Annual Report
2024
Baloise Group Annual Report 2024
2
Contents
Management report
Baloise
Reporting environment
6
Baloise at a glance
8
Key figures
10
Letter to shareholders
12
Strategy
14
Baloise brand
16
Baloise shares
18
How Baloise creates value
Introduction
20
Environment
22
Employees
24
Customers
28
Society
34
Review of operating performance
Annual financial results in brief
38
Profit and business volume
39
Insurance business
40
Asset Management & Banking
42
Capitalisation & cash remittance
43
Outlook
43
Consolidated income statement
44
Consolidated balance sheet
45
Key figures insurance business
46
Banking activities
49
Investment performance
(insurance)
50
Risk management
52
Responsible investment
56
Data governance & security
60
Corporate governance report
Corporate governance report
63
Remuneration report
Remuneration report
83
Report of the statutory auditor
to the Annual General Meeting
of Baloise Holding Ltd, Basel
104
Report on non-financial
matters
Foreword
111
General information
113
Environmental information
157
Social information
175
Governance information
205
Appendix
219
Financial report
Consolidated income statement 234
Consolidated statement of
comprehensive income
235
Consolidated balance sheet
236
Consolidated statement
of changes in equity
238
Consolidated cash flow
statement
240
Notes to the consolidated
annual financial statements
242
Report of the statutory auditor
to the Annual General Meeting
of Baloise Holding Ltd, Basel
400
Baloise Holding Ltd
Income statement of
Baloise Holding Ltd
408
Balance sheet of
Baloise Holding Ltd
409
Notes to the financial statements
of Baloise Holding Ltd
410
Appropriation of distributable
profit/accumulated loss as
proposed by the Board of
Directors
419
Report of the statutory auditor
to the Annual General Meeting
of Baloise Holding Ltd, Basel
420
Further information
Alternative
performance measures
426
Glossary
430
Memberships and ratings
434
UNEP FI Principles for Sustainable
Insurance (UNEP FI PSI)
436
Addresses
438
Information on the
Baloise Group
439
Financial calendar and contacts 440
Baloise Group Annual Report 2024
3
3
Baloise
Reporting environment
6
Baloise at a glance
8
Key figures
10
Letter to shareholders
12
Strategy
14
Baloise brand
16
Baloise shares
18
How Baloise creates value
Introduction
20
Environment
22
Employees
24
Customers
28
Society
34
Review of operating performance
Annual financial results in brief
38
Profit and business volume
39
Insurance business
40
Asset Management & Banking
42
Capitalisation & cash remittance
43
Outlook
43
Consolidated income statement
44
Consolidated balance sheet
45
Key figures insurance business
46
Banking activities
49
Investment performance (insurance)
50
Risk management
52
Responsible investment
56
Data governance & security
60
Management report
Baloise Group Annual Report 2024
5
Reporting environment
Overview of Baloise’s external reporting
The annual reporting procedures of the Baloise Group are
based on relevant statutory and regulatory requirements
and applicable standards and guidelines, particularly
those issued by the International Accounting Standards
Board and SIX Swiss Exchange, where the shares of Baloise
Holding Ltd are listed. The financial report (consolidated
financial statements) is prepared in accordance with
International Financial Reporting Standards (IFRS). The
report on non-financial matters is prepared in accordance
with the requirements of the Swiss Code of Obligations
(Art. 964a–964c) and is aligned with the provisions of the
European Sustainability Reporting Standards (ESRS).
Annual Report
The Annual Report forms the core of the reporting activ-
ities. It essentially comprises three components: the
management report, the financial report and the report
on non-financial matters. The annual review has been
discontinued, but selected content from it is included in
the appropriate chapters of the Annual Report.
Management report
The management report constitutes the first part of
the Annual Report. It comprises the review of operating
performance, the corporate governance report and the
remuneration report. It also provides information on
how Baloise creates value for its different stakeholders.
This information focuses on investors, employees and
customers (including sales partners) as key stakeholder
groups, as well as on the environment and society as a
whole.
Financial report
The financial report contains the consolidated annual
financial statements of the Baloise Group and the annual
financial statements of Baloise Holding Ltd.
Report on non-financial matters
The report on non-financial matters contains Baloise’s
sustainability information and was prepared in compli-
ance with Art. 964b of the Swiss Code of Obligations (OR),
including the Swiss Ordinance on Climate Disclosures.
Moreover, the structure and content of the non-financial
reporting are aligned with ESRS to a large extent. However,
this report is not a complete group report pursuant to the
EU Corporate Sustainability Reporting Directive (CSRD).
Presentation for investors and analysts
The presentation for investors and analysts is made
available only on the website and exclusively in English.
It provides detailed information on the financial perfor-
mance of Baloise.
Electronic copies of all documents pertaining to the
annual financial statements are available on the website:
www.baloise.com/annual-report
Continuous reporting
Baloise uses its website, www.baloise.com, to publish ad
hoc announcements and other media releases, share
regular updates on various initiatives and activities, and
provide information on the implementation of its strategy.
Reporting by national organisations
In some cases, Baloise’s national organisations publish
their own external reports in accordance with the stat-
utory and regulatory requirements of the jurisdiction in
which they operate. In Belgium and Germany, reports on
non-financial matters are also prepared in accordance
with EU requirements (CSRD and Non-Financial Reporting
Directive, NFRD).
All documents are available in electronic form on the
following websites:
•
Baloise Group
www.baloise.com/annual-report
•
Baloise in Belgium
www.baloise.be/fr/a-propos-de-nous
•
Baloise in Germany
www.baloise.de/de/ueber-uns
•
Baloise in Liechtenstein
www.baloise-life.com/reports
•
Baloise in Luxembourg
www.baloise.lu/annual-reports
•
Baloise Switzerland
www.baloise.com/financial-condition-report
www.baloise.com/bank
Management report
Baloise Group Annual Report 2024
6
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Management report
Baloise Group Annual Report 2024
7
80 %
of employees
responded positively
to Baloise’s employee
satisfaction survey
Baloise at a glance
Asset Management
Total assets under management
CHF 93.6 billion
Third-party assets under management
CHF 16.8 billion
of which multi assets
CHF 7.9 billion
of which real estate
CHF 2.3 billion
Employees
254
Bank
Net new money custody account volume
(market-adjusted)
CHF 188.7 million
Total assets
CHF 9,333.3 million
Wealth & pension advisory mandates
5,319
Cost/income ratio
63.6 %
Employees
398
CHF 384.8 million
profit attributable to shareholders
84 %
A-AAA MSCI ESG rating for rated
insurance investments
92.9 %
combined ratio
new business margin
in the life business
CHF 3,629.7 million
equity
2024
4.9 %
Management report
13.9 %*
return on equity
* adjusted for exceptional non-operating items of
CHF 92 million from the sale of FRIDAY and the discontinuation
of the ecosystem strategy
Baloise Group Annual Report 2024
8
Dividend of
CHF 8.10 per share
(proposal to the Annual General Meeting
on 25 April 2025)
CHF 8,603.7 million
total business volume
CHF 565 million
cash remittance
83 %
cash
payout rate
Switzerland
Germany
Belgium
Luxembourg
Business volume
Life (CHF million)
2,249.4
514.1
471.6
200.3
Non-life (CHF million)
1,485.6
869.8
1,550.8
161.8
Investment-type premiums (CHF million)
50.4
–
108.9
888.8
Employees
4,043 1
1,563
1,767
624 2
Combined ratio
92.5 %
93.3 %
91.3 %
97.1 %
1 Including Asset Management and Bank
2 Including Liechtenstein [18] and FRIDAY [169]
Further information on business performance can be found in the chapter “Review of operating performance” from page 38 onwards.
Management report
Baloise Group Annual Report 2024
9
Key figures
2024
2023
Change (%)
CHF million
Business volume
Gross premiums written Non-life
4,120.2
4,081.6
0.9
Gross premiums written Life
3,435.4
3,648.0
– 5.8
Investment-type premiums
1,048.2
888.5
18.0
Total business volume
8,603.7
8,618.1
– 0.2
Insurance revenue
Insurance revenue Non-life
4,095.0
4,013.0
2.0
Insurance revenue Life
1,461.7
1,399.4
4.5
Total insurance revenue
5,556.8
5,412.4
2.7
Operating profit (loss)
Consolidated profit / loss before borrowing costs and taxes
Non-life
261.1
134.0
94.9
Life
282.3
203.1
39.0
Asset Management & Banking
89.1
82.3
8.3
Other activities
– 87.1
– 75.0
16.1
Consolidated profit for the period
379.4
236.2
60.6
Profit (attributable to the shareholders)
384.8
239.6
60.6
Balance sheet
Insurance contract liabilities
49,506.2
49,819.5
– 0.6
Contractual service margin (CSM)
5,002.1
4,864.8
2.8
Equity
3,636.3
3,259.3
11.6
Ratios (per cent)
Return on equity (RoE) 1
13.9
7.2
–
Combined ratio Non-life
92.9
94.6
–
New business margin (NBM) Life
4.9
6.5
–
New life insurance business
Value of new business (VNB)
142.0
177.4
– 20.0
Present value new business premium (PVNBP)
2,878.4
2,748.6
4.7
New business CSM
133.2
167.0
– 20.2
Key figures on the Company’s shares
Shares issued (units)
45,800,000
45,800,000
0.0
Average number of shares outstanding
45,393,010
45,298,246
0.2
Basic earnings per share 2 (CHF)
8.48
5.29
60.3
Diluted earnings per share 2 (CHF)
8.47
5.29
60.1
Comprehensive equity per share 3 (CHF)
166.69
156.57
6.5
Closing price (CHF)
164.10
131.80
24.5
Market capitalisation (CHF million)
7,515.8
6,036.4
24.5
Dividend per share 4 (CHF)
8.10
7.70
5.2
1 2024 adjusted for exceptional non-operating items of CHF 92 million from the sale of FRIDAY and the discontinuation of the ecosystem strategy.
2 Calculation based on the profit for the period attributable to shareholders.
3 Calculation based on shareholders’ equity (equity before non-controlling interests) and the contractual service margin (CSM) after taxes.
4 2024 based on the proposal submitted to the Annual General Meeting.
Management report
Baloise Group Annual Report 2024
10
Sustainability key figures
Key figure
Unit
2024
Reference
Environment key figures
Total GHG emissions
page 167
Total Scope 1 emissions
tCO2e
4,785
Total Scope 2 emissions (location-based)
tCO2e
2,719
Total Scope 2 emissions (market-based)
tCO2e
616
Total Scope 3 emissions
tCO2e
1,578,820
1 Purchased goods and services
tCO2e
79,640
2 Capital goods
tCO2e
914
3 Fuel- and energy-related emissions
(not included in Scope 1 or Scope 2)
tCO2e
1,733
5 Operational waste
tCO2e
176
6 Business travel
tCO2e
908
7 Employee commuting
tCO2e
3,323
15 Investments
tCO2e
1,492,125
Total GHG emissions (location-based)
tCO2e
1,586,323
Total GHG emissions (market-based)
tCO2e
1,584,221
GHG emissions intensity
page 167
Total GHG emissions (location-based)
per million net revenue* in CHF
tCO2e / CHF million
285.5
Total GHG emissions (market-based)
per million net revenue* in CHF
tCO2e / CHF million
285.1
Social key figures
Employee characteristics
page 184
Total number of employees
headcount
7,997
Diversity and inclusion
page 186
Female employees
headcount
3,586
Male employees
headcount
4,411
Proportion of female employees in the workforce
%
44.8 %
Age distribution of employees
Employees under 30 years of age
%
14.7 %
Employees aged 30–50
%
48.8 %
Employees over 50 years of age
%
36.5 %
Governance key figures
Board of Directors
page 66
Independence
%
100 %
Average tenure
years
5.1
Diversity on the Board of Directors
page 68
Number of women on the Board of Directors
headcount
3
Proportion of women on the Board of Directors
%
33.3 %
Average age of the members of the Board of Directors
years
61
Remuneration
page 96
Total compensation of the CEO
CHF thousand
1,899.2
* corresponds to the insurance revenue
Management report
Baloise Group Annual Report 2024
11
Letter to shareholders
Dear shareholders,
Baloise generated a very satisfying profit attributable
to shareholders of CHF 384.8 million and brought about
a tangible improvement in its core business in 2024. All
national subsidiaries played their part with increased
EBIT contributions. Having seen an exceptionally high
volume of natural disaster claims and large claims in
2023, we are back on track again operationally. The
volume of business decreased slightly in 2024 to CHF
8,603.7 million, which was attributable to a lower volume
of premiums in the traditional life insurance business
and to exchange rate movements. The combined ratio
was reduced substantially despite Switzerland once
again seeing a high level of storm-related claims in
the summer in the first half of the year. The Group’s
combined ratio is 92.9 per cent, which is an improvement
of 1.7 percentage points compared with 2023. Baloise’s
capitalisation remained robust. Comprehensive equity
rose to CHF 7,634.4 million as at 31 December 2024. The
rating agency S&P Global Ratings (S&P) reaffirmed the
Baloise Group’s rating of A+ with a stable outlook in June
2024. We expect the SST ratio as at 1 January 2025 to be
just over 200 per cent.
Non-life business notched up EBIT of CHF 261.1 million,
which was a considerable year-on-year improvement
thanks to a lower level of claims incurred and an
improved level of gains or losses on investments. With
EBIT of CHF 282.3 million, the life business also hiked its
earnings compared with 2023, thanks in part to positive
non-recurring effects. The Asset Management & Banking
segment recorded a strong year-on-year increase in EBIT
to stand at CHF 89.1 million. This figure was dominated
by the rise in third-party assets in asset management.
Refocusing strategy off to a good start
Back in spring 2024, we announced that we would
be focusing more keenly on our core business and not
investing any further in our ecosystem strategy. In
September of last year, we launched our refocusing
strategy. The subsequent sale of FRIDAY and the discon-
tinuation of the ecosystem strategy weighed on profit
attributable to shareholders for 2024 with exceptional
non-operating items of CHF 92 million. We do not expect
the portfolio transaction or ecosystem divestments to
have any further significant adverse impact on earn-
ings in 2025 or beyond. This is testimony to our focused
approach and reinforces our commitment to forging
ahead with our chosen course.
We successfully embarked on the new strategy phase
in September 2024. The refocusing strategy is founded
on four central pillars: technical profitability, opera-
tional efficiency, growth in target segments and capital
productivity. The aim is to further build on Baloise’s
existing strengths and to boost profitability and growth
for the long term. Implementing the refocusing strategy
is a cornerstone of these efforts and the first steps are
already proving effective, creating a solid foundation
on which Baloise can create enduring value for the long
term. We will rigorously pursue steps to boost efficiency,
achieve profitable growth and optimise our portfolio
with a targeted combined ratio of around 90 per cent
and an expense ratio of less than 28 per cent in 2027.
With a return on equity of 13.9 per cent (adjusted for
exceptional non-operating items of CHF 92 million in
connection with the sale of the FRIDAY portfolio and
the discontinuation of the ecosystem strategy), we are
already within the target range of 12 per cent to 15 per
cent and, coupled with a cash payout rate of over 80 per
cent, are demonstrating our long-standing, reliable
appeal for our investors. The new financial targets have
been clearly defined and we are well on track to achieve
them between now and 2027.
Renewed dividend increase thanks to high level of
profitability
Baloise reported strong cash remittance once again
in 2024, allowing us to maintain our attractive and
consistent dividend policy. The Board of Directors will
therefore propose to the Annual General Meeting that
the dividend be increased by CHF 0.40 to CHF 8.10 per
share. We also plan to supplement the ordinary dividend
with a share buy-back of CHF 100 million. Our business
strategy is geared towards longevity and underscores
the dependability of Baloise as an attractive and
sustainable investment.
Baloise is on the right path to be able to continue
keeping its promises. For years, we have proven that
a business model with a long-term focus based on
sustainable value creation is a stable anchor for all of
our stakeholders: for shareholders, for customers and for
our employees. We will therefore power ahead with the
course that has been set under the refocusing strategy,
while remaining flexible should adjustments be required
Management report
Baloise Group Annual Report 2024
12
Dr Thomas von Planta, Chairman of the Board of Directors (left), and Michael Müller, Group CEO (right)
“Our refocusing
strategy is already
starting to have a
positive impact.”
along the way. As ever, this is with our goal in mind of
positioning Baloise as a dependable partner for all of its
stakeholders for the long term.
Basel, March 2025
Dr Thomas von Planta
Michael Müller
Chairman of the
Group CEO
Board of Directors
Management report
Baloise Group Annual Report 2024
13
Strategy
Baloise launches refocusing strategy
In September 2024, Baloise announced the start of a refo-
cusing strategy that includes measures related to tech-
nical profitability, operational efficiency, growth in target
segments and capital productivity. The Simply Safe stra-
tegic programme and the related targets and ambitions
have been replaced by the new refocusing strategy.
The intention of the refocusing strategy is to further
improve Baloise’s existing strengths and boost profitability.
The new financial targets consist of a return on equity of
between 12 per cent and 15 per cent, strong cash remit-
tance of more than CHF 2 billion in the period 2024–2027
and a higher cash payout rate of 80 per cent or more.
The new financial target for cash remittance retains the
existing ambition of cash remittance of CHF 2 billion in the
period 2022–2025.
To achieve these targets, we are implementing meas-
ures to raise efficiency and reduce costs, continually
optimising our portfolio and striving for targeted growth.
These steps provide the basis for maintaining our attrac-
tive shareholder policy, under which the reliable dividend
payment is to be supplemented with a new distribution
structure for share buy-backs (see text box at the end of
this chapter for further details).
Sharpening the strategic focus on the core busi-
ness also strengthens long-term value creation for our
customers, sales partners, the environment, society and
our employees.
Ensuring the long-term profitability of the
non-life business
We have been continually optimising our non-life business
for more than 20 years. As a result, our non-life portfolio
is one of the most profitable in Europe. The combined
ratio has always been below 95 per cent since 2012 and
the loss ratio has been consistently strong, outperforming
the wider market by an average of 2 percentage points
over the last ten years. Going forward, we intend to use a
variety of measures, such as the optimisation of our
products and prices, to ensure that our loss ratio remains
best in class. At the same time, we have set ourselves the
goal of lowering our expense ratio by 2 to 3 percentage
points by 2027.
Our ambition is therefore to achieve a combined ratio of
around 90 per cent in an average interest-rate and claims
environment. This percentage is at the lower end of the
range of ratios that we have achieved in the past decade.
We are confident that by optimising claims incurred, being
more selective in our underwriting and reducing costs,
we can achieve this ambition and thus ensure that our
non-life portfolio remains attractive over the long term.
Strengthening a resilient life business
Our life business is a resilient and stable source of earn-
ings, with a healthy level of cash remittance and an EBIT
contribution of at least CHF 200 million. By continually
optimising our policy portfolios, for example by protecting
them using reinsurance programmes, focusing on capi-
tal-efficient new business and taking a selective approach
in the Swiss group life business, we are ensuring that the
life business can continue to contribute to the Company’s
success in the long term without limiting the breadth
of the products and services that we offer. As a result,
we can be very flexible in meeting customers’ needs and,
depending on demand, offer different provision models. In
particular, our business model in Switzerland – comprising
insurance and banking – enables us to combine insurance
products with tailored banking solutions. This means we
are always well positioned to satisfy customers’ needs.
Leading the field in attractive target segments
In Switzerland, Belgium, Germany and Luxembourg, we
want to be among the leading insurance companies in
our attractive target segments. To this end, we have to
increase our cost discipline and achieve sustained profit-
able growth in the target segments and, by doing so, grow
at a faster rate than the relevant markets. We are there-
fore setting ourselves the ambition of further improving
our cost efficiency by lowering our expense ratio in the
non-life business by between 2 and 3 percentage points.
To achieve this, we are cutting 250 jobs across the
Group, optimising operating costs and making improve-
ments by deploying new technologies. The latter will also
help us to increase technical profitability, for example by
applying dynamic pricing and detecting insurance fraud.
We are also using artificial intelligence to accelerate
growth in our markets and to provide an even better advi-
sory service to our customers.
Management report
Baloise Group Annual Report 2024
14
Further information on our refocusing strategy can be
found in the presentation for the 2024 investor update.
www.baloise.com/investor-days
Management report
Refocusing strategy: selected financial targets
Capital productivity and return on equity
The increase in technical profitability, the improved cost base, the profitable growth of our target segments and a
stronger focus on capital efficiency will have a positive impact on return on equity in the medium term. Baloise is
now targeting a return on equity of between 12 per cent and 15 per cent.
All business units will contribute to this ambition, and we will use continual portfolio analysis to check which
steps need to be taken to achieve this. As before, we may decide to acquire portfolios, review and restructure
portfolios or even dispose of them if they do not satisfy this new target.
Dividend and share buy-backs
Across the business portfolio as a whole, we anticipate broad-based cash remittance with a cumulative amount
of over CHF 2 billion in the period 2024–2027. Of the cash remitted, at least 80 per cent is to be distributed in the
form of dividends and complementary share buy-backs. This shareholder-oriented dividend policy reflects the
focus on the earnings power of the core business and the discontinuation of the ecosystem strategy.
The difference between the dividend payments and the cash payout rate of 80 per cent or more will be
accumulated annually. As soon as a minimum of CHF 100 million is reached, this capital will be returned to share-
holders in the form of share buy-backs.
Information on the achievement of our targets in 2024 can be found in the chapter “Review of operating
performance” from page 38 onwards.
Baloise Group Annual Report 2024
15
The consolidation of all the existing brands into a single
Baloise brand, a process that began in autumn 2022, is
proving effective in all markets, both internally and exter-
nally. Internally, the single brand identity has led to
greater collaboration across national borders with regard
to brand management and brand communication. It has
also strengthened the feeling of a shared identity between
all employees. In terms of our external perception, the new
brand has become established and we are seeing a posi-
tive trend in the strength of our brand. We are continuing
to pursue our strategic ambition of further strengthening
the brand and making it an asset that contributes to our
business performance:
•
We are a modern, unified and sharpened brand that
best supports the unique Baloise customer experience
and leverages growth.
•
Baloise is the preferred brand for customers, partners
and employees who want to engage with a human
insurance and finance brand.
•
Baloise has a strong reputation as a responsible insur-
ance and finance brand whose sustainable action
supports customers and strengthens society, the
economy and the environment.
The role of the Baloise brand
The brand is the link between the customers and Baloise.
It communicates the brand promise and strengthens trust
in the Company’s services. This is where the brand purpose
comes into play:
•
At Baloise, we care. We develop insurance and financial
solutions with a human touch, because we want our
employees, customers and partners to feel that they
are in good hands.
•
At Baloise, we inspire. We love what we do – and we love
to go further. We explore new pathways, create new
possibilities and seek out new solutions. As an inspiring
partner, we encourage our employees, customers and
partners to remove worry from their lives.
•
At Baloise, we keep our promises. We listen to our
customers and partners so we can meet their needs.
We act responsibly and take responsibility for our future
and contribute to the society we live and work in.
“We are Baloise. We are the
inspiring partner for your
tomorrow.”
Brand values and brand experience
Our brand values are partnership, proximity and tomorrow.
This is what we stand for and what we believe in.
We believe in partnership
This is why we treat our colleagues, clients and partners as
equals and why we build our relationships on mutual trust:
because for us, business success begins with a strong
partnership.
We believe in closeness
This is why we take care of our employees, customers and
partners and why we behave like a reliable friend: because
for us, solutions by people for people start with closeness.
We believe in the future
This is why we act responsibly for the benefit of people
today and with consideration for future generations and
why we want to make a difference in the society we live
and work in: because for us, being an inspiring partner
begins with optimism and confidence about the future.
Baloise brand
Building a sustainably strong brand
Management report
Baloise Group Annual Report 2024
16
Brand campaign aimed at building a
strong brand
Building a brand and positioning it well for the long term
takes time. The consolidation of the brand portfolio
has laid the foundations to strengthen the Baloise brand
sustainably by means of targeted measures.
Brand management measures vary from country to
country depending on the level of brand recognition
in each market. In Luxembourg and Belgium, the Baloise
brand is already relatively well established and known.
Here, the challenge is to position the brand values
more strongly to make Baloise the preferred choice for
customers. In Germany, the emphasis is on reassuring
customers and partners that the new Baloise brand still
represents the same strengths, innovative mindset and
long-standing experience that they have come to trust.
To this end, the Company launched a campaign with the
slogan “Versicherungstrendsetter. Seit 1864.” (“Setting
trends in insurance. Since 1864.”). In Switzerland, commu-
nications are focused on boosting brand recognition and
highlighting the unique business model of insurance and
banking. To support this endeavour, a value proposition
has been formulated as a basis for future campaigns: At
all stages of life, Baloise is there for its customers and
can support them seamlessly with financial products from
a single source and comprehensive advice.
www.baloise.ch/de/ueber-uns/wir-sind-baloise
(only in German)
Management report
Baloise Group Annual Report 2024
17
Baloise shares
Review of the 2024 trading year
Much like in 2023, inflation data and interest-rate changes
were major factors that shaped the financial markets
in 2024. Inflation slowed in all regions, and the central
banks in industrialised economies started to lower their
key interest rates. The global economic growth picture
was characterised by significant variation at regional
and sector level. The geopolitical situation and political
uncertainty were once again significant sources of risk for
investors in the reporting year. Nonetheless, 2024 was, on
balance, a positive year for the equity markets. The Swiss
Market Index (SMI) was up by around 4.2 per cent at the
end of the year. Baloise shares* performed well in 2024,
closing around 25 per cent higher than they had been at
the start of the year. In addition, Baloise remains a reliable
choice for dividends. The Board of Directors has proposed
that the dividend be raised by 5.2 per cent to CHF 8.10 for
2024. Moreover, the Company is planning a share buy-back
programme with a volume of CHF 100 million, subject
to the decision made about the dividend at the Annual
General Meeting.
A rally in the equity markets towards the end of 2023,
prompted by the conclusion of the cycle of interest-rate
hikes, set an upbeat tone for a positive 2024 trading year.
Inflation stabilised in most industrialised countries at the
beginning of the reporting year. This raised the prospect of
potential interest-rate cuts, which, in turn, paved the way
for further recovery. In March 2024, the Swiss National Bank
(SNB) lowered its key rate to 1.50 per cent (1 January 2024:
1.75 per cent) and thus became the first central bank of an
industrialised economy to usher in an interest-rate policy
change. While inflation in Switzerland had been within the
SNB’s target band since mid-2023, it proved stickier in the
eurozone and the US. Consequently, the European Central
Bank (ECB) and the US Federal Reserve (Fed) waited
slightly longer before cutting interest rates. In June 2024,
the ECB lowered its key rate by 0.25 percentage points to
4.25 per cent (1 January 2024: 4.50 per cent), and the SNB
implemented a second rate reduction to 1.25 per cent.
The Fed followed suit in September with its first of three
cuts to the federal funds rate in 2024 (upper end of the
target range as at 1 January 2024: 5.50 per cent), and both
the ECB and the SNB also announced further reductions
before the end of the year. As at 31 December 2024, the
SNB’s key rate stood at 0.50 per cent and that of the ECB
at 3.00 per cent, while the upper end of the target range
for the Fed’s key rate was 4.50 per cent.
The US economy proved exceptionally robust in 2024,
whereas growth in the major EU economies stagnated.
Manufacturers in the eurozone struggled to recover from
the energy price shock triggered by the war in Ukraine, and
low demand from China – together with certain structural
issues – put further pressure on the EU’s industrial sector.
Over the course of the year, this weakness spilled over into
the service sector. The Swiss economy continued to record
moderate growth.
The geopolitical environment was fraught, but no
significant escalation occurred in 2024. Ongoing tensions
in the Middle East and the continuing war in Ukraine
affected commodity prices throughout the year. Gold,
a safe haven for investors, climbed to a record high in
2024. The election of Donald Trump for a second term as
US president brought additional volatility to the markets
in the last two months of the reporting year. US equities
were spurred on by the prospect of tax cuts and deregu-
lation, while positive comments about cryptocurrencies
sent Bitcoin soaring to an all-time high of more than
USD 106,000 in mid-December. By contrast, the possible
implementation of punitive tariffs by the US put a damper
on equities from the emerging markets.
Over 2024 as a whole, Baloise shares rose in value,
reaching their high for the year at CHF 176.20 (closing price)
in October and ending the trading year up by 25 per cent
year on year at a price of CHF 164.10. This meant that
Baloise shares significantly outperformed the European
insurance industry index (STOXX Europe 600 Insurance),
which gained 18 per cent over the year as a whole, and
nearly matched the performance of the Swiss Exchange
Supersector Insurance index (up by 26 per cent).
www.baloise.com/baloise-share
* Baloise shares = shares in Baloise Holding Ltd
Dividends paid to shareholders
The Board of Directors of Baloise Holding Ltd will propose
to the Annual General Meeting on 25 April 2025 that a
cash dividend of CHF 8.10 per share be paid for the 2024
financial year, representing a year-on-year increase of
5.2 per cent. This represents an attractive dividend yield
of 4.9 per cent on the year-end share price. Moreover, the
Company is planning a share buy-back programme with
a volume of CHF 100 million, subject to the decision made
about the dividend at the Annual General Meeting. The
total payout rate including dividend and share buy-back
comes to an attractive 83 per cent of cash remittance
in 2024.
Management report
Baloise Group Annual Report 2024
18
Shareholder structure
The shares in Baloise Holding Ltd are widely held. There were
two material changes in connection with significant share-
holders under Swiss law. In May 2024, UBS Fund Manage-
ment (Switzerland) AG disclosed a percentage of its share-
holding of 9.324 per cent following the integration of Credit
Suisse. In June 2024, Cevian Capital Partners Ltd. reported
a percentage of shareholding of 5.113 per cent. In accord-
ance with SIX Swiss Exchange’s definition, 94.89 per cent of
Baloise shares are now free float. Further information on
significant shareholders as at 31 December 2024 is provided
in table 16 on page 417 of the 2024 Annual Report.
Cash dividends
Share
buy-backs
Total
Year (CHF million)
2024
371.0 1
–
371.0
2023
352.7
–
352.7
2022
338.9
–
338.9
2021
320.6
–
320.6
2020
312.3
92.8
405.1
Total
1,695.5
92.8
1,788.3
All figures stated as at 31 December.
1 Proposal to the Annual General Meeting on 25 April 2025.
Statistics on Baloise shares
31.12.2024
31.12.2023
31.12.2022
31.12.2021
31.12.2020
Price at year-end (CHF)
164.10
131.80
142.70
149.10
157.50
High (CHF)
176.20
158.50
176.00
168.80
182.10
Low (CHF)
129.60
126.90
125.50
137.60
107.90
Market capitalisation (CHF million)
7,515.8
6,036.4
6,535.7
6,828.8
7,686.0
Basic earnings per share (CHF)
8.48
5.29
5.49
13.06
9.65
Diluted earnings per share (CHF)
8.47
5.29
5.48
13.05
9.63
Price / earnings (p / e) ratio 1
19.35
24.91
25.99
11.42
16.32
Price / book (p / b) ratio 1
2.05
1.84
1.89
0.92
1.02
Number of shares issued (units)
45,800,000
45,800,000
45,800,000
45,800,000
48,800,000
Number of treasury shares (units)
305,914
386,340
545,636
648,730
3,750,453
Number of shares in circulation (units)
45,494,086
45,413,660
45,254,364
45,151,270
45,049,547
Average number of shares outstanding 2
45,393,010
45,298,246
45,176,614
45,062,127
45,031,594
Dividend per share 3 (CHF)
8.10
7.70
7.40
7.00
6.40
Dividend payout ratio 3
95.6
145.6
134.9
53.6
66.3
Dividend yield 3
4.9
5.8
5.2
4.7
4.1
1 Calculation is based on the profit for the period attributable to shareholders and the equity attributable to shareholders.
2 Relevant for the calculation of earnings per share (see page 330 of the financial report).
3 2024 based on the proposal submitted to the Annual General Meeting.
Baloise shares
Security symbol
BALN
Nominal value
CHF 0.10
Security number
1.241.051
ISIN
CH0012410517
Stock exchange
SIX Swiss Exchange
Security type
100 % registered shares
Management report
Baloise Group Annual Report 2024
19
How Baloise creates value
We have been creating value for all our
stakeholders for more than 160 years
Stakeholders
Customers/partners
Shareholders/investors
Society
Environment
Employees
Objectives/commitments
High level of satisfaction, responsible partnership
12–15 per cent return on equity
Cash remittance of more than CHF 2 billion between 2024
and 2027
Cash payout rate of at least 80 per cent
Good corporate citizen / CSR initiatives / private-sector
solutions to societal challenges
Climate roadmap, net zero / Paris 2050 / RI policies
High level of employee satisfaction
Management report
20
Baloise Group Annual Report 2024
In line with the objective of continuing to be a reliable
partner for all the Company’s stakeholders, Baloise’s Board
of Directors and Executive Committee periodically review
the corporate strategy and adapt it to changing condi-
tions and requirements. In autumn 2024, Baloise organ-
ised an investor update and set itself new objectives. The
Company intends to pursue a refocusing strategy under
which it will strengthen its focus on its core business to
ensure it can continue generating lasting added value for
all stakeholder groups in future.
The refocusing strategy will pay particular attention
to technical profitability, operational efficiency, growth in
target segments and capital productivity. Baloise has also
defined new financial targets, which consist of a return
on equity of 12 to 15 per cent, strong cash remittance of
more than CHF 2 billion in the period from 2024 to 2027
and a higher cash payout rate of 80 per cent or more to
our shareholders (for more information, see the chapter
“Strategy”). The dividend policy will also be extended to
include a rules-based share buy-back
In 2024, Baloise took its sustainability strategy a further
step forward. Baloise is aware of its responsibility towards
customers, partners, shareholders, investors, employees,
the environment and society. We seek to create long-term
added value while having a positive impact on people
and the environment. By taking environmental and social
considerations into account, Baloise is aiming to generate
long-term success and contribute to efforts to tackle
global challenges.
Following a thorough and detailed analysis, strategic
action areas were defined that take a long-term approach
to achieve sustainable growth while having a positive
effect on both society and the environment.
The Baloise sustainability strategy covers the following
action areas:
•
Contribution to a safe, secure and resilient society
Baloise seeks to contribute to the safety, security and
resilience of society by minimising risks and finding
solutions that protect and strengthen society.
•
Improvement of the impact on CO2 emissions and
management of the impact on business activities
Baloise endeavours to reduce its carbon footprint and
use resources more efficiently. The Company has set
itself the target of cutting CO2 emissions to net zero
by 2050.
•
Embedding of sustainability into the corporate
culture
Sustainability needs to be firmly anchored in Baloise’s
corporate culture and in its day-to-day activities.
As part of its updated sustainability strategy, Baloise will
draw up and implement actions and targets for the
strategic action areas. The goal is to successfully integrate
the sustainability strategy, measure progress and report
on it transparently. Regular reviews and adjustments
should ensure that we remain on track to achieve our
long-term sustainability targets.
The 2024 Annual Report comments and reports in detail
on the fundamental principles of long-term value creation
at Baloise and on the milestones that have been achieved
over the last year. In a departure from previous years, all
elements of our reporting – financial and non-financial –
are combined into one report.
Management report
21
Baloise Group Annual Report 2024
How we create value for the
environment
For more than 160 years, Baloise has been providing
services that make the lives of its customers safer and
creating lasting added value for all its stakeholders.
Environmental considerations also play a central role
here. Our environmental policy focuses on the promotion
of energy from renewable sources and the sustainable
expansion of climate change mitigation actions. We
attach a high priority to the responsible use of natural
resources and the continuous reduction of CO2 emissions
both in our operations and across our business activity
as a whole. Our responsibility towards the environment
and our philosophy of value creation are reflected in our
energy consumption, our investments, the procurement of
products and services, and our underwriting policy.
Alternative solutions that have a less harmful impact
on the climate and environment are especially relevant
for our customers in the areas of transport and the
home. That is why we offer insurance for electric vehicles,
solar panels and other products that help to protect the
climate.
We provide comprehensive protection in Switzerland
for our customers’ electric vehicles and accessories
through our Electra supplementary cover. If the charging
point or charging accessories are damaged or stolen,
the charging card or charging app is misused or the
battery is damaged, Electra covers the costs.
Our Drive Electric product, offered in partnership with
Enovos and diego in Luxembourg, supports our customers
through the transition to an electric or hybrid vehicle. It
includes a free charging card that can be used at 180,000
charging points throughout Europe and the personal
support of an expert who will guide customers through
the process of selecting and installing a private charging
point at home, and through all the dealings with public
authorities, such as applying for government grants.
We also promote the use of SMART Repair for damaged
vehicles. Thanks to our partner network of workshops, we
can offer eco-friendly repairs of the highest quality. This
reduces greenhouse gases and conserves resources.
We offer insurance for photovoltaic systems and more
climate-friendly heating systems for both private and
business clients. Our aim is to offer the right protection
for every system so as to encourage greater use of energy
from renewable sources and offer our customers the
protection they need.
Climate roadmap
We have had our own environmental mission statement
since 1999. From the outset, it was important to embed
sustainability throughout the Company and in all
day-to-day business activities. The environmental mission
statement became an integral element of the Baloise
value creation model for sustainable development in 2018
and was thus incorporated into our overall sustainability
management. The environmental mission statement is
a key part of our efforts to create value in relation to the
environment and confirms our commitment to the targets
of the 2015 Paris climate agreement.
