from services rendered
31. Other operating income
CHF million
Interest income from insurance and reinsurance receivables
Other interest income
Gains on the sale of property, plant and equipment
Currency gains on assets and liabilities
Reversal of impairment losses recognised on receivables
External income from owner-occupied property
Income from development properties
Other income
Other operating income
2021
2022
46.7
24.3
41.3
18.3
45.7
24.0
39.8
20.4
130.6
130.0
2021
2022
7.2
0.8
0.5
22.0
8.5
3.1
46.4
124.6
213.2
6.8
2.5
0.3
20.0
7.4
1.8
28.3
111.1
178.2
216
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217
Financial Report
32. Classification of expenses
CHF million
Personnel expenses (excluding loss adjustment expenses)
Marketing and advertising
Depreciation and impairment of property, plant and equipment
Amortisation and impairment of intangible assets
IT and other equipment
Expenses for maintenance, repairs and rent for short-term and low value leases
Losses arising from exchange differences in respect of assets and liabilities
Commission and selling expenses
Fees and commission for financial assets and liabilities not recognised at fair value
Fees and commission expenses for assets managed for third parties
Expenses arising from non-current assets classified as held for sale
Expenses from development properties
Other 1
Total
1 This includes changes in deferred acquisition costs recognised in profit or loss, as shown in table 9.
33. Personnel expenses
Total personnel expenses for 2022 came to CHF 968.6 million (2021: CHF 952.5 million).
2021
2022
– 835.5
– 850.8
– 46.2
– 46.0
– 56.0
– 55.9
– 47.8
– 50.4
– 151.0
– 149.4
– 26.0
– 3.2
– 24.9
– 10.3
– 754.2
– 714.5
– 11.9
– 5.9
–
– 36.4
– 157.4
– 10.9
– 0.6
–
– 20.4
– 115.4
– 2,129.7
– 2,051.4
218
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219
34. Gains or losses on financial contracts
CHF million
With discretionary participation features (DPFs)
Financial contracts with discretionary participation features (DPFs)
Sub-total
Measured at amortised cost
Interest on loans
Interest due
Interest arising from banking business
Interest expenses on repurchase agreements
Acquisition costs in banking business
Expenses arising from financial contracts
Sub-total
Recognised at fair value through profit or loss (designated)
Change in fair value of other financial contracts 1
Sub-total
Total gains or losses on financial contracts
Of which: gains on interest rate hedging instruments
Interest rate swaps: cash flow hedges, balance carried forward from cash flow hedge reserves
Interest rate swaps: fair value hedges
Total gains on interest rate hedging instruments
Financial Report
2021
2022
– 54.2
– 54.2
– 48.2
– 48.2
– 0.6
– 11.8
3.4
2.5
– 9.5
– 6.3
– 0.2
– 7.5
1.8
2.3
– 7.7
– 7.1
– 22.3
– 18.5
– 1,091.8
– 1,091.8
1,676.6
1,676.6
– 1,168.3
1,609.9
–
–
–
–
–
–
1 The changes in the fair value of other financial contracts were mainly attributable to market-driven price fluctuations and exchange rate movements in the investment
portfolio of investment-linked life insurance contracts with limited or no risk transfer.
218
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219
Financial Report
35. Reconciliation of effective tax rate
35.1 Current income taxes and deferred taxes
CHF million
Current income taxes
Deferred taxes
Total income taxes
2021
2022
– 72.9
– 41.7
– 67.1
– 71.3
– 114.6
– 138.4
Expected and current income taxes
35.2
The expected average tax rate for the Baloise Group was 15.6 per cent in 2021 and 16.7 per cent in 2022. These rates corre-
spond to the weighted average tax rates in those countries where the Baloise Group operates. The reasons for the change
in the expected average tax rate are, firstly, the segment-specific allocation of profit and, secondly, the different tax rates.
CHF million
Profit before taxes
Expected average tax rate (per cent)
Expected income taxes
Increase / reduction owing to
tax-exempt profits and losses
non-tax-effective negative goodwill
non-deductible expenses
withholding taxes on dividends
change in tax rate on recognized deferred tax items
application of different tax rates
change in unrecognised tax losses
tax items related to other reporting periods
non-taxable measurement differences
intercompany effects
other impacts
Current income taxes
2021
2022
697.9
15.63 %
– 109.1
682.9
16.72 %
– 114.2
19.4
–
– 17.9
– 1.1
– 0.1
– 7.4
– 12.0
0.9
1.4
1.2
10.2
– 114.6
21.5
–
– 30.0
– 0.6
– 0.3
– 3.2
– 4.2
4.0
– 4.3
– 0.2
– 7.1
– 138.4
220
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221
36. Eearnings per share
Profit for the period attributable to shareholders (CHF million)
Average number of shares outstanding
Basic earnings per share (CHF)
Profit for the period attributable to shareholders (CHF million)
Average number of shares outstanding
Adjustment due to theoretical exercise of share-based payment plans
Adjusted average number of shares outstanding
Diluted earnings per share (CHF)
Financial Report
2021
588.4
2022
548.0
45,062,127
45,176,614
13.06
12.13
2021
2022
588.4
548.0
45,062,127
45,176,614
38,735
20,193
45,100,862
45,196,807
13.05
12.12
The dilution of earnings was attributable to the Performance Share Units (PSU) share-based payment plan.
220
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221
Financial Report
37. Other comprehensive income
37.1 Other comprehensive income
CHF million
Items not to be reclassified to the income statement
Change in reserves arising from reclassification of investment property
Change in reserves arising from assets and liabilities of post-employment benefits (defined benefit plans)
Change arising from shadow accounting
Exchange differences
Deferred taxes
Total items not to be reclassified to the income statement
Items to be reclassified to the income statement
Available-for-sale financial assets:
Gains and losses arising during the reporting period
Gains and losses reclassified to the income statement
Total available-for-sale financial assets
Investments in associates:
Gains and losses arising during the reporting period
Gains and losses reclassified to the income statement
Total investments in associates
Hedging reserves for derivative financial instruments held as hedges
of a net investment in a foreign operation:
Gains and losses arising during the reporting period
Gains and losses reclassified to the income statement
Total hedging reserves for derivative financial instruments held as hedges
of a net investment in a foreign operation
Reserves arising from reclassification of held-to-maturity financial assets:
Gains and losses arising during the reporting period
Gains and losses reclassified to the income statement
Total reserves arising from reclassification of held-to-maturity financial assets
Change arising from shadow accounting
Exchange differences
Deferred taxes
Total items to be reclassified to the income statement
Total other comprehensive income
222
Baloise Group Annual Report 2022
2021
2022
11.5
350.8
– 35.2
4.6
– 57.7
274.1
–
222.0
– 96.8
4.0
– 31.8
97.4
– 173.4
– 259.4
– 5,463.0
– 225.5
– 432.8
– 5,688.4
2.9
–
2.9
0.3
–
0.3
– 34.8
– 0.6
– 35.4
– 11.9
– 0.4
– 12.4
–
– 0.8
– 0.8
221.0
– 128.7
73.7
–
– 0.8
– 0.8
2,139.5
– 177.5
651.4
– 300.1
– 3,088.0
– 26.0
– 2,990.6
Financial Report
37.2 Deferred taxes on other comprehensive income
CHF million
2021
2022
Other comprehensive income before deferred taxes
– 46.1
– 3,608.0
Deferred taxes of items not to be reclassified to the income statement
Change in reserves arising from reclassification of investment property
Change in reserves arising from assets and liabilities of post-employment benefits (defined benefit plans)
Change arising from shadow accounting
Additions and disposals arising from change in the scope of consolidation
Total deferred taxes of items not to be reclassified to the income statement
Deferred taxes on items to be reclassified to the income statement
Available-for-sale financial assets
Investments in associates
Hedging reserves for derivative financial instruments held as hedges of a net investment
in a foreign operation
Reserves arising from reclassification of held-to-maturity financial assets
Change arising from shadow accounting
Additions and disposals arising from change in the scope of consolidation
Total deferred taxes of items to be reclassified to the income statement
Change arising from exchange differences
Other comprehensive income after deferred taxes
– 4.3
– 64.6
11.2
–
– 57.7
–
– 62.6
30.8
–
– 31.8
117.2
1,076.8
– 0.8
5.4
0.1
– 48.2
–
73.7
– 0.1
1.9
0.1
– 427.3
–
651.4
4.0
– 2.2
– 26.0
– 2,990.6
Baloise Group Annual Report 2022
223
Financial Report
Other disclosures
38. Long-term equity investments and structure of the Baloise Group
38.1 Acquisition and disposal of companies
No companies were acquired or sold in 2022, as had also been the case in 2021.
38.2 Changes to shareholdings
In 2022, there had been no transactions resulting in a change of control over a subsidiary.
Investments in associates
38.3
The Baloise Group holds investments in a number of non-significant associates.
2021
CHF million
Total
2022
CHF million
Total
Carrying
amount
Baloise’s share of
profit or loss for
the period from
continuing
operations
profit or loss for
the period from
disposal groups
held for sale
other
comprehensive
income
comprehensive
income
316.0
4.9
–
2.9
7.8
Carrying
amount
Baloise’s share of
profit or loss for
the period from
continuing
operations
profit or loss for
the period from
disposal groups
held for sale
other
comprehensive
income
comprehensive
income
344.7
4.9
–
0.3
5.2
In February 2022, the Baloise Group acquired 30.2 per cent of the German company MOBIKO, thus expanding its Mobility
ecosystem with the acquisition of a service provider that adds value for businesses and their employees. As a result of
further shares being acquired, the long-term equity investment increased to 39.4 per cent in August 2022.
Baloise also acquired around 35.1 per cent of Luxembourg-based investment fund ECE Haid Center Linz SCSp in the
first half of the year.
In November 2022, the Baloise Group increased its stake in Houzy AG, which operates a homeowner platform, from 13.9
per cent to 37.9 per cent and will now account for Houzy AG as an associate. The increased shareholding relates to the
expansion of the strategic partnership with UBS in the Home ecosystem.
224
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Financial Report
The strategic business units in Germany and Luxembourg invested in the closed investment partnership HL Invest Augs-
burg GmbH & Co. geschlossene Investment-KG in the first half of 2021 and together hold 42.22 per cent of this real estate
fund. Furthermore, the strategic business unit in Germany invested in the closed investment partnership HL Invest Vision
One GmbH & Co. geschlossene Investment-KG in the second half of 2021 and holds 30.15 per cent of this real estate fund.
As at 31 December 2022 or 31 December 2021, the Baloise Group held more than 20 per cent of the capital of further compa-
nies but does not have any influence over these companies’ management. As a result, they are not reported as associates.
There were no contingent liabilities arising from investments in associates and no substantial unrecognised shares of the
losses of associates as at either 31 December 2022 or 31 December 2021.
Baloise Group Annual Report 2022
225
Financial Report
38.4 Significant subsidiaries
Entities are defined as significant if they either individually or together contribute a significant proportion of the gross
premiums, net income or total assets of the Baloise Group. Other long-term equity investments may be included for qual-
itative reasons, e. g. they are listed on a stock exchange.
Group’s
share of
voting
rights /
capital
(per cent)
Direct
share of
voting
rights /
capital
(per cent)
Method of
consoli-
dation 2 Currency
Share
capital
(million)
Total
assets
(million)
Gross
premiums /
policy
fees
(million)
Primary
activity
Operating
segment 1
F
F
F
F
F
F
F
F
F
F
F
F
CHF
CHF
CHF
CHF
CHF
CHF
CHF
EUR
4.6
3,453.3
75.0
5,108.0
50.0 30,736.6
50.0
8,499.4
0.2
1.0
1.5
0.1
28.3
56.5
10.9
10.3
–
1,568.6
2,512.6
–
–
–
–
–
EUR
22.0
9,657.9
383.6
EUR
15.1
1,908.9
799.5
EUR
–
52.2
50.5
EUR
3.6
172.7
–
31.12.2022
Switzerland
Bâloise Holding Ltd, Basel
Baloise Insurance Ltd, Basel
Baloise Life Ltd, Basel
Baloise Bank AG, Solothurn
Haakon AG, Basel
Holding
Non-Life
Life
Banking
Other
Baloise Asset Management AG,
Basel
Investment
management
Baloise Asset Management
International AG, Basel
Baloise Fund Invest Advico,
Bertrange (Luxembourg)
Investment
consulting
Other
O
NL
L
B
O
B
B
B
Holding
Holding
100.00
100.00
100.00
74.75
100.00
100.00
100.00
100.00
74.75
100.00
100.00
100.00
100.00
100.00
Germany
Baloise Lebensversicherung AG
Deutschland
Baloise Sachversicherung AG
Deutschland
Deutsche Niederlassung
der FRIDAY Insurance S. A., Berlin
Baloise Sach Holding AG,
Hamburg
Life
L
100.00
100.00
Non-Life
Non-Life
NL
NL
100.00
100.00
88.61
100.00
Holding
O
100.00
100.00
1 L: Life, NL: Non-Life, B: Banking, O: Other activities / Group business.
2 F: Full consolidation, E: Equity-accounted investment.
226
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Group’s
share of
voting
rights /
capital
(per cent)
Direct
share of
voting
rights /
capital
(per cent)
Method of
consoli-
dation 2 Currency
Share
capital
(million)
Total
assets
(million)
Gross
premiums /
policy
fees
(million)
Primary
activity
Operating
segment 1
31.12.2022
Belgium
Baloise Belgium NV, Antwerp
Euromex NV, Antwerp
Life and
Non-Life
Non-Life
L/NL
100.00
100.00
NL
100.00
100.00
Luxembourg
Baloise Luxembourg Holding S. A.,
Bertrange (Luxemburg)
Baloise Assurances
Luxembourg S. A.,
Bertrange (Luxemburg)
Baloise Vie Luxembourg S. A.,
Bertrange (Luxemburg)
Baloise Private Equity
(Luxembourg) SCS,
Luxemburg
Baloise Alternative Invest S. A.