We support the targets of the Paris Agreement and
the efforts of Switzerland and the EU, and have therefore
set ourselves the goals of reducing our CO2 emissions to
net zero by 2050 and lowering our operational emissions
(Scopes 1 and 2) by a further 25 per cent by 2030, relative
to 2022. To achieve these targets, we will set interim decar-
bonisation targets by the end of 2025 for our own business
operations and for our financed and insured emissions as
part of a Group-wide transition plan.
In relation to our own business operations (Scopes 1
and 2), we are developing a holistic approach to reducing
our carbon footprint. We continuously analyse and opti-
mise our energy consumption and emission patterns in
order to introduce more efficient processes and maximise
the use of energy from renewable sources. We use ener-
gy-efficient technologies and sustainable means of trans-
port to minimise the CO2 emissions of our vehicle fleet.
We are also committed to environmentally responsible
building standards and encourage the use of renewable
energy in our facilities.
The management of our investments and insured risks
in accordance with climate criteria is an important lever
for mitigating the effects of climate change. We therefore
also consider the carbon footprint of our investments. We
analyse and assess our portfolios and follow sustainable
investment strategies that support the transition to a
low-carbon economy. Targeted investment is helping us
to reduce our overall carbon footprint while also bringing
about positive changes in society. For more information,
see the chapter “Responsible investment”.
We are currently focusing on a framework for calcu-
lating our insured emissions. Our aim is to put the neces-
sary framework in place in 2025. enabling us to record
and analyse these emissions precisely and comprehen-
sively. This includes developing robust methods and
models as well as collecting and processing high-quality
Management report
22
Baloise Group Annual Report 2024
data that helps us to accurately determine the carbon
footprint of our insured emissions. We are working to
create a robust dataset in all GHG categories that we
can use to set reduction targets for our own operations
and for our investment and insurance portfolios by the
end of 2025. The significant improvement in data quality
and completeness in the reporting year led to material
changes in the relevant GHG categories, which diminishes
comparability with the prior-year figures.
These efforts are an important step in our sustaina-
bility strategy, as they will increase the transparency of
our environmental impact and allow us to make informed
decisions on the reduction of our CO2 emissions. Through
these initiatives, we are laying the cornerstone for more
sustainable insurance practices and proactively helping to
achieve climate targets.
Our goal of achieving net zero emissions by 2050
reflects our commitment to climate change mitigation.
This goes beyond simply reducing emissions and includes
offsetting our own unavoidable operational emissions.
We recognise that reducing CO2 emissions requires a
collaborative approach, and we are committed to working
with other companies, governments and civil society to
find collective solutions to climate change.
CO2 offsets for unavoidable emissions within
the Company
Since 2020, we have been retrospectively offsetting
the CO2 emissions that we are unable to avoid through
targeted cuts or optimisation measures, in accordance
with the annual greenhouse gas review. The focus is ex-
clusively on high-quality projects centred on sustainable
local development.
In 2024, around CHF 150,000 was spent on offsetting
approximately 11,100 tonnes of CO2 from 2023. These are
the unavoidable emissions arising from business opera-
tions and from holding the 2024 Annual General Meeting.
We are currently focusing on achieving a 1:1 offset ratio
through avoidance projects, which aim to prevent emis-
sions from being released in the first place. The following
climate change mitigation projects are used to offset
our global emissions:
•
Forest conservation in Indonesia and South America
•
Renewable energy from sawdust in Bulgaria
•
Renewable wind power in Bulgaria
•
Sustainable forestry and climate action in Switzerland
With the Verified Carbon Standard and Gold Standard, and
an audit under ISO 14064-2 with validation by TÜV NORD,
Baloise has a credible, measurable and transparent port-
folio of climate change mitigation measures.
Swiss Climate Foundation
The Swiss Climate Foundation has been supporting
small and medium-sized enterprises in Switzerland and
Liechtenstein that contribute to the implementation
of climate change mitigation measures for 16 years.
It promotes projects that reduce CO2 emissions while
strengthening the innovative capacity and competitive-
ness of the companies that implement them.
We joined the Swiss Climate Foundation in 2021 and
donate to it the money received from the redistribution of
the CO2 levy on fuel. In 2024, the net contribution less our
own CO2 levies amounted to just under CHF 240,000. We
are part of a group of 31 partner companies that promotes
climate action and supports small and medium-sized
enterprises.
This year, the Climate Foundation awarded a total of
CHF 2.2 million to 16 initiatives, bringing the number of
projects it has supported since its inception to more than
200. There was a broad mix of projects this year, ranging
from mini biogas power plants for farms to the produc-
tion of natural foam and a solution for converting plastic
waste into raw materials for the circular economy.
In addition to its financial contributions, Baloise
participates in the review and assessment of the projects’
effectiveness and sustainability, thanks to its two seats on
the advisory board.
www.klimastiftung.ch
Operational emissions
As we are an insurance company, our operations are not
fundamentally energy-intensive compared to a manu-
facturing company, for example. At our sites, we predomi-
nantly require energy for electricity and heating.
We apply the latest building standards and renovation
methods to ensure our office buildings are climate-friendly,
and operate them in as resource-efficient a manner as
possible. We now source all our electricity from 100 per
cent renewable sources in Switzerland, Germany, Belgium
and Luxembourg in the buildings where we control our
own electricity mix. For more information, see chapter
environmental information of the report on non-financial
matters.
Management report
23
Baloise Group Annual Report 2024
Baloise as an employer
Baloise stands for a working environment built on
authenticity, continuous growth and partnership, thereby
creating the ideal conditions for pragmatic action and
lasting success. We foster a culture of trust where each
and every employee has the opportunity to take responsi-
bility, contribute their own ideas and overcome their limits.
At the same time, we expect our employees to stand up for
their opinions, be receptive to feedback and proactively
help shape their own development.
Our work is affected by the challenges arising from the
shortage of skilled workers. As a responsible employer, we
tackle these challenges head-on – both internally with
targeted development programmes for our employees
and externally by promoting and developing talent in a
wide range of skill areas. Our corporate culture provides
the foundation for our work here. We are target-driven,
pragmatic, solution-oriented and resolute. Everything
we do is shaped by our guiding principle: Be yourself.
And unlock your potential. This is how we shape Baloise.
Together.
Be yourself.
Individuality, diversity and equal opportunity are essential
to us. We encourage authenticity in our dealings with
one another and create an inclusive environment in which
every employee can develop their strengths, irrespective
of personal background or challenges. With carefully
designed programmes, flexible working models and a
clear commitment to diversity, we make sure everyone has
the same opportunities to develop and contribute profes-
sionally. In this way, we create a culture in which every
voice counts and personal growth becomes possible. This
is recognised, for example, in the Friendly Work Space®
label, which has been regularly awarded to Baloise in
Switzerland since 2010.
Diversity and inclusion
An inclusive, diverse and healthy working environment is
important for our long-term success as a company. Below,
we have listed a few initiatives implemented by Baloise
in Switzerland. These are representative of the work on
diversity and inclusion carried out in the other countries.
Our initiatives place a particular emphasis on diversity.
For example, we support our LGBTQ network, which was
set up by employees for employees. We also regularly take
part in the external 50+ jobs fair.
We also aim to make our leadership teams more diverse by
filling 40 per cent of all positions in the management team
with people who meet at least one diversity criterion – age,
gender or mother tongue. We are pleased to have made
good progress in this area since November 2023, thanks to
the efforts of our recruitment team and also to targeted
active sourcing. A total of 55 per cent of all new vacancies
in the management team were filled by people who meet
at least one diversity criterion. Women made up a third
of all promotions in 2024. We encourage part-time working
in all positions, including the sales force: almost all our
full-time vacancies are advertised with an option to work
80 per cent of full-time hours, and around a quarter of
employees work part-time. Some time ago, we began
implementing a series of workshops across the Group to
help employees recognise unconscious bias and reduce
the potential for discriminatory behaviour.
As a responsible employer, we are also committed to
the integration of people with special needs. To achieve
this goal, we partner with the Federal Disability Insur-
ance (IV) system to offer a number of places each year to
help get people with disabilities back into work. We have
provided more than 74 IV training places since 2012. We
also offer special training places to give young people
with special needs an opportunity to secure a vocational
apprenticeship.
And unlock your potential.
Our employees hold the key to their own development. We
encourage curiosity and use targeted programmes and
executive development to create an environment that
facilitates continuous learning. At Baloise, development
means trying new things, learning from mistakes and
overcoming our limits together.
Baloise competences
To meet the requirements of a constantly changing digital
world and counter the skills shortage, we have defined
the Baloise competences that will be needed in future
in the form of our strategic skills initiative. These compe-
tences provide all employees with a clear vision of the
wider skills necessary for success. They are an integral part
of the continuous development dialogue and will help
employees acquire the specific skills that are key for the
implementation of Baloise’s strategic targets.
How we create value for
our employees
Management report
24
Baloise Group Annual Report 2024
Own it
∙ Taking ownership
∙ Focusing on results
Collaborate
∙ Establishing
meaning
∙ Collaborating
effectively
Learn
∙ Living curiosity
∙ Developing through
reflection
∙ Promoting
development of others
∙ Building digital
literacy
Connect
∙ Living integrity &
trust
∙ Leveraging diversity
through dialogue
AI Discovery Weeks
We have introduced AI Discovery Weeks, a forward-looking
learning programme that gives all employees the oppor-
tunity to engage with artificial intelligence (AI) in depth.
The self-directed AI Fit learning path covers a range of
competence areas such as basic understanding of AI,
application and critical analysis. Employees work in small
groups and have weekly circle meetings where they can
share what they have learned and put it into practice. A
central aim of the AI Discovery Weeks is to develop specific
use cases for Baloise that can be directly applied in
everyday work processes.
Baloise Campus
The international executive development programmes
offered by Baloise Campus bring senior managers from
Switzerland, Germany, Belgium and Luxembourg together
to support their personal and professional development.
Through various learning formats and support from expe-
rienced coaches, we create a safe learning environment
where executives can hone their skills so they are able to
effectively implement our corporate strategy.
This is how we shape Baloise.
We foster a culture of trust and individual responsibility.
We give our employees the freedom to make decisions and
we expect them to take a pragmatic approach to make a
real difference. Through a high degree of empowerment
and decision-making freedom, we create an environment
in which success is celebrated and continuous improve-
ment is always the aim.
Focus on performance and hands-on culture
Within our new refocusing strategy, we see pragmatism
and an emphasis on performance as the key elements for
the ongoing development of our culture. As our ultimate
aim is to successfully implement our strategy and achieve
our strategic goals, we weight results higher than effort
and rapid implementation higher than conceptual perfec-
tion.
In accordance with our long-standing culture of trust,
we encourage our committed employees to take responsi-
bility for their own performance.
For employees to act independently while maintaining
a clear view of our purpose, they need to be in close
dialogue with their managers. That is why we place contin-
uous dialogue at the heart of our performance manage-
ment.
All employees regularly engage in this dialogue with
their managers, discussing where they stand in terms of
performance, conduct and development. In addition to
their individual contribution to the team and company
performance, the dialogue covers the interplay with
behavioural and development matters. This continuous
dialogue enables employees to reflect on evolving require-
Management report
25
Baloise Group Annual Report 2024
ments and framework conditions in real time, and to
adapt their actions accordingly. It also creates transpar-
ency with regard to employees’ individual contributions
towards achieving their team’s goals and enables this to
be fairly rewarded.
To engage in this continuous dialogue effectively, our
managers need various skills; we refer to this as perfor-
mance-driven leadership. Skills include the ability to coach
employees or provide them with guidance, but also to
address shortcomings openly and take appropriate action.
These skills are taught in the Baloise Campus executive
development programmes referred to above.
Alongside executive development, we also support
entire teams in establishing for themselves what our refo-
cusing strategy means for their specific work. This takes the
form of the “Focus on performance and hands-on culture”
workshop organised by the teams themselves, where they
have the opportunity to reflect on areas where they need to
take action, identify potential for improvement and develop
specific measures to optimise their work processes.
Together.
Different perspectives and strengths are brought together
to create synergies that go beyond individual performance.
We see friction and conflict not as obstacles, but as valu-
able impetus that generates energy for innovation and
growth. This culture of cooperation forms the basis upon
which our employees can not only work successfully but
also continuously grow, both personally and professionally.
Networks and information-sharing formats to promote
collaboration
Open communication and direct information-sharing are
firmly embedded in the Baloise corporate culture. Formats
such as Coffee with Clemens, an informal discussion with
the CEO of Baloise in Switzerland, provide a forum for
employees to share their concerns and ideas with senior
management on equal terms. Such initiatives promote
transparency, strengthen trust and help to build a more
tightly binding corporate culture.
We also offer our employees various workshops, retro-
spectives and feedback meetings to promote collaboration,
reflect on experience and develop pragmatic solutions.
These strengthen cohesion and help teams to unlock their
potential.
The Baloise Code and the Code of Conduct: guidelines for
day-to-day work
The Baloise Code – developed by employees for employees
– provides guidance for values-based teamwork and
leadership. It defines clear standards of behaviour for
day-to-day working. These principles help employees to
work within teams while also achieving their individual
goals.
www.baloise.com/code
The Code of Conduct lays down specific standards and
rules that govern how employees are treated. It covers
protection of health, equal treatment, treating one
another with respect and zero tolerance of bullying and
sexual harassment. The two codes complement one
another: while the Baloise Code sets out our cultural
values, the Code of Conduct provides the framework for a
safe working environment that is free of discrimination.
www.baloise.com/codeofconduct
Management report
26
Baloise Group Annual Report 2024
Careers website:
www.baloise.com/jobs
Careers blog:
www.baloise.com/karriereblog
LinkedIn:
www.linkedin.com/company/baloisech
Instagram:
www.instagram.com/baloisejobs
Facebook:
www.facebook.com/baloisech
YouTube:
www.youtube.com/baloisegroup
Management report
27
Baloise Group Annual Report 2024
How we create value for
our customers
The insurance business is rooted in the principle of risk-
sharing, the strengths of which are demonstrated when
individuals are in most need of protection. Delivering
the promised benefits and handling claims quickly and
straightforwardly are key to the satisfaction of our
customers and their trust in Baloise. We are partners for
the financial security of our customers and we are there
for them when they need help most urgently. Major loss
events such as the storms and heavy rains experienced
in Switzerland in early summer 2024 take their toll not
only on our customers but also on the economies of the
affected regions. Saastal in the canton of Valais was
particularly affected, suffering flooding, landslides and
debris flows. Our claims handling organisation and the
general agency for Upper Valais joined forces to help all
affected customers as quickly and efficiently as possible.
The storms resulted in around CHF 80 million worth of
claims across the whole of Valais. While it is events like
these that illustrate the strengths and customer benefits
of insurance in extreme situations, Baloise also creates
value for its customers on an everyday basis.
Advisory quality is key
When it comes to advising customers, we apply the prin-
ciple of lifelong learning to ensure customers always get
to enjoy the benefits of the latest concepts and solutions.
Cicero certification (the Swiss quality seal for advisory
standards) requires customer advisers in Switzerland
to undergo continuing professional development, and
Baloise offers a huge range of training and education
options for this purpose. Every customer adviser is obliged
to act in accordance with the internal procedures and
rules of conduct. Quality assurance spot checks and
customer surveys are conducted at regular intervals. In
total, 803 Baloise customer advisers hold Cicero certifica-
tion, 62 of whom gained it for the first time in 2024.
www.cicero.ch
During their basic training, advisers have to pass
regular tests on specific subjects. This ensures that they
have the expertise they need to be able to provide compe-
tent advice, especially in heavily advice-focused business
lines. As sustainability is becoming an increasingly impor-
tant aspect of customer advice, since 2024 customer
advisers have undergone newly designed basic training in
this area using a blended learning format.
Under the IDD (Insurance Distribution Directive), insur-
ance brokers and advisers and all employees involved in
selling insurance in Germany, Belgium and Luxembourg
are legally required to complete at least 15 hours of
training every year. This requirement is intended to ensure
that employees keep their professional and personal skills
up to date.
Sustainability for SMEs: support beyond
insurance
Although it is not (yet) a legal requirement in Switzerland,
small and medium-sized enterprises (SMEs) are increas-
ingly being called upon to approach the sustainability
in a more integrated way – and to provide evidence that
they have done so. It is no longer enough to show that the
economics of the business work. Employees, customers
and investors are also interested in key sustainability
figures. For many SMEs, however, sustainability remains a
maze of certificates, unclear costs and many questions.
For Baloise, sustainable development means much
more than just protecting our business as an insurance
provider, bank and asset manager. We want to actively
help shape social change and show SMEs how they can
use sustainability as a competitive advantage. That is
why, in Switzerland, we have set up a digital sustaina-
bility platform for SMEs (www.baloise.ch/nachhaltig)
(only in German), where they can find background infor-
mation, practical tips, useful tools and inspiration for
their day-to-day operations. There are many of articles
containing basic information on environmental, social and
economic sustainability. Our aim is to raise companies’
awareness now so that they can be successful in the long
term.
finance4women: new routes to financial
self-determination
Through our finance4women project, we are giving women
in Switzerland knowledge, insights and background
on their pension situation in a readily understandable,
inspiring form. We show them how they can actively
manage their pension situation, find their way through
the maze of investment options and guarantee financial
security for their nearest and dearest. We provide knowl-
edge and empower women to take financial decisions
confidently and independently in areas such as financial
autonomy, financial planning for families and security
within a partnership.
At the heart of the project is a very broad, search-en-
gine-optimised collection of topics in three languages on
the Baloise website (www.baloise.ch/finance4women). It
is based on the subjects most searched for on Google and
other search engines, and it is continuously updated. The
Management report
28
Baloise Group Annual Report 2024
main focus is on the communication of information with
practical tips – and without any direct sales intent. But
knowledge alone is not enough. The topic must be pack-
aged in an appealing way to generate interest. With this
information resource, which is aimed at young women and
women in families, we are addressing an important socio-
political issue and thus investing in the future. The project
not only improves financial understanding among women
but is also changing the way Baloise is perceived.
Streamlining of our product portfolio
A streamlined product portfolio is essential for digitalisa-
tion and will make it easier for our customers and partners
to interact with us. The wide variety of products creates
complexity across the whole value chain, for example in
claims handling, customer service and IT. This complexity
is a significant cost driver and impairs our ability to
respond quickly and appropriately.
Product simplification is an ongoing process within our
core business. We have reduced the number of products
by more than 10 per cent since 2019. This figure does not
include the migration of acquired portfolios into existing
Baloise products. The reduction in the number of products
helps us to streamline our product portfolio, but is by no
means the main driver. We likewise work continuously to
refine products and processes, such as straight-through
processing (STP).
The opinion of our customers is important
To measure the Net Promoter Score (NPS) and customer
satisfaction, end customers (private clients and busi-
nesses) and brokers across the Group are actively ques-
tioned about their experience with Baloise. Feedback
is requested automatically and immediately every time
a customer has been in contact with Baloise.
The NPS programme helps us to see the world through
the eyes of our customers. Our strategic business planning
approach uses internal key performance indicators for
monitoring and improvement purposes. This strengthens
Baloise’s customer-oriented culture. Our approach is
based on three core principles:
•
Dialogue
•
Responding to data
•
Promoting change
If major fluctuations in the customer experience scores of
the tNPS (transactional Net Promoter Score) are noticed,
this is documented and analysed. For example, the tNPS
fell by several points in one customer service unit, and the
subsequent investigation found that the high workload
on employees had led to a delay in response times, which
resulted in greater dissatisfaction among customers.
No independent organisation was asked to measure satis-
faction in 2024, but feedback was collected via reviews
on Google, Trustpilot and Comparis, as well as directly
from customers, and published on the website in the form
of testimonials. In 2024, we also introduced a process
to follow up with NPS passives. As with detractors, this
involves following up on feedback from customers (in
this case those who have given us mediocre ratings) to
avoid losing them.
Customer satisfaction
Feedback – positive or negative – helps us to optimise our
services. That is why we ask our customers for their opinion
after various interactions.
In Switzerland, we ask new customers to rate their
satisfaction with our customer onboarding process. Feed-
back is also requested at the end of a claims process and
after contact with customer services or with a customer
adviser.
In Luxembourg, we ask new customers to rate their
satisfaction with the customer onboarding process. Feed-
back is also requested at the end of the claims process
for standard products and claims as well as after any
changes to their policy.
In Germany, customers are asked about the claims
handling process for motor vehicle and property insurance
products. Since 2023, we have also conducted broker satis-
faction surveys at the application touchpoint in order to
improve processes for business customers.
In Belgium, we ask customers about the claims
handling process for fire and property insurance. We also
took part in the Profacts benchmarking survey for the fifth
time, which questions brokers about insurance companies
and how it is to work with them.
The NPS Board Switzerland, an interdisciplinary and
self-organised unit, continued its work in analysing the
results of the NPS surveys and using its findings to devise
measures to optimise processes. The Board successfully
introduced several more initiatives last year, which were
based on sound hypotheses and further optimised both
internal processes and customer communications. The
NPS Board was disbanded in the last quarter of the year
as part of the refocusing strategy. However, a structured
process is in place to feed ideas for optimisation that are
identified within the departments to the former members
of the NPS board, who are available to provide support if
needed. Projects that have already begun will be pursued
to completion by the former board members.
In Luxembourg, the priority for the next few years will
be on commercial products (“Home” and “Drive”). Following
the introduction of “Home 2” in the first quarter of 2024,
Baloise Luxembourg is pursuing a strategy of diversifying
its portfolio away from vehicle-based products. The next
project will be to restructure the “Drive” product and
improve the customer journey. Baloise will also use the
feedback from customer surveys and incorporate it into
the decision-making process through monthly analyses
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Baloise Group Annual Report 2024
and communication with the relevant departments.
In-depth analyses will be carried out on request or if a new
trend is identified from customer complaints.
In Belgium, a clear strategy was implemented in 2023
that is fully focused on a multifaceted market offering
and supported by a unique operating model. The market
offering focuses on profitable areas where we are growing
and able to create an extraordinary Baloise experience.
To ensure that we succeed here, we have strengthened our
focus on brokers as the most important sales channel, are
offering market standards and simplified products that
deliver a stress-free experience, and are intensifying our
tailored broker approach. We are improving the customer
and partner experience through the use of the NPS
programme and by pushing ahead with digitalisation. We
help our brokers to create an efficient customer journey
by concentrating on the digitalisation of administrative
processes and STP (straight-through processing). For
example, we have introduced a fully digital, customer-
oriented customer journey for motor vehicle and property
claims. We are also simplifying the digital sales process
with a new lead generator for our private clients that
features an integrated report generating function.
In Germany, satisfaction surveys were once again
completed by end customers and, in line with the strategy,
with a focus on brokers and sales partners. The findings
help us to assess our performance and rate ourselves
against the competition.
Omnichannel approach – using all channels
to support our customers
The key to a seamless customer experience lies in the
integration of physical and digital sales and communi-
cation channels. Whenever possible, we aim to communi-
cate with our customers through their preferred channel.
A strong insurance sales force that acts as an important
point of contact for customers and their individual needs
is essential to this approach. It is complemented by our
telephone-based advisory service, Baloise Direct Line
(BDL). In addition to these traditional channels, we use a
variety of digital channels such as email, video consulta-
tions, our website, the myBaloise customer portal, social
media and IT solutions like the Baloise Bank messaging
service. In 2024, we launched a new channel with our
chatbot “Helga”. The AI-based chatbot is available 24/7
to answer numerous questions about our products and
services. If the chatbot cannot answer a question, the
customer is seamlessly switched to a live chat where
the Baloise Direct Line advisers can expertly handle their
query. The aim is to make contact between Baloise and
its customers as simple and straightforward as possible.
E-banking is now the norm for regular banking trans
actions. And no wonder: e-banking is fast and secure.
More and more people are using smartphone apps for
this, enabling them to do their banking conveniently from
home or on the go. The advantages are clear: 24/7 access
from any location, with enhanced security through the use
of a banking app. In 2024, Baloise Bank updated the tech-
nology and look of its e-banking service, creating a new
basis for future enhancements on its way to becoming a
full-service financial platform. Over a period of two and
a half months, 49,000 e-banking users were migrated to
the new system in four phases without any major error
or incident. The majority of customer feedback has been
positive. Our new e-banking and mobile banking service
has won the “Best of Swiss Software Award” in the “Core
Business Integration” category.
In 2024, Baloise in Belgium stepped up its collaboration
with the selection of brokers who are active in the lead
generator programme, increasing the number of leads
by 30 per cent. The lead generator for property insurance
products allows us to be present where the customer
journey often begins: online. The potential customer is
targeted through online ads, followed by a web-based
price calculation. The contract is signed in the broker’s
office, creating a consistent and valuable connection
between the online behaviour of the modern customer
and the network of independent brokers. In 2024, Baloise
in Belgium also took an additional stake in Telebib, a
service that facilitates the exchange of data with brokers
via its broker platform. Telebib allows our brokers to easily
manage end customer data, irrespective of which plat-
form they work on or where the customer data is stored.
Customer engagement – personalised and
individual contact
In Switzerland, we continued our focus on personalised
and individual communication with our customers in 2024.
Our advanced marketing automation software remains at
the core of our successful, data-driven customer commu-
nication. The software enables us to create a wide variety
of customer journeys, from awareness measures to cross-
selling and upselling. The aim is that recipients should
automatically receive information that is relevant to them
at the right time. To push ahead with the development
of our marketing automation platform, the Marketing
Automation working group was expanded in 2024 with
additional resources from data analytics. This increased
capacity made the working group more professional, and
it now produces quarterly roadmaps in close collabora-
tion with the departments. This team plays an even more
central role, ensuring not only the seamless operation of
the platform but also optimisation by using the insights
generated to adapt existing measures and develop new
ones.
A particular highlight in 2024 was the development of
a personalised birthday video. This new project follows
on from our previous successes, which included a person-
alised “thank you” video and an onboarding video for new
customers.
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Baloise Group Annual Report 2024
Baloise in Germany began to roll out a new telephone
system from market leader Genesys in the service depart-
ments in summer 2024. In combination with the customer
relationship management portal from software provider
BSI, which had been introduced at an earlier date, this
created the basis for a 360° view of customers that now
also includes telephone requests. This means that finance
partners now have better information on which to base
their advice and can process customer requests in a much
more service-oriented way.
Innovations and awards
Luxembourg
MoveMe is an innovative start-up that emerged from
the Incubator at the University of Luxembourg in part-
nership with Baloise in Luxembourg. Its aim is to simplify
the relocation process for future students. Together with
big-name partners such as POST and Spuerkeess, we are
committed to optimising the administrative processes
for new arrivals in Luxembourg through this free, person-
alised web platform. MoveMe is a bespoke solution that
supports students both before and after their arrival in the
Grand Duchy by centralising all the necessary administra-
tive processes in accordance with the profile, nationality
and arrival date of the user. The initiative seeks to enable
a smooth, stress-free move by reducing formalities and
offering an intuitive and simplified user experience.
Germany
Our income protection insurance has once again been
given the best possible rating of “very good” by Finanzen,
a magazine published by the German consumer organisa-
tion Stiftung Warentest. In non-life insurance, our high-
performing products all hold top ratings. This includes
accident insurance, which won the German Insurance
Award for the third time running and, for the first time,
was awarded ‘test winner’ and ‘2024 insurance product of
the year’ by DISQ (focus on innovation value and benefit);
cyber insurance received top marks from Franke & Born-
berg, while our rent deposit insurance was placed first by
Check AWARD.
Customers whose cars are insured with Baloise have
the option to have damage to their vehicle repaired at one
of Baloise’s partner workshops. Our partners are selected
on the basis of very strict criteria and are among the most
innovative companies in their sector. They use the SMART
repair process, which incorporates a variety of methods to
repair minor damage on vehicles. Dents or scratches on
the bodywork are easily fixed. This modern repair method
produces significantly fewer harmful and environmen-
tally damaging emissions. Our partner workshops are
highly professional and knowledgeable. Customers with
comprehensive insurance who choose to have repairs
carried out in Baloise’s partner network of workshops enjoy
exclusive benefits such as reduced premiums or excess, a
free replacement vehicle while their car is being repaired,
and a collect-and-return service within the area served
by the partner workshop. If a damaged windscreen is
repaired instead of being replaced, the excess is waived.
The contractual commitment of the partner workshops to
apply the principle of repair before replacement means
we are making a valuable contribution to sustainability.
Luxembourg
We observed an increase in the average cost of glass-
related claims in 2024, including those carried out by our
partner Carglass. To address this, we reviewed our work-
shop network and ultimately decided to retain Autoglas
and Carglass as key partners. We worked closely with
Carglass to bring down the cost of windscreen repairs
and increase the use of preventive options. We are
also encouraging our network of agents to refer their
customers to specialist workshops instead of the manu-
facturer’s authorised repairers. A new awareness-raising
campaign is designed to help advisers and brokers inform
their customers about more cost-effective options. Our
preferred partners are also featured prominently on the
myBaloise portal to help customers reach a decision.
Belgium
Customers in Belgium who choose to have their car
repaired in Baloise’s partner network of workshops enjoy
exclusive benefits such as reduced excess, a free replace-
ment vehicle while their car is being repaired, a collect-
and-return service for the damaged vehicle, a safety
check and a three-year guarantee. A qualified team of
internal vehicle experts monitors the average costs, the
ratio of repairs to replacements, the SMART repair rate
and the service quality of the bodyshops. They check
whether the workshops have sustainability designations
such as “sustainable repair” or “long-life repair”. They also
follow up complaints and draw up action plans for poorly
performing providers. Carglass repairs 70 per cent of
damaged windscreens. As the repair rate is above 50 per
cent, they have better average costs than other compa-
nies in this area. Particular attention is paid to the cali-
bration of driver assistance systems (ADAS) to guarantee
the safety of the driver, the passengers and the other road
users who could be put at risk. If a damaged windscreen
is repaired or replaced, no excess is payable, even if the
repair or replacement is carried out by a workshop that is
not a member of our partner network.
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Baloise Group Annual Report 2024
Germany
The more parts of a vehicle that are repaired rather than
replaced, the more sustainable the repair of accident
damage to our customers’ vehicles becomes. This is the
principle that guides our partner workshops. The aim is
thus to encourage more customers to use partner work-
shops instead of branded workshops, so we can be more
sustainable together. With “Workshop Service Premium”,
Baloise chooses the partner workshop. Customers in
Germany who have their car repaired in Baloise’s network
of partner workshops enjoy exclusive benefits such as a
free replacement vehicle while their car is being repaired,
a collect-and-return service for the damaged vehicle, and
free internal and external valeting of the damaged vehicle.
Sustainability criteria in the
underwriting policy – responsible
underwriting
We are a reliable insurance partner and take our responsi-
bility in the underwriting of risk seriously. Our products and
services support sustainable behaviour in the changing
business models involving insurance for companies and
individuals. We work in partnership to overcome the chal-
lenges of sustainable growth.
Since signing up to the Principles for Sustainable Insur-
ance (PSI) in August 2020, we have integrated sustaina-
bility matters into our underwriting guidelines. Our assess-
ment process ensures that we meet our commitments and
create a risk management tool that supports the transi-
tion to sustainable business models, minimises losses and
mitigates risk.
This view of risk is complemented by the exploitation
of opportunities. For example, we encourage the use of
renewable energy sources by offering suitable insurance
solutions.
Assessment process
We began evaluating sustainability risks based on exclu-
sions and sensitive areas in 2022. This process involves
both the relevant departments and our sustainability
experts. Requests for a quotation are examined on the
basis of their allocation to the exclusions or sensitive
areas. This review is partly automated. If the activity to
be insured falls within a defined exclusion or sensitive
area, the department makes an assessment of the risk.
This assessment considers the requested insurance
volume, the company’s revenue and details of its activity.
If the revenue and insurance volumes exceed a defined
threshold, a review must be carried out within the Under-
writing ESG Boards of the relevant national subsidiaries.
Training and a software solution to assess sustainability
risks at companies are available to ensure the assessment
expertise (see the chapter “Risk management”, page 52).
Transition, exclusions and sensitive areas
The integration of environmental, social and corporate
governance criteria in our underwriting guidelines requires
certain economic activities to be subject to a pre-con-
tractual ESG assessment. Existing relationships in these
risk areas are also subject to these guidelines. These have
already been assessed and are currently in the three-year
transition phase. The plan for structured and personal
customer dialogue has been implemented. We stress the
need for the development of a sustainable business model
as a condition for continued partnership. To date, this has
not resulted in the termination of any relationships.
Certain sections of the value chain, such as produc-
tion, manufacturing or deinstallation/dismantlement, are
excluded for the following economic activities:
•
Fossil fuels
•
Tobacco products
•
Infrastructure and dam construction with a critical
impact on protected areas in non-OECD countries
•
Controversial weapons
•
Fast fashion
These exclusions are consistent with our responsible
investment policy.
Additional clarifications are essential for economic
activities in sensitive areas. These include the existence
of a sustainability strategy, defined sustainability targets,
commitments to accepted industry standards and
sustainability reporting. The sensitive areas include the
following seven economic activities:
•
Livestock breeding and farming
•
Food and drink production
•
Infrastructure with critical impact and dam
construction in non-OECD countries
•
Nuclear energy
•
Mining and specialist mining
•
Financial institutions
•
Weapons
Baloise has published the Group-wide results of the ESG
assessments in underwriting for the life and non-life
businesses since 2022. For the first time, the rejections
published this year include information on which ex-
clusions or sensitive areas are affected.
A rejection relates to the sensitive area “financial insti-
tutions” if the business concerned is a Swiss subsidiary of a
foreign bank.
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Baloise Group Annual Report 2024
Group-wide results of the ESG assessments in
underwriting in Switzerland, Germany, Belgium
and Luxembourg
2024
2023
Non-life
Life
Non-life
Life
Rejection of request
following audit by
sustainability
managers and / or
UW ESG Advisory
Group
8
0
5
1
Acceptance of
request following
audit by sustainabil-
ity managers and / or
UW ESG Advisory
Group
49
6
32
6
Total requests
57
6
37
7
The above figures refer exclusively to new business. In Germany, the life business
only consists of private clients, who are not subject to this assessment. The increase
in numbers is due to the use of an automated solution that led to more matches,
especially for infrastructure projects and in food and drink production.
The rejections in 2024 related to the following economic activities: fast fashion,
food and drink production, weapons, financial institutions, and livestock breeding
and farming.
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Baloise Group Annual Report 2024
How we create value for society
Baloise sees itself as a company that engages in dialogue
with all relevant stakeholders and offers them long-term
added value through its services. “Society” is also a stake-
holder in this regard. We want our Company to be a valued
member of society by being a reliable partner to all our
stakeholders.
Taking responsibility
We see our Company as part of the sustainable develop-
ment of a stable society and a healthy environment, and
we therefore believe we have a responsibility to society in
our role as a corporate citizen. We conduct our business
activities in accordance with the relevant legal provi-
sions and therefore in compliance with the basic rights
enshrined in the constitution of the Swiss Confederation,
such as human rights (see also page 205 onwards in the
chapter “Governance information” of the report on non-
financial matters).
Our business model plays an important part in main-
taining society’s prosperity. Our products and services
enable companies and private individuals to take risks
that they would not be able to manage on their own
without great financial expense. Companies can develop
and grow sustainably, and private individuals enjoy
greater financial security. This also prevents potential
social inequalities based on financial opportunities and
contributes to an equitable society. The insurability of risks
and reliable, long-term financial provision in retirement
are important elements of a society’s social equality.
Insurance companies play an important role here. We fulfil
our responsibility to society by sharing risks and costs
and operating our business in a forward-looking and
innovative way. This means weighing up the positive and
negative consequences of our decisions and actions on
fundamental issues for our business, society and the envi-
ronment.
The claims and benefits paid to our customers reflect
the contribution that they do not have to pay themselves
or, in extreme cases, would have to come from the public
purse. These payments therefore underpin the resilience of
the economy. In the non-life business, they include claims
paid under products, such as contents insurance, liability
insurance and motor vehicle insurance, and particularly
natural disaster insurance. In the life business, they include
annuities and benefits paid out from life insurance poli-
cies.
Claims and benefits paid
2024
2023
CHF million
Non-life
2,623.7
2,530.9
Life
4,785.4
4,473.6
Total
7,409.1
7,004.5
The payments recognised mainly comprise claims payments including claims
handling costs in the non-life segment and insurance benefits paid including
investment components and surrenders in the life segment.
Responsible investment for society
We take our role in society as a responsible custodian
of assets seriously, which is why the asset management
team is continuously developing its responsible invest-
ment strategy. We also pursue an active ownership
approach. The objective of our active ownership strategy
is to generate a long-term, positive risk-return ratio and
mitigate risk for customers. We also aim to use the funds
entrusted to us and the financial strength this gives us to
persuade the management of our portfolio companies to
address ESG-related risks and exploit the opportunities.
We again published our active ownership review in
2024: www.baloise.com/active-ownership-review
For more information on our responsible investment
strategy, see page 56 in the chapter “Responsible invest-
ment”.
ESG criteria in our underwriting policy
We began applying social criteria in addition to environ-
mental and corporate governance criteria in our under-
writing guidelines in 2022. This means we will no longer
insure certain economic activities or grant existing
customers in these areas a transition period. In addition
to risks such as climate change, bribery and corruption,
risks that have a direct impact on social conditions will
be taken into account. These risks can be divided into
non-sustainable practices, human rights and employment
rights, product quality and safety, and healthcare.
For further information on the integration of ESG
criteria into our underwriting policy, see page 32 onwards
in the “Sustainability criteria in the underwriting policy
– responsible underwriting” section of the chapter
“Customers”.