SICAV-RAIF,
Luxemburg
Other territories
Baloise Life (Liechtenstein) AG,
Balzers
Succursale francaise de la société
FRIDAY Insurance S. A., Paris
Holding
O
100.00
100.00
Non-Life
NL
100.00
100.00
Life
L
100.00
100.00
Investment
management
Investment
management
L/NL
100.00
100.00
L/NL / O
100.00
100.00
Life
L
100.00
100.00
Non-Life
NL
88.61
100.00
1 L: Life, NL: Non-Life, B: Banking, O: Other activities / Group business.
2 F: Full consolidation, E: Equity-accounted investment.
F
F
F
F
F
F
F
F
F
EUR
355.3 12,584.6
1,641.8
EUR
2.7
250.9
90.2
CHF
250.0
1,905.0
–
EUR
15.8
365.1
141.1
EUR
32.7 10,031.8
65.8
USD
0.0
1,050.1
USD
–
1,721.4
CHF
7.5
2,276.6
EUR
–
6.2
–
–
0.8
1.1
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Financial Report
39. Related party transactions
In the course of its ordinary operating activities, the Baloise Group conducts transactions with associates, key manage-
ment personnel and related parties.
The executive management team consists of the members of Bâloise Holding Ltd’s Board of Directors and Corpo-
rate Executive Committee.
Related party transactions
Premiums earned
and policy fees
Investment
income
Expenses
Mortgages and loans
Liabilities
2021
2022
2021
2022
2021
2022
31.12.2021 31.12.2022
31.12.2021 31.12.2022
CHF million
Associates
Key management personnel
–
0.1
–
0.1
1.9
0.0
2.7
0.0
– 23.0
– 18.2
– 11.1 1
– 11.1
–
5.5
–
6.0
– 2.6
–
– 2.5
–
1 From 2022 onwards, the value of shares in the Share Participation Plan is stated at market price and no longer at the reduced subscription price with a separate discount. The
closing price on 1 June 2022 was used for the Board of Directors and the closing price on 1 March 2022 was used for the Corporate Executive Committee (in contrast with the
2021 remuneration report, in which the closing price on 31 May 2021 was used for the Board of Directors and the closing price on 10 January 2022 was used for the Corporate
Executive Committee). The disclosure of remuneration for 2021 has been adjusted accordingly.
Executive management team remuneration
CHF million
Short-term employee benefits
Post-employment benefits
Payments under share-based payment plans1
Total
2021
2022
– 6.3
– 1.0
– 3.7
– 11.1
– 6.4
– 1.0
– 3.6
– 11.1
1 From 2022 onwards, the value of shares in the Share Participation Plan is stated at market price and no longer at the reduced subscription price with a separate discount. The
closing price on 1 June 2022 was used for the Board of Directors and the closing price on 1 March 2022 was used for the Corporate Executive Committee (in contrast with the
2021 remuneration report, in which the closing price on 31 May 2021 was used for the Board of Directors and the closing price on 10 January 2022 was used for the Corporate
Executive Committee). The disclosure of remuneration for 2021 has been adjusted accordingly.
17,851 shares worth CHF 2.8 million were repurchased from members of the Corporate Executive Committee in 2022 (2021:
CHF 2.2 million) under the Share Participation Plan (section 17.4.3).
40. Contingent and future liabilities
40.1 Contingent liabilities
40.1.1 Legal disputes
The companies in the Baloise Group are regularly involved in litigation, legal claims and lawsuits, which in most cases
constitute a normal part of its operating activities as an insurer.
The Corporate Executive Committee is not aware of any facts that materialised after the balance sheet date of
31 December 2022 and that could have a significant impact on the 2022 consolidated annual financial statements.
228
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229
Financial Report
40.1.2 Guarantees and collateral for the benefit of third parties
The Baloise Group has issued guarantees and provided collateral to third parties. These include obligations – in contractu-
ally specified cases – to make capital contributions or payments to increase the amount of equity, provide funds to cover
principal and interest payments when they fall due, and issue guarantees as part of its operating activities. The Baloise
Group is not aware of any cases of default that could trigger such guarantee payments.
In the normal course of its insurance business, the Baloise Group provided contractually binding collateral, mainly joint
collateral relating to insurance-backed construction guarantees, and professional and commercial surety bonds.
CHF million
Guarantees
Collateral
Total guarantees and collateral for the benefit of third parties
Credit ratings of guarantees and collateral
31.12.2021
31.12.2022
58.9
482.5
541.3
45.8
459.7
505.4
31.12.2021
CHF million
Guarantees
Collateral
31.12.2022
CHF million
Guarantees
Collateral
AAA
AA
A
BBB
Lower
than BBB
or no rating
–
–
–
–
30.4
–
–
–
28.4
482.5
AAA
AA
A
BBB
Lower
than BBB
or no rating
–
–
–
–
30.5
–
–
–
15.2
459.7
Total
58.9
482.5
Total
45.8
459.7
228
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229
Financial Report
40.1.3 Pledged or ceded assets, securities-lending assets and collateral held
Carrying amounts of assets pledged or ceded as collateral
CHF million
Financial assets under repurchase agreements
Financial assets in the context of securities lending
Investments
Pledged intangible assets
Pledged property, plant and equipment
Other
Total
Fair value of collateral held
CHF million
Financial assets under reverse repurchase agreements
Financial assets in the context of securities lending
Other
Total
Of which: sold or repledged
– with an obligation to return the assets
– with no obligation to return the assets
31.12.2021
31.12.2022
222.0
3,755.9
2,763.0
237.6
3,073.3
3,048.9
–
–
–
–
–
–
6,741.0
6,359.8
31.12.2021
31.12.2022
–
464.1
4,827.0
3,896.8
–
–
4,827.0
4,360.9
–
–
–
–
The Baloise Group engages in securities-lending transactions that may give rise to credit risk. Collateral is required in order
to hedge these credit risks by more than covering the underlying value of the securities that are being lent (mainly bonds).
The value of the counterparty’s lending securities is regularly measured in order to minimise the credit risk involved. Addi-
tional collateral is immediately required if this value falls below the value of cover provided.
The Baloise Group retains control over the loaned securities throughout the term of its lending transactions. The income
received from securities lending is recognised in profit or loss.
230
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231
Financial Report
31.12.2021
31.12.2022
279.2
186.7
1,475.3
1,842.8
–
–
–
–
1,754.5
2,029.6
AAA
484.9
AAA
418.4
AA
–
AA
–
A
BBB
Lower
than BBB
or no rating
Total
30.5
–
1,239.1
1,754.5
A
BBB
Lower
than BBB
or no rating
Total
14.2
–
1,596.9
2,029.6
40.2
Future liabilities
40.2.1 Capital commitments
CHF million
Commitments undertaken for future acquisition of
investment property
financial assets
property, plant and equipment
intangible assets
Total commitments undertaken
31.12.2021
CHF million
Capital commitments
31.12.2022
CHF million
Capital commitments
Obligations undertaken by the Baloise Group to make future purchases of investments include commitments in respect
of private equity, which constitute unfunded commitments to invest directly in private equity or to invest in private equity
funds. From 2020 onwards, additional investment obligations in connection with the Dutch mortgage fund will be reported
under commitments regarding the future acquisition of investments.
230
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Financial Report
41. Leases
Baloise as a lessee
41.1
Generally, leases are entered into only if a purchase would be economically disadvantageous or is not possible. The Baloise
Group leases real estate for office space and warehousing that it recognises on its balance sheet. Right-of-use assets are
recognised under the line item ’Property, plant and equipment’ and the lease liabilities under ’Financial liabilities’ on the
balance sheet. The leases are negotiated individually and contain a variety of different conditions to give the Baloise Group
the maximum operational flexibility with regard to the overall lease portfolio. As a rule, the leases are entered into for a term
of two to five years. Possible extension options are factored into the measurement of lease liabilities, provided that it is suffi-
ciently certain that the options will be exercised. Any non-leasing components within a lease are not treated separately.
Instead, they are also taken into account in the measurement of the relevant lease liability.
Low-value and short-term leases for operating equipment, parking spaces and other property, plant and equipment are
expensed in the income statement on a straight-line basis over the term of the lease. They are not recognised on the balance
sheet.
Due dates of undiscounted lease liabilities
CHF million
Due within one year
Due after one to three years
Due after three to five years
Due after five years or more
Total contractual cash flows
Book value lease liabilities
Leasing in the income Statement
CHF million
Income relating to sublease contracts
Expenses relating to leases of low-value and short-term leases
Interests expenses on leasing liabilities
Depreciation and impairment of right-of-use assets
2021
2022
11.0
11.2
2.4
3.7
28.2
26.5
9.5
9.6
6.8
0.6
26.5
25.9
2021
2022
0.8
– 6.5
– 0.4
0.5
– 5.0
– 0.3
– 12.8
– 11.7
Leases that have not yet started
Baloise Assurances Luxembourg S. A. has signed a binding lease with a third party for the rental of an office building in
Luxembourg. The office building has been occupied since January 2023 and has been made available until 2037. The right-
of-use asset and lease liability for this lease each amount to CHF 43.0 million
232
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233
Financial Report
41.2 Baloise as a lessor
The Baloise Group has entered into operating leasing arrangements in order to lease its investment property to third
parties. There were no further leasing arrangements at the balance sheet date.
Due dates of leasing income
CHF million
Due within one year
Due after one to three years
Due after three to five years
Due after five years or more
Total
Leasing in the income Statement
CHF million
Fixed lease income
Variable lease income
Leasing income
2021
2022
349.5
668.8
725.1
177.7
353.7
673.6
769.7
141.4
1,921.1
1,938.4
2021
2022
365.3
–
365.3
362.0
2.0
363.9
38. Events after the balance sheet date
On 30 January 2023, Bâloise Holding Ltd issued a senior green bond on behalf of the Baloise Group with a volume of CHF
175 million and a coupon of 2.20 per cent (maturity period: 2023–2032, ISIN CH1232107180) as part of its funding activities.
By the time that these consolidated annual financial statements had been completed on 22 March 2023, we had not become
aware of further events that would have a material impact on the consolidated annual financial statements as a whole.
232
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233
Financial Report
Ernst & Young Ltd
Ernst & Young AG
Aeschengraben 27
Aeschengraben 27
P.O. Box
Postfach
CH-4002 Basel
CH-4002 Basel
Phone:
Telefon:
Fax:
Fax:
www.ey.com/ch
www.ey.com/ch
+41 58 286 86 86
+41 58 286 86 00
+41 58 286 86 86
+41 58 286 86 00
To the Annual General Meeting of
An die Generalversammlung der
Bâloise Holding Ltd, Basel
Bâloise Holding AG, Basel
Basel, 22 March 2023
Basel, 24. März 2021
Bericht der Revisionsstelle zur Prüfung des Finanzberichtes
Report of the statutory auditor
Report on the audit of the financial statements
Prüfungsurteil
Wir haben den Finanzbericht (Seiten 134 bis 281) der Bâloise Holding AG und ihrer Tochter-
gesellschaften (der Konzern oder die Baloise Group) – bestehend aus der konsolidierten
Bilanz zum 31. Dezember 2020, der konsolidierten Erfolgsrechnung, der konsolidierten
Gesamtergebnisrechnung, der konsolidierten Geldflussrechnung, dem konsolidierten Eigen-
Opinion
kapitalnachweis für das dann endende Jahr sowie dem Anhang des Finanzberichtes, ein-
We have audited the consolidated financial statements (pages 81-233) of Bâloise Holding Ltd
schliesslich einer Zusammenfassung bedeutsamer Rechnungslegungsmethoden – geprüft.
and its subsidiaries (the “Group”), which comprise the consolidated balance sheet as at 31
December 2022, the consolidated income statement, the consolidated statement of
Nach unserer Beurteilung vermittelt der Finanzbericht ein den tatsächlichen Verhältnissen
comprehensive income, the consolidated cash flow statement, the consolidated statement of
entsprechendes Bild der Vermögens- und Finanzlage des Konzerns zum 31. Dezember 2020
changes in equity for the year then ended, and the notes to the consolidated financial
sowie dessen Ertragslage und Cashflows für das dann endende Jahr in Übereinstimmung mit
statements, including a summary of significant accounting policies.
den International Financial Reporting Standards (IFRS) und entspricht dem schweizerischen
Gesetz.
In our opinion the consolidated financial statements give a true and fair view of the
consolidated financial position of the Group as at 31 December 2022, and its consolidated
Grundlage für das Prüfungsurteil
financial performance and its consolidated cash flows for the year then ended in accordance
with International Financial Reporting Standards (IFRS) and comply with Swiss law.
Wir haben unsere Prüfung in Übereinstimmung mit dem schweizerischen Gesetz, den
International Standards on Auditing (ISA) sowie den Schweizer Prüfungsstandards (PS)
Basis for opinion
durchgeführt. Unsere Verantwortlichkeiten nach diesen Vorschriften und Standards sind im
We conducted our audit in accordance with Swiss law, International Standards on Auditing
Abschnitt „Verantwortlichkeiten der Revisionsstelle für die Prüfung des Finanzberichtes“
(ISA) and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions
unseres Berichts weitergehend beschrieben.
and standards are further described in the “Auditor's responsibilities for the audit of the
consolidated financial statements” section of our report. We are independent of the Group in
Wir sind von dem Konzern unabhängig in Übereinstimmung mit den schweizerischen gesetz-
accordance with the provisions of Swiss law, together with the requirements of the Swiss
lichen Vorschriften und den Anforderungen des Berufsstands sowie dem Code of Ethics for
audit profession, as well as those of the International Ethics Standards Board for
Professional Accountants des International Ethics Standards Board for Accountants (IESBA
Accountants’ International Code of Ethics for Professional Accountants (including
Code), und wir haben unsere sonstigen beruflichen Verhaltenspflichten in Übereinstimmung
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
mit diesen Anforderungen erfüllt.
responsibilities in accordance with these requirements.
Wir sind der Auffassung, dass die von uns erlangten Prüfungsnachweise ausreichend und
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
geeignet sind, um als Grundlage für unser Prüfungsurteil zu dienen.
a basis for our opinion.
Besonders wichtige Prüfungssachverhalte
Key audit matters
Besonders wichtige Prüfungssachverhalte sind solche Sachverhalte, die nach unserem
Key audit matters are those matters that, in our professional judgement, were of most
pflichtgemässen Ermessen am bedeutsamsten für unsere Prüfung des Finanzberichtes des
significance in our audit of the consolidated financial statements of the current period. These
aktuellen Zeitraums waren. Diese Sachverhalte wurden im Zusammenhang mit unserer
matters were addressed in the context of our audit of the consolidated financial statements as
Prüfung des Finanzberichtes als Ganzes und bei der Bildung unseres Prüfungsurteils hierzu
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
berücksichtigt, und wir geben kein gesondertes Prüfungsurteil zu diesen Sachverhalten ab.
these matters. For each matter below, our description of how our audit addressed the matter
Für jeden nachfolgend aufgeführten Sachverhalt ist die Beschreibung, wie der Sachverhalt in
is provided in that context.
der Prüfung behandelt wurde, vor diesem Hintergrund verfasst.
234
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235
Financial Report
We have fulfilled the responsibilities described in the section Auditor’s responsibilities for the
audit of the consolidated financial statements of our report. Accordingly, our audit included
procedures designed to respond to our assessment of the risks of material misstatement of
the consolidated financial statements. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion
on the consolidated financial statements.
Valuation of claims reserves - non-life
Area of focus Claims reserves non-life include Management’s estimate of notified but
not yet paid claims at the balance sheet date, reserves for incurred but
not reported losses (IBNR) and the provision for claims handling costs.
Inappropriate valuation of the claims reserves non-life could result in a
misstatement to the financial statements of the Group and its overall
financial position. The valuation of claims reserves non-life involves a
significant amount of Management’s judgement. The selection of
methodology, underlying assumptions and input parameters may
significantly affect the annual result and the Group’s equity position.
Management discloses the valuation principles used in the recognition
of the claims reserves in notes 3.18 “Non-life insurance contracts” and
5.4.2 “Assumptions”. The impact of various scenarios is described in
note 5.4.4 “Sensitivity analysis”, in particular what the impact of
estimation errors would be on the claims reserves. We also refer to 22.1
in the notes of the Group’s financial statements.
As part of the audit of the significant portfolios, we involved our non-life
insurance actuarial specialists to independently assess the
methodology and the underlying assumptions used by Management.
Our assessment of the claims reserves included an independent
valuation and a comparison to the Group’s financial statements.
We further assessed the operating effectiveness of selected key
controls over the input parameters and the mathematical correctness of
the actuarial calculations. In addition, we evaluated the required
disclosures in the notes to the financial statements.
Based on our audit procedures we did not identify exceptions with
regard to the valuation of claims reserves non-life.
Our audit
response
Valuation of actuarial reserves from non-unit-linked life insurance contracts
Area of focus Life insurance technical reserves consist of the actuarial reserves and
the policyholders’ dividends credited and provisions for future
policyholders’ dividends. The actuarial reserves are valued using
actuarial methodologies and assumptions (such as biometric, economic
and cost assumptions).
Inappropriate valuation of the life insurance technical reserves could
result in a misstatement to the financial statements of the Group and its
overall financial position. The valuation of technical reserves for life
insurance contracts involves a significant amount of Management’s
judgement. The selection of methodology, underlying assumptions and
234
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
235
We have fulfilled the responsibilities described in the section Auditor’s responsibilities for the
audit of the consolidated financial statements of our report. Accordingly, our audit included
procedures designed to respond to our assessment of the risks of material misstatement of
the consolidated financial statements. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion
on the consolidated financial statements.
Valuation of claims reserves - non-life
Area of focus Claims reserves non-life include Management’s estimate of notified but
not yet paid claims at the balance sheet date, reserves for incurred but
not reported losses (IBNR) and the provision for claims handling costs.
Financial Report
Our audit
response
Inappropriate valuation of the claims reserves non-life could result in a
misstatement to the financial statements of the Group and its overall
financial position. The valuation of claims reserves non-life involves a
significant amount of Management’s judgement. The selection of
methodology, underlying assumptions and input parameters may
significantly affect the annual result and the Group’s equity position.
Management discloses the valuation principles used in the recognition
of the claims reserves in notes 3.18 “Non-life insurance contracts” and
5.4.2 “Assumptions”. The impact of various scenarios is described in
note 5.4.4 “Sensitivity analysis”, in particular what the impact of
estimation errors would be on the claims reserves. We also refer to 22.1
in the notes of the Group’s financial statements.
As part of the audit of the significant portfolios, we involved our non-life
insurance actuarial specialists to independently assess the
methodology and the underlying assumptions used by Management.
Our assessment of the claims reserves included an independent
valuation and a comparison to the Group’s financial statements.
We further assessed the operating effectiveness of selected key
controls over the input parameters and the mathematical correctness of
the actuarial calculations. In addition, we evaluated the required
disclosures in the notes to the financial statements.
Based on our audit procedures we did not identify exceptions with
regard to the valuation of claims reserves non-life.
Valuation of actuarial reserves from non-unit-linked life insurance contracts
Area of focus Life insurance technical reserves consist of the actuarial reserves and
the policyholders’ dividends credited and provisions for future
policyholders’ dividends. The actuarial reserves are valued using
actuarial methodologies and assumptions (such as biometric, economic
and cost assumptions).
Inappropriate valuation of the life insurance technical reserves could
result in a misstatement to the financial statements of the Group and its
overall financial position. The valuation of technical reserves for life
insurance contracts involves a significant amount of Management’s
judgement. The selection of methodology, underlying assumptions and
input parameters may significantly affect the annual result and the
Group’s equity position.
Management discloses the valuation principles used in the recognition
of technical reserves for life insurance contracts in note 3.19 “Life
insurance contracts and financial contracts with discretionary
participation features” and 5.5.2 “Assumptions” in the financial report.
The impact of various scenarios on actuarial reserves is described in
note 5.5.3 “Sensitivity analysis”. We also refer to note 22.2 of the
Group’s financial statements, providing the financials of the technical
provisions.
Our audit
response
As part of the audit, we involved our life insurance actuarial specialists.
On a sample basis, the actuaries assessed the methodology and
underlying assumptions used by Management as well as the
implementation of the technical reserves based on tariff assumptions.
In addition, we assessed the actuarial reserves by reviewing
Management’s Liability Adequacy Tests (LAT). We further tested the
operating effectiveness of selected key controls over the input
parameters and the mathematical correctness of the actuarial
calculations. In addition, we evaluated the required disclosures in the
notes to the financial statements.
Based on our audit procedures we did not identify exceptions with
regard to the valuation of life insurance technical reserves.
Other information
The Board of Directors is responsible for the other information. The other information
comprises all information included in the annual report, but does not include the consolidated
financial statements, the stand-alone financial statements, the remuneration report and our
auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is
materially inconsistent with the consolidated financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Baloise Group Annual Report 2022
236
Board of Directors’ responsibilities for the consolidated financial statements
The Board of Directors is responsible for the preparation of the consolidated financial
statements, which give a true and fair view in accordance with IFRS and the provisions of
Swiss law, and for such internal control as the Board of Directors determines is necessary to
Baloise Group Annual Report 2022
237
input parameters may significantly affect the annual result and the
Group’s equity position.
Management discloses the valuation principles used in the recognition
of technical reserves for life insurance contracts in note 3.19 “Life
insurance contracts and financial contracts with discretionary
participation features” and 5.5.2 “Assumptions” in the financial report.
The impact of various scenarios on actuarial reserves is described in
note 5.5.3 “Sensitivity analysis”. We also refer to note 22.2 of the
Group’s financial statements, providing the financials of the technical
provisions.
Financial Report
Our audit
response
As part of the audit, we involved our life insurance actuarial specialists.
On a sample basis, the actuaries assessed the methodology and
underlying assumptions used by Management as well as the
implementation of the technical reserves based on tariff assumptions.
In addition, we assessed the actuarial reserves by reviewing
Management’s Liability Adequacy Tests (LAT). We further tested the
operating effectiveness of selected key controls over the input
parameters and the mathematical correctness of the actuarial
calculations. In addition, we evaluated the required disclosures in the
notes to the financial statements.
Based on our audit procedures we did not identify exceptions with
regard to the valuation of life insurance technical reserves.
Other information
The Board of Directors is responsible for the other information. The other information
comprises all information included in the annual report, but does not include the consolidated
financial statements, the stand-alone financial statements, the remuneration report and our
auditor’s reports thereon.
Our opinion on the consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is
materially inconsistent with the consolidated financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Board of Directors’ responsibilities for the consolidated financial statements
The Board of Directors is responsible for the preparation of the consolidated financial
statements, which give a true and fair view in accordance with IFRS and the provisions of
Swiss law, and for such internal control as the Board of Directors determines is necessary to
enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern, and using the going concern basis of accounting unless the
Board of Directors either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Auditor's responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss
law, ISA and SA-CH will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the
basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on EXPERTsuisse’s website at: https://www.expertsuisse.ch/en/audit-
report. This description forms an integral part of our report.
Report on other legal and regulatory requirements
In accordance with Art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal
control system exists, which has been designed for the preparation of the consolidated
financial statements according to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
Ernst & Young Ltd
Christian Fleig
Licensed audit expert
(Auditor in charge)
Patrick Schwaller
Licensed audit expert
Baloise Group Annual Report 2022
237
This audit report is a translation of the audit report issued in German. Please also refer to the disclosure on page 269 “Information on
the Baloise Group” referencing the fact that only the German text of the annual report is legally binding.
236
Baloise Group Annual Report 2022
Financial Report
enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for
enable the preparation of consolidated financial statements that are free from material
assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
misstatement, whether due to fraud or error.
matters related to going concern, and using the going concern basis of accounting unless the
Board of Directors either intends to liquidate the Group or to cease operations, or has no
In preparing the consolidated financial statements, the Board of Directors is responsible for
realistic alternative but to do so.
assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern, and using the going concern basis of accounting unless the
Auditor's responsibilities for the audit of the consolidated financial statements
Board of Directors either intends to liquidate the Group or to cease operations, or has no
Our objectives are to obtain reasonable assurance about whether the consolidated financial
realistic alternative but to do so.