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Baloise Group Annual Report 2024
Our social responsibility
Corporate social responsibility is the part of our approach
to sustainability that focuses on society and the environ-
ment. We have been a committed advocate of voluntary
work for many years and encourage employees in all
parts of the Baloise Group to engage in voluntary activi-
ties. In 2015, we became a signatory to the declaration by
economiesuisse (the umbrella organisation representing
Swiss business) and the Swiss Employers Confedera-
tion. The declaration requires companies to offer flexible
working conditions and working time models that enable
employees to participate in voluntary work. Baloise not
only encourages its employees to engage in voluntary
activities by holding annual events but also meets its own
responsibility to society as a commercial organisation. Two
of our employees in Switzerland are currently members
of cantonal parliaments, and many others are involved
in politics at local level. Furthermore, Baloise creates and
preserves jobs that add value and pays taxes from its
profits that help to fund the public sector. The majority of
these taxes are payable in Switzerland.
Taxes paid
2024
2023
CHF million
Taxes paid
65.6
35.9
See 2024 Annual Report, page 240 ‘Consolidated cash flow statement’
The profits we generate enable us to be an active partner
in many areas of society. Baloise supports a number of
charitable projects and initiatives in its national subsid-
iaries, which can be roughly divided into the following
categories:
1. Community and good causes
2. Environmental protection and climate action
3. Healthcare
4. Education and research
5. Innovation and safety
Our national subsidiaries decide which projects they
wish to be involved in within the scope of the Baloise CSR
Charter. www.baloise.com/csr-charta
Baloise and its employees made total charitable dona-
tions of more than CHF 605,000 in 2024, which equates
to around CHF 76 per employee. This sum consists solely
of financial donations that were given to organisations
which serve the common good or a charitable purpose
or which promote environmental protection. It does not
include the donations of goods, expenses incurred for
the organisation of volunteering activities, support for
events staged for the common good, or financial support
for organisations and events that serve an educational
purpose.
Once again, employees at all our offices took part in volun-
tary activities for the benefit of society and/or the environ-
ment in 2024. Employees were allowed to carry out some
of these activities during working hours.
www.baloise.com/csr
In Switzerland, volunteers organised two blood dona-
tion drives. On Good Deed Day, they rolled up their sleeves
and worked at Waldenstein organic farm in the Jura moun-
tains in the canton of Solothurn. They were also involved in
sports for disabled persons at the PluSport Event and took
part in the Basel City Run, with Baloise making a donation
for every runner.
In Belgium, employees joined in the Sustainable
Mobility Week & Bike Check. Baloise employees were en-
couraged to register and take part in a nationwide quiz
and a free bike check or basic bike repair workshop.
They also participated in Baloise For Life, a week of charity
activities that takes place every year. All the money
collected went to charitable organisations nominated
by the employees.
All employees in Germany tracked their sporting activi-
ties over the summer and reported their total kilometres as
part of the Running Challenge initiative. The Baloise Exec-
utive Committee in Germany made a contribution for each
kilometre achieved, resulting in a sum of EUR 6,500 being
donated to community organisations. A total of 35 Baloise
employees took part in Volunteer Day. In Bad Homburg,
they helped the city council sweep up leaves in a ceme-
tery. In Hamburg, they visited a retirement home run by the
German Workers’ Welfare Association and spent time with
the residents. At the end of the year, Baloise organised a
concert for current and former employees and their fami-
lies at St. Michael’s Church in Hamburg. The event raised a
total of EUR 21,500 for community organisations.
In Luxembourg, employees focused their volunteering
efforts on cancer sufferers. Baloise teams took part in
24 hours of sport over the course of a weekend as part of
the Relay For Life event. They entered the LËTZ GO GOLD
charity run to raise funds for research into childhood
cancer and also took part in October Rose, a five-kilometre
race organised by Baloise. This raised EUR 1,800 for Luxem-
bourg’s Cancer Foundation in 2024, and this sum was
matched by Baloise.
Sponsorship activities
Baloise is committed to promoting cultural diversity in
Switzerland, particularly in the areas of art and music. At
the heart of our activity is our Baloise – We Music sponsor-
ship strategy, which encompasses four different platforms.
We are the presenting sponsor of the boutique music
festival Baloise Session and organisers of Baloise Exclusive,
a dedicated concert evening for around 1,500 guests that
we host as part of the Baloise Session. To bring music to
other parts of the country, we organise the Baloise on Tour
concert series. Our wide-ranging commitment to music is
Management report
35
Baloise Group Annual Report 2024
rounded off with the Baloise Summer Stage, a concert for
our employees at the Company’s headquarters in Basel.
Music brings people together and embodies emotion,
partnership and innovation – values that are central to
Baloise. Via our platforms, we are able to communicate
these values to more than 20,000 concertgoers, customers
and employees every year and bring them to life through
live events. Music is and has always been an important
part of Baloise, and will remain so in the future.
In Belgium, we are a major sponsor of sports, especially
cycling. Team Flanders-Baloise, Baloise Wallonie Brux-
elles Ladies and Baloise Trek Lions are three professional
cycling teams that compete under the Baloise name. They
participate in the Benelux races of the pro tour and on
the international calendar of the continental professional
cycling teams in Europe. The teams have a clear vision.
They are committed to the development of young, local
talent and offer the professional support required. We also
sponsor the Baloise Belgium Tour and the Baloise Ladies
Tour, two international multistage cycling events that take
place in Belgium. In addition, we are a key partner of the
Belgian football club KAA Gent and the named partner of
the Baloise Antwerp 10 Miles, Belgium’s biggest running
event that attracts more than 30,000 participants and a
large media presence. In the south of the country, Baloise
is the named partner of the Baloise Namur Marathon, an
event involving 10,000 participants.
In the area of arts and culture, Baloise encourages
cultural dialogue among the public through the Noord-
starfonds in Belgium. The Noordstarfonds is a non-profit
organisation run by Baloise in Belgium that was estab-
lished in the middle of the 20th century to promote art,
culture and the Dutch language among the Flemish popu-
lation. This charitable organisation has its own concert
hall, the Handelsbeurs, in Ghent. The Noordstarfonds
currently focuses on promoting various music genres and
creating a bridge between these genres. Baloise works
with Noordstarfonds to present Baloise On Stage, a
cultural programme that supports established artists
who work with talented young artists.
In Luxembourg, we sponsor beehives as part of our
commitment to help the environment. They are managed
by the Luxembourg organic bee farm Honapi Luxembourg,
which runs a sustainable beekeeping business in partner-
ship with gardeners.
In Germany, we have been a platinum partner of the
Bad Homburg Open, a WTA grass-court tennis tournament,
since 2022. This sponsorship raises the profile of Baloise in
Germany, as the stands of the two outside courts are fully
Baloise-branded. Furthermore, the fan zone in the Bad
Homburg spa gardens, which is open to the public free of
charge, is named the Baloise Park Village.
https://badhomburg-open.de/en/home/
www.baloise.de/de/ueber-uns/bad-homburg-open
Our commitment to art
Our art collection is an important part of the Baloise
corporate culture. Works from the collection are on perma-
nent display and exhibitions are held at Art Forum Baloise
Park. The collection also sends pieces out on temporary
loan to museums. Our website at www.baloiseart.com
provides an in-depth insight into our commitment to art,
which we pursue with a passion.
Corporate collecting – engrained in the culture at Baloise
The principal objective of our acquisitions is to enhance
our collection and contribute to the Baloise corporate
culture, so selected works are always on display in foyers,
corridors, meeting rooms, offices and reception rooms that
are open to the public. Since 2023, individual pieces from
our collection have also been displayed at the locations of
our national subsidiaries in Luxembourg and Belgium and
at various Baloise sites in Switzerland.
Baloise Art Prize
We have been committed to providing access to
successful careers in insurance and banking through our
training and development programmes for more than
30 years. Our support for contemporary art also forms part
of this approach. Through acquisitions for our own collec-
tion and the awarding of the annual Baloise Art Prize, we
are supporting the development of young and emerging
artistic talent. In 2024, the 25th anniversary year, the
coveted Baloise Art Prize was once again awarded to two
talented young artists: Tiffany Sia (born 1988) and Ahmed
Umar (born 1988). Interviews are available online at
www.baloiseart.com.
Art Forum Baloise Park
Under the guidance of Frédérique Hutter, art adviser and
Art Forum curator, we open our publicly accessible exhibi-
tion space to young curators. Twice a year, they are given
the opportunity to put their newly acquired expertise
into practice by curating an exhibition on a current theme,
which must include at least one work from the Baloise
collection. Baloise supports these exhibitions with its
knowledge in the areas of art handling, documentation,
publicity and communication.
Management report
36
Baloise Group Annual Report 2024
Acquisitions for the art collection
The art commission comprises six employees from
various parts of the Company who are knowledgeable
and passionate about art, as well as our art adviser (see
above). Since 2022, the art commission has focused its
attention on emerging artists, preferably those based in
Baloise’s core markets. The decisive factor for inclusion in
the collection is the persuasive quality of the work, which
should also reflect our corporate values. In 2024, works
by artists including Clara Brörmann and Nel Aerts, Paula
Santomé, Rebekka Steiger, Mitchell Anderson, Fabio Luks
and Gil Pellaton were added to our collection.
www.baloiseart.com
Untitled, 2023
Rebekka Steiger
Acrylic ink on canvas, 140 x 195.5 x 4cm
Management report
Web links to the activities of the national
subsidiaries
•
Switzerland
www.baloise.ch/de/ueber-uns/engagement
•
Germany
www.basler.de/de/ueber-uns/nachhaltigkeit
•
Belgium
www.baloise.be/nl/over-ons/csr-en-sponsoring
•
Luxembourg
www.baloise.lu/unsere-verantwortung
37
Baloise Group Annual Report 2024
Management report
Review of operating performance
Baloise delivers an operationally successful year and
increases its dividend
From an operational perspective, 2024 was a successful year for Baloise,
which saw it tangibly improve its core business. Our recently launched
refocusing strategy has begun to have a visible impact on the performance
of our business and its ability to generate value, as our annual results show,
with an improved combined ratio and a higher return on equity. Thanks to
strong cash remittance of CHF 565 million, we are well on track to achieving
our target of more than CHF 2 billion cash remittance in the period 2024–
2027. This success is the result of our focused endeavours and reinforces
our commitment to pursuing our targeted course of action. Based on the
high level of cash remittance and an improvement in underlying business,
we intend to maintain our attractive shareholder policy and propose an
increase of CHF 0.40 in the dividend per share to CHF 8.10. As announced,
we also intend to supplement the ordinary dividend with a share buy-back
of up to CHF 100 million.
Annual financial results in brief
•
Profit attributable to shareholders for 2024 amounted
to CHF 384.8 million (2023: CHF 239.6 million), which
was an outstanding 60.6 per cent higher than in 2023
when a lot of claims were made. All countries increased
their EBIT contribution . The previously announced sale
of FRIDAY and the discontinuation of the ecosystem
strategy will have a negative effect of CHF 92 million on
profit attributable to shareholders in accordance with
IFRS. These steps will also impact on the statutory
earnings of Baloise Holding Ltd calculated in
accordance with the Swiss Code of Obligations (OR).
•
Adjusted for exceptional non-operating items of
CHF 92 million, return on equity amounts to 13.9 per
cent, which is considerably higher than the prior-year
figure of 7.2 per cent.
•
The Group’s volume of business was slightly lower
than in the prior year at CHF 8,603.7 million (2023:
CHF 8,618.1 million). This equated to a decrease of
0.2 per cent. Adjusted for currency effects, there was an
increase of 0.9 per cent.
•
In the non-life business, the volume of premiums rose by
2.2 per cent in local currency terms, or 0.9 per cent in Swiss
francs, to CHF 4,120.2 million (2023: CHF 4,081.6 million).
Particularly strong growth was generated in Germany
(8.7 per cent in local currency terms) and Luxembourg
(6.7 per cent in local currency terms).
•
The combined ratio of the Group was reduced
significantly to stand at 92.9 per cent (2023: 94.6 per
cent*). This positive result was achieved despite an
again increased level of storm-related claims in
Switzerland in the first half of 2024.
•
Profit before borrowing costs and taxes in the non-life
business (EBIT) climbed to CHF 261.1 million (2023:
CHF 134.0 million). This was due to an improvement in
gains and losses on investments, and a lower level of
large claims incurred compared with 2023.
•
The level of gross premiums in the life business
reflected the continuing trend towards semi-
autonomous occupational pension solutions. The
volume of premiums in the traditional life insurance
business fell by 5.2 per cent year on year in local
currency terms or 5.8 per cent in Swiss francs to
CHF 3,435.4 million (2023: CHF 3,648.0 million).
* Restated prior-year figure
Baloise Group Annual Report 2024
38
Management report
•
The new business margin in the life business stood at
4.9 per cent in 2024 (2023: 6.5 per cent). The interest
margin came to 135 basis points (2023: 137 basis points).
•
EBIT in the life business rose by a very healthy 39.0 per
cent to CHF 282.3 million, which was considerably higher
than in the prior year (2023: CHF 203.1 million*). Besides
a larger amount being released from the contractual
service margin (CSM), this improvement was due to a
positive non-recurring effect in other income following
the updating of actuarial assumptions.
•
As at 31 December 2024, the total assets under
management (AuM) of Baloise Asset Management
stood at CHF 59.5 billion, a rise of 2.8 per cent compared
with the end of the prior year (31 December 2023:
CHF 57.9 billion). EBIT for Asset Management & Banking
amounted to CHF 89.1 million (2023: CHF 82.3 million).
•
Baloise’s capitalisation remained reliably robust. S&P
Global Ratings (S&P) confirmed its A+ rating with a
stable outlook for the Baloise Group in June 2024.
Comprehensive equity increased to CHF 7,634.4 million
as at 31 December 2024 (31 December 2023:
CHF 7,170.9 million). This was due to both an increase
in equity of CHF 3,629.7 million (31 December 2023:
CHF 3,250.0 million) and a higher CSM (after
taxes) of CHF 4,004.7 million (31 December 2023:
CHF 3,921.0 million). We expect the Swiss Solvency Test
(SST) ratio as at 1 January 2025 to be just over 200 per
cent (1 January 2024: 207 per cent).
•
In 2024, cash remittance increased to CHF 565 million
(2023: CHF 493 million). This includes a positive non-
recurring effect of CHF 62 million from the optimisation
of a Belgian run-off life insurance portfolio in 2023.
•
The reliable and increased level of cash remittance
allows Baloise to maintain its attractive shareholder
policy. The Board of Directors of Baloise Holding Ltd
therefore intends to ask the Annual General Meeting
2025 to increase the dividend by CHF 0.40 to CHF 8.10
per share. We also plan to supplement the ordinary
dividend with a share buy-back of CHF 100 million.
All in all, this will give rise to a much higher total cash
payout ratio of 83 per cent for 2024 (2023: 72 per cent).
Profit and business volume
Growing profit confirms successful implementation of
the strategy
Baloise grew its profit considerably in 2024. Profit attribut-
able to shareholders increased to CHF 384.8 million, which
equated to growth of 60.6 per cent year on year (2023:
CHF 239.6 million). This includes negative non-recurring
items of around CHF 92 million from the sale of FRIDAY and
the discontinuation of the ecosystem strategy. Adjusted
for these non-recurring effects, profit attributable to share-
holders stood at a healthy CHF 476.9 million.
The Group’s profit before borrowing costs and taxes
(EBIT) was also much higher as a result, recording a
58.3 per cent increase compared with the prior year to
CHF 545.3 million (2023: CHF 344.4 million). Non-life and
life business and Asset Management & Banking contrib-
uted to this improved result, with all national subsidiaries
contributing too.
The biggest contribution to EBIT came from business in
Switzerland, which saw a substantial improvement from
CHF 166.2 million in 2023 to CHF 358.5 million in 2024. With
strong EBIT growth as a whole, contributions to the overall
increase came from the companies in Belgium, with
CHF 153.3 million (2023: CHF 111.7 million), Germany, with
CHF 102.2 million (2023: CHF 93.6 million), and Luxembourg,
with CHF 34.4 million (2023: CHF 18.2 million). This positive
performance reinforces our commitment to implementing
our refocusing strategy, which we presented in September.
Due to adverse currency effects, the Group’s volume
of business edged down by 0.2 per cent year on year to
CHF 8,603.7 million (2023: CHF 8,618.1 million). Adjusted for
currency effects, the increase was 0.9 per cent. Growth in
the target segments was outweighed to some extent by
the decline in traditional life business.
The volume of investment-type premiums improved to
CHF 1,048.2 million (2023: CHF 888.5 million) on the back of
a product relaunch in Belgium and higher contributions
from Luxembourg.
Business volume
2024
2023
+/– %
CHF million
Total business volume
8,603.7
8,618.1
– 0.2
Gross premiums
written Non-life
4,120.2
4,081.6
0.9
Gross premiums
written Life
3,435.4
3,648.0
– 5.8
Investment-type
premiums
1,048.2
888.5
18.0
* Restated prior-year figure
Baloise Group Annual Report 2024
39
Management report
Business volume in 2024 (gross)
by strategic business unit 1
44.0 % Switzerland
16.1 % Germany
24.8 % Belgium
14.5 % Luxembourg
1 0.6 % group business
Insurance business
Strong increase in profitability in non-life business
Baloise’s non-life business fared well in 2024 despite the
persistently high level of claims incurred in Switzerland. While
2023 saw an unusually high level of claims incurred, the first
half of 2024 was shaped by a large number of storm-
related claims that affected the financial results. The segment
continued to strengthen nevertheless as a result of decisive
changes to insurance rates and profitable growth.
The entire volume of premiums rose by 2.2 per cent
in local currency terms, or 0.9 per cent in Swiss francs, to
CHF 4,120.2 million (2023: CHF 4,081.6 million), which was
attributable chiefly to strong growth in Germany and
Luxembourg. In Switzerland, the non-life portfolio grew by 1.1
per cent to CHF 1,485.6 million (2023: CHF 1,468.7 million). The
slightly lower growth compared with 2023 was attributable to
the performance of individual insurance sectors. Good growth
in property and liability insurance was partially offset by
negative volume effects in motor vehicle, accident and
marine insurance – due to a stronger focus on profitability.
The volume of premiums in Belgium declined slightly to
CHF 1,550.8 million (2023: CHF 1,589.7 million) as result of
initiatives to improve profitability in motor vehicle business
and a far-reaching exit from marine business under the
refocusing strategy. Adjusted for currency effects and the
portfolio disposals in the marine business, growth in Belgian
non-life business came to just over 3 per cent in 2024. Busi-
ness in Germany registered the highest rate of growth of
8.7 per cent in local currency terms, or 6.5 per cent in Swiss
francs, to CHF 869.8 million (2023: CHF 816.5 million) – due to
strong new business and inflation-related changes in insur-
ance rates that we successfully pushed through. Business in
Luxembourg was very encouraging with an increase of 6.7 per
cent in local currency terms, or 4.6 per cent in Swiss francs, to
CHF 161.8 million (2023: CHF 154.6 million).
Baloise boosted its profitability further in the non-life
segment and, despite a high level of storm-related expenses
in the first half of 2024, improved its combined ratio to 92.9 per
cent (2023: 94.6 per cent*). This was attributable mainly to a
lower level of claims in the second half of 2024. The expense
ratio improved marginally to 29.9 per cent (2023: 30.0 per cent).
Development of combined ratio
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2024
2023
92.9%
94.6%
Gains or losses on investments in the non-life segment
improved significantly and amounted to a net gain of
CHF 198.4 million in 2024. Current income increased to
CHF 207.8 million. Gains recognised in the income statement
amounted to CHF 17.4 million. Positive movements in the Swiss
real estate market and stock market had a favourable impact
on the result. The gains on investment recognised in other
comprehensive income (OCI) amounted to CHF 78.4 million.
These were attributable to the fall in yields on bonds denom-
inated in Swiss francs and the slight narrowing of credit
spreads. Overall, investment performance of the non-life
business stood at 2.9 per cent.
EBIT attributable to the non-life business rose sharply to
CHF 261.1 million (2023: CHF 134.0 million). This was a result of
the lower level of claims incurred in 2024 and the improved
investment result.
Trend towards semi-autonomous solutions in life business
and exceptionally strong EBIT growth
The volume of business in the life business (premiums written
and investment-type premiums) deteriorated by 0.2 per cent
in local currency terms, or 1.2 per cent in Swiss francs, to
CHF 4,483.6 million (2023: CHF 4,536.5 million). This was due
largely to a lower volume of premiums in Swiss group life
business.
Gross premiums written in life business declined by 5.2 per
cent in local currency terms, or 5.8 per cent in Swiss francs, to
CHF 3,435.4 million (2023: CHF 3,648.0 million). In Switzerland, a
lower level of demand in group life led to a decline of 10.5 per
cent to CHF 2,249.4 million (2023: CHF 2,513.4 million).
Business with semi-autonomous solutions in Switzerland,
by contrast, recorded good growth. The Perspectiva Collec-
tive Foundation continued to report unbridled growth in 2024.
Thanks to huge demand for semi-autonomous pension solu-
tions, the number of companies signing up rose to 5,186 (2023:
4,903) with some 22,750 policyholders, while assets under
management (AuM) increased by 20 per cent to CHF 1.9 billion
(2023: CHF 1.6 billion). The foundation’s return on investment
stood at 9.2 per cent.
* Restated prior-year figure
Baloise Group Annual Report 2024
40
as at 31 December 2024
Non-life
Life
Asset
Management
& Banking
Total for the
Group 1
CHF million
Investments for own account and at own risk
9,446.4
39,260.3
9,306.6
58,683.6
Asset portfolio for the account and at the risk
of customers and third parties
–
17,274.3
–
18,043.5
Total recognised assets
9,446.4
56,534.6
9,306.6
76,727.1
Third-party assets
16,834.0
as at 31 December 2023
Non-life
Life
Asset
Management
& Banking
Total for the
Group 1
CHF million
Investments for own account and at own risk
9,391.2
40,065.6
8,654.5
58,742.3
Asset portfolio for the account and at the risk
of customers and third parties
–
15,667.4
–
16,252.8
Total recognised assets
9,391.2
55,732.9
8,654.5
74,995.1
Third-party assets
14,993.0
1 Including Group business and elimination.
Management report
Assets held by Baloise
Key figures for the national companies
Key figures for Switzerland
2024
2023
+/– %
CHF million
Business volume
3,785.4
4,025.7
– 6.0
of which: Non-life
1,485.6
1,468.7
1.1
of which: Life 1
2,299.8
2,557.0
– 10.1
Combined ratio
(per cent) 2
92.5
99.2
– 6.7
Profit before borrowing
costs and taxes
358.5
166.2
115.7
Key figures for Germany
2024
2023
+/– %
CHF million
Business volume
1,383.9
1,316.3
5.1
of which: Non-life
869.8
816.5
6.5
of which: Life 1
514.1
499.8
2.9
Combined ratio
(per cent) 2
93.3
90.9
2.4
Profit before borrowing
costs and taxes
102.2
93.6
9.2
1 Including investment-type premiums.
2 The previous year's figures have been adjusted in accordance with the new
calculation method.
Key figures for Belgium
2024
2023
+/– %
CHF million
Business volume
2,131.3
2,085.7
2.2
of which: Non-life
1,550.8
1,589.7
– 2.4
of which: Life 1
580.5
496.0
17.0
Combined ratio
(per cent) 2
91.3
90.6
0.7
Profit before borrowing
costs and taxes
153.3
111.7
37.2
Key figures for Luxembourg
2024
2023
+/– %
CHF million
Business volume
1,250.9
1,138.3
9.9
of which: Non-life
161.8
154.6
4.6
of which: Life 1
1,089.2
983.6
10.7
Combined ratio
(per cent) 2
97.1
90.5
6.6
Profit before borrowing
costs and taxes
34.4
18.2
89.0
Baloise Group Annual Report 2024
41
Management report
The Belgian life business was on a par with the prior year at
CHF 471.6 million (2023: CHF 482.0 million).
Life business was encouraging in Germany and in Luxem-
bourg, with growth in German life business outstripping the
market in the target segments. The volume of premiums
grew by 4.9 per cent in local currency terms, or 2.9 per cent in
Swiss francs, to CHF 514.1 million (2023: CHF 499.8 million). In
Luxembourg, life business increased by a strong 33.7 per cent
in local currency terms, or by 31.1 per cent in Swiss francs, to
CHF 200.3 million (2023: CHF 152.8 million) due to additional
major contracts in occupational pensions.
Investment-type premiums amounting to
CHF 1,048.2 million (2023: CHF 888.5 million) were written in
2024. This equates to an increase of 20.2 per cent in local
currency terms and of 18.0 per cent in Swiss francs. Belgium
registered the most growth. Our business unit in Luxem-
bourg continued to account for the biggest share of invest-
ment-type premiums at CHF 888.8 million.
Gains or losses on investments in the life segment
amounted to a net gain of CHF 1.3 billion. Current income
deteriorated by CHF 46.5 million to CHF 870.3 million owing
to a smaller investment portfolio. The fall in yields on bonds
denominated in Swiss francs and the slight narrowing of
credit spreads had a positive impact on the fair values
of bonds. Movements in currencies and the stock market
also had a favourable impact. However, these effects were
partially offset by the persistently high cost of currency
hedging. Growth in the Swiss real estate market was unable
to compensate for a contraction in the real estate market in
the eurozone. The positive change in fair value reported in the
income statement came to CHF 512.4 million. The investment
performance of the life business stood at 3.1 per cent in 2024.
EBIT in the life business went up significantly year on
year to stand at CHF 282.3 million (2023: CHF 203.1 million*).
This growth stemmed from updated assumptions used to
calculate the yield curve, which led to a larger amount being
released from the contractual service margin (CSM). Updated
actuarial assumptions in the ‘freedom of service’ business
also had a positive impact, contributing to an improvement in
other income. For the strategy phase until 2027, we continue
to anticipate an annual EBIT contribution of more than
CHF 200 million.
The new business margin in the life business was down
slightly year on year at 4.9 per cent in 2024 (2023: 6.5 per cent).
The lower new business margin was due to a change in the
business mix with higher volumes from Germany and Luxem-
bourg. The new business margin is derived from the contrac-
tual service margin (CSM) for new business and is calculated
relative to the present value of new business premiums.
The interest margin, which constitutes the difference
between current income on the assets side and guarantees on
the liabilities side, decreased slightly to 135 basis points (2023:
137 basis points). The slight reduction is attributable mainly to
lower current income as a result of a somewhat smaller real
estate portfolio in the life segment. The average guarantee
was lowered further to 0.9 per cent (2023: 1.0 per cent) through
active portfolio management – in particular the optimisation
of a run-off portfolio in the Belgian life business.
Asset Management & Banking
Positive trends in the Asset Management & Banking
segment
Following a strong rise in the prior year, EBIT in Asset
Management & Banking saw a renewed rise to stand at
CHF 89.1 million (2023: CHF 82.3 million). The rise is attribut-
able to the asset management business and was influenced
by the increase in third-party assets. EBIT in the banking
business was maintained at a good level of CHF 42.1 million
(2023: CHF 42.1 million) despite lower net interest income.
Cash remittance for Asset Management & Banking came
to CHF 49 million, of which CHF 35 million related to Asset
Management (2023: CHF 30 million).
At CHF 1,022.0 million (2023: CHF 486.0 million), the sales
volume of Baloise Bank Ltd increased considerably and
surpassed CHF 1 billion for the first time. The sales volume
comprises the net growth in lending business assets, particu-
larly mortgages, net growth in client assets and the inflow of
new funds from asset management mandates adjusted for
performance factors. Initiatives to boost efficiency were also
defined as part of the refocusing strategy. By 2027, the Bank’s
current cost/income ratio of 63.6 per cent should be reduced
to less than 55 per cent.
As at 31 December 2024, the total assets under manage-
ment (AuM) of Baloise Asset Management stood at
CHF 59.5 billion, a rise of 2.8 per cent compared with the end of
the prior year (31 December 2023: CHF 57.9 billion).
Assets under management (AuM) in business with third
parties increased from CHF 15.0 billion to CHF 16.8 billion, with
net new assets contributing CHF 0.8 billion. Net new assets
related to a number of items, including the continued growth
of the asset management business of Baloise Bank Ltd, of the
semi-autonomous Perspectiva Collective Foundation and of
real estate. Growth in the latter stemmed chiefly from two
capital increases in the listed Baloise Swiss Property Fund
(BSPF) and from the ‘Real Estate Switzerland’ asset group
of the Baloise Investment Foundation for Pension Funds.
Real estate assets rose from CHF 2.0 billion to CHF 2.3 billion.
Assets under management (AuM) in the multi assets business
went up by CHF 6.8 billion to CHF 7.9 billion. We are there-
fore on track to achieve the refocusing strategy targets for
multi assets and real estate that were communicated in the
investor update.
In the reporting period, we continued our targeted work
in the area of responsible investing (RI). For example, the
BSPF is pursuing a sustainable investment strategy from
7 January 2025 that consists of three approaches: a focus on
the climate (net zero by 2050), ESG integration and exclusion.
As a result, the BSPF is classified as a sustainable investment
fund in Switzerland.
* Restated prior-year figure
Baloise Group Annual Report 2024
42
Management report
Investment components in 2024
52.9 % Fixed-interest securities
15.6 % Investment property
9.7 %
Policy and other loans
7.1 %
Mortgage loans
6.3 %
Alternative financial
investments
3.9 %
Shares and funds
2.3 %
Other short-term
investments
2.3 %
Senior secured loans
Proprietary investments by category (insurance policy
portfolio) 1
31.12.2024
31.12.2023
+/– %
CHF million
Fixed-interest securities
25,752.6
26,363.1
– 2.3
Senior secured loans
1,111.1
962.1
15.5
Policy and other loans
4,707.9
4,871.4
– 3.4
Mortgage loans
3,467.1
3,552.5
– 2.4
Investment property
7,586.7
7,920.2
– 4.2
Shares and funds
1,888.3
1,774.7
6.4
Alternative financial
investments
3,084.2
2,655.2
16.2
Other short-term
investments
1,109.0
1,357.5
– 18.3
Total
48,706.7
49,456.7
– 1.5
1 Excluding investments for the account and at the risk of customers and third
parties.
Capitalisation and cash remittance
Strong capitalisation and increased cash remittance –
dividend increase to CHF 8.10
Baloise further solidified its sound capital base in 2024. The
equity attributable to shareholders swelled by 11.7 per cent to
CHF 3,629.7 million as at 31 December 2024 (31 December 2023:
CHF 3,250.0 million). The contractual service margin (CSM)
after taxes rose to CHF 4,004.7 million (31 December 2023:
CHF 3,921.0 million). Comprehensive equity also increased as
a result and totalled CHF 7,634.4 million (31 December 2023:
CHF 7,170.9 million) or CHF 167 per share.
The rating agency S&P Global Ratings (S&P) reaffirmed its
rating of A+ for the Baloise Group in June 2024 and highlighted
Baloise’s excellent capitalisation. In its credit rating report,
S&P underlines the Baloise Group’s very good market posi-
tions, strong technical performance and continued high level
of capitalisation. The complete report is available at
www.baloise.com/ratings.
In the Swiss Solvency Test (SST), we expect a ratio of just
over 200 per cent as at 1 January 2025 (1 January 2024: 207 per
cent), confirming that Baloise’s business remains built on solid
foundations.
Baloise recorded cash remittance of CHF 565 million in
2024. This equates to a renewed year-on-year rise of 14.6 per
cent (2023: CHF 493 million). This item includes the release
of cash of CHF 62 million due to a reinsurance transaction in
Belgian life insurance business. Even without this non-recur-
ring effect, Baloise remitted cash of more than CHF 500 million
for the first time. This sets us in very good stead to achieve our
strategic target of cash remittance of more than CHF 2 billion
in the period 2024–2027.
Baloise Holding Ltd’s profit in accordance with IFRS and
statutory earnings calculated in accordance with the
Swiss Code of Obligations (OR) were adversely affected by
the aforementioned write-downs as a result of the sale of
FRIDAY and the discontinuation of the ecosystem strategy.
An impairment loss from the recognition of losses arising from
exchange differences – as a result of the streamlining of the
holding company structure – also contributed to the down-
ward pressure. All in all, Baloise Holding Ltd recognised a net
loss in accordance with OR of CHF 150 million.
These non-recurring items have no influence on Baloise’s
long-term profitability or ability to maintain its sustainable
dividend policy. Based on the reliable level of cash remittance,
the Board of Directors therefore intends to propose to the
Annual General Meeting that the dividend be increased by
CHF 0.40 to CHF 8.10 per share. In line with the new structure
for share buy-backs introduced in the investor update of
12 September 2024, the Board of Directors reiterates its inten-
tion to supplement the attractive dividend policy for 2024
with a share buy-back of up to CHF 100 million.
Outlook
Forging ahead with the refocusing strategy boosts
profitability and adds value
Baloise has successfully embarked on the new strategy phase
and is committed to implementing the refocusing strategy
that was unveiled in September 2024. The strategy is founded
on four central pillars: technical profitability, operational effi-
ciency, growth in target segments and capital productivity.
The aim is to build on Baloise’s existing strengths and achieve
a lasting increase in profitability.
Our profit for 2024 shows that we have set the right course
with the refocusing strategy. We will relentlessly pursue this
course in order to reach the financial targets that we have
set. We will take steps to boost efficiency, achieve profitable
growth and optimise our portfolio with a targeted combined
ratio of around 90 per cent and an expense ratio of 28 per
cent at most in 2027. All of this while positioning Baloise as a
dependable partner for all its stakeholders.
The new financial targets have been clearly defined and
we are well on course to achieve them as follows: a return on
equity of between 12 per cent and 15 per cent, strong cash
remittance of more than CHF 2 billion in the period 2024–2027
and an increased cash payout rate of 80 per cent or more.
This provides the basis for continuing Baloise’s attractive
shareholder policy.
Baloise Group Annual Report 2024
43
Management report
Consolidated income statement
2024
2023
2022
CHF million
Insurance revenue
5,556.8
5,412.4
5,339.6
Insurance service expenses
– 4,681.7
– 4,666.9
– 4,678.4
Insurance service result from reinsurance contracts
– 158.7
– 151.8
– 57.5
Insurance service result
716.4
593.7
603.7
Insurance finance income and expenses from insurance contracts
– 1,937.8
– 2,833.2
6,343.0
Insurance finance income and expenses from reinsurance contracts
10.4
26.8
27.8
Insurance finance income and expenses
– 1,927.5
– 2,806.4
6,370.8
Interest revenue calculated using the effective interest method
310.7
296.8
166.0
Investment income
921.6
970.6
994.9
Realised gains and losses on investments
2,055.7
2,555.4
– 8,888.5
Change in expected credit loss
2.3
2.2
– 9.8
Result from financial contracts
– 1,090.2
– 842.7
1,490.5
Result from investments and financial contracts
2,200.0
2,982.2
– 6,246.8
Income from services rendered
142.4
141.7
118.3
Other operating income
167.3
161.6
120.0
Other operating expenses
– 732.0
– 691.7
– 633.8
Share of profit (loss) of associates and joint ventures
– 14.8
– 20.7
4.9
Profit and loss from owner-occupied properties FVPL
– 6.5
– 16.0
29.3
Profit / loss before borrowing costs and taxes
545.3
344.4
366.4
Borrowing costs
– 24.9
– 26.2
– 22.4
Profit / loss before taxes
520.5
318.2
343.9
Income taxes
– 141.1
– 81.9
– 99.5
Profit / loss for the period
379.4
236.2
244.5
Profit attributable to:
Shareholders
384.8
239.6
247.8
Non-controlling interests
– 5.4
– 3.3
– 3.4
Earnings / loss per share:
Basic (CHF)
8.48
5.29
5.49
Diluted (CHF)
8.47
5.29
5.48
Baloise Group Annual Report 2024
44
Management report
31.12.2024
31.12.2023
31.12.2022
01.01.2022
CHF million
Assets
Property, plant and equipment
540.2
636.1
594.6
560.0
Intangible assets
200.6
214.8
237.4
265.8
Investments in associates and joint ventures
312.1
318.1
344.7
316.0
Investment property
7,706.7
8,248.6
8,495.1
8,464.5
Financial instruments with characteristics of equity
16,613.7
14,932.9
16,276.7
19,172.6
Financial instruments with characteristics of debt
32,605.3
32,153.4
31,264.6
38,216.3
Mortgages and loans
16,089.3
15,602.3
14,665.8
16,193.2
Derivative financial instruments
902.8
1,072.6
809.3
896.1
Insurance contract assets
29.4
68.4
43.0
–
Reinsurance contract assets
1,171.7
450.5
614.6
767.8
Receivables from employee benefits
6.0
6.3
7.3
5.9
Financial receivables
607.1
727.2
600.6
621.8
Deferred tax assets
208.1
207.1
239.3
177.6
Other assets
269.5
249.1
430.8
206.3
Cash and cash equivalents
2,714.4
2,985.3
3,370.8
4,073.5
Total assets
79,976.9
77,872.8
77,994.6
89,937.2
Equity and liabilities
Equity before non-controlling interests
3,629.7
3,250.0
3,405.2
4,170.6
Non-controlling interests
6.7
9.3
12.2
14.2
Total equity
3,636.3
3,259.3
3,417.4
4,184.7
Insurance contract liabilities
49,506.2
49,819.5
49,753.3
58,947.0
Reinsurance contract liabilities
9.0
2.5
67.5
–
Liabilities arising from financial contracts
22,182.1
19,936.3
19,839.7
21,878.8
Financial liabilities
2,388.8
2,391.3
2,609.4
2,425.7
Non-technical provisions
114.0
111.9
112.5
136.4
Derivative financial instruments
161.5
83.4
135.8
89.4
Deferred tax liabilities
542.6
419.4
380.6
468.1
Other liabilities
1,436.2
1,849.1
1,678.3
1,807.1
Total liabilities
76,340.5
74,613.5
74,577.1
85,752.5
Total equity and liabilities
79,976.9
77,872.8
77,994.6
89,937.2
Consolidated balance sheet
Baloise Group Annual Report 2024
45
Management report
Key figures insurance business
Business volume
The business volume of the Baloise Group comprises the gross premium income from non-life and life insurance
recognised during the reporting period and the payments from policyholders in business involving financial contracts
and investment-linked life insurance policies. Unlike insurance revenue, it includes savings premium components and
thus is generally higher for life insurance.