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
Auditor's responsibilities for the audit of the consolidated financial statements
level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss
Our objectives are to obtain reasonable assurance about whether the consolidated financial
law, ISA and SA-CH will always detect a material misstatement when it exists. Misstatements
statements as a whole are free from material misstatement, whether due to fraud or error,
can arise from fraud or error and are considered material if, individually or in the aggregate,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
they could reasonably be expected to influence the economic decisions of users taken on the
level of assurance, but is not a guarantee that an audit conducted in accordance with Swiss
basis of these consolidated financial statements.
law, ISA and SA-CH will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate,
A further description of our responsibilities for the audit of the consolidated financial
they could reasonably be expected to influence the economic decisions of users taken on the
statements is located on EXPERTsuisse’s website at: https://www.expertsuisse.ch/en/audit-
basis of these consolidated financial statements.
report. This description forms an integral part of our report.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on EXPERTsuisse’s website at: https://www.expertsuisse.ch/en/audit-
report. This description forms an integral part of our report.
Report on other legal and regulatory requirements
Report on other legal and regulatory requirements
In accordance with Art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal
control system exists, which has been designed for the preparation of the consolidated
financial statements according to the instructions of the Board of Directors.
In accordance with Art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal
We recommend that the consolidated financial statements submitted to you be approved.
control system exists, which has been designed for the preparation of the consolidated
financial statements according to the instructions of the Board of Directors.
Ernst & Young Ltd
We recommend that the consolidated financial statements submitted to you be approved.
Ernst & Young Ltd
Christian Fleig
Licensed audit expert
(Auditor in charge)
Christian Fleig
Licensed audit expert
(Auditor in charge)
Patrick Schwaller
Licensed audit expert
Patrick Schwaller
Licensed audit expert
This audit report is a translation of the audit report issued in German. Please also refer to the disclosure on page 269 “Information on
the Baloise Group” referencing the fact that only the German text of the annual report is legally binding.
This audit report is a translation of the audit report issued in German. Please also refer to the disclosure on page 269 “Information on
the Baloise Group” referencing the fact that only the German text of the annual report is legally binding.
238
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
239
Financial Report
238
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
239
This page has been left empty on purpose.
240
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241
Bâloise Holding Ltd
Income statement of Bâloise Holding Ltd
Balance sheet of Bâloise Holding Ltd
Notes to the financial statements of Bâloise
Holding Ltd
Appropriation of distributable profit as proposed
by the Board of Directors
Report of the statutory auditor to the Annual
General Meeting of Bâloise Holding Ltd, Basel
242
243
244
253
254
240
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Baloise Group Annual Report 2022
241
241
Bâloise Holding Ltd
Income statement of Bâloise Holding Ltd
CHF million
Income from long-term equity investments
Income from interest and securities
Other income
Total income
Administrative expenses
Financial expenses
Interest expenses
Other expenses
Total expenses
Tax expense
Profit for the period
Note
2021
2022
2
3
4
5
393.0
58.1
8.2
459.3
– 39.0
– 3.0
– 22.3
– 2.6
– 66.9
432.4
38.5
11.8
482.7
– 44.5
– 6.0
– 19.8
– 3.5
– 73.8
– 0.9
– 1.5
391.5
407.3
242
Baloise Group Annual Report 2022
Balance sheet of Bâloise Holding Ltd
CHF million
Assets
Cash and cash equivalents
Receivables from group companies
Receivables from third parties
Other short-term receivables
Current assets
Financial assets
Loans to group companies
Other investments
Long-term equity investments
Non-current assets
Total assets
Equity and liabilities
Current liabilities
Liabilities to group companies
Liabilities to third parties
Current interest-bearing liabilities to third parties
Deferred income
Non-current liabilities
Long-term interest-bearing liabilities to group companies
Long-term interest-bearing liabilities to third parties
Provisions
Liabilities
Share capital
Statutory retained earnings
General reserve
Reserve for treasury shares
Voluntary retained earnings
Free reserves
Distributable profit:
– Profit carried forward
– Profit for the period
Treasury shares
Equity
Total equity and liabilities
Bâloise Holding Ltd
Note
31.12.2021
31.12.2022
6
7
8
9
10
11
89.2
345.5
7.4
80.0
522.1
97.0
378.2
7.6
84.0
566.8
1,158.8
1,219.1
3.1
1,907.9
3,069.8
–
1,953.4
3,172.5
3,591.9
3,739.3
4.3
2.3
350.0
9.8
7.6
2.3
225.0
9.4
765.6
637.1
12
1,550.0
1,860.0
0.7
0.9
2,682.8
2,742.3
4.6
4.6
11.7
7.6
11.7
7.8
502.8
573.6
0.1
391.5
– 9.3
909.1
0.0
407.3
– 8.1
997.0
3,591.9
3,739.3
13
14
Baloise Group Annual Report 2022
243
Bâloise Holding Ltd
Notes to the financial statements of Bâloise Holding Ltd
1. Accounting Policies
General
These annual financial statements of Bâloise Holding Ltd domiciled in Basel have been prepared in accordance with the
provisions of Swiss accounting law (Title 32 of the Swiss Code of Obligations). The main policies applied which are not
prescribed by law are described below.
All amounts shown in these annual financial statements of Bâloise Holding Ltd are stated in millions of Swiss francs
(CHF million) and have been rounded to one decimal place. Consequently, the sum total of amounts that have been rounded
may in isolated cases differ from the rounded total shown in this report.
Cash and cash equivalents
Cash and cash equivalents include bank deposits and cash equivalents such as call money, fixed-term deposits and money
market instruments. They are recognised at their nominal amount.
Receivables from group companies
This line item includes expenses relating to the new financial year that have been paid in advance and income from the
reporting year that will not be received until a later date. It also comprises dividends approved by subsidiaries’ annual
general meetings at the balance sheet date, which Bâloise Holding reports as dividends receivable. They are recognised
at their nominal amount.
Receivables from third parties / other short-term receivables
Receivables are recognised at their nominal amount less any impairment losses.
Loans to group companies
These loans are measured at their nominal amount less any impairment losses. Specific write-downs are recognised for all
identifiable risks in accordance with the prudence principle.
Derivative financial instruments
Derivative financial instruments are generally measured at fair value. Where applicable, the effect of the derivative is offset
against the inverse effect of the underlying instrument.
Long-term equity investments
Long-term equity investments are recognised individually at cost less any impairment losses.
244
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245
Bâloise Holding Ltd
Liabilities
Liabilities are recognised at their nominal amount.
Deferred income and accrued expenses
This line item comprises income relating to the new financial year that has already been received, as well as expenses
relating to the reporting year that will not be paid until a later date.
Interest-bearing liabilities
Interest-bearing liabilities include bonds to third parties and interest-bearing liabilities to group companies are recognised
at their nominal amount. Issuance costs – less any premiums – are charged in full to the income statement at the time
the bonds are issued. The liabilities are categorised as current (less than twelve months) or non-current interest-bearing
liabilities depending on their residual term.
Provisions
Provisions to cover any risks that may arise are recognised in accordance with the principles of risk-based management
and are charged to the income statement.
Treasury shares
Treasury shares are recognised at cost on the date of acquisition as deductions from equity. If the shares are subsequently
sold, any gains or losses are recognised in profit or loss as financial income or expense.
Currency risk
Asset and liability positions in foreign currencies are translated using the closing rate as at the balance sheet date (with
the exception of long-term equity investments). The resulting differences are recognised in the income statement. In the
case of hedged foreign currency positions, the effect of the underlying instrument is offset against the inverse effect of the
derivative hedge instrument.
244
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245
Bâloise Holding Ltd
Notes to the income statement
2. Income from interest and securities
CHF million
Income from treasury shares
Interest on loans to group companies
Realized income treasury shares
Other income from interest and securities
Total income from interest and securities
3. Other income
CHF million
Sundry other income
Total other income
4. Administrative expenses
CHF million
Personnel expenses 1
Other administrative expenses
Total administrative expenses
1 Bâloise Holding Ltd has no direct employees. All staff members are employed by Baloise Insurance Ltd, Basel.
5. Interest expenses
CHF million
Interest on bonds
Other interest expenses
Total interest expenses
2021
2022
19.5
38.4
0.3
– 0.2
58.1
0.4
38.1
0.1
– 0.1
38.5
2021
2022
8.2
8.2
11.8
11.8
2021
2022
– 23.0
– 16.0
– 39.0
– 26.5
– 18.1
– 44.5
2021
2022
– 14.9
– 7.4
– 22.3
– 12.5
– 7.3
– 19.8
246
Baloise Group Annual Report 2022
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247
Notes to the balance sheet
6. Receivables from group companies
CHF million
Dividends
Other receivables
Total receivables from group companies
Bâloise Holding Ltd
31.12.2021
31.12.2022
323.1
22.3
345.5
368.0
10.2
378.2
The annual general meeting of the following AGMs voted to recognise the dividends receivable for the 2022 financial
year as accrued income:
● 16 February 2023: Haakon AG, Basel
● 27 February 2023: Baloise Bank AG, Solothurn
● 8 March 2023: Baloise Asset Management AG, Basel and Baloise Asset Management International AG, Basel
● 21 March 2023: Baloise Versicherung AG, Basel and Baloise Leben AG, Basel
● 13 April 2023: Baloise Delta Holding S. à.r.l., Bertrange (Luxemburg)
7. Other short-term receivables
CHF million
Short-term promissory note loans
Total other short-term receivables
8. Loans to group companies
CHF million
Subordinated loans to Baloise Bank AG
Subordinated loans to Baloise (Luxembourg) Holding S. A.
Subordinated loans to Baloise Belgium NV
Subordinated loans to Baloise Vie Luxembourg S. A.
Loans to Baloise (Luxembourg) Holding S. A.
Loans to Baloise Beteiligungen B. V. & Co. KG
Loans to Baloise Sach Holding AG
Total loans to group companies
31.12.2021
31.12.2022
80.0
80.0
84.0
84.0
31.12.2021
31.12.2022
40.0
284.6
394.3
72.6
283.7
40.5
43.0
90.0
284.6
375.3
69.1
318.6
38.6
43.0
1,158.8
1,219.1
246
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247
Bâloise Holding Ltd
9. Other investments
In 2021, the item ’Other investments’ included an internal derivative hedge instrument that was measured at fair value.
10. Long-term equity investments
Total
shareholding
as at
31.12.2021
(with voting
rights)
Total
shareholding
as at
31.12.2022
(with voting
rights)
Share capital
as at
31.12.2022 Capital share
(per cent) 1
(per cent) 1
Currency
(million)
(million)
100.00
100.00
100.00
100.00
100.00
74.75
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.75
100.00
100.00
100.00
100.00
100.00
100.00
100.00
–
100.00
CHF
CHF
CHF
CHF
CHF
CHF
CHF
EUR
CHF
EUR
EUR
EUR
EUR
CHF
CHF
75.0
50.0
50.0
1.0
1.5
0.2
7.5
<0.1
250.0
224.3
0.1
<0.1
<0.1
–
0.1
75.0
50.0
50.0
1.0
1.5
0.1
7.5
<0.1
250.0
224.3
0.1
<0.1
<0.1
–
0.1
Company
Baloise Versicherung AG, Basel
Baloise Leben AG, Basel
Baloise Bank AG, Solothurn
Baloise Asset Management AG, Basel
Baloise Asset Management International AG, Basel
Haakon AG, Basel
Baloise Life (Liechtenstein) AG, Balzers
Basler Saturn Management B. V., Amsterdam
Baloise (Luxembourg) Holding S. A., Bertrange (Luxembourg)
Baloise Delta Holding S. à.r.l., Bertrange (Luxembourg)
Baloise Fund Invest Advico, Bertrange (Luxembourg)
Baloise Alternative Investments Partner S.à r. l., Bertrange
(Luxembourg)
Baloise Private Equity Partner S.à r. l., Bertrange (Luxembourg)
Baloise Finance (Jersey) Ltd, St. Helier (Jersey)