2024
Group 1
Switzerland
Germany
Belgium Luxembourg 2
CHF million
Gross premiums written Non-life
4,120.2
1,485.6
869.8
1,550.8
161.8
Gross premiums written Life
3,435.4
2,249.4
514.1
471.6
200.3
Investment-type premiums
1,048.2
50.4
–
108.9
888.8
Total business volume
8,603.7
3,785.4
1,383.9
2,131.3
1,250.9
2023
Group 1
Switzerland
Germany
Belgium Luxembourg 2
CHF million
Gross premiums written Non-life
4,081.6
1,468.7
816.5
1,589.7
154.6
Gross premiums written Life
3,648.0
2,513.4
499.8
482.0
152.8
Investment-type premiums
888.5
43.6
–
14.1
830.8
Total business volume
8,618.1
4,025.7
1,316.3
2,085.7
1,138.3
Insurance revenue
Insurance revenue is the amount that reflects the consideration to which an insurance company expects to be entitled
in exchange for the provision of services under insurance contracts.
2024
Group 1
Switzerland
Germany
Belgium Luxembourg 2
CHF million
Insurance revenue Non-life
4,095.0
1,479.9
856.1
1,554.5
161.1
Insurance revenue Life
1,461.7
1,052.3
265.7
122.2
21.6
Total insurance revenue
5,556.8
2,532.2
1,121.8
1,676.7
182.7
2023
Group 1
Switzerland
Germany
Belgium Luxembourg 2
CHF million
Insurance revenue Non-life
4,013.0
1,446.5
808.5
1,561.8
152.9
Insurance revenue Life
1,399.4
993.9
257.6
128.4
19.7
Total insurance revenue
5,412.4
2,440.4
1,066.0
1,690.3
172.6
1 Including Group business.
2 Including Baloise Life Liechtenstein.
Baloise Group Annual Report 2024
46
Management report
Combined ratio
The combined ratio is used to gauge the profitability of non-life insurance business. 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.
2024
Group
Switzerland
Germany
Belgium
Luxembourg
as a percentage of the insurance revenue
Loss ratio 1
63.0
69.6
58.6
58.1
64.8
Expense ratio
29.9
23.0
34.7
33.2
32.3
Combined ratio
92.9
92.5
93.3
91.3
97.1
2023
Group
Switzerland
Germany
Belgium
Luxembourg
as a percentage of the insurance revenue
Loss ratio 1
64.6
75.7
56.4
57.3
57.2
Expense ratio 2
30.0
23.5
34.5
33.3
33.3
Combined ratio
94.6
99.2
90.9
90.6
90.5
1 Including net reinsurance income / expense.
2 The previous year's figures have been adjusted in accordance with the new calculation method.
New business margin
The new business margin is used to measure the profitability of new business in the life segment.
2024
2023
CHF million
Value new business
142.0
177.4
Present value new business premium (PVNBP)
2,878.4
2,748.6
New business margin
4.9 %
6.5 %
Baloise Group Annual Report 2024
47
Management report
Insurance revenue by sector
The Baloise Group’s insurance revenue in the non-life business is presented below, broken down by sector.
2024
2023
+/– %
CHF million
Motor
1,275.9
1,246.1
2.4
General liability
392.3
379.3
3.4
Accident
435.5
446.6
– 2.5
Health
197.7
181.4
9.0
Property
1,471.3
1,382.7
6.4
Marine
187.2
250.5
– 25.3
Other
135.1
126.3
7.0
Non-life insurance revenue by sector
4,095.0
4,013.0
2.0
CSM development
The following table shows the material factors affecting the change in the CSM in the Baloise Group. The CSM represents
the unearned profit of a group of insurance contracts that an entity recognises for the provision of insurance contract
services in the future.
2024
2023
CHF million
Balance as at 1 January
4,864.8
5,391.8
Expected business contribution
100.9
113.8
New business CSM
133.2
167.0
Economic variances
267.7
– 406.4
Operating variances
– 80.3
– 149.2
CSM release
– 284.1
– 252.3
Balance as at 31 December
5,002.1
4,864.8
Baloise Group Annual Report 2024
48
Management report
Banking activities
The tables below provide an overview of banking activities.
Profit or loss from banking activities
2024
2023
CHF million
Interest revenue calculated using the effective
interest method
148.5
140.3
Investment income
0.6
0.5
Realised gains and losses on investments
20.5
18.4
Change in expected credit loss
0.2
1.1
Result from financial contracts
– 86.1
– 69.0
Result from investments and financial contracts
83.8
91.4
Income from services rendered
184.4
162.8
Other operating income
22.0
14.7
Other operating expenses
– 200.9
– 186.5
Share of profit (loss) of associates and joint ventures
– 0.2
– 0.1
Profit and loss from owner-occupied properties FVPL
–
–
Profit / loss before borrowing costs and taxes
89.1
82.3
Borrowing costs
0.0
0.0
Profit / loss before taxes
89.1
82.2
Income taxes
– 12.3
– 12.6
Profit / loss for the period (segment result)
76.8
69.6
Additional information
31.12.2024
31.12.2023
CHF million
Third-party assets
16,834.0
14,993.0
Asset allocation
31.12.2024
31.12.2023
CHF million
Investment property
–
–
Financial instruments with characteristics of equity
26.9
23.0
Financial instruments with characteristics of debt
139.7
123.1
Mortgages and loans
8,145.3
7,514.8
Derivative financial instruments
5.5
39.3
Cash and cash equivalents
989.2
954.4
Total
9,306.6
8,654.5
Baloise Group Annual Report 2024
49
Investment performance (insurance)
The tables below provide an overview of the investment performance of the Baloise Group’s insurance business, broken
down into non-life and life.
Non-life
2024
2023
Current
investment
income
Gains and
losses
through
income
statement 1
Total
investment
income in
income
statement
Gains and
losses
through other
comprehen-
sive income
Total
investment
income (P&L
and OCI)
Total
investment
income (P&L
and OCI)
CHF million
Fixed-income securities
104.7
30.6
135.3
96.9
232.3
328.6
Equities and funds
22.7
8.4
31.1
– 9.4
21.7
25.9
Investment property
35.6
25.2
60.8
–
60.8
37.9
Mortgages and loans 2
44.8
– 11.0
33.8
12.3
46.1
72.0
Derivative financial instruments
–
– 35.8
– 35.8
– 21.4
– 57.2
33.9
Total before investment expenses
207.8
17.4
225.2
78.4
303.6
498.4
Investment expenses
– 26.8
– 26.8
– 27.5
Investment income
198.4
276.8
470.9
Average investments
9,418.8
9,418.8
9,418.8
9,420.6
Yield
2.2 %
2.1 %
2.9 %
5.0 %
Life ³
2024
2023
Current
investment
income
Gains and
losses
through
income
statement 1
Total
investment
income in
income
statement
Gains and
losses
through other
comprehen-
sive income
Total
investment
income (P&L
and OCI)
Total
investment
income (P&L
and OCI)
CHF million
Fixed-income securities
460.2
588.9
1,049.0
–
1,049.0
1,717.7
Equities and funds
70.6
27.1
97.7
–
97.7
160.1
Investment property
233.5
– 23.7
209.8
–
209.8
172.7
Mortgages and loans 2
106.0
127.9
233.9
–
233.9
250.0
Derivative financial instruments
–
– 207.8
– 207.8
– 59.7
– 267.5
185.8
Total before investment expenses
870.3
512.4
1,382.6
– 59.7
1,322.9
2,486.3
Investment expenses
– 100.1
– 100.1
– 100.5
Investment income
1,282.5
1,222.8
2,385.8
Average investments
39,663.0
39,663.0
39,663.0
40,492.5
Yield
2.2 %
3.2 %
3.1 %
5.9 %
1 Including change in expected credit loss.
2 Including cash.
3 Excluding investments for the account and at the risk of customers and third parties.
Management report
Baloise Group Annual Report 2024
50
Asset allocation – average for the period
2024
2023
Non-life
Life 2
Total
Non-life
Life 2
Total
CHF million
Fixed-income securities
5,506.6
23,144.9
28,651.5
5,191.4
23,397.0
28,588.3
Equities and funds
786.0
2,358.1
3,144.1
989.7
2,843.1
3,832.8
Investment property
1,003.5
6,749.9
7,753.4
1,041.0
7,068.6
8,109.6
Mortgages and loans 1
2,105.6
7,098.6
9,204.3
2,173.9
6,793.4
8,967.2
Derivative financial instruments
17.1
311.4
328.5
24.6
390.4
415.1
Total
9,418.8
39,663.0
49,081.7
9,420.6
40,492.5
49,913.1
1 Including cash.
2 Excluding investments for the account and at the risk of customers and third parties.
Management report
Baloise Group Annual Report 2024
51
Risk management:
a key pillar of our value creation
Risk management is an important element of sustaina-
bility-focused corporate governance and, as such, plays
an important role in adding value for all our stakeholders.
It helps to ensure a strong balance sheet, a high level of
operational profitability, a well-developed risk culture,
consistent risk processes and a sustainable investment
policy. The main tasks of risk management are to satisfy
the statutory and regulatory requirements applicable
to Baloise and to optimise the risk/return ratio. It thus
involves managing risk and value and is based on innova-
tive standards, so we can always keep our promise to
our customers and maintain and increase value for our
stakeholders in the long term.
The Baloise Board of Directors exercises ultimate
supervisory authority over the operational management
of the Company and the Group and is thus responsible for
managing risk and ensuring compliance with the relevant
laws. It appoints the Strategy and Governance Committee
to exercise this function, alongside the Audit Committee
and the Investment and Risk Committee. The duties of the
Strategy and Governance Committee include acting as a
preliminary advisory committee for sustainability matters
(see chapter Governance information in the report on non-
financial matters, page 205 onwards).
The Corporate Executive Committee has overall
responsibility for developing a detailed risk manage-
ment concept, which is implemented by the central risk
management function of the Baloise Group and by the
local risk management teams at the level of the strategic
business units.
At Group level and locally, the risk management teams
are supported by risk committees, which meet regularly.
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
Policies and standards that apply across the Group
form the backbone 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 operational risk arising from business activities.
The detailed risk map can be found on pages 54 and 55.
Risk awareness is encouraged throughout the organi-
sation. Moreover, the approach to dealing with risks is
firmly embedded in the organisation. One way in which
we achieve this is by involving our employees from diffe-
rent departments and operating segments in the risk
management system, for example in the assessment of
risks and in the allocation of responsibility for risks.
•
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 to ensure the risk perspec-
tive 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 appetite. Upside potential is
optimised with due consideration of the risks, resulting
in sustainable value creation for Baloise’s investors.
Sustainability risks – including climate risks – are identi-
fied on the risk map and integrated into the existing risk
management processes and frameworks. This ensures
that the results of the regular analyses and assessments
are incorporated into our strategic risk management
approach. The inclusion of a risk analysis in existing pro-
cesses also ensures that the steps carried out are
covered by the internal control system. Details on the
identification of sustainability-related and climate risks
and their integration into the risk management process,
plus an assessment of possible impacts, can be found
in the report on non-financial matters (see page 109
onwards).
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 us and for our stakeholders.
A key part of our risk management system is the iden-
tification and assessment of risks. Group-wide individual
risks are plotted on the risk map according to their likeli-
hood 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-
Management report
Baloise Group Annual Report 2024
52
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 respon-
sibility) 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 us and our stakeholders 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, we show that we are
a reliable partner to regulatory authorities, customers,
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 regulators. Fulfilment of these requirements ensures that
we reduce unwanted risks to the greatest possible extent
and remain solvent even under adverse circumstances, so
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 quanti-
tative risk measurement and analysis of specific risks as
described above ensures that we have an adequate over-
view of the prevailing risk situation at all times. The overall
risk situation is presented in the Own Risk and Solvency
Assessment and verified in cooperation with the decision-
makers as a basis for developing appropriate action plans.
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 material risks faced by the Company
that could pose a threat to the proper functioning of busi-
ness operations and thus to the success of the Company.
Using the internal control system, we can identify risks for
our stakeholders 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
Financial 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 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 Insurance Association (SIA), for example. We fulfil
our responsibilities through our work with the association
and in direct cooperation with the regulatory authorities
by providing support in the form of data, analyses and
assessments 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 material business risks and financial market
risks, 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 how
to optimise the risk/return profile of existing business. In
the area of investment, 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.
www.baloise.com/risk-management
Management report
Baloise Group Annual Report 2024
53
Management report
Risk map
Business risk
Investment risk
Financial structure risk
Actuarial risk – life
●Parameter risk
●Catastrophe scenarios
Actuarial risk – non-life
●Premiums
●Claims
●Catastrophe scenarios
●Recognition of reserves
Reinsurance
●Premiums / setting of
insurance rates
●Reinsurance default
●Inward reinsurance
Market risk
●Interest rates
●Equities
●Currencies
●Real estate
●Market liquidity
●Derivatives
●Alternative investments
Credit risk
Asset/liability risk
●Interest rate risk
●Financing/funding, liquidity
Concentration of risk
●Accumulation risk
●Cluster risk
Balance sheet structure and
capital requirements
●Solvency
●Other regulatory requirements
Baloise Group Annual Report 2024
54
Management report
Business environment risk
Operational risk
Management/
information risk
Changes to standards
Competition risk
External events
Investors
IT risk
●IT governance
●IT architecture
●IT operations
●Cybersecurity
HR risk
●Skills/capacity
●Availability of knowledge
●Incentive systems
Legal risk
●Contracts
●Liability and litigation
●Taxes
Compliance
Business processes
●Process risk
●Project risk
●Insourcing/outsourcing
Risk analysis and
reporting
●Risk analysis and assessment
●Risk reporting
Organisational structure
Corporate culture
Business strategy
●Business portfolio
●Risk management
●Sustainability
Mergers and acquisitions
External communication
●External reporting
●Reputational management
Financial statements, forecast,
planning
Project portfolio
Internal misinformation
Baloise Group Annual Report 2024
55
Responsible investment
As part of the Baloise sustainability strategy, Asset
Management drew up Baloise’s responsible investment
policies, which comprise a general and an expanded
responsible investment strategy. The general responsible
investment strategy consists of exclusions, active owner-
ship elements and the integration of environmental,
social and corporate governance (ESG) criteria into the
investment process. The general responsible investment
strategy applies to a small number of private assets and
bonds that were added to the insurance portfolio prior
to 1 January 2023 (grandfathering) and also applies to
Luxembourg investment funds managed by Baloise that
fall under Art. 6 of the Sustainable Finance Disclosures
Regulation (SFDR).
The expanded responsible investment strategy has
been in place since 1 January 2023. It applies to the majo-
rity of insurance investments, to Luxembourg investment
funds that are managed by Baloise and promote environ-
mental and/or social characteristics in accordance with
Art. 8 SFDR, and to collective investments that satisfy the
Swiss criteria for sustainable investments as defined by
the Asset Management Association Switzerland (AMAS)
and the Swiss Financial Market Supervisory Authority
(FINMA).
The expanded responsible investment strategy is
supplemented by the active ownership strategy and the
climate strategy for liquid assets, and is based on four
approaches – exclusions, best in class, ESG integration
and active ownership – as shown in figure 1.
Figure 1: Extended Baloise responsible investment
strategy
The active ownership strategy is the fourth pillar of the
extended Baloise responsible investment strategy and
itself consists of four pillars – proxy voting, direct engage-
ment, collaborative engagement and public policy enga-
gement – as shown in figure 2. Under the active ownership
strategy, Baloise Asset Management defines focus topics.
The responsible investment team reviews these annually
to check they are still relevant. These focus topics guide
Baloise Asset Management in the selection of potential
corporate partners for collaborative dialogue.
Baloise Asset Management focused on the following in
2024 as part of its active ownership strategy: decarboni-
sation of the economy, reduction of CO2 emissions, biodi-
versity, improvement of working conditions, human rights,
workforce (including diversity), the composition, remu-
neration and independence of the Executive Committee,
promotion of transparency regarding sustainability, and
standardisation of non-financial disclosures.
Management report
Baloise Group Annual Report 2024
56
1
2
3
4
Baloise Active Ownership Strategy
Direct corporate
dialogue
Exercise of voting
rights (proxy voting)
Collaborative
corporate dialogue
Public policy
engagement
Refers to the dialogue
with companies to
address specific
sustainability issues and
achieve improvements.
Refers to the exercise of
voting rights at the
Annual General Meetings
of the companies.
The investors exercise
their voting rights
on various proposals
on the agenda.
Refers to direct
dialogue with several
companies regarding
sustainability issues in
collaboration with other
investors.
Refers to dialogue with
public authorities on ESG
topics for specific
regulatory projects. This
dialogue occurs through
memberships in
individual associations.
The climate strategy for liquid assets is an integral
element of the responsible investment strategies. Under
the climate strategy for liquid assets, Baloise endeavours
to contribute to combating climate change by reducing
the negative impact on the environment and society,
while the risks arising in connection with climate change
are managed prudently in the portfolio. For this purpose,
Baloise Asset Management uses data from MSCI Ltd.
www.baloise.com/policy-active-ownership
www.baloise.com/active-ownership-review
Distribution of ESG ratings of our insurance
investments
84 %
A-AAA
16 %
B-BBB
Sources: Baloise Asset Management, MSCI/data basis
as at 31 December 2024; equities and bonds with an MSCI ESG rating
that are covered by the responsible investment strategy,
without weighting.
Management report
Figure 2: Baloise active ownership strategy
Baloise Group Annual Report 2024
57
The insurance portfolio’s CO2 emissions
relative to those of the benchmark
(weighted average tonnes of CO2 / $M revenue)
–50
–55
–60
–65
–70
–45
–40
–35
–30
–25
–20
–15
–10
–5
0 %
Corporate bonds: –42 %
Swiss equities: –39 %
European equities: –6 %
Sources: Baloise Asset Management, MSCI/data basis as at
31 December 2024: Swiss equities relative to SPI, European equities
relative to MSCI EMU large-cap equities, and bonds relative to the
Bloomberg Global Aggregate Index. The evaluation includes the Scope
1 + 2 emissions of all securities covered by the responsible investment
strategy. Note: the benchmarks for our equities investments were
changed in 2023.
Baloise is one of the biggest property managers in Swit-
zerland and takes account of sustainability criteria in this
area too. Baloise’s responsible investment policy for real
estate, which came into force on 1 January 2023, defines
the actions for implementing a forward-looking environ-
mental and energy policy for the properties held directly
by the Swiss insurance units. In 2024, work was completed
on the integration of an energy management system
(EMS) aimed at recording and reporting real energy
consumption data.
Finally, the Baloise Swiss Property Fund (BSPF) is
pursuing a sustainable investment strategy from 7 January
2025 that consists of three approaches: a focus on the
climate (net zero by 2050), ESG integration and exclusion.
As a result, the BSPF is classified as a sustainable invest-
ment fund in Switzerland. For indirect investments in Swiss
real estate, a new selection process has been in place
since 1 January 2025 that systematically integrates sustai-
nability criteria into the selection and assessment
of target real estate investments.
Outlook for responsible investment
Baloise intends to continue to refine the expanded Baloise
responsible investment strategy in line with applicable
Swiss and European regulatory frameworks in 2025.
Another focus will be on updating the climate strategy
for liquid assets and preparing a transition plan for all
insurance assets with a view to net zero by 2050, including
interim targets for the portfolios and for engagement.
The active ownership strategy will play an important
role in this regard. The updated strategy for responsible
investment will be published in 2025. The collection and
evaluation of climate-related data for financial assets will
continue to provide an important basis for the aforemen-
tioned initiatives.
Management report
Baloise Group Annual Report 2024
58
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Management report
Baloise Group Annual Report 2024
59
Data governance & security
Digital trust – part of the oneIT strategy
2025–2027
In 2024, we made significant progress with integrating
digital trust, which represents a core element of our oneIT
strategy 2025–2027. This strategy is aimed at strengthe-
ning our customers’, partners’ and employees’ trust in how
we protect and use data. The introduction of a Group-wide
governance model, the integration of security processes
and ongoing monitoring ensure that the concept of digital
trust is firmly anchored in the Baloise Group’s IT landscape.
Information security 2025–2027
Strategic goals for information security in the period 2025
to 2027 have also been defined to further strengthen
digital security at Baloise. The strategy consists of develo-
ping a positive security culture, regularly testing the
response to security incidents and proactively managing
cyber risks. For example, an ongoing external bug bounty
program helps to continuously identify technological
vulnerabilities that could be exploited by external atta-
ckers. The automation of security checks and the standar-
disation of information security are also being stepped up.
The aim of the various initiatives is to continually improve
security and ensure that the organisation is as well
equipped as possible to deal with emerging threats.
Information security management system and
IT risk management
We have successfully implemented our information secu-
rity management system (ISMS) throughout the Group. This
enables us to improve and standardise our IT risk manage-
ment approach and integrate security and risk assess-
ments into our day-to-day IT operations and projects. Our
activities in this context are aimed at systematically iden-
tifying, analysing and reducing IT risks in order to continu-
ally improve Baloise’s risk situation. In 2024, we focused on
strengthening the governance model, the underlying IT risk
management processes and, as an increasingly important
aspect, third-party risk management.
Information security awareness
Baloise has been running awareness campaigns across
the Group for years to provide employees with information
about the latest threats, such as phishing simulations
and deepfakes in connection with AI. The voluntary com-
munity, known as digital scouts, also arranges internal
and external events on specific topics with the aim
of raising awareness of the latest developments in the
digital sphere.
www.baloise.com/information-security
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Baloise Group Annual Report 2024
60
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Management report
Baloise Group Annual Report 2024
61
Corporate
governance report
1. Structure of the Baloise Group
and shareholder base
64
2. Capital structure
65
3. Board of Directors
66
4. Corporate Executive Committee
76
5. Remuneration, shareholdings and loans
78
6. Shareholder participation rights
78
7. Changes of control and poison-pill measures
79
8. External auditors
79
9. Information policy
80
Baloise Group Annual Report 2024
63
Baloise is a company that adds value, and, as such, we attach great
importance to practising sound, responsible corporate governance.
Corporate governance report
Operating in line with the requirements of economie-
suisse’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.
The information contained in the corporate
governance report refers to the situation on the balance
sheet date (31 December 2024). 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 non-financial report (page 205 onwards
of the Annual Report).
1. Structure of the Baloise Group and
shareholder base
Shares and structure of the Baloise Group
Headquartered in Basel, Switzerland, Baloise Holding Ltd
is a public limited company that is incorporated under
Swiss law and listed on the Swiss Exchange (SIX). Its shares
are traded under the stock symbol BALN and security
number 1.241.051 (ISIN CH0012410517). The Baloise Group
had a market capitalisation of CHF 7,515.8 million as at
31 December 2024.
•
Significant subsidiaries, joint ventures and associates
as at 31 December 2024 can be found from page 334
onwards in the notes to the consolidated annual finan-
cial statements, which form part of the financial report.
•
Segment reporting by region and operating segment
can be found from page 245 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 78 onwards.
Shareholder base
As a public company with a broad shareholder base,
Baloise Holding Ltd is a member of the SMI Mid (SMIM)
index. A total of 32,668 shareholders were registered in
Baloise Holding Ltd’s share register as at 31 December
2024. The number of registered shareholders had
increased by 6.1 per cent compared with the previous
year. The “Significant shareholders” section on page 417
provides information on the structure of the Company’s
shareholder base as at 31 December 2024.
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 Securities 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.ser-ag.
com/en/resources/notifications-market-participants/
significant-shareholders.html.
Corporate governance report
Baloise Group Annual Report 2024
64
Treasury shares
Baloise Holding Ltd held (directly and indirectly) 305,914
treasury shares (0.668 per cent of the issued share capital)
as at 31 December 2024.
Cross-shareholdings
There are no cross-shareholdings based on either capital
ownership or voting rights.
Dividend policy
Baloise Holding Ltd pursues a policy of paying consistent,
earnings-related dividends. It uses other dividend instru-
ments such as share buybacks to supplement conven-
tional cash dividends. Shareholders have received a total
of CHF 1,788.3 million from cash dividends and share
buybacks over the last five years. Baloise has announced
that the difference between the dividend payments
and the cash payout rate of 80 per cent or more will be
accumulated annually and that as soon as a minimum of
CHF 100 million is reached, this capital will be returned to
shareholders in the form of share buybacks.
Cash dividends
Share
buy-backs
Total
Year (CHF million)
2024
371.0 1
–
371.0
2023
352.7
–
352.7
2022
338.9
–
338.9
2021
320.6
–
320.6
2020
312.3
92.8
405.1
Total
1,695.5
92.8
1,788.3
All figures stated as at 31 December.
1 Proposal to the Annual General Meeting on 25 April 2025.
2. Capital structure
Equity attributable to Baloise Holding Ltd
The table below shows the changes in equity during
the last three reporting years.
Changes in Baloise Holding Ltd’s equity
(before appropriation of profit)
31.12.2024
31.12.2023
31.12.2022
CHF million
Share capital
4.6
4.6
4.6
General reserve
11.7
11.7
11.7
Reserve for
treasury shares
10.3
5.4
7.8
Free reserves
730.8
644.4
573.6
Distributable
profit
– 150.1
444.0
407.4
Treasury shares
– 5.5
– 6.0
– 8.1
Equity attribut-
able
601.8
1,104.1
997.0
Since the capital reduction decided on 30 April 2021, the
share capital of Baloise Holding Ltd has totalled CHF 4.58
million and is divided into 45,800,000 dividend-bearing
registered shares with a par value of CHF 0.10 each.
Capital band and conditional capital; other equity
instruments
Capital band
A resolution adopted by the Annual General Meeting on
28 April 2023 has authorised the Board of Directors until
28 April 2028 to increase or reduce the Company’s share
capital within the capital band subject to a lower limit
of CHF 4,122,000 and an upper limit of CHF 5,038,000
(see Article 3 [4] of the Articles of Association).
www.baloise.com/articles-of-association
Corporate governance report
Baloise Group Annual Report 2024
65
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 disapplied. 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/articles-of-association
Upper limit for the disapplication of pre-emption rights
The total number of registered shares that the Board
of Directors is authorised to issue from the conditional
capital and from the capital band, in each case
disapplying or limiting shareholders’ pre-emption rights,
is limited to 4,580,000 registered shares, which equates
to 10 per cent of the current issued capital (see Article 3 [9]
of the Articles of Association).
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 3,636.3 million on 31 December 2024. Details of
changes in consolidated equity in 2023 and 2024 can
be found in the consolidated statement of changes in
equity on pages 238 and 239 in the financial report.
Bonds outstanding
Baloise Holding Ltd and Baloise Life Ltd (with Baloise
Holding Ltd acting as guarantor) have issued bonds
publicly. As at the end of 2024, a total of 14 public bonds
were outstanding. Details of outstanding bonds can be
found on pages 306 and 415 and on the website.
www.baloise.com/bonds
Credit rating
On 11 June 2024, the credit rating agency S&P Global
confirmed its rating for the Baloise Group’s core companies
of A+ with a stable outlook. The rating is the first one using
the revised capital model for insurance companies that
S&P has applied since November 2023. Under the revised
criteria, S&P has again rated the capital strength of the
Baloise Group as excellent. In its credit rating report,
S&P underlines the Baloise Group’s very good market
positions, strong technical performance and continued
high level of capitalisation. Information about the ratings
of Baloise 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 consists of nine members. Each
member of the Board of Directors has been elected for
a term of one year at a time. As at 31 December 2024,
the average age on the Board of Directors was 61. The
average term of office is five 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 non-executive directors.
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 material business relation-
ships with the Baloise Group. During the reporting year,
Dr Thomas von Planta, Christoph Mäder, Dr Maya Bundt,
Dr Guido Fürer, Christoph B. Gloor, 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.
Christoph B. Gloor and Professor Hans-Jörg Schmidt-
Trenz will not be standing for re-election at the Annual
General Meeting on 25 April 2025. The other members
are standing for re-election.
Corporate governance report
Baloise Group Annual Report 2024
66
Members
Strategy and
Governance
Committee
Investment and
Risk Committee
Remuneration
Committee
Audit Committee
Thomas von Planta
C
M
Christoph Mäder
DC
C
Maya Bundt
M
Guido Fürer
DC
Christoph B. Gloor
C
M
Karin Lenzlinger Diedenhofen
M
Markus R. Neuhaus
M
C
Hans-Jörg Schmidt-Trenz
DC
M
Marie-Noëlle Venturi - Zen-Ruffinen
M
DC
C: Chair, DC: Deputy Chair, M: Member.
Corporate governance report
Further information on the members of the
Board of Directors can be found on the website.
www.baloise.com/board-of-directors
As announced in the media release of 9 December
2024, the Board of Directors will propose to the
Annual General Meeting on 25 April 2025 that André
Helfenstein, Robert Schuchna and Vincent Vandendael
be elected to the Board of Directors. All nominees
will be independent non-executive directors. These
nominations will strengthen the Board’s knowledge
and experience of the insurance and financial markets.
Robert Schuchna is also a representative of Baloise’s
largest shareholder at present, Cevian Capital Ltd.
•
André Helfenstein (1967) graduated with a master’s
degree in business administration from the
University of St. Gallen. In his role as Partner and
Managing Director of Boston Consulting Group, he
mainly advised insurance companies, banks and
asset managers. He held a number of leadership
positions at Credit Suisse (CS), lastly as CEO for
Switzerland and a member of the Executive Board
of the CS Group. André Helfenstein is a member of
the Board of Directors of SIX Group AG.
•
Robert Schuchna (1988) studied banking and
finance at the University of Zurich, graduating with
an MA. He is also a Chartered Financial Analyst
(CFA). As a partner at Cevian Capital Ltd, he was
involved in that company’s investment in UK
insurer Aviva. Schuchna has been a member of the
Supervisory Board of Germany-based Bilfinger SE
since 2020 and a member of the Board of Founda-
tion of Inter Pensionskasse since 2022.
•
Vincent Vandendael (1964) holds a master’s
degree in commercial engineering with a major in
finance from the Catholic University of Leuven. He
was CEO for the Commercial & Corporate segment
in the Asia-Pacific business of Zurich Insurance
Group, and Global Chief Commercial Officer at
Lloyd’s of London. As the CEO of reinsurer Everest
Group, he was responsible for the European busi-
ness and Global Markets. Vincent shares his
extensive underwriting knowledge with the Boards
of Directors of Chedid Re and MJM Holdings
Capital Group.
Baloise Group Annual Report 2024
67
Statutory rules concerning the number of
permitted activities
The Articles of Association contain a provision (Article 33)
concerning the maximum number of mandates that can
be held outside the Company. Subsection 1 stipulates
that the number of external mandates held by members
of the Board of Directors or of the Corporate Executive
Committee must be compatible with the commitment,
availability, capabilities and independence necessary for
the performance of their duties as members of the Board
of Directors or Corporate Executive Committee. Subsection
3 specifies numerical restrictions. Subsection 2 stipulates
that mandates of members of the Board of Directors and
of the Corporate Executive Committee in comparable
functions in other companies with a commercial purpose
must be included. In this Annual Report, mandates are
disclosed in accordance with Article 33 of the Articles of
Association and in accordance with the SIX Corporate
Governance Guidelines.
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
Directors, its committees, the Group CEO or the Corporate
Executive 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/articles-of-association
Members
Term of appoint-
ment
(full years)
Board of Directors
C-Level
Insurance
Banking /
Asset Management
Finance / Audit /
Risk Management
Legal / Compliance /
Governance
Digitalisation / Tech-
nology
Nationality
Gender
Age
Non-Executive
Independent
Thomas von Planta
7
●
●
●
●
●
CH
M
63
Yes
Yes
Christoph Mäder
5
●
●
●
●
●
CH
M
65
Yes
Yes
Maya Bundt
2
●
●
●
●
●
CH / DE
F
53
Yes
Yes
Guido Fürer
0
●
●
●
●
CH
M
61
Yes
Yes
Christoph B. Gloor
10
●
●
●
●
CH
M
58
Yes
Yes
Karin Lenzlinger
Diedenhofen
3
●
●
●
CH
F
65
Yes
Yes
Markus R. Neuhaus
5
●
●
●
●
CH
M
66
Yes
Yes
Hans-Jörg
Schmidt-Trenz
6
●
●
●
●
DE
M
65
Yes
Yes
Marie-Noëlle
Venturi - Zen-Ruffinen
8
●
●
●
CH
F
49
Yes
Yes
Board of Directors
In a listed company
C-Level
In a listed or private company
Insurance
In a senior position in a company within the insurance or reinsurance sector
Banking / Asset
Management
In a senior position in a bank or an asset management department / company
Finance / Audit / Risk
Management
In a senior position in the finance or risk management division of a company or in a senior audit function in a leading
audit firm
Legal / Compliance /
Governance
Degree in law; senior position in Legal and / or Compliance
Digitalisation /
Technology
Leader of digitalisation, IT or transformation projects or position as Chief Digital Officer or Chief Technology / IT Officer
Corporate governance report
Baloise Group Annual Report 2024
68
Information on the Board of Directors’ role in corporate
social and environmental responsibility can be found
in the non-financial report (page 109 onwards in the
Annual Report).
The Chairman of the Board of Directors is also
Chairman of the Strategy and Governance Committee,
and presides over the meetings of both bodies. He is
also a member of the Investment and Risk Committee.
He represents the Company externally and, acting in this
capacity, maintains contact with investors, government
agencies, trade associations and other Baloise stake-
holders. The Chairman of the Board of Directors is in close
and constant contact with the Group CEO. He attends the
meetings of the Corporate Executive Committee when
appropriate, particularly when matters of strategic or
long-term importance are being discussed. He ensures
that the decisions of the Board of Directors are implemen-
ted by the Corporate Executive Committee and, conver-
sely, that the Board of Directors is kept informed on all
matters of material importance to the decision-making
and monitoring process at Baloise.
The powers of the Vice-Chairman and Chairman of the
Audit Committee provide a counterbalance to those of
the full-time Chairman. The Board of Directors has a Vice-
Chairman who is an ex officio member of the Strategy and
Governance Committee (see section C 2.2 of the Organi-
sational Regulations); he is also the Head of the Remune-
ration Committee. The role of the Vice-Chairman was
strengthened: he now has the power to convene a meeting
of the Board of Directors at any time and attend meetings
of the Corporate Executive Committee (see sections A 4
and B 8 of the Organisational Regulations). 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.
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
individually 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 Regulations. Additional specific regulations
applicable to individual committees govern administrative
and other aspects.
Corporate governance report
Baloise Group Annual Report 2024
69
Functions and responsibilities of the committees
The Strategy and Governance Committee monitors the
development and implementation of strategy, including
the sustainability strategy, in preparation for subsequent
discussion by the Board of Directors. The Board of Directors
is responsible for both areas (in the case of strategy, this is
mandated by Article 716a OR) and, where required, adopts
the relevant 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 manag-
ment, capital management and risk management. It over-
sees 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 taken
into account by the committee when reviewing asset
management. The committee reviews the risk strategy
and risk appetite of the Group for subsequent appraisal by
the Board of Directors and takes note of risk reports.
The Audit Committee supports the Board of Directors
in its supervision of accounting, financial, non-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).
The Remuneration Committee proposes to the
Board of Directors – for subsequent appraisal 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 Remuneration
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 implemented. It approves the variable
remuneration granted to individual members of the
Corporate Executive Committee within the limits 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.
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/articles-of-association
In 2024, the full Board of Directors of Baloise Holding
Ltd held five ordinary meetings and four extraordinary
meetings relating to development of the refocusing
strategy and to strategic projects. The ordinary meetings
of the Board of Directors usually last a full working day and
the meetings of its committees last either half a working
day or a full working day.
The attendance rate at the ordinary meetings of the
full Board of Directors and its committees was 100 per
cent. Three members each missed one of the four shorter
extraordinary meetings of the full Board of Directors
(Christoph B. Gloor, Dr Karin Lenzlinger Diedenhofen and
Professor Marie-Noëlle Venturi - Zen-Ruffinen). Including
these extraordinary meetings, the attendance rate was
96.3 per cent.
The Strategy and Governance Committee convened
twelve times in 2024, which included one two-day
strategy meeting. The Investment and Risk Committee,
the Remuneration Committee and the Audit Committee
each met on four occasions. Meetings of the Board of
Directors are regularly attended by members of the
Corporate Executive Committee. Meetings of the Strategy
and Governance Committee are usually attended by the
Group CEO and the Head of Corporate Division Finance.
Those present at Audit Committee meetings are the
Head of Corporate Division Finance, the Head of Group
Internal Audit and, occasionally, 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 Compensation and Benefits. Meetings of the
Investment and Risk Committee are usually attended by
the Group CEO and the Heads of Corporate Division Asset
Management, Corporate Division Finance and Group Risk
Management. The secretariat of the Board of Directors
attends all meetings of the full Board of Directors and
those of its committees.
Corporate governance report
Baloise Group Annual Report 2024
70
Self-evaluation
Every year, a comprehensive self-evaluation is carried out
in the full Board of Directors and in all committees to verify
that each body is working efficiently and effectively. The
review covers the composition of the Board of Directors,
the availability of its members, engagement, cooperation
and culture within the Board of Directors, the processes
for preparing for and holding the meetings and the
interaction between the Corporate Executive Committee
and senior management. The members of each
committee discuss the findings and agree on appropriate
measures, including the priorities for the following year.
Training and development
The members of the Board of Directors participate in
multi-day introductory programmes in preparation for a
new role on the Board and then receive ongoing training
(at least once a year) in half-day seminars on specific
topics. The Board of Directors received training on the
Code of Conduct and on conflicts of interest. Several
presentations by external experts were held at committee
level, along with more in-depth sessions (including a
policy paper on the benefits of variable remuneration, ESG
regulations, outlook for the insurance industry, revision of
the Insurance Supervision Act, etc.).
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 takes care
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 chart on page 68). Any restrictions on
availability and potential conflicts of interest arising
from other mandates are also taken into account. The
Strategy and Governance Committee is also responsible
for planning personnel changes within the Corporate
Executive Committee. It receives regular reports on HR
matters such as the shortage of skilled workers, diversity
and talent management.
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 Regulations are reviewed on an ongoing
basis and updated as changing circumstances require.
The Organisational Regulations were last updated on
6 December 2024.
www.baloise.com/articles-of-association
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 52 onwards and in the financial
report starting on page 340.
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 and the Vice-Chairman
may attend meetings of the Corporate Executive
Committee at any time.
Corporate governance report
Baloise Group Annual Report 2024
71
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 Board of
Directors of Bellevue Group AG, Bank am Bellevue AG and Bellevue Asset
Management AG. Before that, he worked for Goldman Sachs in Zurich,
Frankfurt and London for around ten years and was the interim Head
of Investment Banking and Head of Corporate Finance for the Vontobel
Group in Zurich from 2002 to 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. He is an independent
non-executive director.
Other mandate:
•
BB Biotech, Chairman of the Board of Directors (since 21 March 2024)
Maya Bundt (1971, Germany/Switzerland, Dr sc. nat. ETH Zurich, geoecologist)
has been a member of the Board of Directors since April 2022. She
worked for the reinsurance company Swiss Re in a variety of roles,
including Head of the Cyber & Digital Solutions department, Cyber
Practice Leader and Chair of the Swiss Re Cyber Council. Before joining
Swiss Re, Dr Maya Bundt spent three years working for the Boston
Consulting Group as a strategy consultant in a variety of sectors.
She is an independent non-executive director.
Other mandates:
•
Valiant Bank AG, member of the Board of Directors
•
APG SGA AG, member of the Board of Directors
•
Federal administration, President of the steering committee
for the implementation of the National Cyberstrategy (NCS)
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 International
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 is an independent non-executive director.
Other mandates:
•
economiesuisse, the umbrella organisation representing Swiss business,
President
•
Lonza Group AG, Vice-Chairman of the Board of Directors
(until 2024, since then Lead Independent Director)
•
Assivalor AG, member of the Board of Directors
•
Schindler Holding AG, member of the Board of Directors
(since 19 March 2024)
•
Swiss National Bank, member of the Bank Council
•
Becker | Gurini | Partner, law firm + notary’s office, Partner
Corporate governance report
Baloise Group Annual Report 2024
72
Corporate governance report
Christoph B. Gloor (1966, Switzerland, degree in business economics HWV)
has been a member of the Board of Directors since 2014. He was 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 Notenstein 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 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 independent non-executive director.
Other mandates:
•
Private bank E. Gutzwiller & Cie, Banquiers, Director
•
Endress Familien AG, Chairman of the Investment Committee
Karin Lenzlinger Diedenhofen (1959, Switzerland, Dr oec. HSG)
has been a member of the Board of Directors since 2021. Until the end
of February 2024, she was a member of the Board of Directors of LLB
(Switzerland) AG. Between 1991 and 2019, she held various positions,
including CEO and delegate of the Board of Directors of Lenzlinger Söhne
AG, Nänikon/Uster from 1999. She is an independent non-executive director.
Other mandates:
•
Zurich Chamber of Commerce, President
•
Zürcher Oberland Medien AG, Chairwoman of the Board of Directors
•
Staff pension fund of Zürcher Oberland Medien AG, Chairwoman
•
SV Group AG, Vice-Chairwoman of the Board of Directors
•
Übermorgen Ventures Investment AG, member of the Board of Directors
•
economiesuisse, member of the Board of Directors
Guido Fürer (1963, Switzerland, Doctor of Economics, EMBA)
has been a member of the Board of Directors since 2024. After finishing his MA
in economics, he completed a doctorate in financial risk management at the
University of Zurich. He also has an Executive MBA from INSEAD, Fontainebleau,
France. Dr Guido Fürer began his career in 1990 at Swiss Bank Corporation and in
1997 moved to Swiss Re, where he held a number of different roles. Following his
appointment as Group Chief Investment Officer and member of the Corporate
Executive Committee in 2012, Dr Fürer headed up Group Asset Management
until the end of March 2023. From 2019 to 2022, he was responsible for Swiss Re
in Switzerland as Country President, and was the Chair of the Group Strategic
Council. He is an independent non-executive director.
Other mandates:
•
Department of Finance at the University of Zurich, Chairman of the
Advisory Board
•
Swiss Institute for Art Research (SIK-ISEA), member of the Board of
Foundation and Head of the Financial Committee
•
Schwyzer-Winiker Foundation in Zurich, Vice-Chairman of the Board of
Foundation (stepped down with effect from 1 January 2025)
Baloise Group Annual Report 2024
73
Hans-Jörg Schmidt-Trenz (1959, Germany, Prof. Dr rer. pol., economist)
has sat on the Board of Directors since 2018. He is Professor of
Economics at Saarland University and the University of Hamburg
(specialising in institutional economics and governance). From 1996
to 2017, he was Chief Executive Officer of the Hamburg Chamber of
Commerce, and from 2010 to 2018, President of the Working Committee
of European Chamber Chief Executives. Until 2022, he was Vice-
Chair- man of the World Chamber Federation of the International
Chamber of Commerce (ICC). He was Founding President of the HSBA
Hamburg School of Business Administration, 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 Boards
of Trustees of Hamburger Sparkasse and HanseMerkur Versicherung.
He is an independent non-executive director.
Other mandates:
•
Tafel foundation of Schleswig Holstein Hamburg, Chairman of the
Board of Trustees
•
STconnect GmbH, Managing Director
•
Hamburg Academic Foundation, member of the Board of Trustees
Corporate governance report
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 was Vice-Chairman of the Board of Directors of Orior AG
until April 2023. He is an independent non-executive director.
Other mandates:
•
Galenica AG, Chairman of the Board of Directors
•
Jacobs Holding AG, member of the Board of Directors
•
Barry Callebaut AG, Vice-Chairman of the Board of Directors
•
Avenir Suisse, Vice-Chair of the Board of Trustees
•
Zurich Chamber of Commerce, Vice-Chairman of the
Management Board
Baloise Group Annual Report 2024
74
Secretary to the Board of Directors:
Dr Philipp Jermann,
Buus BL
Head of Group Internal Audit:
Christian Schacher,
Breitenbach SO
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
master’s degree and a PhD in law and a master’s degree in philosophy
from the University of Fribourg. She has completed executive development
courses in finance at Harvard Business School and in sustainability/ESG at
the Oxford Said Business School. She is an independent
non-executive director.
Other mandates:
•
Law firm in Geneva, of counsel
•
University of Geneva, School of Economics and Management,
honorary professor
•
Banco Santander International SA, Vice-Chair of the Board of Directors
•
Ina Invest AG, member of the Board of Directors
•
Board of Foundation of the Swiss Board Institute, Vice-Chairwoman
•
Swiss Institute of Directors, member of the Board of Governors
•
Foundation for Accounting and Reporting Recommendations
(Swiss GAAP FER), member of the Board of Foundation
•
Implenia AG, member of the Board of Directors (subject to election
at the AGM on 25 March 2025)
Corporate governance report
Baloise Group Annual Report 2024
75
4. Corporate Executive Committee
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 became a member of the Corporate Executive
Committee and CEO of Corporate Division Switzerland in 2011, and, as
such, was in charge of business in Switzerland. Michael Müller has been
Group CEO since 1 July 2023. He was a member of the Board of Directors
of the Swiss Insurance Association (SIA) from 2011 to 2024.
External mandates:
•
Swiss Employers Confederation (SAV), Treasurer
•
Basel Chamber of Commerce, member of the Management Board
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 &
Company, 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, 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 2017. He manages the Corporate
Division Asset Management, incorporating the Investment Strategy,
Business Development, Portfolio Management, Finance & Operations, Real
Estate and Corporate Services units.
External mandate:
•
AMAS (Asset Management Association Switzerland), member of the
Board of Directors
Alexander Bockelmann (1974, Germany, Dr rer. nat.)
studied environmental sciences at the universities of Bayreuth (Germany) and
East Anglia (UK) and obtained a doctorate in geosciences at the University of
Tübingen (Germany). He is a proven expert in IT digitalisation and transformation
and has many years of experience in the financial sector. Among his previous
roles, he worked as a consultant at the Boston Consulting Group and spent
around ten years in various senior roles at Allianz SE in Germany and seven
years in the USA. At the end of 2013, he moved to UNIQA Insurance Group AG
in Austria in the role of Group CIO and became Chief Digital Officer and Group
Chief Information Officer on the Management Board, with responsibility for IT
in Austria and all group-wide IT topics and services in over 16 countries. Since
2019, Dr Alexander Bockelmann has been Head of the Baloise Group’s Corporate
Division IT, which is responsible for the Group-wide IT strategy, IT projects, and all
IT shared services of the Group and the corporate functions.
External mandate:
•
Swiss FS-CSC association, member of the Steering Board
Corporate governance report
Baloise Group Annual Report 2024
76
Clemens Markstein (1971, Germany, Dipl.-Wi.-Ing.)
studied industrial engineering at Karlsruhe University and trained in
strategy, marketing and finance during a management programme
at Wharton Business School and at the University of St. Gallen. He also
completed an advanced management programme at the INSEAD
Business School. Clemens Markstein began his professional career as
a consultant at the Boston Consulting Group in Stuttgart. He then held
various roles at Allianz in Germany and Switzerland, before moving
to Baloise. He joined the Executive Committee of Baloise’s Corporate
Division Switzerland in 2009 as Head of Product Management for
Corporate Clients. He was Head of Operations & IT from 2017. Since 1 July
2023, Clemens Markstein has been a member of the Corporate Executive
Committee and CEO of Corporate Division Switzerland, and, as such, has
been in charge of business in Switzerland.
External mandates:
•
Stiftung Finanzplatz Basel, member of the Board of Foundation
•
Association of Basel Insurance Companies, member of the Executive
Board
•
Promotion Society of the Institute of Insurance Economics at the
University of St. Gallen, member of the Board of Directors
•
Swiss Insurance Association (SIA), member of the Board of Directors
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
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 Division Finance since May 2017 and is a
member of the Corporate Executive Committee.
External mandates:
•
creace GmbH, Executive Director
•
Swiss Insurance Association (SIA), member of the Finance and Regu-
lation Committee
Corporate governance report
Baloise Group Annual Report 2024
77
Management structure
(as at 31 December 2024)
5. Remuneration, shareholdings and loans
The remuneration report (page 83 onwards of the Annual
Report) describes the remuneration 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 for 2024 as well as the investments
they hold. The report of the external auditors on the audit
of the remuneration report can be found in the appendix
of that report (page 104 onwards of the Annual Report).
6. Shareholder participation rights
Voting rights
The share capital of Baloise Holding Ltd consists solely of
uniform registered shares. Each share confers the right to
one vote. Shareholders who have acquired shares in their
own name and for their own account (as defined in Article
5 of the Articles of Association) are registered in the share
register with voting rights upon request. Nominees are
registered with voting rights by request if they inform the
Company of the names, addresses and shareholdings of
the beneficial owners. Shareholders are allowed to
delegate the exercise of their voting rights to the
independent proxy and to persons of their choosing.
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).
At the Annual General Meeting on 26 April 2024, the
Baloise shareholders voted to remove the provisions
in the Articles of Association relating to restrictions
on registration and voting rights. Each share now
confers one vote (Article 16 [3] of the Articles of
Association). A shareholder motion to amend the
nominee provision in the Articles of Association was
supported by a simple majority of shareholders, but
failed to achieve the necessary qualified majority. It
became clear in the meetings with investors in
autumn 2024 that, following the removal of the
restriction on registration and voting rights, very
few investors were troubled by the nominee
provision in the Articles of Association. The
Company has an interest in knowing the
shareholders who are entitled to vote, regardless
of whether they hold the shares directly or via
nominees. The Company will therefore maintain the
long-established practice of registering nominees
with voting rights upon request (now unlimited),
provided they notify Baloise of the names,
addresses and shareholdings of the beneficial
owners.
* Member of the Corporate Executive Committee.
Group CEO
Michael Müller*
Group CEO Office
Legal, Tax & Compliance
Group HR
Transformation
Finance
Carsten Stolz*
Asset
Management
Matthias
Henny*
IT
Alexander
Bockelmann*
Switzerland
Clemens
Markstein*
Germany
Jürg
Schiltknecht
Belgium
Christophe
Hamal
Luxembourg
Christine
Theodorovics
Corporate governance report
Corporate Communications
Strategy & Innovation
Baloise Group Annual Report 2024
78
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 two-thirds of the votes
represented at the Annual General Meeting is required
for the cases specified in Article 17 [3] (a) to (h) of the
Articles of Association. The votes must also represent at
least one-third of the total shares issued by the Company.
Otherwise, resolutions are adopted by a majority of the
votes cast, subject to compulsory 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. Baloise 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 shareholders 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
extraordinary 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 that such requests may only be
made by shareholders who represent at least 5 per cent
of the share capital or the votes.
Requesting agenda items
Shareholders representing at least 0.5 per cent of the share
capital or votes can demand that items are placed on the
agenda or that motions are submitted. Such requests must
be submitted in writing to the Board of Directors 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
AGM (Article 14 of the Articles of Association).
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).
The registration restrictions are set out in Article 5 of the
Articles of Association. The procedures and requirements
for suspending and restricting transferability are set out
in Article 5 and Article 17 of the Articles of Association.
www.baloise.com/articles-of-association
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
33⅓ per cent of all Baloise shares. Baloise Holding Ltd has
not made any use of the option to deviate from or waive
this regulation. 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 Derivatives 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-compete 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 Ltd, Basel, has been the
external auditing firm for Baloise since 2016. Christian Fleig
held the post of auditor-in-charge from 2018 and led the
audit for the last time in 2024. In accordance with Article
730a (2) OR, the role of auditor-in-charge is rotated every
seven years. Ernst & Young is the external auditing firm for
almost all Group companies.
External auditors’ fees
2024
2023
CHF
(including outlays and VAT)
Audit fees
8,267,425
5,590,039
Consulting fees
62,092
189,530
Total
8,329,517
5,779,569
Audit fees paid to Ernst & Young include fees for
engagements with a direct or indirect connection to a
particular audit engagement and fees for audit-related
activities (namely, statutory and regulatory special
audits).
Corporate governance report
Baloise Group Annual Report 2024
79
The services were rendered in accordance with the
relevant provisions on independence set forth in the Swiss
Code of Obligations, the Swiss Audit Supervision Act and
FINMA circular 2013/3 on auditing (from 1 January 2025
FINMA circular 2025/1) 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’
representatives.
The performance of the external auditors and their
interaction 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.
In the interests of ensuring the independence of
the external auditors and the quality of the audit,
certain proxy advisors and individual investors
would like a tendering process to be carried out
for the external audit contract every ten years, and
for the external audit firm to be changed after a
maximum of 20 years. The respective EU regulation
will be applied as from 2026 to listed companies
outside the EU, for which no such rotation
rules exist.
Baloise has taken various measures to ensure
independence and audit quality. Tendering
processes will be carried out in 2024 and 2025
at the level of supervised Group companies
headquartered in Belgium, Germany and
Luxembourg, and a shared auditor model will
be introduced from 2026. In 2025, a new Lead
Auditor will be engaged for the Group mandate.
The quality of the cooperation with Ernst & Young
is reviewed and rated as positive by the Audit
Committee. Also in light of the ongoing finance
transformation, Baloise plans to tender the Group
mandate (thereby observing the cooling-in
periods of auditors) for the 2028 financial year.
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
shareholders each receive a summary of the review of
operating performance once a year. The full Annual Report
is available online at www.baloise.com/annual-report.
In addition, a presentation is created for every set of
financial statements that summarises the financial year
or period and is primarily aimed at financial analysts and
investors. All publications are simultaneously available
to the public. All market participants receive the same
information. Baloise offers teleconferences, podcasts,
videos and live streaming in order to make information
generally and easily accessible.
www.baloise.com/annual-report
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 corpo-
rate strategy, targets and any other matters relevant
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 report
Baloise Group Annual Report 2024
80
Information about Baloise shares
Information on Baloise shares can be
found on page 18.
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 notice
of 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
CH-4002 Basel, Switzerland
Tel. + 41 58 285 89 42
vrs@baloise.com
Investor Relations
Baloise Group
Markus Holtz
Aeschengraben 21
CH-4002 Basel, Switzerland
Tel. + 41 58 285 81 81
investor.relations@baloise.com
Corporate governance report
Baloise Group Annual Report 2024
81
Remuneration report
Letter from the Chairman of the Remuneration
Committee
84
1. Overview of remuneration
85
2. Governance
86
3. Remuneration principles
87
4. Remuneration system for the Board of Directors
88
5. Remuneration system for the Corporate
Executive Committee
88
6. Remuneration for the reporting year
93
A. Remuneration paid to the members of
the Board of Directors
93
B. Remuneration paid to the members of the
Corporate Executive Committee
95
C. Loans and credit facilities granted to
members of the Board of Directors and
the Corporate Executive Committee
100
D. Shares and options held
101
E. Total remuneration at the Baloise Group
104
83
Baloise Group Annual Report 2024
Dear shareholders,
In my role as Chairman of the Remuneration Committee,
I am delighted to present this remuneration report to you
and to inform you about the activities of the Remuneration
Committee in the past year.
I was pleased to note the Annual General Meeting’s
approval rating for last year’s report, which improved to
93 per cent. This favourable vote from the shareholders in
spring 2024 affirms that our remuneration is appropriate
and that we have taken the right course of action in
adjusting and disclosing the remuneration processes.
In 2023, we adjusted the relative weighting of the short-
term and long-term variable remuneration components for
the Corporate Executive Committee. Building on this, our
focus in 2024 was on further optimising the variable remu-
neration by adding to the key figures used to assess perfor-
mance.
An effective remuneration system supports the business
strategy by offering the right incentives and rewarding
successful management of the Company and achieve-
ment of the strategic targets. When the refocusing
strategy was announced in September 2024, we therefore
adjusted the short-term and long-term variable remuner-
ation in line with the success-related key figures defined in
the strategy to ensure that the metrics used to measure
performance support the new strategy.
The adjustments in detail:
•
From the 2025 assessment year, the financial assess-
ment for short-term variable remuneration (perfor-
mance pool) is based not only on cash remittance
but also on two additional financial key figures: the
combined ratio (non-life) and EBIT (life). These key
figures reflect the success of Baloise’s insurance busi-
ness and thereby support the annual strategic targets
set for senior management.
•
From the 2025 assessment year, the quality assess-
ment for the performance pool is based on a structured
appraisal conducted by the Remuneration Committee
with regard to two criteria, namely sustainability and risk.
•
We have introduced a new metric for long-term vari-
able remuneration (performance share units, PSUs) to
put the measurement of performance on a broader
footing. From the 2025 assessment year, the three-year
measurement of the performance of the PSU plans is
based not only on the relative total shareholder return
(rTSR) but also on the return on equity (ROE). By adding
ROE in this way, we have thus supplemented the calcu-
lation of long-term variable remuneration with a core
strategic key figure that will ensure the stable presenta-
tion of long-term value creation without duplicating
the measures of performance already used for short-
term variable remuneration.
In taking these steps, we are making sure that the remu-
neration system continues to provide support for the
implementation of the strategy and remains aligned with
the interests of our shareholders.
The Remuneration Committee seeks to apply the principle
of performance-related remuneration in an appropriate
manner. Cash remittance was significantly higher in 2024
than in previous years, resulting in a financial assessment
for short-term variable remuneration of 110 per cent.
However, a number of the targets set were not achieved as
planned, partly owing to the strategic realignment. The
quality assessment for short-term variable remuneration
reflects this, with a lower valuation of 92 per cent. This,
combined with the positive financial assessment, gives a
performance pool factor of 101 per cent. This factor is used
to calculate the short-term variable remuneration paid to
the Corporate Executive Committee for 2024.
On behalf of all members of the Remuneration Committee,
I would like to thank you, our esteemed shareholders, for
your interest and trust.
Basel, March 2025
Christoph Mäder
Chairman of the Remuneration Committee
Letter from the Chairman of the
Remuneration Committee
Baloise Group Annual Report 2024
84
Remuneration report
1. 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 Baloise
Holding Ltd 1
Total fee – Chairman
1,200
1/3
Base fee – Member
125
1/4
Additional fee – Vice-Chairman
50
1/4
Additional fee – Chair of Committee
70
1/4
Additional fee – Committee Member
50
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.
Remuneration of the members of the Board of Directors
for the 2023/24 term of appointment and for the 2024
reporting year
The Annual General Meeting held on 28 April 2023 approved
an amount of CHF 3.6 million (including social security
contributions and Share Subscription Plan discount) for the
remuneration of the Board of Directors for the 2023/24 term
of appointment. The amount paid for the 2023/24 term of
appointment was CHF 3.3 million. The amount paid in the
2024 reporting year was CHF 3.2 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 30 per cent of short-term variable
remuneration is awarded in shares. The PSUs under the
long-term variable remuneration plan are prospective enti-
tlements to shares that are either converted and definitively
allocated after three years or expire at this point, depending
on whether or not the vesting condition has been met.
Michael Müller
CHF 1.9 million
56%
17%
27%
Dr Carsten Stolz
2024
CHF 1.3 million
Dr Matthias Henny
CHF 1.3 million
56%
18%
25%
Clemens Markstein
CHF 1.3 million
57%
17%
26%
Dr Alexander Bockelmann
2024
2024
2024
2024
CHF 1.4 million
57%
18%
25%
58%
17%
25%
These elements ensure that remuneration is competitive and
reflective of performance. They also incentivise recipients to
achieve ambitious targets while simultaneously emphasising
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 stake-
holder groups, particularly our shareholders. All elements of
Corporate Executive Committee remuneration are deter-
mined individually by the Remuneration Committee in keep-
ing with the maximum amounts approved by the Annual
General Meeting.
Description
Purpose
Fixed remuneration
• Basic salary
• Fringe benefits
• Social security contributions
Short-term variable remuneration
• Performance pool
• Paid in cash and restricted
shares
Long-term variable remuneration
• Performance share units (PSUs)
Competitiveness in
the marketplace
Fairness and transparency
Financial hedging
Remuneration for the achie-
vement of annual targets
(Company, team and indivi-
dual targets)
Participation in the success
of the business
Strengthening of senior mana-
gers’ loyalty to the Company
Alignment of senior managers’
interests with those of share-
holders
Remuneration of the members of the Corporate Executive
Committee for the 2024 reporting year
The Annual General Meeting held on 28 April 2023 approved
an amount of CHF 4.4 million for the fixed remuneration
(including social security contributions) of the Corporate
Executive Committee for 2024. The amount paid was CHF
3.9 million. In addition, the Annual General Meeting held on
28 April 2023 approved a maximum amount of CHF 5.0 million
(including social security contributions and Share Subscrip-
tion Plan discount) for the variable remuneration for 2024.
The total amount paid was CHF 3.3 million. The chart below
shows the remuneration of the individual members of the
Corporate Executive Committee for 2024 and the breakdown
by remuneration component.
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 performance share units)
85
Baloise Group Annual Report 2024
Remuneration report
2. Governance
Remuneration-related provisions in the Articles of
Association
Article 31 of the Articles of Association of Baloise 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 one-year term of appointment until the end
of the next Annual General Meeting;
•
the total amount of fixed remuneration for the Corporate
Executive Committee for the next financial year;
•
the maximum amount of variable remuneration for the
Corporate Executive Committee for the next financial year.
The Articles of Association of Baloise Holding Ltd also stipu-
late the applicable remuneration principles and include the
following provisions:
•
Mandatory share ownership rules for the Board of
Directors (Article 20)
•
Term of remuneration contracts (Article 29)
•
Additional amount for the remuneration of newly
appointed membersof the Corporate Executive
Committee (Article 30)
•
Principles of variable remuneration (Article 32)
•
Activities for other companies (Article 33); for further infor-
mation see the corporate governance report, p. 68
•
Loans and credit facilities (Article 34)
www.baloise.com/articles-of-association
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 reflective of performance in order
to attract and retain individuals with the necessary skills
and character attributes;
•
remuneration is demonstrably dependent on the Compa-
ny’s sustained success and individuals’ personal contribu-
tions and does not create any false incentives;
Approval structure
Group CEO
Chairman of the
Board of Directors
Remuneration
Committee
Board of
Directors
Annual General
Meeting
Remuneration policies
Proposal
Approval
Maximum total remuneration for the Board of Directors
and the Corporate Executive Committee
Proposal
Review
Approval
(binding vote)
Remuneration for the Chairman of the Board of Directors
Proposal
Approval
Remuneration for the Group CEO
Proposal
Approval
Remuneration for the Corporate Executive Committee
Proposal
Approval
Remuneration Report
Proposal
Approval
Advisory vote
•
the structure and amount of overall remuneration are
consistent with Baloise’s risk policies and encourage risk
awareness.
The Remuneration Committee’s main functions and respon-
sibilities are to:
•
submit proposals to the Board of Directors on the
structure 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 remuneration
for the 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 packages
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 severance 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),
Professor Hans-Jörg Schmidt-Trenz (Deputy Chairman),
Christoph B. Gloor and Dr Karin Lenzlinger Diedenhofen were
re-elected to the Remuneration Committee by the Annual
General Meeting on 26 April 2024. The Remuneration Commit-
tee 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 attended by the Group CEO, the Head of
Group Human Resources and the Head of Compensation and
Benefits, who collectively participate in an advisory capacity.
The Group CEO leaves the meeting when his personal remu-
neration is being discussed and decided. The Chairman of
the Remuneration Committee reports on its activities to the
Board of Directors at its next meeting.
Remuneration report
Baloise Group Annual Report 2024
86
3. 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
remuneration 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 Execu-
tive 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
Zürich, Georg Fischer, Julius Bär, Lindt, Schindler, Sonova,
Swatch, Tecan, and VAT (multi-sector peer group), and the
other comprised selected listed Swiss companies, namely
Helvetia, Swiss Life, Swiss Re, and Zurich Insurance (insur-
ance peer group).
Consideration of individual performance and the
Company’s success
As a performance-driven organisation, Baloise always
maintains a clear and transparent link between the
Company’s strategic targets, team targets and the targets
of individual employees. The amount of short-term vari-
able remuneration is influenced by the individual contri-
butions to the achievement 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 seeks to maintain fairness in remuneration at
all times and, wherever possible, to reduce differences in
pay that cannot be objectively explained. It has been
conducting regular analyses since 2013 and uses internal
fair pay analyses and pay structure assessments when
determining initial salaries, adjusting salaries and
awarding variable remuneration to ensure that remunera-
tion at Baloise is fair. In 2021, an independent audit also
confirmed that wage equality had been maintained in
accordance with the provisions of the Swiss Gender
Equality Act.
Sustainable remuneration
Baloise attaches considerable importance to managing its
business sustainably and retaining high performers. It also
matters to Baloise that its remuneration is not only compe-
titive and performance-based but also encourages mana-
gerial staff to align their long-term focus with the interests
of stakeholders, particularly our shareholders. To this end,
members of the top three tiers of management are awarded
a significant portion of their variable remuneration in shares
that are restricted for three years and exposed to market
risk during this period. Those entitled to short-term variable
remuneration generally have a choice as to what percen-
tage of their remuneration they receive as shares. However,
this choice is limited for the most senior managers. Members
of the Corporate Executive Committee must receive at least
30 per cent of their short-term variable remuneration in the
form of shares. Furthermore, the top three tiers of manage-
ment also receive performance share units, which means
that a further component of their salaries is paid out as
prospective entitlements. These PSUs must be held for three
years before being converted into shares as a form of defer-
red remuneration. Both the proportion of variable remunera-
tion in the total pay package and the proportion of remu-
neration awarded in restricted shares or as deferred remu-
neration increase in line with employees’ scope of strategic
responsibility and influence.
This mandatory purchase of shares ensures that a
significant proportion of the Corporate Executive Commit-
tee’s remuneration is granted as deferred shares. The ex-
pectation is that deferred shares make up 72 per cent
of variable remuneration, which equates to 36 per cent
of total remuneration.
Excessive remuneration is prevented by means of clearly
defined caps for the remuneration for the Board of
Directors and the Corporate Executive Committee that
are approved by the Annual General Meeting.
87
Baloise Group Annual Report 2024
Remuneration report
4. 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. The Chairman of the Board of Directors per-
forms his various functions on a full-time basis, in return
for which he is paid a fixed fee of CHF 1,200,000. He is not
entitled to any variable remuneration. The tasks of the
Chairman are described in more detail in the corporate
governance report (page 69).
All other members of the Board of Directors receive a
fee of 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. These amounts provide appropriate compen-
sation for the responsibility and workload involved in their
various functions and have not been raised since 2008.
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
Association). They do not participate in any share partici-
pation plans that are predicated on the achievement of
specific performance targets
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 subscrip-
tion price is based on the volume-weighted average price
for the ten trading days prior to allocation on 1 June; a 10
per cent discount is granted on this price.
Relevant closing
price
as at
CHF
Shares received by members of the Board of
Directors 2024
01.06.2024
155.90
Shares received by members of the Board of
Directors 2023
01.06.2023
140.00
5. Remuneration system for the
Corporate Executive Committee
Remuneration structure
100%
100%
40%
60%
100%
60%
60%
200%
100%
220%
Minimum
remuneration
Expected value
Maximum
remuneration
Basic salary
100%
100%
100%
Short-term variable remuneration
(performance pool)
0%
40%
60%
Long-term variable remuneration
(PSU, value at allocation)
0%
60%
60%
At least 30 per cent of the short-term variable
remuneration paid to members of the
Corporate Executive Committee must be
awarded in shares.
Members of the Corporate Executive
Committee must hold shares equivalent to
200 per cent (300 per cent for the Group CEO)
of their basic salary (within five years of taking
office). For further information, see page 91
Mandatory share
subscription
Mandatory share
ownership
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 perfor-
mance pool, which is the total amount of short-term vari-
able 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 perfor-
mance in the preceding year has contributed to achieving
the Company’s targets and satisfying the interests of our
shareholders.
Members of the Corporate Executive Committee and
employees at senior management level are eligible for
performance pool payments.
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Baloise Group Annual Report 2024
88
The variable remuneration of 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 profita-
bility of the unit being monitored or by the profitability of
individual products or transactions. The Remuneration
Committee approves the remuneration of the heads of the
control functions on an annual basis.
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 based on their achievement of their
individual targets. The achievement of the targets agreed
for the Group CEO for the reporting year is assessed by
the Chairman of the Board of Directors. The Group CEO
assesses the target achievement of the other members
of the Corporate Executive Committee. Based on the
weighted average target achievement of each member
of the Corporate Executive Committee, the Chairman of
the Board of Directors and the Group CEO each submit a
proposal for individual allocations of remuneration to the
Remuneration Committee. The committee meets to discuss
the material facts relating to each individual member and
make a final decision on their target achievement for the
reporting year and the remuneration to be awarded to
them on this basis.
By taking a structured approach to setting the team
targets and individual targets for the members of the
Corporate Executive Committee, Baloise ensures that all
activities undertaken by them are aligned with the over-
arching strategic targets.
Quantitative team targets create an incentive to
achieve the targeted levels of strategically relevant Group-
wide key figures. By contrast, qualitative team targets
focus more on processes than on outcomes, serving to
assess collaboration and conduct.
The individual targets for each member of the Corpo-
rate Executive Committee are derived from the strategic
ambitions and team targets. They ensure that each indi-
vidual member with their assigned area of responsibility
makes a clearly defined contribution to achieving the
overarching targets. In addition to the performance‑
related targets, individual personal development targets
are agreed for the members of the Corporate Executive
Committee.
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 system-
atically analyses the achievement of targets using the
following indicator model.
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Indicator model, performance assessment and the resulting allocation of individual short-term variable remuneration
Step 1:
Determination
Step 2:
Allocation
Performance pool factor
Team target
Individual business target
Individual development target
Budgeted
performance pool
Available
performance pool
Individual share
of the available
performance pool
Individual
performance pool
payment
Quality assessment
Customers
Employees
Sustainability
Risk
Financial assessment
Cash remittance
Appraisal of individual performance
0% – 150%
80% – 120%
0% – 150%
100%
x
x
x
=
=
1
2
3
4a
4b
5
1 Budgeted performance pool:
Total sum of the basic salary of the Corporate Executive Committee multiplied by the expected value of 40 per cent.
2 Financial assessment:
The financial assessment is based on the cash remittance to Baloise 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 stra-
tegic key factors: the growth of the customer base, employee satisfaction, the sustainability strategy, and risk manage-
ment. The Company’s performance in these areas is evaluated annually, using medium-term ambitions as the bench-
mark. The result of this quality 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 aforemen-
tioned 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 the targets have been met.
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 assessment year on the basis of a shared team target and individual business and development
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.
Metrics for the performance pool from 2025
The performance metrics for the performance pool have been adjusted with effect from 2025 on the basis of the
success-related key figures used in the refocusing strategy. In addition to cash remittance, the financial assessment
now incorporates two new metrics: the combined ratio (non-life) and EBIT (life). Going forward, the quality assess-
ment will be based on a structured appraisal conducted with regard to two criteria, namely sustainability and risk.
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Baloise Group Annual Report 2024
90
Long-term variable remuneration: performance
share units
The aim of long-term variable remuneration is to strength-
en senior managers’ loyalty to the Baloise Group and align
the interests of senior management with the interests of
our shareholders. Long-term variable remuneration is
granted in the form of performance share units (PSUs).
PSUs are prospective entitlements to shares. At the begin-
ning 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 Remuneration Com-
mittee specifies the grant date and applies its own discre-
tion in deciding which senior managers are eligible to
participate. It determines the total number of PSUs avail-
able 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 Baloise Holding Ltd
relative to a peer group; this measure is referred to as the
relative total shareholder return (rTSR). The peer group
comprises the leading European insurance companies
within the STOXX Europe 600 Insurance Index (see table
below).
Companies in the STOXX Europe 600 Insurance Index
(as at 31 December 2024)
ADMIRAL GROUP
MUENCHENER RUECK
AEGON
NN GROUP
AGEAS
PHOENIX GROUP HOLDINGS
ALLIANZ
POWSZECHNY ZAKLAD
UBEZPIECZEN
ASR NEDERLAND
AVIVA
PRUDENTIAL
AXA
SAMPO
BALOISE HOLDING
SCOR
BEAZLEY
STOREBRAND
DIRECT LINE INSURANCE GROUP
SWISS LIFE HOLDING
GENERALI
SWISS RE
GJENSIDIGE FORSIKRING
TALANX
HANNOVER RUECK
TRYG
HELVETIA HOLDING
UNIPOL GRUPPO
HISCOX
ZURICH INSURANCE GROUP
LEGAL & GENERAL GROUP
Source: https://www.stoxx.com/index-details?symbol=SXIP
Starting with the 2024 assessment year, the rTSR is meas-
ured annually and Baloise’s relative position (expressed as
a percentile) is calculated over a three-year period. The
performance multiplier is 0.0 if the average of the percen-
tiles is below the first quartile, i.e. below 0.25. It is 0.5 if the
average of the percentiles is 0.25. It amounts to the max-
imum of 2.0 if the average of the percentiles is 1.0, i.e.
Baloise achieved a higher TSR than all the companies in
the peer group in every year during the vesting period.
Consequently, the performance multiplier increases on a
linear basis from the bottom quartile upwards from 0.5 to
2.0 (see the chart on page 99).
Participants receive the pertinent number of shares once
the three-year vesting period has elapsed. After they have
been transferred, the shares are not subject to any further
closed period and are thus freely disposable.
Any outstanding entitlement to PSUs expires entirely in
the event of a termination of employment during the
vesting period due to poor performance or misconduct
or if the person subsequently engages in any activities in
competition with Baloise. In addition, the Remuneration
Com- mittee 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).
Additional metric for the PSU plan from 2025
The PSU plan has been adjusted in line with the refo-
cusing strategy. From the 2025 assessment year, meas-
urement of performance includes not only the relative
total shareholder return (rTSR) but also the return on
equity (ROE) as a new metric.
Share Subscription Plan
Members of the Corporate Executive Committee are
obliged to receive at least 30 per cent of their short-term
variable remuneration in the form of shares. Through the
Share Subscription Plan, they can subscribe to dividend‑
bearing shares with a closed period of at least three years
at a preferential price (10 per cent discount). The terms of
the Share Subscription Plan are defined by the Remune-
ration Committee.