Baloise Participation Holding AG, Basel
1 Investments stated as a percentage are rounded down.
11. Current interest-bearing liabilities to third parties
31.12.2021
Interest rate
Issued Maturity date
Securities with security number
Bond 19 469 508
Bond 49 669 296
Total current interest-bearing liabilities
2.000 %
0.000 %
12.10.2012
12.10.2022
25.09.2019
23.09.2022
31.12.2022
Interest rate
Issued Maturity date
Securities with security number
Bond 20 004 482
Total current interest-bearing liabilities
1.750 %
26.04.2013
26.04.2023
Amount
CHF million
150.0
200.0
350.0
Amount
CHF million
225.0
225.0
248
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249
Bâloise Holding Ltd
12. Long-term interest-bearing liabilities to third parties
31.12.2021
Interest rate
Issued Maturity date
Securities with security number
Bond 20 004 482
Bond 26 139 906
Bond 45 809 797
Bond 49 669 297
Bond 49 669 298
Bond 55 333 181
Bond 55 333 182
Bond 59 364 106
Bond 113 081 883
Total long-term interest-bearing liabilities
1.750 %
1.125 %
0.500 %
0.000 %
0.000 %
0.250 %
0.500 %
0.150 %
0.125 %
26.04.2013
26.04.2023
19.12.2014
19.12.2024
28.01.2019
28.11.2025
25.09.2019
25.09.2026
25.09.2019
25.09.2029
16.07.2020
16.12.2026
16.07.2020
16.12.2030
15.02.2021
17.02.2031
27.09.2021
27.06.2030
31.12.2022
Interest rate
Issued Maturity date
Securities with security number
Bond 26 139 906
Bond 45 809 797
Bond 49 669 297
Bond 49 669 298
Bond 55 333 181
Bond 55 333 182
Bond 59 364 106
Bond 113 081 883
Bond 114 872 821
Bond 119 932 235
Bond 120 636 766
Total long-term interest-bearing liabilities
1.125 %
0.500 %
0.000 %
0.000 %
0.250 %
0.500 %
0.150 %
0.125 %
0.300 %
1.900 %
2.200 %
19.12.2014
19.12.2024
28.01.2019
28.11.2025
25.09.2019
25.09.2026
25.09.2019
25.09.2029
16.07.2020
16.12.2026
16.07.2020
16.12.2030
15.02.2021
17.02.2031
27.09.2021
27.06.2030
16.02.2022
16.02.2027
19.07.2022
19.07.2028
30.11.2022
30.05.2029
Amount
CHF million
225.0
150.0
200.0
100.0
125.0
175.0
125.0
250.0
200.0
1,550.0
Amount
CHF million
150.0
200.0
100.0
125.0
175.0
125.0
250.0
200.0
200.0
110.0
225.0
1,860.0
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249
Bâloise Holding Ltd
13. Treasury shares
2021
Balance as at 1 January
Purchases
Sales
Reduction of share capital
Disposals in connection with share participation programmes
Balance as at 31 December
2022
Balance as at 1 January
Purchases
Sales
Reduction of share capital
Disposals in connection with share participation programmes
Balance as at 31 December
Low
in CHF
High
in CHF
Average
share price
in CHF
Number of
registered
shares
136.00
162.70
147.42
38,000
3,079,343
0
– 3,000,000
– 41,428
75,915
Low
in CHF
High
in CHF
Average
share price
in CHF
Number of
registered
shares
124.20
155.90
138.51
75,915
16,800
0
0
– 23,724
68,991
14. Changes in equity
2021
CHF million
Balance as at 1 January
Allocation 2021
Dividend
Additions
Reduction of share capital
Change in treasury shares
Recognition / reversal
Profit for the period
Share
capital
Statutory retained
earnings
Voluntary retained
earnings
Treasury
shares
Total
equity
General
reserve
Reserve for
treasury
shares Free reserves
Distributable
profit
4.9
–
–
–
– 0.3
–
–
–
11.7
9.2
–
–
–
–
–
–
–
–
–
–
–
–
– 1.5
–
7.6
922.3
60.0
–
–
– 481.1
–
1.5
–
502.8
372.5
– 60.0
– 312.3
–
–
–
–
391.5
391.6
– 491.3
–
–
–
481.4
0.6
–
–
– 9.3
829.3
–
– 312.3
–
–
0.6
–
391.5
909.1
Balance as at 31 December
4.6
11.7
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Bâloise Holding Ltd
Share capital
Statutory retained earnings
Voluntary retained earnings
Treasury
shares
Total
equity
General
reserve
Reserve for
treasury shares
Free
reserves
Distributable
profit
2022
CHF million
Balance as at 1 January
4.6
11.7
Allocation 2022
Dividend
Additions
Reduction of share capital
Change in treasury shares
Recognition / reversal
Profit for the period
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Balance as at 31 December
4.6
11.7
7.6
–
–
–
–
–
0.2
–
7.8
502.8
71.0
–
–
–
–
– 0.2
–
573.6
391.6
– 71.0
– 320.6
–
–
–
–
407.3
407.4
– 9.3
–
–
–
–
1.2
–
–
– 8.1
909.1
–
– 320.6
–
–
1.2
–
407.3
997.0
15. Significant shareholders
The information available to the Company from disclosures pursuant to Art. 120 of the Swiss Financial Market Infrastructure
Act (FinMIA) (see the SIX website) and from the Company’s share register reveals that the following significant shareholders
and shareholder groups linked by voting rights held long-term equity investments in the Company as at 31 December 2022:
Last
disclosure date 1
Quota
according to
last disclosure 1
Shareholding
according to
share register
as at
31.12.2021
Shareholding
according to
share register
as at
31.12.2022
Share of
voting rights
as at
31.12.2021
Share of
voting rights
as at
31.12.2022
Shareholders
Black Rock Inc.
Chase Nominees Ltd. 2
Credit Suisse Funds AG
LSV Asset Management
Norges Bank
Nortrust Nominees Ltd. 2
The Bank of New York Mellon 2
UBS Fund Management
(Switzerland) AG
(per cent)
(per cent)
(per cent)
(per cent)
(per cent)
05.09.2017
n/a
25.04.2020
06.07.2013
24.08.2022
n/a
n/a
06.04.2017
7.17
n/a
3.00
3.73
3.09
n/a
n/a
3.03
<1.0
5.8
>3.0
0.0
0.0
2.7
2.3
>3.0
<1.0
4.3
>3.0
0.0
0.0
3.4
2.3
>3.0
<1.0
<1.0
2.0
2.0
0.0
0.0
0.0
0.0
2.0
2.0
2.0
0.0
0.0
0.0
0.0
2.0
1 According to SIX Swiss Exchange (https: / / www.six-exchange-regulation.com / en / home / publications / significant-shareholders.html).
2 Financial intermediaries holding shares for the account of third parties (custodian nominees) are added to the free float in accordance with SIX Exchange Regulation and are
considered free float. These shareholder groups are not subject to reporting requirements under stock exchange law. The exercise of voting rights by these administrators
requires a nominee contract with the company and the disclosure of the beneficial owners.
16. Contingent liabilities
CHF million
Collateral, guarantee commitments
31.12.2021
31.12.2022
500.0
500.0
Bâloise Holding Ltd has issued the following letter of comfort:
As the owner of Baloise Life (Liechtenstein) AG, Bâloise Holding Ltd, Basel, has undertaken to ensure that its subsidiary
Baloise Life (Liechtenstein) AG is at all times in a financial position to meet in full its liabilities to its customers arising from
the contracts relating to its RentaSafe, BelRenta Safe, RentaProtect and RentaSafe Time products, especially its guarantee
commitments.
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251
Bâloise Holding Ltd
Since October 2012, this letter of comfort has also applied to customers with contracts relating to RentaProtect Time and
RentaSafe Time (D-CHF) products that were sold by Baloise Life (Liechtenstein) AG. The maximum obligation amounts to
the present value of the outstanding guaranteed insurance benefits as at 31 December 2020. With effect from 1 July 2020,
the portfolio of customers from Switzerland using such products was transferred from Baloise Life (Liechtenstein) AG to
Baloise Life Ltd. The letter of comfort continues to apply to the transferred policies. The portfolio of customers from other
countries, especially those from European countries, remained with Baloise Life (Liechtenstein) AG. As at the balance sheet
date, the expected insurance benefits were fully backed by customer deposit accounts governed by individual agreements,
reinsurance contracts and additional reserves.
Bâloise Holding Ltd is making cash and cash equivalents of EUR 58 million available to Baloise Sachversicherungs-Aktien-
gesellschaft until at least 23 March 2031. Baloise Insurance Ltd can obtain this money in the form of a loan.
Bâloise Holding Ltd guarantees all obligations of Baloise Life Ltd relating to the various tranches of the subordinated
bonds, which had a total nominal value of CHF 500 million as at the balance sheet date.
Bâloise Holding Ltd is jointly and severally liable for the value-added tax (VAT) owed by all companies that form part of
the tax group headed by Baloise Insurance Ltd.
17. Remuneration paid to the Board of Directors and the Corporate Executive Committee
The information to be disclosed in accordance with sections 663b (bis) and 663c of the Swiss Code of Obligations (OR) is
contained in the Remuneration Report, which can be found on pages 53 to 76 in the part of corporate governance. The
key information disclosed here includes
● remuneration paid to the members of the Board of Directors,
● remuneration paid to the members of the Corporate Executive Committee,
● loans and credit facilities granted to members of the Board of Directors and the Corporate Executive Committee,
● shares and options held by members of the Board of Directors and the Corporate Executive Committee.
18. Net reversal of hidden reserves
In 2022, hidden reserves of CHF 0.7 million were reversed. No hidden reserves had been reversed in 2021.
19. Exemptions due to preparation of consolidated financial statements
Because Bâloise Holding Ltd has prepared consolidated financial statements in accordance with recognised financial reporting
standards (IFRS), in accordance with statutory provisions (article 961d [1] of the Swiss Code of Obligations [OR]), it has dispensed
with the notes on long-term interest-bearing liabilities and audit fees as well as the presentation of a cash flow statement or
a management report in these annual financial statements.
20. Events after the balance sheet date
On 30 January 2023, Bâloise Holding Ltd placed a senior green bond issue on behalf of the Baloise Group with a total volume
of CHF 175 million and a coupon of 2.2 per cent (maturity period: 2023–2032, ISIN CH1232107180) as part of its funding activities.
By the time that these annual financial statements had been completed on 22 March 2023, we had not become aware of
any further events that would have a material impact on the annual financial statements as a whole.
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Bâloise Holding Ltd
Appropriation of distributable profit
as proposed by the Board of Directors
Distributable profit and appropriation of profit
The profit for the period amounted to CHF 407,337,110.04.
The Board of Directors will propose to the Annual General Meeting that the Company’s distributable profit be appro-
priated as shown in the table below.
CHF
Profit for the period
Profit carried forward from the previous year
Distributable profit
Proposals by the Board of Directors:
Dividend
Allocated to free reserves
Withdrawn from free reserves
Profit to be carried forward
2021
2022
391,510,151.81
407,337,110.04
136,302.91
46,454.72
391,646,454.72
407,383,564.76
– 320,600,000.00
– 338,920,000.00
– 71,000,000.00
– 68,400,000.00
–
–
46,454.72
63,564.76
The appropriation of profit is consistent with section 36 of the Articles of Incorporation. Each share confers the right to receive
a dividend of CHF 7.40 gross or CHF 4.81 net of withholding tax.
252
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253
Bâloise Holding Ltd
Ernst & Young Ltd
Ernst & Young Ltd
Ernst & Young AG
Aeschengraben 27
Aeschengraben 27
Aeschengraben 27
P.O. Box
P.O. Box
Postfach
CH-4002 Basel
CH-4002 Basel
CH-4002 Basel
Phone:
Phone:
Telefon:
Fax:
Fax:
Fax:
www.ey.com/ch
www.ey.com/ch
www.ey.com/ch
+41 58 286 86 86
+41 58 286 86 86
+41 58 286 86 86
+41 58 286 30 04
+41 58 286 86 00
+41 58 286 86 00
To the General Meeting of
To the Annual General Meeting of
An die Generalversammlung der
Bâloise Holding Ltd, Basel
Bâloise Holding Ltd, Basel
Bâloise Holding AG, Basel
Basel, 22 March 2023
Basel, 22 March 2023
Basel, 24. März 2021
Bericht der Revisionsstelle zur Jahresrechnung
Report of the statutory auditor
Report of the statutory auditor
Report on the audit of the financial statements
Report on the audit of the financial statements
Als Revisionsstelle haben wir die Jahresrechnung (Seiten 290 bis 301) der Bâloise Holding
AG, bestehend aus Erfolgsrechnung, Bilanz und Anhang, für das am 31. Dezember 2020
abgeschlossene Geschäftsjahr geprüft.
Opinion
Verantwortung des Verwaltungsrates
Opinion
Der Verwaltungsrat ist für die Aufstellung der Jahresrechnung in Übereinstimmung mit den
We have audited the financial statements of Bâloise Holding Ltd (the Company), which
We have audited the consolidated financial statements (pages 81-233) of Bâloise Holding Ltd
gesetzlichen Vorschriften und den Statuten verantwortlich. Diese Verantwortung beinhaltet
comprise the statement of financial position as at 31 December 2022 and the statement of
and its subsidiaries (the “Group”), which comprise the consolidated balance sheet as at 31
die Ausgestaltung, Implementierung und Aufrechterhaltung eines internen Kontrollsystems
income for the year then ended, and notes to the financial statements, including a summary
December 2022, the consolidated income statement, the consolidated statement of
mit Bezug auf die Aufstellung einer Jahresrechnung, die frei von wesentlichen falschen
of significant accounting policies.