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 appointment. Since 2023, award-
ed but as yet unvested PSUs are no longer being taken
into account for the purposes of compliance with manda-
tory share ownership rules, because they have not been
converted. This updated policy has been in effect since
2023 and its 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
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Remuneration report
members of the Corporate Executive Committee. The
Remuneration 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 Commit-
tee. Inducement payments that do not offset a verifiable
financial disadvantage are not permitted. Any offsetting
payments of this nature made at the start of an employ-
ment contract must be approved by the Remuneration
Committee irrespective of the amount payable.
Remuneration report
Baloise Group Annual Report 2024
92
6. Remuneration for the reporting year
A. Remuneration paid to the members of the Board of Directors
The amount paid to the members of the Board of Directors in 2024 was CHF 3.2 million, which is broken down as follows:
Remuneration paid to the members of the Board of Directors
2024
Remuneration
(cash)
Remuneration
(shares incl.
discount)
Social security
contributions Total remuneration
CHF thousand
Dr Thomas von Planta
822.3
464.4
12.7
1,299.4
Chairman of the Board of Directors
Christoph Mäder
221.3
83.3
6.3
310.9
Vice-Chairman of the Board of Directors
Dr Maya Bundt
131.3
49.4
6.3
187.0
Dr Guido Fürer (since 27 April 2024)
87.6
32.9
10.3
130.7
Christoph B. Gloor
183.9
69.1
6.3
259.2
Hugo Lasat (until 26 April 2024)
43.8
16.4
–
60.2
Dr Karin Lenzlinger Diedenhofen
131.3
49.4
4.7
185.4
Dr Markus R. Neuhaus
183.9
69.1
–
252.9
Prof. Dr Hans-Jörg Schmidt-Trenz
168.8
63.5
–
232.3
Prof. Dr Marie-Noëlle Venturi - Zen-Ruffinen
168.8
63.5
6.3
238.6
Total for the Board of Directors
2,143.0
960.8
52.8
3,156.6
Explanatory notes to the table
Remuneration in shares including discount 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 2024 (CHF 155.90). Members of the Board of Directors receive a 10 per cent discount on the shares’ market price under the Share
Subscription Plan for the Board of Directors. This discount is reported separately in addition to the value of the shares.
Social security contributions The information disclosed for 2024 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). For the members of the Board of Directors who work for Baloise as their main job (such as the Chairman), the statu-
tory employer contributions are paid into an occupational pension scheme. No contributions to occupational pension schemes are made for the other members of the Board of
Directors.
The Annual General Meeting held on 28 April 2023 approved an amount of CHF 3.6 million (including social security
contributions and Share Subscription Plan discount) for the remuneration of the Board of Directors for the 2023/24 term
of appointment, which began at the Annual General Meeting held on 28 April 2023 and ended in the reporting year at the
Annual General Meeting held on 26 April 2024. The amount paid for the 2023/24 term of appointment was CHF 3.3 million.
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Remuneration paid to the members of the Board of Directors
2023
Remuneration
(cash)
Remuneration
(shares incl.
discount)
Social security
contributions Total remuneration
CHF thousand
Dr Thomas von Planta
866.7
481.7
12.8
1,361.2
Chairman of the Board of Directors
Christoph Mäder
221.3
81.9
6.3
309.5
Vice-Chairman of the Board of Directors
Dr Maya Bundt
131.3
48.6
6.3
186.2
Claudia Dill (until 31 October 2023)
109.4
40.5
6.3
156.2
Christoph B. Gloor
178.8
66.2
6.3
251.3
Hugo Lasat
131.3
48.6
–
179.9
Dr Karin Lenzlinger Diedenhofen
131.3
48.6
6.3
186.2
Dr Markus R. Neuhaus
183.8
68.0
6.3
258.2
Prof. Dr Hans-Jörg Schmidt-Trenz
168.8
62.4
–
231.3
Prof. Dr Marie-Noëlle Venturi - Zen-Ruffinen
168.8
62.4
6.3
237.6
Total for the Board of Directors
2,291.7
1,009.0
56.9
3,357.6
Explanatory notes to the table
Remuneration in shares including discount 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 2023 (CHF 140.00). Members of the Board of Directors receive a 10 per cent discount on the shares’ market price under the Share
Subscription Plan for the Board of Directors. This discount is reported separately in addition to the value of the shares.
Social security contributions The information disclosed for 2023 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 employer contributions are made to an occupational pension scheme for the Chairman of the Board of
Directors, who works in this role on a full-time basis. No contributions to occupational pension schemes are made for the other members of the Board of Directors.
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 Directors. 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; and 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.
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Baloise Group Annual Report 2024
94
B. Remuneration paid to the members of the Corporate
Executive Committee
Remuneration for 2024
The actual level of remuneration paid to the Corporate
Executive Committee is determined in accordance with
the table below.
Type of remuneration
Determined by
Fixed remuneration for 2024 2023 Annual General Meeting
Variable remuneration for
2024
– Cap
2023 Annual General Meeting
– Individual payment
Remuneration Committee in February
2024 for long-term variable remunera-
tion and in February 2025 for short‑
term variable remuneration (in compli-
ance with the cap set by the 2023
Annual General Meeting)
The Annual General Meeting held on 28 April 2023
approved an amount of CHF 4.4 million for the fixed remu-
neration (including social security contributions) of the
Corporate Executive Committee for 2024. The amount
paid was CHF 3.9 million. In addition, the Annual General
Meeting held on 28 April 2023 approved a maximum
amount of CHF 5.0 million (including social security contri-
butions and Share Subscription Plan discount) for the
variable remuneration for 2024. The total amount paid was
CHF 3.3 million.
On 1 March 2024, the performance share units allocated in
2021 became due for conversion. These PSUs had a value
of CHF 1.3 million at the time of allocation. No shares were
granted because the performance multiplier was 0.0. The
prospective entitlements expired in full.
The remuneration of the members of the Corporate Execu-
tive Committee for the 2024 and 2023 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 2024
Remuneration
of the Group CEO
Average remuneration
of other members of
the Corporate Executive
Committee
51%
19%
30%
49%
21%
30%
Basic salary
Short-term variable remuneration
Long-term variable remuneration
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Remuneration paid to the members of the Corporate Executive Committee
Basic
salary
Variable remuneration
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
2024
Cash
payment
(fixed)
Cash
payment
(varia-
ble)
Share
Sub-
scrip-
tion Plan
PSU
(granted
in 2024)
Total
variable
remu-
neration
CHF thousand
Michael Müller
850.0
216.5
107.9
510.1
834.4
1,684.4
98 %
5.9
208.9
1,899.2
Group CEO
Dr Alexander Bockelmann
600.0
45.2
210.0
360.1
615.3
1,215.3
103 %
5.9
196.2
1,417.3
Head of Corporate Division IT
Dr Matthias Henny
550.0
0.1
240.6
330.1
570.8
1,120.8
104 %
5.9
180.3
1,307.0
Head of Corporate Division Asset
Management
Clemens Markstein
550.0
98.9
115.2
330.1
544.2
1,094.2
99 %
5.9
178.3
1,278.3
Head of Corporate Division Switzerland
Dr Carsten Stolz
550.0
104.5
121.6
330.1
556.2
1,106.2
101 %
5.9
199.8
1,311.8
Head of Corporate Division Finance
Total for the Corporate Executive
Committee
3,100.0
465.2
795.2
1,860.5
3,120.9
6,220.9
101 %
29.3
963.5
7,213.6
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 2024, 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 2025 = CHF 173.70.
PSUs Disclosure at the value on the date of allocation (CHF 141.73), calculated 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 and 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.
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Baloise Group Annual Report 2024
96
Remuneration paid to the members of the Corporate Executive Committee
Basic
salary
Variable remuneration
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
2023
Cash
payment
(fixed)
Cash
payment
(varia-
ble)
Share
Sub-
scrip-
tion Plan
PSU
(granted
in 2023)
Total
variable
remu-
neration
CHF thousand
Gert De Winter
475.0
109.1
132.0
–
241.1
716.1
51 %
–
183.0
899.2
Group CEO (until 30 June 2023)
Michael Müller
775.0
177.9
215.5
310.1
703.5
1,478.5
91 %
4.9
203.2
1,686.6
Head of Corporate Division Switzerland
(until 30 June 2023)
Group CEO (since 1 July 2023)
Dr Alexander Bockelmann
600.0
91.9
259.5
240.1
591.5
1,191.5
99 %
–
184.0
1,375.5
Head of Corporate Division IT
Dr Matthias Henny
550.0
0.0
305.9
220.0
526.0
1,076.0
96 %
4.9
190.9
1,271.8
Head of Corporate Division Asset
Management
Clemens Markstein1
275.0
63.2
76.5
45.6
185.2
460.2
67 %
4.9
98.6
563.6
Head of Corporate Division Switzerland
(since 1 July 2023)
Dr Carsten Stolz
550.0
126.3
152.9
220.0
499.2
1,049.2
91 %
4.9
210.9
1,265.0
Head of Corporate Division Finance
Total for the Corporate Executive
Committee
3,225.0
568.5
1,142.3
1,035.8
2,746.6
5,971.6
85 %
19.5
1,070.6
7,061.7
1 The remuneration of Clemens Markstein was taken into account on a pro rata basis from 1 July 2023. The PSUs allocated to Clemens Markstein as at 1 March 2023 were also
calculated on a pro rata basis from 1 July 2023 and were determined on the basis of the terms applicable before his move to the Corporate Executive Committee.
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 2023 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 2024 = CHF 142.90.
PSUs Disclosure at the value on the date of allocation (CHF 156.61), calculated 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 and 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.
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 depen-
dent family members; companies owned or controlled by
directors; individuals who act as trustees for them; and
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 aforementioned persons or companies have
been waived.
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Performance pool factor for 2024
For 2024, the Remuneration Committee set a factor of 101 per cent for the performance pool. The outcomes of the
financial and quality assessments are explained in greater detail below.
0
500
2022
2023
2024
2025
1,000
1,500
2,000
Cash
Remittance
At CHF 565 million, cash remittance was at a
high level. It included a non-recurring effect
in the form of release of capital as a result of
taking out reinsurance for a closed life
portfolio in Belgium. This non-recurring effect
was only factored into the calculation of
target achievement on a pro rata basis.
However, our cash remittance would have
exceeded CHF 500 million for the first time
even without this non-recurring effect, so
this result can be regarded as very good.
110%
CHF 565 million
CHF 2 billion
Financial assessment (0–150 %)
Performance pool factor for 2024
x
1
2
=
101%
Metrics
Performance appraisal by the
Remuneration Committee
Targets
2022 – 2025
Overall
status
Results for 2024 /
annual performance
Quality assessment (80–120 %)
1
2
92%
Simply Safe
Season 2
targets:
customers
and
employees
1.5 million
new customers
Top 5 % of all
employers
in Europe
by the
end of 2025
The new customer targets and the employee
target were strategic ambitions under the
Simply Safe Season 2 strategic phase, which
has now been discontinued. These two
targets were replaced when we introduced
our refocusing strategy. The ending of the
ecosystem strategy, which was expected to
contribute a significant proportion of the new
customers, means the customer target is no
longer realistic. Nevertheless, we increased
the number of new customers to 101,000 in
2024, which was twice as high as the increase
in 2023. Employee satisfaction saw a further
slight decline in the European market, but in
terms of Baloise as a whole, we maintained
a consistent level despite the difficult
conditions and change of strategy. We made
progress compared with the prior year,
although we fell short of the original targets.
Consequently, these two factors have been
given a negative assessment.
Sustainability
Baloise's ESG rating of AA awarded by MSCI
in 2023 was confirmed in 2024. While the
Sustainalytics rating slightly decreased, the
SAM Score remained unchanged. Overall, we
are still in the upper mid-level ranking in line
with our targets, so this factor is assessed
as neutral.
Upper
mid-level
ranking in the
MSCI and
Sustainalytics
indices and in
S&P’s SAM
Score
MSCI: AA
79th percentile
Sustainalytics: 22.4
58th percentile
SAM Score: 36
60th percentile
The risk situation is assessed as neutral
due to a stable credit rating from S&P of A+,
a slightly lower SST ratio and a positive
compliance appraisal.
Positive
integral
qualitative
risk
assessment
Overall assessment: neutral
Risk
101,000
new customers
Top 27% of all employers
in Europe
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Baloise Group Annual Report 2024
98
Assessment of the Corporate Executive Committee’s
performance in 2024
A very good level of cash remittance was achieved in 2024.
The results for the employee target and new customer
target were higher than in the prior year. However, the
ambitious targets set under the now replaced Simply Safe
strategy were not achieved, primarily because the eco-
system strategy has been discontinued. In the non-life
business, the loss ratio improved compared with the prior
year, which had been heavily impacted by storms.
However, the combined ratio was higher than our ambition
and therefore unsatisfactory. Growth also fell short of
expectations. By contrast, EBIT in the life business can be
viewed positively, as progress was made compared with
2023. At a qualitative level, the Corporate Executive Com-
mittee focused firmly on the priorities set for 2024. The
main action area in the year under was review was to draw
up the refocusing strategy, which centres on technical
profitability and the management of costs. The process of
developing the strategy was very intensive and demon-
strated that the members of the Corporate Executive
Committee work very well as a team. They collaborated
constructively and supported each other in a spirit of part-
nership.
PSUs for the period 2021 to 2024
During the calculation period, Baloise was ranked 26th out
of the 32 insurance companies in the STOXX Europe 600
Insurance Index. The company with the best TSR perfor-
mance in the calculation period is ranked first. Baloise’s
ranking equates to a performance multiplier of 0.0
(1st place = performance multiplier of 2.0; 1st quartile =
performance multiplier of 0.5; below the 1st quartile =
performance multiplier of 0.0).
Range for the performance multiplier and Baloise’s
ranking during the 2021–2024 calculation period
2.00
1.50
1.00
0.50
0.00
1st quartile 2nd quartile 3rd quartile
1st place
26th place (Baloise) equates to a performance multiplier of 0.0
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 32 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 2021 receives no
shares upon conversion in 2024 based on the performance
multiplier of 0.0.
The value of PSUs is exposed to market risk until the end of
the vesting period and may, of course, fluctuate signifi-
cantly, as shown in the tables below.
Completed PSU plans
Price
when
granted
(CHF)
Price
when
converted
(CHF)
Perfor-
mance
multiplier
Value
when
converted
(CHF)
Overall
growth in
value
2019–2022
163.00
154.10
0.67
103.25
–37%
2020–2023
154.90
156.50
0.61
95.45
–38%
2021–2024
158.90
142.60
0.00
0.00
–100%
The table shows the PSU plans that expired in the past three years.
Current PSU plans
Price
when
granted
(CHF)
Price at
interim
valuation
(CHF)
Perfor-
mance
multiplier
Interim
valuation
(CHF)
Overall
growth in
value
2022–2025
154.10
164.10
0.83
135.56
–12%
2023–2026
156.50
164.10
0.63
102.56
–34%
2024–2027
142.60
164.10
1.45
237.66
67%
The table shows the interim valuation of the three current PSU plans as at 31 December
2024.
The interim valuation of the current plans as at
31 December 2024 shows the value at which the PSUs
would have been converted if the vesting period had
ended on 31 December 2024.
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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 are offered at arm’s-length
market rates. Mortgages of up to CHF 1 million are granted
at the terms and conditions offered to employees: 1 per
cent below the customer interest rate for variable-rate
mortgages (but not negative interest rates) and at a pref-
erential interest rate for fixed-rate mortgages.
There are no loans or credit facilities that were extended
at non-arm’s-length market rates to former members of
the Board of Directors or the Corporate Executive
Committee or to individuals or companies who are related
to members of the Board of Directors or Corporate Execu-
tive Committee. Related parties are spouses or life part-
ners; children under 18 years or dependent family
members; companies owned or controlled by directors;
individuals who act as trustees for them; and children,
relatives, companies and trustees of the spouse or life
partner. There are no outstanding policy loans.
Loans and credit facilities granted to members of the
Board of Directors and the Corporate Executive Committee
(as at 31 December)
2024
2023
CHF thousand
Total for the Board of Directors
–
–
Corporate Executive Committee member
with the highest outstanding loan:
Dr Carsten Stolz
1,600.0
1,600.0
Head of Corporate Division Finance
Other members of the Corporate Executive
Committee
1,680.7
2,963.4
Total for the Corporate Executive
Committee
3,280.7
4,563.4
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Baloise Group Annual Report 2024
100
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
2024
2023
2024
2023
2024
2023
2024
2023
Quantity
Dr Thomas von Planta
6,977
4,302
10,373
9,698
17,350
14,000
0.038 %
0.031 %
Chairman
Christoph Mäder
1,415
1,088
2,553
2,346
3,968
3,434
0.009 %
0.007 %
Vice-Chairman
Dr Maya Bundt
0
0
1,862
1,545
1,862
1,545
0.004 %
0.003 %
Dr Guido Fürer
0
–
1,211
–
1,211
–
0.003 %
–
Christoph B. Gloor
10,288
9,867
2,299
2,277
12,587
12,144
0.027 %
0.027 %
Hugo Lasat
–
1,379
–
1,972
–
3,351
–
0.007 %
Dr Karin Lenzlinger
Diedenhofen
218
0
1,962
1,863
2,180
1,863
0.005 %
0.004 %
Dr Markus R. Neuhaus
745
355
2,335
2,282
3,080
2,637
0.007 %
0.006 %
Prof. Dr Hans-Jörg
Schmidt-Trenz
1,020
693
2,208
2,128
3,228
2,821
0.007 %
0.006 %
Prof. Dr Marie-Noëlle
Venturi - Zen-Ruffinen
1,902
1,481
2,236
2,250
4,138
3,731
0.009 %
0.008 %
Total for the Board
of Directors
22,565
19,165
27,039
26,361
49,604
45,526
0.108 %
0.099 %
Percentage of issued
share capital
0.049 %
0.042 %
0.059 %
0.058 %
0.108 %
0.099 %
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; and children, relatives, companies and trustees of the spouse or life partner).
Restricted shares Shares received in connection with share-based remuneration programmes are subject to a closed period of 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 Company 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.
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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)
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Quantity
Michael Müller
33,846
32,166
5,811
5,883
39,657
38,049
0.087 %
0.083 %
7,337
5,341
Group CEO
Dr Alexander Bockelmann
6,102
3,928
11,199
16,278
17,301
20,206
0.038 %
0.044 %
5,581
4,414
Head of Corporate Division IT
Dr Matthias Henny
12,445
10,577
12,146
15,588
24,591
26,165
0.054 %
0.057 %
4,990
3,806
Head of Corporate Division Asset
Management
Clemens Markstein
4,673
4,114
2,486
2,637
7,159
6,751
0.016 %
0.015 %
3,495
1,710
Head of Corporate Division Switzerland
Dr Carsten Stolz
3,060
2,019
3,585
3,456
6,645
5,475
0.015 %
0.012 %
4,990
3,806
Head of Corporate Division Finance
Total for the members
of the Corporate Executive Committee
60,126
52,804
35,227
43,842
95,353
96,646 0.208 %
0.211 %
26,393
19,077
Percentage of issued
share capital
0.131 %
0.115 %
0.077 %
0.096 %
0.208 %
0.211 %
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 at least three years.
Options 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 sepa-
rate option plan. Each put option is also offset by a countervailing call option.
Prospective entitlements (PSUs) Number of allocated performance share units (allocated as at 1 March 2022, 1 March 2023 and 1 March 2024).
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Baloise Group Annual Report 2024
102
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 disclosed the total amounts of
outstanding deferred remuneration as well as the inducement payments and severance packages granted. These
figures in the table below include all forms of remuneration awarded for 2024, even if individual components are not paid
until a later date.
Total and variable remuneration in the Baloise Group
Cash
Shares
Prospective
entitlements (PSUs)
Total
2024
2023
2024
2023
2024
2023
2024
2023
CHF million
Total remuneration
848.3
849.7
3.4
3.2
5.6
4.7
857.3
857.6
Total variable remuneration (total
pool)
146.9
150.8
3.4
3.2
5.6
4.7
155.9
158.7
Number of beneficiaries
5,987
5,858
187
176
69
68
Total outstanding
deferred remuneration
–
–
134.6
105.9
14.9
14.2
149.5
120.1
Debits / credits for remuneration for
previous reporting periods recognised
in profit or loss
0.4
0.3
–
–
–
–
0.4
0.3
Total inducement payments made
0.3
0.2
–
–
–
–
0.3
0.2
Number of beneficiaries
10
9
–
–
–
–
Total severance payments
made
3.4
5.1
–
–
–
–
3.4
5.1
Number of beneficiaries
101
87
–
–
–
–
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 the
agreed conditions. It includes performance-related and success-based remuneration such as fees and commissions. Inducement and severance payments also fall under the
definition of variable remuneration.
Total pool All 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 compen-
sate 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.
103
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Remuneration report
Appendix: Report of the statutory auditor to the Annual General Meeting of
Baloise Holding Ltd, Basel
Please refer to the German version of the Baloise Annual Report 2024, page 104, for the report of the statutory auditor
on the audit of the renumeration report. The auditor’s opinion dated 20 March 2025 confirms compliance with Swiss law
and the Company’s articles of incorporation.
Please also refer to the disclosure on page 439, “Information on the Baloise Group”, referencing the fact that only the
German text of the annual report is legally binding.
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Baloise Group Annual Report 2024
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Foreword
111
General information
ESRS 2 – General disclosures
113
Environmental information
ESRS E1 – Climate change
157
Social information
ESRS S1 – Own workforce
175
Social information
ESRS S4 – Consumers and end-users
190
Governance information
ESRS G1 – Business conduct
205
Appendix
219
Report on
non-financial matters
109
Baloise Group Annual Report 2024
109
Baloise Group Annual Report 2024
This report was prepared in accordance with “Section
six, Transparency on non-financial matters”, of the Swiss
Code of Obligations (OR). It contains the disclosures
required by Art. 964b OR and the Swiss Ordinance on
Climate Disclosures (KlimaVO) and the recommendations
of the Task Force on Climate-related Financial Disclosures
(TCFD), which are referenced in the Ordinance. In terms
of structure and contents, the report is largely aligned
with the European Sustainability Reporting Standards
(ESRS) and incorporates many of the ESRS requirements.
This report fulfils the requirements of the Corporate
Sustainability Reporting Directive (CSRD), albeit not yet
in full.
This report follows the structure of the ESRS and
contains general information (ESRS 2), environmental
information (ESRS E1), social information (ESRS S1 and ESRS
S4) and governance information (ESRS G1). The references
to the disclosures required by Art. 964b OR, Art. 3 KlimaVO
and the recommendations of the TCFD are presented
in the appendix to this report and are also shown in the
sub-headings within the main report.
About this report
110
Baloise Group Annual Report 2024
Report on non-financial matters
Dear shareholders,
dear readers,
Insurance companies typically have long-term business
models that create sustainable value for all stakeholders.
We have been shouldering responsibility on behalf of our
customers, employees and investors for 160 years. We
do this for the benefit of current and future generations.
Sustainability is firmly anchored in Baloise’s corporate
culture. The success of our business allows us to make an
enduring contribution to the protection of people and the
environment.
The products and services we provide at Baloise help
to make society safer and more resilient. Baloise makes an
important contribution to a stable society and encourages
growth and innovation by assuming risks. When it comes
to meeting environmental and social challenges now and
in future, Baloise aims to be part of the solution. Baloise
wants to create value for investors, customers, employees,
the wider public and the environment by integrating
sustainability criteria more keenly in its decision making.
At the heart of Baloise’s focus on sustainability
are the needs of our customers and employees and the
challenges posed by climate change. Under our new
sustainability strategy that was created in 2024, we have
defined actions and targets to take Baloise forward in
the key strategic action areas relating to sustainability.
These strategic actions are supplemented by integrated
sustainability governance.
In this report, we explain how we take responsibility for
the environment, society and corporate governance.
The report meets the requirements for transparency
on non-financial matters set forth in Art. 964a–964c of
the Swiss Code of Obligations (OR) and is aligned with
European Sustainability Reporting Standards (ESRS).
Basel, March 2025
Dr Thomas von Planta
Michael Müller
Chairman of the
Group CEO
Board of Directors
Foreword
111
Baloise Group Annual Report 2024
Report on non-financial matters
Basis for preparation
114
BP-1 – General basis for
preparation of the sustainability statement
114
BP-2 – Disclosures in relation to
specific circumstances
114
Governance
115
GOV-1 – The role of the administrative,
management and supervisory and bodies
115
GOV-2 – Information provided to and sustainability
matters addressed by the undertaking’s
administrative, management and supervisory
bodies
118
GOV-3 – Integration of sustainability-related
performance in incentive schemes
118
GOV-4 – Statement on due diligence
118
GOV-5 – Risk management and internal
controls over sustainability reporting
120
Strategy
122
SBM-1 – Strategy, business model and value chain
122
SBM-2 – Interests and views of stakeholders
127
SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and
business model
129
Impact, risk
and opportunity management
148
Disclosures on the
materiality assessment process
148
IRO-1 – Description of the process to
identify and assess material
impacts, risks and opportunities
148
IRO-2 – Disclosure requirements in ESRS
covered by the undertaking’s
sustainability statement
149
Minimum disclosure requirements
regarding policies, actions, metrics and
targets (MDR-P, MDR-A, MDR-M, MDR-T)
155
General information
ESRS 2 – General disclosures
113
Baloise Group Annual Report 2024
General information
ESRS 2 – General disclosures
Basis for
preparation
BP-1 – General basis for preparation
of the sustainability statement
Baloise Holding Ltd’s sustainability statement has been
prepared on a consolidated basis.
The non-financial scope of consolidation is the same
as the financial scope of consolidation.
The sustainability statement covers the Company’s
upstream and downstream value chain in the scope
defined in accordance with ESRS SBM-1 Strategy, business
model and value chain.
Baloise Holding Ltd has not taken up the option to omit
information relating to intellectual property, know-how
or the results of innovation.
BP-2 – Disclosures in relation to specific
circumstances
(Art. 3 KlimaVO)
Time horizons
In ESRS, the short-term, medium-term and long-term time
horizons are defined as one year, up to five years and more
than five years, respectively. These time horizons are the
same as those used as the basis for assessing risks in the
context of the Own Risk and Solvency Assessment (ORSA).
In the climate scenarios, which – in accordance with
the EIOPA Opinion on the supervision of the use of climate
change scenarios in ORSA – are also examined in ORSA,
the time horizons were adapted and the impact in the
periods up to 2030 (short term), 2050 (medium term) and
2080 (long term) were analysed.
Value chain estimation
The sustainability statement of Baloise Holding Ltd does
not incorporate any estimates of data on the upstream
and/or downstream value chain.
Sources of estimation and outcome uncertainty
The following quantitative metrics and monetary amounts
are subject to a high level of measurement uncertainty:
•
In the emissions data, (see ESRS E1-6), the Scope 3
emissions in the “purchased goods and services” and
“capital goods” categories have been estimated on
the basis of the Group’s purchasing data. Furthermore,
the emissions of smaller sites and units for which no
activity data is available have been extrapolated on
the basis of the Group-wide emissions and the number
of employees.
•
As the actual number of working hours per year is
not known for Baloise Luxembourg and Euromex NV,
assumptions were made about this number in order to
calculate the rate of recordable work-related accidents
(see ESRS S1-14 Health and safety metrics).
•
The number of days lost to work-related injuries and
fatalities from work-related accidents (see ESRS S1-14
Health and safety metrics) and the proportion of
employees who took family leave (see ESRS S1-15 Work-
life balance metrics) had to be calculated on the basis
of data relating to only part of the workforce.
Furthermore, it should be noted that forecasts and
forward-looking information are subject to a certain
degree of uncertainty.
Changes in preparation or presentation of sustainability
information
In terms of structure and contents, this report was
prepared in accordance with the rules of ESRS for
the first time. Consequently, there are no changes to
the preparation or presentation of the sustainability
information.
Disclosures stemming from other legislation or generally
accepted sustainability reporting pronouncements
We refer to the information provided under “About this
report” on page 110.
Incorporation by reference
In ESRS 2 SBM-1 – Strategy, business model and value
chain, reference is made to the segment reporting in
the financial report for details of the significant product
groups and markets.
Report on non-financial matters
114
Baloise Group Annual Report 2024
Governance
GOV-1 – The role of the administrative,
management and supervisory bodies
Art. 964b (2) 1 OR, Art. 3 KlimaVO)
Governance in general
At Baloise, it is not individuals but the following governing
bodies who are responsible for the sustainable and
long-term development of the corporate strategy and its
implementation.
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 Regulations are reviewed on an ongoing
basis and updated as changing circumstances require.
We are pursuing the following objectives with the rules
on sustainability that we have put in place:
•
Embedding sustainability in the business strategy,
including control mechanisms
•
Implementing and regularly reviewing structures and
processes to ensure the achievement of objectives
•
Ensuring good corporate governance in accordance
with the requirements of economiesuisse (umbrella
organisation representing Swiss business)
•
Promoting transparency and trust
Baloise’s system of governance includes an extensive
range of processes and controls for monitoring and
managing sustainability-related impacts, risks and
opportunities.
Board of Directors
As at the reporting date of 31 December 2024, the Board
of Directors consisted of the following nine independent
and non-executive members: Thomas von Planta
(Chairman of the Board of Directors), Christoph Mäder
(Vice Chairman), Maya Bundt, Guido Fürer, Christoph B.
Gloor, Karin Lenzlinger Diedenhofen, Markus R. Neuhaus,
Hans-Jörg Schmidt-Trenz and Marie-Noëlle Venturi-
Zen-Ruffinen. In Switzerland, it is neither legally required
nor typical for a member of the Board of Directors to
represent employees and other workers. No member of
the Board of Directors is simultaneously a member of
the Executive Committee, and this is prohibited by the
regulatory requirements for insurance companies.
The Board of Directors comprises three female and
six male members. The average ratio of women to men
is thus 3:6, which equates to 50 per cent (calculated
in accordance with ESRS). Women make up 33 per cent
of the total number of board members. The proportion
of independent members of the Board of Directors is
100 per cent. For this purpose, Baloise uses the definition
of independence in the Swiss Code of Best Practice for
Corporate Governance.
The Baloise Board of Directors exercises ultimate
supervisory authority over the operational management
of the Company and the Group. It monitors both
compliance with the relevant laws and risk management.
The Board of Directors defines the long-term targets and
strategies, including the Group’s sustainability strategy,
and is ultimately responsible for their implementation in
operational management. The Board of Directors approves
the report on non-financial matters for subsequent
approval by the Annual General Meeting and defines the
structure of remuneration.
The Board of Directors has four committees, each of
which is responsible for certain aspects of sustainability:
•
The Strategy and Governance Committee (SGC) –
providing advice to the Board of Directors – monitors
the development and implementation of the sustain-
ability strategy in the field of sustainable corporate
governance. The Organisational Regulations stipulate
that the Chairman of the Board of Directors is a member
of the SGC.
•
The Audit Committee (AC) monitors progress with
sustainability reporting. It decides whether the non-
financial report can be recommended for presentation
to the Annual General Meeting and for approval.
•
The Investment and Risk Committee (IRC) is responsible
for defining the principles of sustainable investment
at a strategic level. It also monitors progress with
sustainability in asset management and sustainability-
related risks in Baloise’s risk environment.
•
The Remuneration Committee (RC) submits proposals
to the Board of Directors on the structure of remu-
neration and ensures that sustainability criteria are
embedded in Baloise’s remuneration system.
The members of the Board of Directors represent a diverse
range of industry knowledge, training and education,
experience and nationalities, as can be seen from the skills
matrix and from their individual résumés published in
the “Corporate governance” chapter of the Annual Report.
Corporate Executive Committee
As at the reporting date of 31 December 2024, the
Corporate Executive Committee consisted of the following
five members: Michael Müller (Group CEO), Alexander
Bockelmann (Head Corporate Division Group IT), Matthias
Henny (Head Corporate Division Asset Management),
Clemens Markstein (Head Corporate Division Switzerland)
and Carsten Stolz (Head Corporate Division Finance).
Report on non-financial matters
115
Baloise Group Annual Report 2024
The Corporate Executive Committee comprises five male
and no female members (average ratio of women to
men: 0 per cent). The Board of Directors is endeavouring
to establish equal representation of both genders in the
most senior operational management body before this
becomes mandatory under the Swiss Code of Obligations
at the start of 2031. The Swiss Code of Obligations will
require companies whose Executive Committee does not
represent each gender to at least 20 per cent to state
the reasons for this in the remuneration report.
The Corporate Executive Committee is in charge
of the operational management of the Baloise Group.
Together with the Group CEO, it is responsible for the
implementation of the long-term targets and strategies,
including the Group’s sustainability strategy. It defines the
sustainability strategy more precisely on an operational
level and determines the action to be taken to achieve
the sustainability targets, which the local Executive
Committees then integrate into their action plans. When
and where relevant for the Belgium, Germany and
Luxembourg strategic business units (SBUs), the heads
of these SBUs are involved in strategy discussions (Group
Strategy Board).
The knowledge and experience of the individual
members of the Corporate Executive Committee are set
out in the “Corporate governance” chapter of the Annual
Report.
The Corporate Executive Committee has the requisite
knowledge regarding the insurance and financial sectors,
the products in these sectors and the regions in which
the Group entities are located.
Sustainability network
At the heart of the organisation working on sustainability
at Baloise is the Group-wide sustainability network, which
was created in 2019. It brings together representatives
from all national subsidiaries and Group functions, such
as Compliance, Group Human Resources and Asset
Management. Its interdisciplinary structure means the
network has the expertise it needs to perform its role
effectively. The network’s tasks include developing and
steering Baloise’s sustainability strategy and defining
clear guidelines for its implementation.
Representatives of the sustainability network
undertake their tasks in the Group governing bodies
as follows:
•
The sustainability network is in regular dialogue with
the Corporate Executive Committee (the composition
of which is described above). Sustainability represent-
atives from the national subsidiaries in Switzerland,
Germany, Belgium and Luxembourg are part of the
Group-wide sustainability network. The Corporate
Executive Committee has overall responsibility for oper-
ational implementation and sets out the requirements
of the sustainability strategy in more detail.
It deals with requests from the sustainability network
and signs off on them for approval by the Board of
Directors. Representing the sustainability network, the
Head of Sustainability & Regulatory Affairs regularly
reports directly to the SGC on the development and
refinement of the sustainability strategy and its imple-
mentation.
•
The Head of Sustainability & Regulatory Affairs reports
to the Audit Committee on regulatory developments
relating to sustainability and on mandatory reporting.
•
The Head of Group HR regularly informs the SGC about
succession planning at the upper management levels,
the advancement of talented individuals, the promo-
tion of diversity within the Group and other selected
aspects of the HR strategy pertaining to sustainability.
•
The Head of Total Rewards reports to the RC on the
policies developed, especially on the measurable
sustainability indicators in Baloise’s remuneration
system that are relevant to the strategy.
•
The Head of Responsible Investment in Asset Manage-
ment reports to the IRC on the responsible investment
strategy and prepares the principles for responsible
investment for approval by the IRC. The Chief Risk
Officer reports on the risks that could arise if sustaina-
bility rules are not properly implemented, which actions
can mitigate sustainability risk and which controls are
used to monitor risk.
Representatives of the sustainability network undertake
their tasks in the governing bodies in the national
subsidiaries and corporate divisions as follows:
The sustainability representatives of the national
subsidiaries are the link to the local sustainability
networks, the local Executive Committees and the local
Boards of Directors. The local networks focus on ensuring
sustainability is implemented in all areas. However,
implementation is not the exclusive responsibility of the
local networks. Together with the local departments,
they coordinate which actions are implemented, as well
as when and how they are implemented.
Close consultation between the networks is essential
for uniform Group-wide implementation and is ensured by
the sustainability coordinators of the national subsidiaries
and at Group level.
Depending on the internal regulations, the Boards of
Directors and/or the Executive Committees of the national
subsidiaries and corporate divisions are responsible
for implementation of the local sustainability strategies
within the overall Group strategy.
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Baloise Group Annual Report 2024
Adjustments to the organisational and management
structure from 1 January 2025
Adjustments to the organisational structure
Baloise introduced significant organisational changes
in 2024 by merging the Sustainability function and the
Regulatory Affairs function to form a new Group function
called “Sustainability & Regulatory Affairs” within the
Corporate Division Finance. The new organisation is
intended to exploit the synergies between strategy
development and reporting in the area of sustainability.
In merging these two functions, Baloise aims to
ensure it can satisfy all sustainability-related statutory
and regulatory requirements in a focused and efficient
manner. The new Sustainability & Regulatory Affairs Group
function will support the more targeted development and
implementation of the sustainability strategy by bringing
together the expertise in these two areas, thereby ensuring
Baloise can take a coherent and integrated approach.
This organisational change underpins Baloise’s
commitment to sustainability and will make sure that it
can live up to the growing requirements and expectations
of its stakeholders. At the same time, it can lay sustainable
foundations for its future business success.
Adjustments to the governance structure
and the operating model
As part of the process of continual improvement, Baloise
makes adjustments to its governance structure and
operating model in order to tackle new challenges and
seize opportunities that arise with due consideration for
sustainability. In doing so, it makes efficient use of existing
structures while integrating management elements.
A material element of these changes is the establish-
ment of a Sustainability Council, led by the Head of
Sustainability & Regulatory Affairs. This new body, which
generally consists of members of the Executive Committee,
acts as a review and advisory body reporting to the
Corporate Executive Committee / Group Strategy Board.
The Sustainability Circle comprises all Sustainability
Leads from the national subsidiaries, the Banking segment
and Baloise Asset Management, plus people with relevant
responsibilities. It is coordinated by the Sustainability Lead
Group and reports directly to the Sustainability Council.