Angaben als Folge von Verstössen oder Irrtümern ist. Darüber hinaus ist der Verwaltungsrat
comprehensive income, the consolidated cash flow statement, the consolidated statement of
für die Auswahl und die Anwendung sachgemässer Rechnungslegungsmethoden sowie die
changes in equity for the year then ended, and the notes to the consolidated financial
In our opinion, the financial statements (pages 242-252) comply with Swiss law and the
Vornahme angemessener Schätzungen verantwortlich.
statements, including a summary of significant accounting policies.
Company’s articles of incorporation.
Verantwortung der Revisionsstelle
In our opinion the consolidated financial statements give a true and fair view of the
Basis for opinion
Unsere Verantwortung ist es, aufgrund unserer Prüfung ein Prüfungsurteil über die Jahres-
consolidated financial position of the Group as at 31 December 2022, and its consolidated
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-
rechnung abzugeben. Wir haben unsere Prüfung in Übereinstimmung mit dem schweizeri-
financial performance and its consolidated cash flows for the year then ended in accordance
CH). Our responsibilities under those provisions and standards are further described in the
schen Gesetz und den Schweizer Prüfungsstandards vorgenommen. Nach diesen Standards
with International Financial Reporting Standards (IFRS) and comply with Swiss law.
“Auditor's responsibilities for the audit of the financial statements” section of our report. We
haben wir die Prüfung so zu planen und durchzuführen, dass wir hinreichende Sicherheit
are independent of the Company in accordance with the provisions of Swiss law and the
gewinnen, ob die Jahresrechnung frei von wesentlichen falschen Angaben ist.
Basis for opinion
requirements of the Swiss audit profession, and we have fulfilled our other ethical
We conducted our audit in accordance with Swiss law, International Standards on Auditing
responsibilities in accordance with these requirements.
Eine Prüfung beinhaltet die Durchführung von Prüfungshandlungen zur Erlangung von
(ISA) and Swiss Standards on Auditing (SA-CH). Our responsibilities under those provisions
Prüfungsnachweisen für die in der Jahresrechnung enthaltenen Wertansätze und sonstigen
and standards are further described in the “Auditor's responsibilities for the audit of the
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
Angaben. Die Auswahl der Prüfungshandlungen liegt im pflichtgemässen Ermessen des
consolidated financial statements” section of our report. We are independent of the Group in
a basis for our opinion.
Prüfers. Dies schliesst eine Beurteilung der Risiken wesentlicher falscher Angaben in der
accordance with the provisions of Swiss law, together with the requirements of the Swiss
Jahresrechnung als Folge von Verstössen oder Irrtümern ein. Bei der Beurteilung dieser
audit profession, as well as those of the International Ethics Standards Board for
Risiken berücksichtigt der Prüfer das interne Kontrollsystem, soweit es für die Aufstellung
Key audit matters
Accountants’ International Code of Ethics for Professional Accountants (including
der Jahresrechnung von Bedeutung ist, um die den Umständen entsprechenden Prüfungs-
Key audit matters are those matters that, in our professional judgment, were of most
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
handlungen festzulegen, nicht aber um ein Prüfungsurteil über die Wirksamkeit des internen
significance in our audit of the financial statements of the current period. These matters were
responsibilities in accordance with these requirements.
Kontrollsystems abzugeben. Die Prüfung umfasst zudem die Beurteilung der Angemessen-
addressed in the context of our audit of the financial statements as a whole, and in forming
heit der angewandten Rechnungslegungsmethoden, der Plausibilität der vorgenommenen
our opinion thereon, and we do not provide a separate opinion on these matters. For each
Schätzungen sowie eine Würdigung der Gesamtdarstellung der Jahresrechnung. Wir sind
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
matter below, our description of how our audit addressed the matter is provided in that
der Auffassung, dass die von uns erlangten Prüfungsnachweise eine ausreichende und
a basis for our opinion.
context.
angemessene Grundlage für unser Prüfungsurteil bilden.
Key audit matters
We have fulfilled the responsibilities described in the “Auditor's responsibilities for the audit of
Prüfungsurteil
Key audit matters are those matters that, in our professional judgement, were of most
the financial statements” section of our report, including in relation to these matters.
Nach unserer Beurteilung entspricht die Jahresrechnung für das am 31. Dezember 2020
significance in our audit of the consolidated financial statements of the current period. These
Accordingly, our audit included the performance of procedures designed to respond to our
abgeschlossene Geschäftsjahr dem schweizerischen Gesetz und den Statuten.
matters were addressed in the context of our audit of the consolidated financial statements as
assessment of the risks of material misstatement of the financial statements. The results of
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
our audit procedures, including the procedures performed to address the matters below,
these matters. For each matter below, our description of how our audit addressed the matter
provide the basis for our audit opinion on the financial statements.
is provided in that context.
254
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255
Ernst & Young Ltd
Aeschengraben 27
P.O. Box
CH-4002 Basel
Phone:
+41 58 286 86 86
Fax:
+41 58 286 30 04
www.ey.com/ch
To the General Meeting of
Bâloise Holding Ltd, Basel
Basel, 22 March 2023
Report of the statutory auditor
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Bâloise Holding Ltd (the Company), which
comprise the statement of financial position as at 31 December 2022 and the statement of
income for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies.
Bâloise Holding Ltd
In our opinion, the financial statements (pages 242-252) comply with Swiss law and the
Company’s articles of incorporation.
Basis for opinion
We conducted our audit in accordance with Swiss law and Swiss Standards on Auditing (SA-
CH). Our responsibilities under those provisions and standards are further described in the
“Auditor's responsibilities for the audit of the financial statements” section of our report. We
are independent of the Company in accordance with the provisions of Swiss law and the
requirements of the Swiss audit profession, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Berichterstattung über besonders wichtige Prüfungssachverhalte aufgrund
Key audit matters
Rundschreiben 1/2015 der Eidgenössischen Revisionsaufsichtsbehörde
Key audit matters are those matters that, in our professional judgment, were of most
Besonders wichtige Prüfungssachverhalte sind solche Sachverhalte, die nach unserem
significance in our audit of the financial statements of the current period. These matters were
pflichtgemässen Ermessen am bedeutsamsten für unsere Prüfung der Jahresrechnung des
aktuellen Zeitraums waren. Diese Sachverhalte wurden im Zusammenhang mit unserer
addressed in the context of our audit of the financial statements as a whole, and in forming
Prüfung der Jahresrechnung als Ganzes und bei der Bildung unseres Prüfungsurteils hierzu
our opinion thereon, and we do not provide a separate opinion on these matters. For each
berücksichtigt, und wir geben kein gesondertes Prüfungsurteil zu diesen Sachverhalten ab.
matter below, our description of how our audit addressed the matter is provided in that
Für jeden nachfolgend aufgeführten Sachverhalt ist die Beschreibung, wie der Sachverhalt in
context.
der Prüfung behandelt wurde, vor diesem Hintergrund verfasst.
We have fulfilled the responsibilities described in the “Auditor's responsibilities for the audit of
2
Der im Berichtsabschnitt „Verantwortung der Revisionsstelle” beschriebenen Verantwortung
the financial statements” section of our report, including in relation to these matters.
sind wir nachgekommen, auch in Bezug auf diese Sachverhalte. Dementsprechend umfasste
Accordingly, our audit included the performance of procedures designed to respond to our
unsere Prüfung die Durchführung von Prüfungshandlungen, die als Reaktion auf unsere
assessment of the risks of material misstatement of the financial statements. The results of
Beurteilung der Risiken wesentlicher falscher Angaben in der Jahresrechnung geplant
our audit procedures, including the procedures performed to address the matters below,
wurden. Das Ergebnis unserer Prüfungshandlungen, einschliesslich der Prüfungshand-
provide the basis for our audit opinion on the financial statements.
lungen, welche durchgeführt wurden, um die unten aufgeführten Sachverhalte zu berück-
sichtigen, bildet die Grundlage für unser Prüfungsurteil zur Jahresrechnung.
Valuation of long-term equity investments
Area of focus Bâloise Holding Ltd accounts for long-term equity investments at cost
Bewertung der Beteiligungen
Prüfungs-
sachverhalt
less necessary impairments and valued on an individual basis.
Die Bâloise Holding AG bewertet die Beteiligungen einzeln zum
Management assesses whether there are any impairment losses in the
Anschaffungswert unter Abzug der notwendigen Abschreibungen.
carrying value of the long-term equity investments by comparing the
Die Eruierung eines Wertberichtigungsbedarfs geschieht durch
carrying amount to the net asset value of the subsidiary or to a valuation
Vergleich des Buchwerts der Beteiligung mit dem erzielbaren Wert,
of the subsidiary using a discounted cash flow analysis. The
welcher auf Basis des Substanzwerts oder Ertragswert berechnet
determination whether a long-term equity investment needs to be
wird. Diese Berechnung basiert teilweise auf Annahmen (z.B.
impaired involves management’s judgement. This includes assumptions
zukünftige Ertragsströme, Diskontsätze), deren Festlegung mit
about the profitability of the underlying business and growth. Long-term
einem wesentlichen Ermessensspielraum verbunden ist. Die
equity investments amount to CHF 2.0 bn as of 31 December 2022 and
Beteiligungen belaufen sich per 31. Dezember 2020 auf CHF 1.9 Mia.
represent the most important balance of a total balance sheet of
und stellen im Vergleich zur Bilanzsumme von CHF 3.6 Mia. die
CHF 3.7 bn.
wesentlichste Bilanzposition dar.
Unser
Our audit
Prüfvorgehen
response
We consider this a key audit matter not only due to the judgement
Aufgrund der inhärenten Ermessensspielräume und der wesentlichen
involved, but also based on the magnitude of the carrying value of the
Bedeutung der genannten Bilanzposition in der Jahresrechnung der
long-term equity investments within the financial statements of Bâloise
Bâloise Holding AG stellt die Bewertung der Beteiligungen einen
besonders wichtigen Prüfungssachverhalt dar.
Holding Ltd.
Im Rahmen unserer Prüfung beurteilten wir die Bewertung der
In relation to the key audit matter set out above, we assessed the
Beteiligungen sowie den Bedarf allfälliger Wertberichtigungen. Wir
appropriateness of the company’s impairment testing methodology. We
prüften insbesondere die Berechnung des Managements sowie die
audited management’s impairment test on the carrying value of each
verwendeten Informationen und Annahmen. Ferner prüften wir die
investment, including the assessment of management’s assumptions.
Darstellung und Offenlegung der Beteiligungen in der Jahresrechnung
We have audited the required disclosures in the notes to the financial
per 31. Dezember 2020.
statements as at 31 December 2022.
Aus unseren Prüfungshandlungen resultierten keine Einwendungen
Based on our audit procedures we did not identify exceptions with
hinsichtlich der Bewertung der Beteiligungen.
regard to the valuation of long-term equity investments.
254
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255
Bâloise Holding Ltd
3
Other information
The Board of Directors is responsible for the other information. The other information
comprises the information included in the annual report, but does not include the
consolidated financial statements, the stand-alone financial statements, the remuneration
report and our auditor’s reports thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Board of Directors’ responsibilities for the financial statements
The Board of Directors is responsible for the preparation of the financial statements in
accordance with the provisions of Swiss law and the Company's articles of incorporation, and
for such internal control as the Board of Directors determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern, and using the going concern basis of accounting unless the Board of
Directors either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of the financial statements is located
on EXPERTsuisse’s website at: https://www.expertsuisse.ch/en/audit-report. This description
forms an integral part of our report.
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257
3
Other information
The Board of Directors is responsible for the other information. The other information
comprises the information included in the annual report, but does not include the
consolidated financial statements, the stand-alone financial statements, the remuneration
report and our auditor’s reports thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Bâloise Holding Ltd
Board of Directors’ responsibilities for the financial statements
The Board of Directors is responsible for the preparation of the financial statements in
accordance with the provisions of Swiss law and the Company's articles of incorporation, and
for such internal control as the Board of Directors determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern, and using the going concern basis of accounting unless the Board of
Directors either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
Berichterstattung über besonders wichtige Prüfungssachverhalte aufgrund
a whole are free from material misstatement, whether due to fraud or error, and to issue an
Rundschreiben 1/2015 der Eidgenössischen Revisionsaufsichtsbehörde
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
Besonders wichtige Prüfungssachverhalte sind solche Sachverhalte, die nach unserem
but is not a guarantee that an audit conducted in accordance with Swiss law and SA-CH will
pflichtgemässen Ermessen am bedeutsamsten für unsere Prüfung der Jahresrechnung des
aktuellen Zeitraums waren. Diese Sachverhalte wurden im Zusammenhang mit unserer
always detect a material misstatement when it exists. Misstatements can arise from fraud or
Prüfung der Jahresrechnung als Ganzes und bei der Bildung unseres Prüfungsurteils hierzu
error and are considered material if, individually or in the aggregate, they could reasonably be
berücksichtigt, und wir geben kein gesondertes Prüfungsurteil zu diesen Sachverhalten ab.
expected to influence the economic decisions of users taken on the basis of these financial
Für jeden nachfolgend aufgeführten Sachverhalt ist die Beschreibung, wie der Sachverhalt in
statements.
der Prüfung behandelt wurde, vor diesem Hintergrund verfasst.
A further description of our responsibilities for the audit of the financial statements is located
Der im Berichtsabschnitt „Verantwortung der Revisionsstelle” beschriebenen Verantwortung
on EXPERTsuisse’s website at: https://www.expertsuisse.ch/en/audit-report. This description
sind wir nachgekommen, auch in Bezug auf diese Sachverhalte. Dementsprechend umfasste
4
forms an integral part of our report.
unsere Prüfung die Durchführung von Prüfungshandlungen, die als Reaktion auf unsere
Beurteilung der Risiken wesentlicher falscher Angaben in der Jahresrechnung geplant
wurden. Das Ergebnis unserer Prüfungshandlungen, einschliesslich der Prüfungshand-
lungen, welche durchgeführt wurden, um die unten aufgeführten Sachverhalte zu berück-
sichtigen, bildet die Grundlage für unser Prüfungsurteil zur Jahresrechnung.
Report on other legal and regulatory requirements
Bewertung der Beteiligungen
Prüfungs-
sachverhalt
Die Bâloise Holding AG bewertet die Beteiligungen einzeln zum
In accordance with Art. 728a para. 1 item 3 CO and PS-CH 890, we confirm that an internal
Anschaffungswert unter Abzug der notwendigen Abschreibungen.
control system exists, which has been designed for the preparation of the financial
Die Eruierung eines Wertberichtigungsbedarfs geschieht durch
statements according to the instructions of the Board of Directors.
Vergleich des Buchwerts der Beteiligung mit dem erzielbaren Wert,
welcher auf Basis des Substanzwerts oder Ertragswert berechnet
wird. Diese Berechnung basiert teilweise auf Annahmen (z.B.
zukünftige Ertragsströme, Diskontsätze), deren Festlegung mit
einem wesentlichen Ermessensspielraum verbunden ist. Die
Beteiligungen belaufen sich per 31. Dezember 2020 auf CHF 1.9 Mia.
und stellen im Vergleich zur Bilanzsumme von CHF 3.6 Mia. die
wesentlichste Bilanzposition dar.
Furthermore, we confirm that the proposed appropriation of available earnings complies with
Swiss law and the Company’s articles of incorporation. We recommend that the financial
statements submitted to you be approved.
Ernst & Young Ltd
Christian Fleig
Licensed audit expert
Unser
(Auditor in charge)
Prüfvorgehen
Aufgrund der inhärenten Ermessensspielräume und der wesentlichen
Bedeutung der genannten Bilanzposition in der Jahresrechnung der
Bâloise Holding AG stellt die Bewertung der Beteiligungen einen
besonders wichtigen Prüfungssachverhalt dar.
Patrick Schwaller
Licensed audit expert
Im Rahmen unserer Prüfung beurteilten wir die Bewertung der
Beteiligungen sowie den Bedarf allfälliger Wertberichtigungen. Wir
prüften insbesondere die Berechnung des Managements sowie die
verwendeten Informationen und Annahmen. Ferner prüften wir die
Darstellung und Offenlegung der Beteiligungen in der Jahresrechnung
per 31. Dezember 2020.
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257
This audit report is a translation of the audit report issued in German. Please also refer to the disclosure on page 269 “Information on
the Baloise Group” referencing the fact that only the German text of the annual report is legally binding.
Aus unseren Prüfungshandlungen resultierten keine Einwendungen
hinsichtlich der Bewertung der Beteiligungen.
General information
Alternative Performance Measures
Glossary
Addresses
Information on the Baloise Group
Financial calendar and contacts
260
264
268
269
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259
General information
Alternative Performance Measures
In its financial publications, Baloise uses not only the figures
produced in accordance with International Financial
Reporting Standards (IFRS) but also alternative performance
measures (APMs). We believe that these APMs provide useful
information for investors and give a better understanding of
our results. Moreover, APMs help to measure performance,
growth, profitability and capital efficiency.
However, they should be viewed as supplementary infor-
mation and not as a substitute for the figures calculated in
accordance with IFRS.
Baloise uses the following alternative performance
measures (APMs):
• Return on equity (RoE)
• Combined ratio (CR)
• Annual premium equivalent (APE)
• Value of new business (VNB)
• New business margin (NBM)
• Total assets under management (AuM)
Investors should note that similarly named APMs published
by other companies may have been calculated in a different
way. The comparability of APMs between companies may
therefore be limited.
Definitions and information about the use and limitations
of the aforementioned alternative performance measures
can be found below.
The Baloise Group’s latest financial publications can be
accessed online at any time at
www.baloise.com/en/home/investors/publications
Definitions, usage and limitations
Return on equity (RoE)
Definition and benefits
At Baloise, return on equity represents the profit for the
period divided by average equity adjusted for the dividend
payment (the average of equity at the start of the period
[less the dividend paid] and at the end of the period). Equity
is not adjusted for unrealised gains and losses relating to
changes in the price of fixed-income securities.
One of the reasons why the Baloise Group uses RoE as a perfor-
mance measure is that it looks at both the Company’s prof-
itability and its capital efficiency.
Limitations
RoE includes line items that provide no or very little indica-
tion of the management’s performance. Moreover, RoE is not
available at division or product level.
This performance measure’s usefulness is limited because
it is a relative measure and thus does not provide informa-
tion about the absolute level of profit for the period or the
absolute level of equity.
Combined ratio (CR)
Definition and benefits
The Baloise Group uses the combined ratio to gauge
the profitability of underwriting in the non-life insurance
business. It is the sum of acquisition costs and administra-
tive expenses (net*) and claim payments and insurance
benefits (net), divided by premiums earned (net). To provide
an even better picture of operating performance, Baloise
makes adjustments for interest-rate effects and provisions
for impending losses. The combined ratio is also adjusted
for non-operating costs. These interest-rate effects result
from annuities in the non-life business, while the provisions
for impending losses relate to future reporting periods. The
level of adjustments is regularly disclosed in Baloise’s pres-
entation for investors and analysts.
The combined ratio is typically expressed as a percentage.
A ratio of less than 100 per cent means that the business is
profitable from an underwriting perspective, while a ratio of
more than 100 per cent indicates an underwriting loss. The
combined ratio can be broken down into the claims ratio
including profit sharing (loss ratio) and the expense ratio.
The claims ratio represents claims and insurance benefits
(net), divided by premiums earned (net). Again, the afore-
mentioned adjustments are made for interest-rate effects
(resulting from annuities in the non-life business) and provi-
sions for impending losses. The claims ratio therefore gives
the percentage of net premiums earned that are used for
the settlement of claims.
*I. e. after deduction of the reinsurers’ share.
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261
General information
The expense ratio represents acquisition costs and admin-
istrative expenses (net), adjusted for costs not attributable
to the combined ratio, relative to premiums earned (net).
It gives the percentage of net premiums earned that are
needed to cover the underwriting expenses for the acquisition
of new and renewal business and to cover the administrative
expenses.
Limitations
The combined ratio is used to measure underwriting profit-
ability, but does not indicate profitability in terms of invest-
ment performance or non-operating performance. Even if the
combined ratio is above 100 per cent, the non-life segment
may have still generated a profit overall because it achieved a
gain on investments or a non-operating contribution to profit.
By its very nature, the usefulness of the combined ratio is
limited because it is a ratio and therefore does not provide
any information about the absolute level of the underwriting
profit.
Annual premium equivalent (APE)
Definition and benefits
The annual premium equivalent is a performance measure
used in the life segment that shows all premium income
from new business, both from single premiums and from
regular premiums. The Baloise Group calculates APE as the
sum of the annual premiums earned from new business
plus 10 per cent of the single premiums received during the
reporting period.
Limitations
Comparability with the APE of other companies is limited
because they define new business differently.
Value of new business (VNB)
Definition and benefits
VNB is a performance measure used in the life segment
and indicates the increase in value generated by under-
writing new business in the current period. It is defined as
the present value of future profits after acquisition costs,
less the fair value of options and guarantees. This involves
forecasting lapses, mortality, disability and expenses up to
the due date of insurance contracts, using the latest capital
market data and best estimates. VNB relates to the time at
which the individual contract is formed.
Limitations
Future profits are estimates based on assumptions and
may therefore differ from the profits actually generated
in the future. They are calculated using risk-free interest
rates that are based on the latest market data. The actual
future interest rates and market data may differ. There may
also be variation in, for example, the assumptions about
customers’ future behaviour. Moreover, the long forecast
period may result in uncertainties as future changes to
regulatory requirements or in the market environment, for
example, may not have been factored into the forecast.
New business margin (NBM)
Definition and benefits
The new business margin is used to measure the profitability
of new business in the life segment. It is the value of new
business (VNB) divided by the annual premium equivalent
(APE).
Limitations
As the new business margin is calculated from the value of
new business and annual premium equivalent, its useful-
ness is subject to the same limitations as those measures.
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261
General information
Total assets under management (AuM)
Definition and benefits
The assets under management are the assets or secu-
rity portfolios measured at fair value, in respect of which
Baloise Asset Management makes investment decisions or
bears responsibility for portfolio management. They are
managed on behalf of third parties and on behalf of the
Baloise Group. As a rule, the level of AuM is reflected in the
level of fee income, making it an important measure of the
performance of our asset management activities over time
and in comparison with other companies.
Changes in assets under management are essentially
driven by net new assets, market factors, the effects of
consolidation and deconsolidation, and exchange-rate
effects.
Net new assets equates to the sum of assets of new
customers and additional contributions from existing
customers, less withdrawals from customer accounts,
closures of such accounts and distributions to investors.
Limitations
The level of assets under management is subject to volatility
resulting from movements in the capital markets. For example,
assets under management may continue to increase when
interest rates fall, even if the figure for net new assets is nega-
tive. This limits the usefulness of this performance measure.
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263
General information
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263
This page has been left empty on purpose.
General information
Glossary
● Actuarial reserves
● Claims ratio
Actuarial reserves are the reserves set aside to cover
current life insurance policies.
The total cost of claims settled as a percentage of total
premiums.
● Claims reserve
A reserve for claims that have not been settled by the
end of the year.
● Combined ratio
A non-life insurance ratio that is defined as the sum of
the cost of claims settled (claims ratio), total expenses
(expense ratio) and profit sharing (profit-sharing ratio)
as a percentage of total premiums. This ratio is used to
gauge the profitability of non-life insurance business.
● Deferred taxes
Probable future tax expenses and tax benefits arising
from temporary differences between the carrying
amounts of assets and liabilities recognised in
the consolidated financial statements and the corre-
sponding amounts reported for tax purposes. The perti-
nent calculations are based on country-specific tax
rates.
● Expense ratio
Non-life insurance business expenses as a percentage
of total premiums.
● Fixed-income securities
Securities (primarily bonds) that yield a fixed rate of
interest throughout their term to maturity.
● Annual premium equivalent
The annual premium equivalent (APE) is the insurance
industry standard for measuring the volume of new life
insurance business. It is calculated as the sum of the
annual premiums earned from new business plus 10
per cent of the single premiums received during the
reporting period.
● Baloise
“Baloise” stands for “the Baloise Group”, and “Bâloise
Holding” means “Bâloise Holding Ltd”. Baloise shares
are the shares of Bâloise Holding Ltd.
● Broker
Insurance brokers are independent intermediaries. These
are firms or individuals who are not restricted to any
particular insurance companies when selling insurance
products. They are paid commission for the insurance
policies that they sell.
● Business volume
The total volume of business comprises the premium
income earned from non-life and life insurance and
from investment-linked life insurance policies during
the reporting period. The accounting principles used
by the Baloise Group do not allow premium income
earned from investment-linked life insurance to be
reported as revenue in the consolidated financial
statements.
● Claims incurred
Claims incurred comprise the amounts paid out for
claims during the financial year, the reserves set aside
to cover unsettled claims, the reversal of reserves
for claims that no longer have to be settled or do
not have to be paid in full, the costs incurred by the
processing of claims, and changes in related reserves.