The Sustainability Circle is responsible for drawing up
proposals for the Baloise Group’s sustainability strategy,
including individual actions. It also provides support on
implementation in order to deliver on the sustainability
targets. Through the Sustainability Circle and the
heightened involvement of the departments, Baloise is
improving its ability to integrate sustainability matters
into its core business and ensuring that its sustainability
targets are pursued and achieved at all levels of the
Company. The Sustainability Circle builds on the Baloise
Group’s existing sustainability network, with the addition
of local people from the responsible departments.
Specific knowledge, continuing professional development
The members of the Corporate Executive Committee
and Board of Directors have the requisite sustainability-
related knowledge and experience. Know-how is built up
on an ongoing basis internally through the Group-wide
sustainability network.
The members of the Board of Directors offer a broad
range of sustainability-related experience that they have
amassed in their other roles. Some members have specific
knowledge of particular areas of sustainability. The
Sustainability & Regulatory Affairs Group function reports
on regulatory developments in sustainability at regular
intervals and, together with the Responsible Investment
centre of excellence, plays a key role in supporting the
governing bodies at Baloise by ensuring that they receive
relevant specialist information. Comprehensive and
regular reporting strengthens the required knowledge of
sustainability within the organisation.
The aim is to supply the governing bodies with up-to-
date, relevant information so they can make well-founded
decisions and implement the sustainability strategy
effectively based on the Company’s material impacts, risks
and opportunities. This includes providing documents on
regulatory requirements, market trends and best practices
in the field of sustainability.
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Baloise Group Annual Report 2024
GOV-2 – Information provided to and
sustainability matters addressed by
the undertaking’s administrative,
management and supervisory bodies
(Art. 964b (2) 1 OR, Art. 3 KlimaVO)
In 2024, sustainable corporate governance was addressed
at the level of the Board of Directors as follows:
•
Three times by the Board of Directors: corporate
strategy and sustainability strategy, double materiality
assessment (DMA), sustainability governance and
roadmap
•
Nine times by the committees:
•
SGC (in preparation for approval by the Board
of Directors)
•
AC (including the report on non-financial matters,
DMA, external presentation, training on ESG
frameworks)
•
RC (including sustainability KPIs, regulatory devel-
opments relating to reporting and remuneration)
•
IRC (including responsible investing, external
presentations on risk topics and sustainability)
In 2024, sustainable corporate governance was addressed
at the level of the Corporate Executive Committee (Group
Strategy Board) on five occasions, one of which was a
workshop. The focus was on the new corporate strategy,
the refinement of the sustainability strategy based on
this strategy, the DMA, sustainability governance and
the roadmap.
GOV-3 – Integration of sustainability-related
performance in incentive schemes
(Art. 964b (2) 2 OR, Art. 3 KlimaVO)
As described in the remuneration report in the Annual
Report, the remuneration of the members of the Corporate
Executive Committee is divided into a fixed variable, a
short-term variable and a long-term variable component
that is tied to the achievement of strategic targets.
The remuneration principles are competitiveness,
the consideration of individual performance and
the Company’s success, fairness and transparency,
sustainability in leadership and the Company’s ability
to retain high performers.
The amount of short-term variable remuneration paid
depends on various factors that include an employee
target measuring employee satisfaction (“S”) and a
sustainability target measuring Baloise’s performance
based on three ESG ratings.
A total of 30 per cent of the short-term variable
remuneration and all of the long-term variable
remuneration is paid in the form of shares that are
restricted for a minimum of three years for prospective
entitlements in order to encourage a sustainable
approach.
The Remuneration Committee of the Board of Directors
arranges for the regular review and improvement of the
remuneration system by Group HR, focusing on creating
the right incentives for employees and, in particular,
senior management to ensure they remain dedicated
to the Company and to doing business sustainably. The
responsibilities with regard to amending the remuneration
system are clearly defined.
Members of the Board of Directors receive fixed
remuneration that is not linked to the achievement of
targets. A quarter of this remuneration – a third for the
Chairman of the Board of Directors – is paid in the form
of shares that are restricted for three years in order to
encourage a sustainable approach.
GOV-4 – Statement on due diligence
(Art. 964b (2) 2 OR, Art. 3 KlimaVO)
The following table shows the sections of this sustainability
report in which the core elements of due diligence are
explained.
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Baloise Group Annual Report 2024
Overview of compliance with due diligence
obligations
Core elements of due diligence
Standard
Disclosure
Page number
Embedding due diligence
in governance, strategy and
business model
ESRS 2 GOV-1
The role of the administrative, management and supervisory bodies
115
ESRS 2 GOV-2
Information provided to and sustainability matters addressed
by the undertaking’s administrative, management and supervisory bodies
118
ESRS 2 GOV-3
Integration of sustainability-related performance in incentive schemes
118
ESRS 2 GOV-5
Risk management and internal controls over sustainability reporting
120
ESRS 2 SBM-1
Strategy, business model and value chain
122
ESRS 2 SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
129
Engaging with affected
stakeholders
ESRS 2 GOV-2
Information provided to and sustainability matters addressed
by the undertaking’s administrative, management and supervisory bodies
118
ESRS 2 SBM-2
Interests and views of stakeholders
127
ESRS 2 IRO-1
Description of the process to identify and assess
material impacts, risks and opportunities
148
ESRS 2 MDR-P
Policies adopted to manage material sustainability matters
155
ESRS S1-2
Processes for engaging with own workers and
workers’ representatives about impacts
181
ESRS S4-2
Processes for engaging with consumers and end-users
about impacts
195
Identifying and assessing
negative impacts on
people and the environment
ESRS 2 IRO-1
Description of the process to identify and assess
material impacts, risks and opportunities
148
ESRS 2 SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
129
Taking action to address
negative impacts on people
and the environment
ESRS 2 MDR-A
Actions and resources in relation to material sustainability matters
155
ESRS E1-3
Actions and resources in relation to climate change policies
165
ESRS S1-4
Taking action on material impacts on the Company’s own workforce,
and approaches to managing material risks and pursuing material
opportunities related to the Company’s own workforce, and effectiveness
of those actions and approaches
182
ESRS S4-4
Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material
opportunities related to consumers and end-users, and effectiveness
of those actions and approaches
196
Tracking the effectiveness
of these efforts
ESRS 2 MDR-M
Metrics in relation to material sustainability matters
155
ESRS 2 MDR-T
Tracking effectiveness of policies and actions
through targets
155
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Baloise Group Annual Report 2024
GOV-5 – Risk management and internal
controls over sustainability reporting
(Art. 964b (2) 4 OR, Art. 3 KlimaVO)
In 2024, Baloise developed a sustainability reporting
process in accordance with the Group-wide risk
management system and internal control system.
Developing this process involved identifying its risk
environment, assessing the risks and determining the key
controls.
The main risks identified and the related controls
The key controls in the sustainability reporting process are
the initial review of the regulatory requirements regarding
the report and, in particular, the preparation of the report’s
content and a review by a second person to ensure
the accuracy and completeness of the qualitative and
quantitative content and compliance with internal and
external rules. The report is also reviewed and signed off by
the appropriate governing bodies. In light of foreseeable
changes to sustainability reporting in terms of structure
and content, the control setup is due to be reviewed again
for the next reporting year.
Internal control system
In the context of integrated risk management, the
internal control system (ICS) forms a core component of
Company-wide risk management. The main principles for
the design and implementation of the internal controls are
effectiveness, transparency and efficiency of the actions
taken, plus a focus on the material risks.
The purpose of Baloise’s ICS is to ensure compliance
with laws and regulations, guarantee the reliability of the
financial reporting and contribute to the effectiveness
of business processes in order to support the Company
in achieving its goals. In implementing the ICS, Baloise
is pursuing a strategy of increasing risk awareness at all
levels of the Company and focusing on the identification
and management of material risks faced by the Company
that could pose a threat to the proper functioning of
business operations and thus to the success of the
Company. As part of the ICS, Baloise applies entity-level
controls (ELCs), IT general controls (ITGCs) and process
controls, depending on the types of risk to be covered.
The ICS actions are integrated into operating proce-
dures and used at all levels of the Company. The ICS’s
effectiveness is assessed regularly. In the event of defi-
ciencies, suitable actions are initiated and their implemen-
tation monitored. The Board of Directors is responsible
for ensuring an effective ICS is in place and, based on
the Audit Committee’s recommendation, defines the
strategy, targets and scope for the ICS. In addition, it is
responsible for ensuring adequate monitoring of the ICS’s
effectiveness by the Executive Committee. Each year, it
reviews and formally accepts the results of the analysis of
the ICS’s scope. It also receives regular reports on the ICS.
The risk management system
Risk management at Baloise is a standardised strategic
and operational system that is applied throughout the
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 operational
risk arising from business activities. Risk awareness is
encouraged and embedded throughout the organ-
isation. One way in which Baloise achieves this is by
involving 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.
•
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 senior management in respect of the risks
taken on.
•
Risk processes
Leadership, reporting and evaluation processes are
supported by risk processes to ensure that the risk per-
spective is factored into all important business decisions.
•
Risk reporting
Risk reporting ensures that the current risk situation
is presented transparently in 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.
Risk management is a key element of sustainability-
focused corporate governance and, as such, plays
an important role at Baloise in adding value for all
stakeholders. It helps to ensure a strong balance sheet,
a high level of operational profitability, a well-developed
risk culture, consistent risk processes and a sustainable
investment policy. The main tasks of risk management are
to satisfy the statutory and regulatory requirements
applicable to Baloise and to optimise the risk/return ratio.
It thus involves managing risk and value and is based on
innovative standards, so that Baloise can always keep its
promise to its customers and maintain and increase value
for its stakeholders in the long term.
Further details of targets and activities relating to risk
management and of the impact of risk management can
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Baloise Group Annual Report 2024
be found in the “Risk management” chapter of the Annual
Report.
Sustainability risks
Sustainability risks – including climate risks – are identified
on the risk map and integrated into the existing risk
management processes and frameworks. This ensures
that the results of the regular analyses and assessments
are incorporated into Baloise’s strategic risk management
approach. Inclusion in existing processes also ensures that
the steps carried out are covered by the internal control
system.
At Baloise, sustainability risks are classified as
pertaining to the environmental, social or corporate
governance (ESG) dimensions:
•
Environmental risks are all risks relating to the
environment as a resource
and to climate change, natural disasters,
pollution or resource scarcity.
•
Social risks can arise from poor working conditions,
human rights violations, discrimination or inadequate
health and safety.
•
Corporate governance risks comprise all matters
relating to corporate governance, corruption, a lack
of transparency or unethical conduct.
Based on the commonly used typology, climate risks,
which are a subcategory of environmental risks, are
further subdivided into:
•
Physical risks
Physical climate risks are now arising in the form of
natural disasters. Climate change will lead to further
risks, particularly in the medium and long term,
as a result of the increasing prevalence of natural
phenomena such as hurricanes, floods, hailstorms and
fires. Chronic threats with long-term effects – such
as rising sea levels – represent potential emerging risks,
especially as they are expected to have an adverse
impact on investments and insured business.
•
Transition risks
In the short term, changing expectations with regard
to sustainability – and the resulting shift in demand for
financial and insurance products – will create compe-
tition risks if Baloise does not respond appropriately to
these changes. Moreover, an unexpectedly strong fall in
demand in respect of certain companies or sectors in
which Baloise has 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 Baloise’s product range. With regard to
transition risks, it is also important to consider techno-
logical developments in connection with the transition
to a lower-carbon economy. Risks could also arise for
Baloise in the longer term if companies are increasingly
held liable for the environmental damage they cause,
for example due to pollution, endangering biodiversity
or breaching of environmental standards.
The increasing prevalence of unpredictable weather
events as a result of climate change poses a growing
challenge for property insurance, as these events have a
direct impact on the extent and frequency of claims. Risk
models are used to analyse climate-related and weather-
related risks. The modelling results influence the pricing of
insurance products. Rating scales are regularly reviewed
and adjusted to reflect changing conditions.
Existing and foreseeable regulatory requirements and
other developments in the financial sector are taken into
account in the identification and integration of climate
risks. Developments in the EU play a particularly material
role owing to Baloise’s area of business. Regulatory
developments in the wider sustainability sphere are also
proactively monitored by the Sustainability & Regulatory
Affairs department, and actions to implement them
promptly are drawn up.
Integration and assessment of sustainability risks
into risk management processes
As the identification, documentation and assessment
of sustainability risks and climate risks in the risk
management framework progress, Baloise’s risk profile
is becoming more nuanced. Over the long term, the
inclusion of sustainability matters in risk-related strategic
considerations will improve the creation of value for
customers and investors and will reduce the Company’s
environmental impact.
Risk assessment
Within the Own Risk and Solvency Assessment, risks are
assessed on a qualitative and quantitative basis over
a short-term (around one year), a medium-term (around
one to five years) and a long-term (more than five years)
time horizon on the risk map. Climate risks and sustain-
ability constitute a driver within the established risk
categories used by insurance companies, banks and asset
management companies, such as actuarial risk or credit
risk and market risk. Additional aspects of sustainability
that are relevant to the risk strategy are also examined as
a separate risk in the context of the business strategy.
Liability risks are considered in the risk inventory check. As
well as the relevance of sustainability as a driver of existing
risks, individual risks in the risk framework are assessed in
terms of their probability of occurrence and claim volume.
The assessments are factored into the overall risk
situation with equal priority, highlighting the relative
importance of climate-related risks compared with
traditional risks. As is the case in the general risk manage-
ment system, these risks are assigned risk owners who
take action to mitigate them as required.
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Baloise Group Annual Report 2024
For example, climate trends are factored into the
reinsurance strategy by performing regular natural
disaster analyses in conjunction with the reinsurance
brokers. At a strategic level, sustainability risks are
countered by integrating them into Baloise’s investment
and underwriting policy.
Sustainability risk management in Asset Management
and Banking
The Group-wide approach to identifying risks and the
applicable risk inventory, which forms the basis for
identifying risks, apply to all subsidiaries and thus to Asset
Management and the Banking segment. This means
sustainability-related risks are also identified for Asset
Management and Baloise Bank. Baloise Bank intends to
refine its risk processes in light of future requirements
that arise, for example in connection with the circular from
the Swiss Financial Market Supervisory Authority (FINMA)
on nature-related financial risks.
Risk governance
The Baloise Board of Directors exercises ultimate
supervisory authority over the operational management
of the Company and the Group and is thus responsible
for ensuring compliance with the relevant laws and
managing risk.
It appoints the Strategy and Governance Committee
to exercise this function, alongside the Audit Committee
and the Investment and Risk Committee. The duties of
the Strategy and Governance Committee include acting
as a preliminary advisory committee for sustainability
matters (see ESRS 2 GOV-1 – The role of the administrative,
management and supervisory bodies).
The Corporate Executive Committee has overall
responsibility for developing a detailed risk management
concept, which is implemented by the central risk
management function of the Baloise Group and by
the local risk management teams at the level of the
strategic business units. At Group level and locally, the risk
management teams are supported by risk committees,
which meet regularly.
Strategy
SBM-1 – Strategy, business model
and value chain
(Art. 964b (2) 1-3 OR, Art. 3 KlimaVO)
Significant product groups and markets
The most significant groups of products and services
offered can be divided into four areas: non-life insurance,
life insurance, asset management and banking. In its
non-life business, Baloise 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 Baloise’s customers –
primarily private clients – and are offered by the relevant
Baloise Group companies.
In its life business, Baloise provides individuals and
companies with a wide range of endowment policies,
term insurance, investment-linked products and private
placement life insurance. In asset management, Baloise
offers investment solutions in the areas of equities, bonds,
alternative investments, real estate and multi assets.
In its banking business in Switzerland, Baloise offers a
comprehensive range of support and help with finding the
right solutions relating to pensions, wealth management
and financing.
Baloise is headquartered in Switzerland, where it
provides services in all of the aforementioned segments.
The Baloise Group also operates in the insurance segment
in Germany, Belgium, Luxembourg and Liechtenstein.
The number of employees is disclosed under ESRS S1-6
Characteristics of the Company’s employees.
Detailed information on the markets, a review of
business performance and the breakdown of total revenue
by operating segment (Non-life, Life, Asset Management
& Banking and Other activities) can be found in the IFRS
segment in the Annual Report (see also the summary
provided in the management report section of the Annual
Report on pages 8 and 9).
A breakdown of total revenue by relevant ESRS sector
is not currently possible, as the European Commission has
not yet published a definition of the ESRS sectors.
Business strategy
In recent years, Baloise has concentrated on the markets
and areas of business that are particularly important to
the Company and in which Baloise plays a material role.
Between 2016 and 2024, Baloise pursued its Simply Safe
strategy, under which it initiated a phase of growth and
diversification. The Simply Safe: Season 2 strategic phase,
which ran from 2022, saw Baloise build on the goals and
successes of the previous strategic phase while continuing
to focus on its core stakeholders (customers, employees
and shareholders). Four strategy areas formed the basis
for this strategic phase: focus on the core insurance
business; improve the customer experience; diversify into
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Baloise Group Annual Report 2024
new business areas; and harness the corporate culture
and sustainability as key drivers of the transformation.
Back in autumn 2023, Baloise took initial action aimed
at operational excellence in order to adapt to the rapidly
changing conditions. The pandemic, conflicts in Europe
and the Middle East, more volatility in terms of adverse
weather events, inflation (requiring adjustments to
its premiums) and interest-rate movements all had an
influence on Baloise’s strategy. Baloise therefore reviewed
its strategic direction and halted new investment in
its ecosystems during the first half of 2024. In addition,
Baloise conducted an extensive strategic analysis,
adjusted its targets and took action to boost its prof-
itability. It ended the Simply Safe: Season 2 strategic
phase in 2024 and is now launching its refocusing strategy.
The focus is now on technical profitability, cost efficiency,
growth in the target segments and the productivity of
capital employed. Baloise believes that it has substantial
potential for growth, earnings and cost savings in its
existing markets. The refocusing of the strategy is aimed
not only at maintaining its financial success but also at
ensuring Baloise remains a source of reliability and
stability for its customers, employees and investors. Under
its refocusing strategy, Baloise will create lasting value
for all stakeholders and lay the foundations for further
growth.
Sustainability strategy
Under its sustainability strategy, Baloise is aiming to
create long-term added value while having a positive
impact on people and the environment. By integrating
environmental and social matters into its business model,
it is striving for long-term success and aims to contribute
to efforts to tackle global challenges. The most important
topics that have the biggest influence on the business
model and on stakeholders were identified on the basis of
the 2024 double materiality assessment. These topics were
then used to define the following sustainability-related
strategic action areas:
•
Baloise’s contribution to a safe, secure and resilient
society
Baloise aims to contribute to a safe, secure and
resilient society. Sustainability means not only
protecting the environment but also ensuring people’s
safety, security and wellbeing. Baloise therefore strives
to minimise risks and find solutions that contribute
to protecting and strengthening society.
•
Improvement of the impact on CO₂ emissions
and management of the impact on business activities
Baloise endeavours to improve its influence on the
environment and society. It introduces sustainable
practices and deploys innovative technologies with
the aim of continually shrinking its environmental foot-
print and using resources more efficiently. In addition,
Baloise believes that it has a responsibility to shape
the influence of business and ensure that it is aligned
with sustainability targets. It has set itself the target of
reducing CO₂ emissions to net zero by 2050. To achieve
this target, it will set interim decarbonisation targets
for its own business operations and for financed and
insured emissions.
•
Sustainability is embedded in Baloise’s corporate
culture
Baloise attaches a great deal of importance to sustain-
ability and to ensuring that it is firmly anchored in
its corporate culture and day-to-day activities. The
Company promotes a shared understanding of a
sustainable future that is taken into account in all oper-
ating segments and processes. From product devel-
opment through to risk management and workforce
management, sustainability is a guiding principle that
informs the Company’s decisions and has a bearing
on its identity. In 2024, Baloise started to draw up
specific actions and targets to support the implemen-
tation of these strategic action areas. In particular,
various policies relating to climate change mitigation
were defined. In 2025, Baloise plans to consolidate
these in a Group-wide transition plan and to embed
them in a comprehensive sustainability strategy.
To support the sustainability targets, these action plans
will be continually refined in close cooperation with all
relevant departments. This includes setting priorities,
defining time frames and allocating resources to ensure
successful implementation. These actions are to be
reviewed regularly and their progress will be measured.
Responsible investment strategy
As part of the Baloise sustainability strategy, Asset
Management drew up Baloise’s responsible investment
policies, which comprise a general and an expanded
responsible investment strategy. The general responsible
investment strategy consists of exclusions, active
ownership elements and the integration of environmental,
social and corporate governance (ESG) criteria into the
investment process. The general responsible investment
strategy applies to some private assets and bonds that
were added to the insurance portfolio prior to 1 January
2023 (grandfathering) and also applies to Luxembourg
investment funds managed by Baloise that fall under Art.
6 of Regulation (EU) 2019/2088 on sustainability-related
disclosures in the financial services sector (Sustainable
Finance Disclosure Regulation, SFDR).
The expanded responsible investment strategy
has been in place since 1 January 2023. It applies to
the majority of insurance investments, to Luxembourg
investment funds that are managed by Baloise and
promote environmental and/or social characteristics in
accordance with Art. 8 SFDR, and to collective investments
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that satisfy the Swiss criteria for sustainable investments
as defined by the Asset Management Association
Switzerland (AMAS) and FINMA.
The expanded responsible investment strategy is
supplemented by the active ownership strategy and the
climate strategy for liquid assets and is based on four
approaches:
1. Exclusion
The expanded responsible investment strategy
contains general exclusions and wider exclusions based
on data from MSCI ESG Research LLC. The exclusions
are applied using thresholds. Companies involved
in controversial weapons or tobacco production and
those operating in polluting sectors, such as coal,
unconventional oil and gas, or oil and gas production,
are excluded if certain revenue thresholds are exceeded.
Companies that are in severe violation of the princi-
ples of the UN Global Compact or the OECD Guidelines
for Multinational Enterprises are excluded too.
2. Best in class
This approach excludes securities that perform worse
than peers in terms of sustainability matters. The worst
20 per cent of issuers within their sectors or peer groups
are excluded, based on the MSCI ESG universe. The
best-in-class approach is used both for companies and
for government bonds (see the disclosures under ESRS
E1-2 – Policies related to climate change mitigation and
adaptation).
3. ESG integration
The investment teams incorporate sustainability risks
into the investment analysis to reduce the potential
negative financial impact or reputational damage from
sustainability risks. The portfolio management team
is provided with dedicated ESG data. All investment
teams have access to the ESG database of MSCI ESG
Research LLC.
4. Active ownership
The active ownership strategy consists of the following
four pillars:
a. Proxy voting
Baloise exercises the voting rights of listed Swiss
equities in the actively managed insurance port-
folio in accordance with the principles of good and
ethical corporate governance. Additional sustain-
ability criteria are also an integral element of the
proxy voting instruction, which was extended in
2023 to include them.
b. Direct engagement
Direct engagement involves entering into construc-
tive dialogue with companies in which Baloise is
invested in order to address specific sustainabilty-
related matters. Under the expanded responsible
investment strategy, direct engagement is consid-
ered in the following cases:
•
Deterioration of the MSCI ESG rating (final indus-
try-adjusted company score) of a company
after inclusion in the portfolio, meaning that the
investment no longer meets the requirements
of the best-in-class approach.
•
A severe breach of minimum standards of
conduct in areas such as human rights, employ-
ment, the environment and anti-corruption,
defined as “red flags” by MSCI ESG Research LLC.
The primary aim of direct engagement is
to help to rectify the cause of the deterioration
in the MSCI ESG rating or the failure to respect
the principles of the UN Global Compact or the
OECD Guidelines for Multinational Enterprises.
c. Collaborative engagement
As well as engaging directly with companies, Baloise
also joins groups of like-minded shareholders who
are concerned with the same sustainability issues,
in a process known as collaborative engagement.
This collaborative engagement can be conducted
through participation in initiatives such as Climate
Action 100+ or the PRI cooperation platform.
d. Public policy engagement
Baloise takes an active role in designing and
enhancing regulatory frameworks related to
sustainability, including those with a focus on
corporate sustainability, climate risks and
responsible investment. This takes place through
involvement in various associations and initiatives,
such as the Principles for Responsible Investment
(PRI), the Swiss Insurance Association (SIA), the Asset
Management Association Switzerland (AMAS) and
Swiss Sustainable Finance (SSF).
Under the active ownership strategy, Baloise Asset
Management defines focus topics. The responsible
investment team reviews these annually to check
that they are still relevant. They guide Baloise Asset
Management in the selection of potential corporate
partners for collaborative dialogues.
Baloise Asset Management focused on the following
in 2024 as part of its active ownership strategy:
decarbonisation of the economy, reduction of CO₂
emissions, biodiversity, improvement of working
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conditions, human rights, workforce (including diversity),
the composition, remuneration and independence of
the Executive Committee, promotion of transparency
regarding sustainability, and standardisation of
non-financial disclosures.
The climate strategy for liquid assets is an integral
element of the responsible investment strategies. Under
the climate strategy for liquid assets, Baloise endeavours
to contribute to combating climate change by reducing
the negative impact on the environment and society,
while the risks arising in connection with climate change
are managed prudently in the portfolio. For this purpose,
Baloise Asset Management uses data from MSCI ESG
Research LLC.
Sustainability risks and key negative impacts
from investments
Baloise is aware of the significance of integrating
sustainability matters and climate matters into
investment decisions and risk management. Baloise’s
responsible investment policies, its climate strategy for
liquid assets and the active ownership strategy define
the general parameters for responsible investment
and for the management of sustainability risks in asset
management.
The different versions of the responsible investment
strategy each addresses the most important principal
adverse impacts (PAIs) of investment decisions on
sustainability factors.
Responsible real estate management
Baloise is one of the biggest property managers in
Switzerland and takes account of sustainability criteria
in this area too. Baloise’s responsible investment policy
for real estate, which came into force on 1 January 2023,
defines the actions for implementing a forward-looking
environmental and energy policy for the properties held
directly by the Swiss insurance units. In 2024, work was
completed on the integration of an energy management
system (EMS) aimed at recording and reporting real
energy consumption data.
Finally, the Baloise Swiss Property Fund (BSPF) is
pursuing a sustainable investment strategy from 7 January
2025 that consists of three approaches: a focus on the
climate (net zero by 2050), ESG integration and exclusion.
As a result, the BSPF is classified as a sustainable
investment fund in Switzerland.
For indirect investments in Swiss real estate, a new
selection process has been in place since 1 January 2025
that systematically integrates sustainability criteria
into the selection and assessment of target real estate
investments.
Outlook for responsible investment
Baloise intends to continue refining the expanded Baloise
responsible investment strategy in line with applicable
Swiss and European regulatory frameworks in 2025.
Another focus will be on updating the climate strategy
for liquid assets and preparing a transition plan for all
insurance assets with a view to net zero by 2050, including
interim targets for the portfolios and for engagement.
The active ownership strategy will play an important
role in this regard. The updated strategy for responsible
investment will be published in 2025. The collection
and evaluation of climate-related data for financial assets
will continue to provide an important basis for the
aforementioned initiatives.
Respect for human rights
Respect for human rights and labour rights is extremely
important to Baloise. With insurance operations across
Switzerland and the EU/European Economic Area, Baloise
expressly acknowledges the global values and laws
pertaining to human rights. Baloise’s fundamental stance,
approach and responsibilities regarding the observance
of human rights are set out in the Group Policy on Human
Rights.
Baloise is committed to respecting human rights in
accordance with the UN Guiding Principles on Business
and Human Rights (UNGPs) and to upholding them in
its business activities and along the value chain. This
commitment encompasses all internationally accepted
human rights, including:
•
the International Bill of Human Rights, comprising the
Universal Declaration of Human Rights (UDHR), the
International Covenant on Civil and Political Rights
(ICCPR) and the International Covenant on Economic,
Social and Cultural Rights (ICESCR).
•
the Convention on the Rights of the Child (CRC).
•
the fundamental conventions of the International
Labour Organization (ILO)
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Description of the value chain
Upstream value chain
The upstream value chain of an insurance group that also
has Banking and Asset Management segments consists
of various parts and players:
•
Data & information flow
In this part of the value chain, data and information
are collected and managed that are relevant to the
business activities of the insurance companies and the
Banking and Asset Management segments. The data
and information comprise financial market information,
economic data, details of market and industry trends,
and insurance data (e.g. mortality tables and other
necessary statistical data). The insurance companies
need this information to be able to assess risks, calcu-
late premiums and develop investment strategies.
•
Human capital
Employees play a key role in the value chain. They
perform a range of tasks in the areas of insurance,
banking and asset management. Employees ensure
that business processes run smoothly. They also
provide high-quality customer service.
•
Capital
Capital is a material element of the value chain. The
insurance companies and the Banking and Asset
Management segments require capital to fund their
business activities. The capital may be obtained from
various players, such as shareholders who invest in
the Company, or the Company may raise it in the
capital markets.
•
Suppliers & service providers
Various suppliers and service providers support the
insurance companies and the Banking and Asset
Management segments in their day-to-day activities.
They include suppliers of computer software and hard-
ware for the technological infrastructure, property
service providers, marketing service providers, consult-
ants, asset managers/investment managers and rating
agencies. The insurance companies also work closely
with partner networks and partner service providers
in the areas of claims settlement and with sales part-
ners. Collaborating with these suppliers and service
providers helps the insurance companies to establish
an efficient and effective value chain and to optimise
their business processes.
Core business
In insurance, the core business focuses on ensuring
that customers are offered effective services:
•
Product development & pricing
developing and designing insurance products that
meet customers’ needs
•
Assessment and acceptance of risks
assessing the risks associated with insuring people
and items and deciding whether to take on these risks
•
Sales and marketing
marketing insurance products and selling them
through various channels, such as brokers and agents,
or selling them to customers directly
•
Underwriting
setting the premiums and defining the terms and
conditions for insurance policies based on the risk
assessment
•
Claims management
processing claims, including assessing and settling
claims
•
Policy administration & customer service
providing customers with support and information
throughout the term of the insurance policy
•
Risk management & reinsurance
protecting against significant losses by entering into
reinsurance contracts with other insurers
These tasks are crucial in ensuring that an insurance
company operates efficiently and offers optimum cover
for its customers.
In banking business, the core business focuses on
identifying market expertise, data and information that
it can use to develop products and services. This includes
analysing market trends, customer needs and the
competitive environment in order to offer innovative
banking solutions. The Banking segment aims to generate
sales and create long-term customer loyalty by offering
effective brand management, customer relationships and
360° financial solutions. This can be achieved with
targeted marketing, customer communications and
a comprehensive service that meets customers’ different
financial needs.
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Report on non-financial matters
Downstream value chain
In the insurance business, the downstream value chain
focuses on providing insurance solutions in both the life
and the non-life segments. Life insurance offers financial
protection in the event of death, disability or retirement,
whereas non-life insurance offers cover for liability,
accidents or loss or damage to property.
Investments are categorised as part of the
downstream value chain. A distinction is made between
insurance assets and third-party assets. Baloise invests
in liquid assets and private assets as well as in real estate
in which it invests directly or indirectly.
In the banking business, the downstream value chain
focuses on providing banking solutions, which includes
providing services such as pensions, investments and
finance solutions. As part of their pension services, the
insurance companies offer solutions for old-age pensions
and a financial provision for retirement. In its investment
business, the Banking segment offers various investment
products such as investment funds and individual
investment accounts. The finance solutions offered by the
Banking segment include loans, mortgages and other
types of finance for private clients and businesses. It
also offers other banking services, for example payments
processing and account management.
SBM-2 – Interests and views of stakeholders
(Art. 964b (2) 1 OR)
Baloise considers the interests and views of its
stakeholders as important, which is why it takes extensive
account of them in its strategy and business model. Based
on the stakeholders identified as part of the materiality
assessment, the Company’s employees, customers
and partners and, on a broader level, society and the
environment are classified as affected stakeholders.
•
Employees
The employee engagement survey (EES) is used to ask
employees about their satisfaction and the factors
that influence it. The survey’s core purpose is to identify
the main drivers of employee satisfaction, document
Baloise’s strengths and weaknesses in a benchmark
comparison and track the findings in order to identify
any areas of improvement or deterioration at an early
stage.
•
Customers
To measure its Net Promoter Score (NPS) and customer
satisfaction, Baloise actively asks end customers
(private clients and businesses) across the Group about
their experience with Baloise. Feedback is requested
automatically and immediately every time a customer
has been in contact as well as at regular intervals,
helping Baloise to gain a better understanding of the
customer perspective. The strategic business planning
approach uses internal key performance indicators
for ongoing monitoring and improvement purposes.
This strengthens Baloise’s customer-oriented culture.
•
Investors
Baloise talks directly to investors in the context of
stakeholder dialogue. Transparent communication with
all capital market participants is aimed at ensuring a
solid factual foundation is available to enable investors
to make informed investment decisions.
•
Society
Baloise incorporates the interests and views of
society into its strategy development process by taking
a systematic and comprehensive approach. It holds
regular discussions with representatives of the different
groups within society in order to maintain an ongoing
dialogue. To encourage social responsibility, Baloise
teams up with non-governmental organisations
(NGOs), local communities and public-sector institu-
tions. Partnerships and alliances also help with the
development and implementation of joint initiatives.
Regularly publishing sustainability reports and trans-
parently communicating targets, actions and results
relating to strategy development are key to strength-
ening the trust of society and stakeholders. Thanks
to this comprehensive approach, Baloise can ensure
that it not only is financially successful but also has
a positive impact on sustainable development and the
good of society. This strengthens stakeholders’ trust
in Baloise, improves its reputation and contributes to
the Company’s long-term stability and resilience.
•
Environment
To take account of environmental interests, Baloise
maintains dialogue and collaborates with relevant
stakeholders. The first step is to identify the relevant
environmental stakeholders, which include environ-
mental organisations, regulatory authorities, local
communities and customers. Analysis of the interests
and concerns of these groups gives the Company
an in-depth understanding of the environmental chal-
lenges and opportunities of relevance to its business
activities. Transparent reporting and communication
on the Company’s environmental targets, actions
and progress represent a further important aspect.
Regular sustainability reports are a chance to show
Baloise’s environmental performance and strengthen
stakeholders’ trust.
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Report on non-financial matters
•
Partners
Baloise regularly measures its Net Promoter Score
(NPS) and brokers’ satisfaction with Baloise. It main-
tains a dialogue with suppliers on the subject of
sustainability, including the imposition of the Vendor
Code of Conduct. Its links with different partners, such
as innovation partners, start-ups, outsourcing partners,
suppliers and agents, form a network that unlocks
synergies, promotes knowledge transfer and creates
added value for everyone involved by increasing collec-
tive success. This pooling of expertise enables Baloise
to offer its customers new, innovative products that are
tailored to their needs.
Involvement of the Corporate Executive Committee
and the Board of Directors
The Corporate Executive Committee and the Board of
Directors are informed about the views and interests
of affected stakeholders with regard to the Company’s
sustainability-related impacts as set out below.
Corporate Executive Committee
During the revision of the sustainability strategy, the
fundamental principles and the procedures of the double
materiality assessment were explained in detail at various
Corporate Executive Committee meetings, at which the
key pillars of the related sustainability strategy were also
presented. Particular attention was paid to the defined
level of ambition. The members of the Corporate Executive
Committee worked with the project team to draw up
three strategic ambitions for the sustainability strategy.
This collaborative approach ensured that all relevant
perspectives were taken into account and a shared
understanding of the strategic targets was achieved. It
also ensured that Baloise’s overarching business strategy
and sustainability strategy are aligned. Following an
in-depth discussion and check, the results of the double
materiality assessment were signed off by the Corporate
Executive Committee. This multi-stage and participative
process ensures that the views and interests of affected
stakeholders are appropriately taken into account in
Baloise’s sustainability-related strategy.
Board of Directors
The Board of Directors received extensive information
about the views and interests of affected stakeholders
with regard to the Company’s sustainability-related
impacts as part of a structured, multi-stage process
that extended over several meetings. In the first stage,
the Board of Directors was given an introduction to the
Baloise-specific procedures for the double materiality
assessment. The sustainability strategy’s level of
ambition and the strategic statements drawn up were
then presented to the Board of Directors for approval.
Following an in-depth discussion and check, the results of
the double materiality assessment were signed off by the
Board of Directors, representing a major step in developing
the sustainability strategy. In the last step, the roadmap
for the overall sustainability strategy was approved. This
roadmap is used to define the specific steps and actions
required to implement the strategy and ensure that all
relevant targets and ambitions are clearly defined and
scheduled. Using this multi-stage information process
made sure that the Board of Directors was kept informed
about the relevant views and interests of the affected
stakeholders and that it was able to make decisions about
the Company’s sustainability-related focus.
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Report on non-financial matters
SBM-3 – Material impacts, risks and
opportunities and their interaction with
strategy and business model
(Art. 964b (2) 1 and 4 OR, Art. 3 KlimaVO)
Material impacts, risks and opportunities
When it carried out a double materiality assessment in
accordance with CSRD, Baloise identified the following
material sustainability topics based on its impacts, risks
and opportunities:
•
Environmental topics: climate change (ESRS E1)
•
Social topics: the Company’s own workforce (ESRS S1)
and consumers and end-users (ESRS S4)
•
Governance topics: business conduct (ESRS G1)
The impacts, risks and opportunities assigned to the
topic of climate change primarily relate to climate
change mitigation and environmental action in business
operations and investments.