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265
General information
● Gross
● Investment-linked life insurance
The gross figures shown on the balance sheet or
income statement in an insurance company’s annual
report are stated before deduction of reinsurance.
Life insurance policies under which policyholders invest
their savings for their own account and at their own
risk.
● Group life business
● Investment-linked premium
Insurance policies taken out by companies or their
employee benefit units for the occupational pension
plans of their entire workforce.
● Impairment
An asset write-down that is recognised in profit or loss.
An impairment test is carried out to ascertain whether
an asset’s carrying amount is higher than its recov-
erable amount. If this is the case, the asset is written
down to its recoverable amount and a corresponding
impairment loss is recognised in the income statement.
● Insurance benefit
Premium income from life insurance policies under
which the insurance company invests the policy-
holder’s savings for the latter’s own account and
at his or her own risk. The International Financial
Reporting Standards applied by the Baloise Group
do not allow the savings component of this premium
income to be recognised as revenue on the income
statement.
● Legal quota
A legally or contractually binding percentage requiring
life insurance companies to pass on a certain share of
their profits to their policyholders.
The benefits provided by the insurer in connection with
the occurrence of an insured event.
● Minimum interest rate
● International Financial Reporting Standards
Since 2000 the Baloise Group has been preparing its
consolidated financial statements in compliance with
Inter national Financial Reporting Standards (IFRS),
which were previously called International Accounting
Standards (IAS).
The minimum guaranteed interest rate paid to savers
under occupational pension plans.
● Net
The net figures shown on the balance sheet or income
statement in an insurance company’s annual report
are stated after deduction of reinsurance.
● Investments
● New business margin
Investments comprise investment property, equities
and alternative financial assets (financial instru-
ments with characteristics of equity), fixed-income
securities (financial instruments with characteristics
of liabilities), mortgage assets, policy loans and other
loans, derivatives, and cash and cash equivalents.
The value of new business divided by the annual
premium equivalent (APE).
● Operating segments
Similar or related business activities are grouped
together in operating segments. The Baloise Group’s
operating segments are Non-Life, Life, Banking (which
includes asset management), and Other Activities. The
“Other Activities” operating segment includes equity
investment companies, real estate firms and financing
companies.
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265
General information
● Performance of investments
● Reinsurance
Performance in this context is defined as the rates of
return that Baloise generates from its investments. It
constitutes the gains, losses, income and expenses
recognised in the income statement plus changes in
unrealised gains and losses as a percentage of the
average portfolio of investments held.
If an insurance company itself does not wish to bear
the full risk arising from an insurance policy or an
entire portfolio of policies, it passes on part of the risk
to a reinsurance company or another direct insurer.
However, the primary insurer still has to indemnify the
policyholder for the full risk in all cases.
● Periodic premium
● Reserves
Periodically recurring premium income (see definition
of “premium”).
A measurement of future insurance benefit obliga-
tions arising from known and unknown claims that are
reported as liabilities on the balance sheet.
● Policyholder’s dividend
An annual, non-guaranteed benefit paid to life insur-
ance policyholders if the revenue generated by their
policies is higher and / or the risks and costs associ-
ated with their policies are lower than the assump-
tions on which the calculation of their premiums
was based.
● Return on equity
A calculation of the percentage return earned on a
company’s equity capital during a financial year; it
represents the profit generated in a given financial year
divided by the company’s average equity during that
period.
● Premium
● Risk scoring
The amount paid by the policyholder to cover the cost
of insurance.
● Premium earned
The proportion of the policy premium available to
cover the risk insured during the financial year, i. e.
the premium minus changes in unearned premium
reserves.
● Profit after taxes
Profit after taxes is the consolidated net result of all
income and expenses, minus all borrowing costs as
well as current income taxes and deferred taxes. Profit
after taxes includes non-controlling interests.
● Profit-sharing ratio
Total profit sharing as a percentage of total premiums;
profit sharing is defined as the reimbursement of
amounts to non-life policyholders to reflect the profita-
bility of insurance policies.
Risk scoring uses analytical statistical methods to derive
risk assessments from collected data based on empir-
ical values. Insurance companies use this kind of scoring
to ensure that the premiums they charge reflect the risks
involved.
● Run-off business
An insurance policy portfolio that has ceased to accept
new policies and whose existing policies are gradually
expiring.
● Segment
Financial reporting in the Baloise Group is carried out
in accordance with International Financial Reporting
Standards (IFRSs), which require similar transactions
and business activities to be grouped and presented
together. These aggregated operating activities are
presented in “segments”, broken down by geographic
region and business line.
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267
General information
● Share buy-back programme
● Unearned premium reserves
Procedure approved by the Board of Directors under
which Baloise can repurchase its own outstanding
shares. Companies in Switzerland open a separate
trading line in order to carry out such buy-backs.
Deferred income arising from premiums that have
already been paid for periods after the balance
sheet date.
● Unrealised gains and losses (recognised directly
in equity)
Unrealised gains and losses are increases or decreases
in value that are not recognised in profit or loss and arise
from the measurement of assets. They are recognised
directly in equity after deduction of deferred policy-
holders’ dividends (life insurance) and deferred taxes.
These gains or losses are only taken to income if the
underlying asset is sold or if impairment losses
are recognised.
● Value of new business
The value added by new business transacted during
the reporting period; this figure is measured at the
time the policy is issued.
● Shares issued
The total number of shares that a company has issued;
multiplying the total number of shares in issue by their
face value gives the company’s nominal share capital.
● Single premium
Single premiums are used to finance life insurance poli-
cies at their inception in the form of a one-off payment.
They are mainly used to fund wealth-building life
insurance policies, with the prime focus on investment
returns and safety.
● Swiss Leader Index
The Swiss Leader Index (SLI) comprises the 30 largest
and most liquid equities on the Swiss stock market.
● Solvency
Minimum capital requirements that the regulatory
authorities impose on insurance companies in order
to cover their business risks (investments and claims).
These requirements are usually specified at a national
level and may vary from country to country.
● Technical reserve
Insurers disclose on their balance sheets the value
of the benefits that they expect to have to provide
in future under their existing insurance contracts.
This value is calculated from a current perspective in
accordance with generally accepted principles.
● Technical result
Baloise calculates its technical result by netting all
income and expenses arising from its insurance business.
Its technical result does not include income and expenses
unrelated to its insurance business or the net gains or
losses on its investments.
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267
General information
Addresses
Switzerland
Baloise Versicherung AG
Aeschengraben 21
Postfach
CH-4002 Basel
Tel. + 41 58 285 85 85
kundenservice@baloise.ch
www.baloise.ch
Baloise Bank AG
Amthausplatz 4
Postfach 262
CH-4502 Solothurn
Tel. + 41 58 285 33 33
bank@baloise.ch
www.baloise.ch
Baloise Asset Management AG
Aeschengraben 21
Postfach
CH-4002 Basel
assetmanagement@baloise.com
www.baloise.ch
MOVU AG
Okenstrasse 6
CH-8037 Zürich
Tel. + 41 44 505 14 14
captain@movu.ch
www.movu.ch
Germany
Baloise
Basler Strasse 4
D-61345 Bad Homburg
Tel. + 49 6172 130
info@baloise.de
www.baloise.de
FRIDAY
Friedrichstraße 70
D-10117 Berlin
Tel. + 49 30 959 983 20
info@friday.de
www.friday.de
Luxembourg
Baloise
8, rue du Château d’Eau
L-3364 Leudelange
Tel. + 352 290 190 1
info@baloise.lu
www.baloise.lu
Belgium
Baloise
Posthofbrug 16
B-2600 Antwerpen
Tel. + 32 3 247 21 11
info@baloise.be
www.baloise.be
MOBLY
Posthofbrug 6–8
Box 5 / 102
B-2600 Antwerpen
Tel. + 32 3 376 01 10
info@mobly.be
www.mobly.be
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269
General information
Information on the Baloise Group
This publication was produced by the Baloise Group and
may not be copied, amended, offered, sold or made available
to third parties without the express authorisation of the Baloise
Group. The 2022 Annual Review and Annual Report is also avail-
able in German. Only the German text is legally binding. The
Financial Report contains the audited 2022 annual financial
statements together with detailed information. The Annual
Report contains all of the elements that, in accordance with Art.
961c of the Swiss Code of Obligations, make up the manage-
ment report. Amounts and ratios shown in this Annual Report
are generally stated in millions of Swiss francs (CHF million) and
rounded to one decimal place. Consequently, the sum total of
amounts that have been rounded may in some cases differ
from the rounded total shown in this report.
The companies of the Baloise Group and its decision-making
bodies, employees, agents and other persons do not accept
any liability for the accuracy, completeness or appropriateness
of the information contained in this publication. Specifically, no
liability is accepted for any loss or damage resulting from the
direct or indirect use of this information. This publication consti-
tutes neither an offer nor a request to exchange, purchase or
subscribe to securities; nor does it constitute an issue or listing
prospectus.
Cautionary note on forward-looking statements
The sole purpose of this publication is to provide a review in
summarised form of the operating performance of Baloise for
the period indicated. To this end, the publication also draws
on external sources of information (including data). Baloise
neither guarantees nor does it recognise the accuracy of
such information. Furthermore, this publication may contain
forward-looking statements that include forecasts or predic-
tions of future events, plans, goals, business developments
and results and are based on Baloise’s current expectations
and assumptions. These forward-looking statements should
be noted with due caution because they inherently contain
both known and unknown risks, are subject to uncertainty and
may be adversely affected by other factors. Consequently,
business performance, results, plans and goals could differ
substantially from those presented explicitly or implicitly in
these forward-looking statements. Factors that could influ-
ence actual outcomes include, for example, (i) changes in
the overall state of the economy, especially in key markets;
(ii) financial market performance; (iii) competitive factors; (iv)
changes in interest rates; (v) exchange rate movements; (vi)
changes in the statutory and regulatory framework, including
accounting standards; (vii) frequency and magnitude of
claims as well as trends in claims history; (viii) mortality and
morbidity rates; (ix) renewal and expiry of insurance poli-
cies; (x) legal disputes and administrative proceedings; (xi)
departure of key employees; and (xii) negative publicity and
media reports. This list is not considered exhaustive. Baloise
accepts no obligation to update or revise forward-looking
statements in order to take into consideration new informa-
tion, future events, etc. Past performance is not indicative of
future results.
Availability and ordering
The 2022 Annual Review and Annual Report and the Summary
of the 2022 Annual Report will be available from 28 March
2023 on the internet at:
www.baloise.com/annual-report
Corporate publications can be ordered either on the internet
or by post from the Baloise Group, Corporate Communica-
tions, Aeschengraben 21, 4002 Basel, Switzerland:
www.baloise.com/order
Information for shareholders an financial analysts
Detailed information and data on Baloise shares, the IR
agenda, the latest presentations and how to contact the
Investor Relations team can be found on the internet at
www.baloise.com/investors
This information is available in German and English.
Information for members of the media
You will find the latest media releases, presentations, reports,
images and podcasts of various Baloise events as well as
media contact details at www.baloise.com/media
© 2023 Bâloise Holding Ltd, CH-4002 Basel
Publisher: Bâloise Holding Ltd, Corporate Communications & Investor Relations
Concept, design: NeidhartSchön Ltd, Zurich
Photography: Dominik Plüss, Basel
Publishing: mms solutions ltd, Zurich
English translation: LingServe Ltd (UK)
268
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
269
General information
Financial calendar and contacts
28 April 2023
Annual General Meeting
Bâloise Holding Ltd
20 September 2023
Half-year financial results
Publication of the 2023 half-year report
Conference call for analysts and the media
16 November 2023
Q3 interim statement
26 March 2024
Annual results
Publication of the 2023 annual report and annual review
Media conference and conference call for analysts
26 April 2024
Annual General Meeting
Bâloise Holding Ltd
Corporate Governance
Philipp Jermann
Aeschengraben 21
CH-4002 Basel
Tel. + 41 58 285 89 42
vrs@baloise.com
Investor Relations
Markus Holtz
Aeschengraben 21
CH-4002 Basel
Tel. + 41 58 285 81 81
investor.relations@baloise.com
Media Relations
Roberto Brunazzi
Aeschengraben 21
CH-4002 Basel
Tel. + 41 58 285 82 14
media.relations@baloise.com
Public Affairs & Sustainability
Dominik Marbet
Aeschengraben 21
CH-4002 Basel
Tel. + 41 58 285 84 67
dominik.marbet@baloise.com
270
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
271
270
Baloise Group Annual Report 2022
Baloise Group Annual Report 2022
271
Bâloise Holding Ltd
Aeschengraben 21
CH-4002 Basel
www.baloise.com
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