With regard to the Company’s own workforce, the main
material impacts and opportunities identified were those
that relate to labour rights and business ethics, employee
engagement and collaboration with employees.
In terms of consumers and end-users, risks were
identified in relation to underwriting management and
product management for climate change mitigation,
interaction with customers and customer protection,
communication and dialogue with stakeholders, and
cyber-resilience and data security.
Material impacts and risks identified in respect
of business conduct relate to business ethics and
compliance, environmental action in collaboration with
partners and responsible partnerships.
Influence of material impacts, risks and opportunities
The material sustainability-related impacts, risks and
opportunities arising in connection with Baloise’s business
activities and value chain are generally factored into the
management of the Company. They provide invaluable
insights and input for the refinement of the sustainability
strategy and for the targets and actions based on this
strategy.
Financial effects of the material risks and opportunities
There are currently no risks that entailed a material
adjustment to the carrying amounts of the assets and
liabilities reported in the annual financial statements.
There were no changes compared with the prior
reporting period.
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Report on non-financial matters
Description
Impact
Actual/
potential
Time horizon
Connection to strategy
and business model
IMPACTS
Emission of GHGs through use of energy and fuels
Negative
Actual
Only needed for
potential impacts
Environmental action in
business operations;
collaboration with partners
Promotion of sustainable customer behaviour
Positive
Actual
Underwriting management
and product management
for climate change mitigation
Emission of particulate matter, heavy metals
and other emissions through use of fossil energy
Negative
Actual
Environmental action in
business operations;
collaboration with partners
Heightened environmental awareness among
employees
Positive
Actual
Employee engagement
Reduction of GHG emissions (investment)
Positive
Actual
Climate change mitigation
through responsible
investment
Emission of GHGs (investment)
Negative
Actual
Climate change mitigation
through responsible
investment
OPPORTUNITIES
Offering new/innovative products and services,
e.g. insurance solutions in the areas of renewable
energy, digital insurance and expansion of
ecosystems
Medium to long term
Climate change mitigation
Unlocking potential for growth in non-life insurance
resulting from increased risk caused by climate
change
Medium to long term
Climate change
adaptation
Providing sustainable, fair products and
services (e.g. support for the reuse of products
through portals for donations in kind, insurance
for electric vehicles and solar panels)
Medium to long term
Climate change
adaptation
Catering to the increased importance to society
of environmentally responsible investments
Medium to long term
Climate change
adaptation
Overview of impacts, risks and opportunities
ESRS E1 – Climate change
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Impact resulting from
own operations or
business relationships
Impacts on people and the environment
Description
IMPACTS
Own operations and
business relationships
Global warming and climate change, which lead
to extreme weather events, rising sea levels and
negative impacts on health and ecosystems
Emission of GHGs through use of energy and fuels
Own operations
Direct and indirect positive impact on health and
ecosystems as a result of improvements in customers’
energy efficiency with the help of specific products
Promotion of sustainable customer behaviour
Own operations and
business relationships
Negative impacts on health and ecosystems
Emission of particulate matter, heavy metals
and other emissions through use of fossil energy
Own operations
Direct and indirect positive impact on health and
ecosystems as a result of raising awareness of
sustainability topics among employees; promotion
of sustainability-related ideas and innovation; general
change in habits, e.g. through the use of more
sustainable forms of travel
Heightened environmental awareness among
employees
Own operations
Direct and indirect positive impact on health and
ecosystems, e.g. as a result of replacing heating
systems in properties
Reduction of GHG emissions (investment)
Own operations
Direct and indirect negative impacts on health
and ecosystems
Emission of GHGs (investment)
OPPORTUNITIES
Own operations
Only needed for impacts
Offering new/innovative products and services,
e.g. insurance solutions in the areas of renewable
energy, digital insurance and expansion of
ecosystems
Own operations
Only needed for impacts
Unlocking potential for growth in non-life insurance
resulting from increased risk caused by climate
change
Own operations
Only needed for impacts
Providing sustainable, fair products and
services (e.g. support for the reuse of products
through portals for donations in kind, insurance
for electric vehicles and solar panels)
Own operations
Only needed for impacts
Catering to the increased importance to society
of environmentally responsible investments
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Description
Impact
Actual/
potential
Time horizon
Connection to strategy
and business model
RISKS
Investment risk: Investments perform poorly owing
to climate-related incidents and issuers’ unsus
tainable business practices. This can affect equity
price risk, interest risk, interest-rate risk, spread
risk and general financial crisis situations.
Medium term
Climate change
adaptation
Catastrophe risk: Baloise’s exposure to a cata-
strophic extreme weather event with an impact
on the claims rate may increase as a result of
climate change.
Medium term
Underwriting management
and product
management for climate
change mitigation
Natural disaster risk: In-force business (property,
marine, comprehensive motor vehicle insurance) is
affected by a natural disaster. Natural disasters
that affect Germany are storms, hail, flooding and
earthquakes.
Short term
Underwriting management
and product management
for climate change mitigation
Accumulation risk: This is the risk that multiple
separate risks are affected by one single event.
Short to medium term
Underwriting management
and product
management for climate
change mitigation
Premium and reserve risk: This is the
risk that the insurance premiums calculated are
based on incorrect assumptions, which may mean
that premiums are insufficient to cover the resulting
low risks or that rate scales are implemented
too slowly. Climate change also has the potential
to impact on the claims triangle and to increase
reserve risk. Trends towards larger or more frequent
claims, e.g. as a result of climate change, may make
it harder to estimate the metrics for large claims,
thereby causing greater uncertainty.
Medium to long term
Underwriting management
and product
management for climate
change mitigation
Business continuity management (BCM) risk: There
is a risk that, in an extraordinary situation (e.g.
caused by a terrorist attack, earthquake or major
fire), the continuity of business operations cannot
be assured, which may have an operational or
financial impact or consequences under criminal
law for the Company and thereby harm its reputa-
tion. Business continuity is at risk if time-critical
and mission-critical processes are not identified, no
plans are in place for restoring them and/or these
plans are untested, and affected employees are not
trained on executing the plans.
Medium to long term
Environmental action in
business operations;
collaboration with partners
Strategic sustainability risk: This is the risk
that Baloise does not take adequate account of
sustainability in business decisions and when
defining its business strategy and risk strategy.
Medium term
Risk analysis and
mitigation
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Impact resulting from
own operations or
business relationships
Impacts on people and the environment
Description
RISKS
Own operations
Only needed for impacts
Investment risk: Investments perform poorly owing
to climate-related incidents and issuers’ unsus
tainable business practices. This can affect equity
price risk, interest risk, interest-rate risk, spread
risk and general financial crisis situations.
Own operations
Only needed for impacts
Catastrophe risk: Baloise’s exposure to a cata-
strophic extreme weather event with an impact
on the claims rate may increase as a result of
climate change.
Own operations
Only needed for impacts
Natural disaster risk: In-force business (property,
marine, comprehensive motor vehicle insurance) is
affected by a natural disaster. Natural disasters
that affect Germany are storms, hail, flooding and
earthquakes.
Own operations
Only needed for impacts
Accumulation risk: This is the risk that multiple
separate risks are affected by one single event.
Own operations
Only needed for impacts
Premium and reserve risk: This is the
risk that the insurance premiums calculated are
based on incorrect assumptions, which may mean
that premiums are insufficient to cover the resulting
low risks or that rate scales are implemented
too slowly. Climate change also has the potential
to impact on the claims triangle and to increase
reserve risk. Trends towards larger or more frequent
claims, e.g. as a result of climate change, may make
it harder to estimate the metrics for large claims,
thereby causing greater uncertainty.
Own operations
Only needed for impacts
Business continuity management (BCM) risk: There
is a risk that, in an extraordinary situation (e.g.
caused by a terrorist attack, earthquake or major
fire), the continuity of business operations cannot
be assured, which may have an operational or
financial impact or consequences under criminal
law for the Company and thereby harm its reputa-
tion. Business continuity is at risk if time-critical
and mission-critical processes are not identified, no
plans are in place for restoring them and/or these
plans are untested, and affected employees are not
trained on executing the plans.
Own operations
Only needed for impacts
Strategic sustainability risk: This is the risk
that Baloise does not take adequate account of
sustainability in business decisions and when
defining its business strategy and risk strategy.
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Description
Impact
Actual/
potential
Time horizon
Connection to strategy
and business model
IMPACTS
Deterioration in employees’ physical and/or
mental health as a result of discrimination
against employees
Negative
Potential
Short term
Human rights and labour
rights
Deterioration in employees’ physical and/or
mental health as a result of high workloads
Negative
Actual
Only needed for
potential impacts
Employee engagement
Support for employees’ health
Positive
Actual
Only needed for
potential impacts
Employee engagement
Physical problems for employees, e.g. as a result
of a non-ergonomic workstation
Negative
Actual
Only needed for
potential impacts
Employee engagement
Social protection for employees
Positive
Actual
Only needed for
potential impacts
Contribution to society
Stress/frustration resulting from a difficult financial
situation that is attributable to unfair/low pay
Negative
Actual
Only needed for
potential impacts
Employee engagement
Support for the equal treatment of women when
it comes to pay
Positive
Actual
Only needed for
potential impacts
Employee collaboration
Pay gap (highest wage vs. lowest wage)
Negative
Actual
Only needed for
potential impacts
Employee collaboration
Unequal opportunities for promotion
Negative
Actual
Only needed for
potential impacts
Business ethics and
compliance
Violation of human rights
Negative
Actual
Only needed for
potential impacts
Business ethics and
compliance
Support for employees’ continuing professional
development and training
Positive
Actual
Only needed for
potential impacts
People development
Poor balance between family/
personal life and work
Negative
Actual
Only needed for
potential impacts
Employee engagement
Very good balance between family/
personal life and work
Positive
Actual
Only needed for
potential impacts
Employee engagement
Overview of impacts, risks and opportunities
ESRS S1 – Own workforce
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Impact resulting from
own operations or
business relationships
Impacts on people and the environment
Description
IMPACTS
Deterioration in mental and physical health and
exacerbation of social inequality
Deterioration in employees’ physical and/or
mental health as a result of discrimination
against employees
Own operations
Deterioration in employees’ mental and physical health
as a result of stress and exhaustion, for example
Deterioration in employees’ physical and/or
mental health as a result of high workloads
Own operations
Improvement in mental and physical health,
performance and motivation to work
Support for employees’ health
Own operations
Deterioration in employees’ physical health as a result
of musculoskeletal disorders, for example
Physical problems for employees, e.g. as a result
of a non-ergonomic workstation
Own operations
Improvement in financial stability and general sense
of wellbeing
Social protection for employees
Own operations
Deterioration in financial stability, mental and physical
health, and motivation to work
Stress/frustration resulting from a difficult financial
situation that is attributable to unfair/low pay
Own operations
Improvement in financial stability and social protection,
greater motivation to work, independence and
opportunities for promotion
Support for the equal treatment of women when
it comes to pay
Own operations
Deterioration in financial stability, social protection
and motivation to work
Pay gap (highest wage vs. lowest wage)
Own operations
Deterioration in financial stability as a result of pay
gaps and limited development opportunities
Unequal opportunities for promotion
Own operations
Deterioration in mental and physical
health and financial stability
Violation of human rights
Own operations
Increase in motivation to work and performance
and improvement in opportunities for promotion
Support for employees’ continuing professional
development and training
Own operations
Deterioration in mental and physical health,
performance and motivation to work
Poor balance between family/
personal life and work
Own operations
Improvement in mental and physical health,
performance and motivation to work
Very good balance between family/
personal life and work
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Description
Impact
Actual/
potential
Time horizon
Connection to strategy
and business model
OPPORTUNITIES
Offering attractive and forward-looking working
models, e.g. increased remote working options
Medium to long term
Employee engagement
Supporting current and future employees’ lifelong
learning and offering attractive development
opportunities
Medium to long term
People development
Using digitalisation to ease employees’ workloads
Medium to long term
Innovation and digitalisation
RISKS
Knowledge transfer: Insufficient availability of
knowledge, expertise and skills owing to insufficient
training and development can result in people in
important positions/roles not having the knowledge
that they require at the right time.
Short to medium term
People development; working
conditions
Capacity shortages in project work: The unique
nature of the Company’s projects, tight deadlines or
the impact of the project outcome may necessitate
the availability of specific expertise.
Short term
Working conditions
It is conceivable that positions cannot be filled with
sufficient and/or suitably qualified skilled workers
because they are not available in the labour market
or because they do not want to be recruited on
the terms offered. Moreover, the shortage of skilled
workers can cause staff turnover to rise and
qualified employees may potentially leave the
Company. These risks relate both to newly formed
organisational units and to vacancies. They
may impair the planned operation of processes,
may disrupt Baloise’s ongoing development
and thus may weaken its potential for growth.
Short to medium term
People development
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Impact resulting from
own operations or
business relationships
Impacts on people and the environment
Description
OPPORTUNITIES
Own operations
Only needed for impacts
Offering attractive and forward-looking working
models, e.g. increased remote working options
Own operations
Only needed for impacts
Supporting current and future employees’ lifelong
learning and offering attractive development
opportunities
Own operations
Only needed for impacts
Using digitalisation to ease employees’ workloads
RISKS
Own operations
Only needed for impacts
Knowledge transfer: Insufficient availability of
knowledge, expertise and skills owing to insufficient
training and development can result in people in
important positions/roles not having the knowledge
that they require at the right time.
Own operations
Only needed for impacts
Capacity shortages in project work: The unique
nature of the Company’s projects, tight deadlines or
the impact of the project outcome may necessitate
the availability of specific expertise.
Own operations
Only needed for impacts
It is conceivable that positions cannot be filled with
sufficient and/or suitably qualified skilled workers
because they are not available in the labour market
or because they do not want to be recruited on
the terms offered. Moreover, the shortage of skilled
workers can cause staff turnover to rise and
qualified employees may potentially leave the
Company. These risks relate both to newly formed
organisational units and to vacancies. They
may impair the planned operation of processes,
may disrupt Baloise’s ongoing development
and thus may weaken its potential for growth.
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Description
Impact
Actual/
potential
Time horizon
Connection to strategy
and business model
IMPACTS
Harm to customers as a result of the loss or theft
of data
Negative
Actual
Only needed for
potential impacts
Cyber-resilience and data
security
Consumer deception
Negative
Actual
Only needed for
potential impacts
Interaction with customers
and customer protection
Strengthening of information asymmetries as a
result of advice or the contract formation process
not being accessible
Negative
Actual
Only needed for
potential impacts
Interaction with customers
and customer protection
Insufficient financial protection for customers
owing to poor advice
Negative
Potential
Medium to long term
Interaction with customers
and customer protection
Insufficient financial protection for customers
owing to unjustified refusal/delay of payment
of the sum insured
Negative
Potential
Medium to long term
Contribution to society
OPPORTUNITIES
Digitalising the customer journey and designing
it from the customer perspective (tailored
omnichannel communication)
Medium to long term
Interaction with customers
and customer protection
Catering to the increased importance to society
of socially responsible investment
Medium to long term
Responsible investment
Supporting the transition to a sustainable
business model
Medium to long term
Interaction with customers
and customer protection
Overview of impacts, risks and opportunities
ESRS S4 – Consumers and end-users
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Impact resulting from
own operations or
business relationships
Impacts on people and the environment
Description
IMPACTS
Own operations and
business relationships
Financial losses, violation of
the right to privacy, and loss of trust
Harm to customers as a result of the loss or theft
of data
Own operations and
business relationships
Financial losses and loss of trust
Consumer deception
Own operations and
business relationships
Financial losses and loss of trust
Strengthening of information asymmetries as a
result of advice or the contract formation process
not being accessible
Own operations and
business relationships
Financial losses and loss of trust
Insufficient financial protection for customers
owing to poor advice
Own operations and
business relationships
Financial losses and loss of trust
Insufficient financial protection for customers
owing to unjustified refusal/delay of payment
of the sum insured
OPPORTUNITIES
Own operations
Only needed for impacts
Digitalising the customer journey and designing
it from the customer perspective (tailored
omnichannel communication)
Own operations
Only needed for impacts
Catering to the increased importance to society
of socially responsible investment
Own operations
Only needed for impacts
Supporting the transition to a sustainable
business model
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Description
Impact
Actual/
potential
Time horizon
Connection to strategy
and business model
RISKS
Advisory risks in the investment process: There is
a risk that customers will receive incorrect advice in
the investment advice process. If they are not given
sufficient information, this constitutes a breach
of customer advisers’ duty to explain and clarify.
Short term
Interaction with customers
and customer protection
External reporting: Inaccurate, delayed and
incomplete external reporting may give sharehold-
ers, customers, competitors and authorities an
incorrect picture of the Company’s situation. This
has the potential to have an overall negative
impact on the Company, e.g. by way of reputational
damage.
Short term
Communication and dialogue
with stakeholders
Counterparty risk: There is a risk of financial loss
if a counterparty or issuer is unable to fulfil its
contractual obligations. All types of customer are
included in this.
Short term
Responsible
partnerships
Collection management: There is a risk that
day-to-day collection and disbursement processes
can no longer be operated adequately and
accurately owing to the IT system no longer being
appropriate, a lack of knowledge, ineffective
organisational structures and incorrectly assigned
responsibilities. If this leads to wrong payments,
inaccurate postings, incorrect settlement and thus
customer complaints, the Company may suffer
reputational damage.
Short term
Environmental action in
business operations;
collaboration with partners
Premium risk: There is a danger that the insurance
premiums calculated are based on incorrect
assumptions and the premiums will therefore be
insufficient to cover the financial obligations
arising from the insured risks. In particular, trends
such as an increase in larger or more frequent
claims, e.g. as a result of climate change, may make
it harder to estimate the metrics for large claims.
These uncertainties increase the risk of premiums
being insufficient.
Medium to long term
Underwriting management
and product management for
climate change mitigation
Data security risk: Data may end up in the wrong
hands as a consequence of cyberattacks or the
improper handling of information.
Short to long term
Cyber-resilience and
data security
IT BCM risk: There is a danger that IT applications
and systems go down for a short or extended
period and are not available to customers as a
result of natural disasters, incorrect programming
or external attacks.
Short to long term
Cyber-resilience and
data security
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Impact resulting from own
operations or business
relationships
Impacts on people and the environment
Description
RISKS
Own operations
Only needed for impacts
Advisory risks in the investment process: There is
a risk that customers will receive incorrect advice in
the investment advice process. If they are not given
sufficient information, this constitutes a breach
of customer advisers’ duty to explain and clarify.
Own operations
Only needed for impacts
External reporting: Inaccurate, delayed and
incomplete external reporting may give sharehold-
ers, customers, competitors and authorities an
incorrect picture of the Company’s situation. This
has the potential to have an overall negative
impact on the Company, e.g. by way of reputational
damage.
Own operations
Only needed for impacts
Counterparty risk: There is a risk of financial loss
if a counterparty or issuer is unable to fulfil its
contractual obligations. All types of customer are
included in this.
Own operations
Only needed for impacts
Collection management: There is a risk that
day-to-day collection and disbursement processes
can no longer be operated adequately and
accurately owing to the IT system no longer being
appropriate, a lack of knowledge, ineffective
organisational structures and incorrectly assigned
responsibilities. If this leads to wrong payments,
inaccurate postings, incorrect settlement and thus
customer complaints, the Company may suffer
reputational damage.
Own operations
Only needed for impacts
Premium risk: There is a danger that the insurance
premiums calculated are based on incorrect
assumptions and the premiums will therefore be
insufficient to cover the financial obligations
arising from the insured risks. In particular, trends
such as an increase in larger or more frequent
claims, e.g. as a result of climate change, may make
it harder to estimate the metrics for large claims.
These uncertainties increase the risk of premiums
being insufficient.
Own operations
Only needed for impacts
Data security risk: Data may end up in the wrong
hands as a consequence of cyberattacks or the
improper handling of information.
Own operations
Only needed for impacts
IT BCM risk: There is a danger that IT applications
and systems go down for a short or extended
period and are not available to customers as a
result of natural disasters, incorrect programming
or external attacks.
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Description
Impact
Actual/
potential
Time horizon
Connection to strategy
and business model
RISKS
Non-compliance with solvency capital or liquidity
requirements: There is a danger that the Company’s
capital levels fall or the solvency capital require-
ments are tightened. This may mean that the
Company no longer has adequate solvency ratios.
There is also a danger that the short-term liquidity
and stable funding levels in banking activities
no longer meet the regulatory requirements, and
the minimum requirements can only be satisfied
at significant additional cost.
Medium to long term
Responsible investment;
business ethics and
compliance
Premium and reserve risk: There is a danger that
the insurance premiums calculated are based
on incorrect assumptions and the premiums will
therefore be insufficient to cover the risks that,
as a result, have been underestimated. This
may also lead to rate scales being implemented
too slowly.
Medium to long term
Underwriting management
and product management
for climate change mitigation
Investment risk: There is a risk that investments
will fall in value because climate-related events
occur or because issuers do not follow sustainable
business practices. This may lead to losses on
equities, spread movements and general financial
crisis situations.
Medium term
Climate change
adaptation
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Impact resulting from own
operations or business
relationships
Impacts on people and the environment
Description
RISKS
Own operations
Only needed for impacts
Non-compliance with solvency capital or liquidity
requirements: There is a danger that the Company’s
capital levels fall or the solvency capital require-
ments are tightened. This may mean that the
Company no longer has adequate solvency ratios.
There is also a danger that the short-term liquidity
and stable funding levels in banking activities
no longer meet the regulatory requirements, and
the minimum requirements can only be satisfied
at significant additional cost.
Own operations
Only needed for impacts
Premium and reserve risk: There is a danger that
the insurance premiums calculated are based
on incorrect assumptions and the premiums will
therefore be insufficient to cover the risks that,
as a result, have been underestimated. This
may also lead to rate scales being implemented
too slowly.
Own operations
Only needed for impacts
Investment risk: There is a risk that investments
will fall in value because climate-related events
occur or because issuers do not follow sustainable
business practices. This may lead to losses on
equities, spread movements and general financial
crisis situations.
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Baloise Group Annual Report 2024
Description
Impact
Actual/
potential
Time horizon
Connection to strategy and
business model
IMPACTS
Reduction in stakeholders’ willingness
to report/disclose irregularities owing
to a lack of protection for whistleblowers
Negative
Potential
Medium to long term
Business ethics and
compliance
Positive influence on policy decisions
Positive
Actual
Only needed
for potential
impacts
Business ethics and
compliance
Negative influence on policy decisions
Negative
Actual
Only needed
for potential
impacts
Business ethics and
compliance
Loss of trust in the industry as a result
of incidents of corruption and bribery
Negative
Potential
Medium to long term
Business ethics and
compliance
Positive influence on sustainability at
companies in which Baloise has invested
Positive
Actual
Only needed
for potential
impacts
Responsible investment
OPPORTUNITIES
n/a
Overview of impacts, risks and opportunities
ESRS G1 – Business conduct
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Baloise Group Annual Report 2024
Impact resulting from own
operations or business
relationships
Impacts on people and the environment
Description
IMPACTS
Own operations and business
relationships
Deterioration in mental and physical health
and ecosystems
Reduction in stakeholders’ willingness
to report/disclose irregularities owing
to a lack of protection for whistleblowers
Own operations
Positive impacts on health and ecosystems
Positive influence on policy decisions
Own operations
Negative impacts on health and ecosystems
Negative influence on policy decisions
Own operations and business
relationships
Financial losses and loss of trust
Loss of trust in the industry as a result
of incidents of corruption and bribery
Own operations
Reduction in direct and indirect negative
impacts on health and ecosystems
Positive influence on sustainability at
companies in which Baloise has invested
OPPORTUNITIES
n/a
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Description
Impact
Actual/
potential
Time horizon
Connection to strategy and
business model
RISKS
Non-compliance with sustainability requirements:
Relevant regulatory requirements are inadequately
implemented in the sustainability strategy and
inadequately applied.
Short to long term
Environmental action in
business operations;
collaboration with partners;
development of products
and services; business ethics
and compliance
Inaccurate risk analysis and reporting: There is
a danger that risks are not properly identified, are
insufficiently analysed or are incorrectly assessed.
Short to medium term
Risk analysis and
mitigation
Outsourcing risk: There is a danger that the
Company becomes dependent on external service
providers or that these service providers do not
perform their tasks satisfactorily. This can lead to
problems if tasks inherent to the insurance business
have been outsourced to these service providers.
Short to long term
Responsible partnerships;
business ethics and
compliance
Reputational risk: It is conceivable that external
communications are not aligned with the strategy
and corporate values, that reputational problems
are not handled correctly and that wrong/inappro-
priate information is communicated.
Short to medium term
Responsible investment;
communication and dialogue
with stakeholders; responsible
partnerships
Legal risk: There is a danger that legal and
regulatory requirements are not satisfied, resulting
in financial losses, reputational damage, conse-
quences under criminal law, regulatory sanctions
or organisational problems.
Medium term
Business ethics and compli-
ance; environmental action
in business operations;
collaboration with partners,
business ethics and
compliance
Process risk: There is a risk that
business processes are deficient or inadequate, are
not organised professionally and appropriately
or are not fully aligned with the Company’s targets,
policies and instructions, e.g. in relation to
efficiency, growth and customer loyalty, quality and
service level.
Short to long term
Environmental action in
business operations;
collaboration with partners;
communication and dialogue
with stakeholders
Competition risks: There are risks resulting from
changes in the market environment, e.g. as a result
of the emergence of new competitors or changes
in the behaviour of existing competitors or of sales
partners.
Short to medium term
Development of products
and services; responsible
partnerships
Wrong decisions: It is conceivable that, driven by
perverse incentives, senior management makes
decisions that have a negative impact on the
Company.
Short to long term
Employee engagement;
employee collaboration
Possible external effects on business: External
influences, such as geopolitical tensions
or inflation, may lead to targets for growth or
profitability not being achieved.
Medium term
Climate change mitigation
through responsible
investment; environmental
action in business operations;
collaboration with partners
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Baloise Group Annual Report 2024
Impact resulting from own
operations or business
relationships
Impacts on people and the environment
Description
RISKS
Own operations
Only needed for impacts
Non-compliance with sustainability requirements:
Relevant regulatory requirements are inadequately
implemented in the sustainability strategy and
inadequately applied.
Own operations
Only needed for impacts
Inaccurate risk analysis and reporting: There is
a danger that risks are not properly identified, are
insufficiently analysed or are incorrectly assessed.
Own operations
Only needed for impacts
Outsourcing risk: There is a danger that the
Company becomes dependent on external service
providers or that these service providers do not
perform their tasks satisfactorily. This can lead to
problems if tasks inherent to the insurance business
have been outsourced to these service providers.
Own operations
Only needed for impacts
Reputational risk: It is conceivable that external
communications are not aligned with the strategy
and corporate values, that reputational problems
are not handled correctly and that wrong/inappro-
priate information is communicated.
Own operations
Only needed for impacts
Legal risk: There is a danger that legal and
regulatory requirements are not satisfied, resulting
in financial losses, reputational damage, conse-
quences under criminal law, regulatory sanctions
or organisational problems.
Own operations
Only needed for impacts
Process risk: There is a risk that
business processes are deficient or inadequate, are
not organised professionally and appropriately
or are not fully aligned with the Company’s targets,
policies and instructions, e.g. in relation to
efficiency, growth and customer loyalty, quality and
service level.
Own operations
Only needed for impacts
Competition risks: There are risks resulting from
changes in the market environment, e.g. as a result
of the emergence of new competitors or changes
in the behaviour of existing competitors or of sales
partners.
Own operations
Only needed for impacts
Wrong decisions: It is conceivable that, driven by
perverse incentives, senior management makes
decisions that have a negative impact on the
Company.
Own operations
Only needed for impacts
Possible external effects on business: External
influences, such as geopolitical tensions
or inflation, may lead to targets for growth or
profitability not being achieved.
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Impact, risk and opportunity
management
Disclosures on the materiality
assessment process
IRO-1 – Description of the process to identify
and assess material impacts, risks and
opportunities
(Art. 964b (2) 2 and 4 OR, Art. 3 KlimaVO)
The double materiality assessment underlying this
sustainability statement is based on the Integrated
Reporting Framework, the sector-specific requirements of
the Sustainability Accounting Standards Board (SASB)
and dialogue with stakeholders. The requirements of the
CSRD were also taken into account when performing the
double materiality assessment, which is reviewed regularly
and repeated every four years.
Identification of material issues
Baloise uses external and internal sources to identify
material sustainability topics. This involves combining
sector analyses, external expectations, regulations, ESG
ratings and standards with internal department-specific
topics. Experts from various departments analyse these
topics to ascertain their relevance to Baloise.
To this end, the experts first assess whether the
identified topics have an influence on Baloise and its
business activities. In the next phase, an assessment is
carried out using the Future-Fit Business Benchmark to
establish the impact of the identified topics and thus of
Baloise’s business activities on society as a whole.
The low-impact and low-risk topics are filtered out
and the content of the topics that are deemed relevant
is developed (detailed description and adjustment of the
names). This is then used to draw up a list of potentially
material non-financial topics. These topics are subdivided
based on their relevance within the Company, and
each one is assigned to one of the three sustainability
dimensions E (environmental), S (social) and G (corporate
governance).
On the basis of the potentially material topics
identified, possible non-financial impacts (in accordance
with relevant sustainability standards), risks (from the
Baloise risk inventory) and opportunities along Baloise’s
value chain are identified.
The identified impacts, risks and opportunities are also
subdivided into operational aspects, investment-related
aspects and insurance-related aspects, and each one
is assigned to one of the three sustainability dimensions
E (environmental), S (social) and G (corporate governance).
Identification of relevant stakeholders
Based on the Baloise stakeholder overview and taking
account of the stakeholder categories pursuant to
GRI and ESRS 1, stakeholders are then identified that are
relevant from a segment-specific perspective and from
a cross-segment perspective. This distinction allows for a
nuanced assessment of the relevance of the stakeholders
in the segments and in the Group.
In addition to the stakeholders, six interview partners
were identified who have expertise in the topics along
Baloise’s value chain. Together with business partners,
investors, environmental experts, employees and the
public/society, the selected experts represent Baloise’s
relevant stakeholder groups.
Comprehensive assessment of the material topics
The identified topics and the related impacts, risks and
opportunities are assessed from a qualitative perspective
according to the principles of double materiality. To this
end, the following steps are carried out:
•
First, an online questionnaire is used to ask all stake-
holders except senior management about potentially
relevant topics. The people questioned are asked
to assess the topics according to their relevance and
to rank them accordingly. An average ranking is then
determined for each topic.
•
To assess the impacts of the topics, a qualitative
assessment is carried out in the form of interviews with
external experts. The experts judge the significance
of Baloise’s impacts on the social, environmental and
economic spheres and assess their relative significance
in qualitative terms.
•
A questionnaire is used to ask senior management
about the topics’ relevance to business in terms of risks
and opportunities. Senior management assesses which
topics are the most important for Baloise’s sustainable
performance in the financial, environmental and social
spheres in the short term, medium term and long
term. In assessing the topics, senior management takes
into account that dependencies on natural, personnel
and social resources can give rise to financial risks and
opportunities for the Company’s own business and
for the reliability of supply chains in the context of value
creation.
•
In the case of actual negative or positive impacts, the
materiality of these impacts was determined on the
basis of their scale, scope and irremediable character
using a ranking of one (low) to five (high). To determine
the overall relevance of this impact, the mean of these
three rankings was calculated. In the case of potential
negative or positive impacts, the time horizon (short,
medium or long term) and the probability of occurrence
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Baloise Group Annual Report 2024
Report on non-financial matters
were also assessed. An impact is deemed material if
it reaches or exceeds a threshold of three. With regard
to the disclosure requirement for the process used to
identify and assess climate impacts, Baloise cannot
currently make any specific statements on its activities
and plans for assessing actual and potential future
greenhouse gas emissions and the drivers of other
climate-related impacts because the requisite emis-
sions data is not yet available in sufficient quantity or
adequate quality.
•
To determine financial materiality, the probability
of occurrence is classified as low (once in 20 years),
medium (once in five years), high (once in two years)
or very high (more than once in two years). In addition,
the potential financial magnitude of the impacts is
categorised as low, medium or high. By combining the
probability of occurrence and the potential financial
magnitude of the impacts, the risk or opportunity is
assigned a heatmap value of between one and 16. The
risk or opportunity is deemed material if it reaches or
exceeds a threshold of five on the heat map.
•
Finally, all impacts, risks and opportunities identified
as material are aggregated per topic and assigned to
the appropriate ESRSs.
Outlook for the 2024 double materiality assessment
In 2024, Baloise carried out another double materiality
assessment in accordance with the requirements of the
CSRD. It is valid from 1 January 2025. This confirmed that
the following topics are material to Baloise:
•
Environmental topics: climate change (ESRS E1)
•
Social topics: the Company’s own workforce
(ESRS S1) and consumers and end-users (ESRS S4)
•
Governance topics: business conduct (ESRS G1)
IRO-2 – Disclosure requirements in ESRS
covered by the undertaking’s sustainability
statement
The disclosure requirements that were applied in the
preparation of the sustainability statement on the basis
of the results of the materiality assessment comprise
ESRS 2 and the topical ESRSs E1, S1, S4 and G1, including
all sub-topics. The exact page numbers for the relevant
disclosures are listed in the table of contents in this
sustainability statement.
The following table illustrates the datapoints in ESRS 2
and in the topical ESRSs that are derived from other EU
legislation, including those datapoints that were deemed
not material.
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Baloise Group Annual Report 2024
Disclosure requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Page
ESRS 2 GOV-1
Board’s gender diversity
paragraph 21 (d)
Indicator
number 13
Table #1 of
Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
115
ESRS 2 GOV-1
Percentage of board members
who are independent
paragraph 21 (e)
Delegated Regulation
(EU) 2020/1816, Annex II
115
ESRS 2 GOV-4
Statement on due diligence
paragraph 30
Indicator
number 10
Table #3 of
Annex 1
118
ESRS 2 SBM-1
Involvement in activities
related to fossil fuel activities
paragraph 40 (d) i
Indicator
number 4
Table #1
of Annex 1
Article 449a Regulation (EU)
No. 575/2013; Commission
Implementing Regulation (EU)
2022/2453, Table 1:
Qualitative information on
environmental risk and Table 2:
Qualitative information on
social risk
Delegated Regulation
(EU) 2020/1816, Annex II
122
ESRS 2 SBM-1
Involvement in activities
related to chemical production
paragraph 40 (d) ii
Indicator
number 9
Table #2 of
Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
122
ESRS 2 SBM-1
Involvement in activities
related to controversial weapons
paragraph 40 (d) iii
Indicator
number 14
Table #1 of
Annex 1
Delegated Regulation
(EU) 2020/1818,
Article 12; Delegated
Regulation (EU) 2020/1816,
Annex II
122
ESRS 2 SBM-1
Involvement in activities
related to cultivation and
production of tobacco
paragraph 40 (d) iv
Delegated Regulation
(EU) 2020/1818, Article 12;
Delegated Regulation (EU)
2020/1816, Annex II
122
ESRS E1-1
Transition plan to reach
climate neutrality by 2050
paragraph 14
Regulation (EU)
2021/1119,
Article 2
158
ESRS E1-1
Undertakings excluded from
Paris-aligned benchmarks
paragraph 16 (g)
Article 449a Regulation (EU)
No. 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1: Banking
book – Climate change transition
risk: Credit quality of exposures
by sector, emissions and residual
maturity
Delegated Regulation (EU)
2020/1818,
Article 12 letters d to g and
Article 12
158
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator
number 4
Table #2 of
Annex 1
Article 449a Regulation (EU)
No. 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transition
risk: alignment metrics
Delegated Regulation
(EU) 2020/1818, Article 6
166
Datapoints from other EU legislation
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Disclosure requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Page
ESRS E1-5
Energy consumption from
fossil sources disaggregated
by sources (only high climate
impact sectors)
paragraph 38
Indicator
number 5
Table #1 and
Indicator
number 5
Table #2 of
Annex 1
166
ESRS E1-5
Energy consumption and mix
paragraph 37
Indicator
number 5
Table #1 of
Annex 1
166
ESRS E1-5
Energy intensity associated with
activities in high climate impact
sectors
paragraphs 40 to 43
Indicator
number 6
Table #1 of
Annex 1
166
ESRS E1-6
Gross Scope 1, 2, 3 and total GHG
emissions
paragraph 44
Indicator
numbers 1 and 2
Table #1 of
Annex 1
Article 449a Regulation (EU)
No. 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 1: Banking
book – Climate change transition
risk: Credit quality of exposures
by sector, emissions and residual
maturity
Delegated Regulation
(EU) 2020/1818, Article 5, 6
and 8
167
ESRS E1-6
Gross GHG emissions intensity
paragraphs 53 to 55
Indicator
number 3
Table #1
of Annex 1
Article 449a Regulation (EU)
No. 575/2013; Commission
Implementing Regulation (EU)
2022/2453 Template 3: Banking
book – Climate change transition
risk: alignment metrics
Delegated Regulation
(EU) 2020/1818,
Article 8
167
ESRS E1-7
GHG removals and carbon
credits
paragraph 56
Regulation
(EU) 2021/1119,
Article 2
171
ESRS E1-9
Exposure of the benchmark
portfolio to climate-related
physical risks
paragraph 66
Delegated Regulation
(EU) 2020/1818, Annex II;
Delegated Regulation
(EU) 2020/1816, Annex II
172
ESRS E1-9
Disaggregation of monetary
amounts by acute and chronic
physical risk
paragraph 66 (a)
ESRS E1-9
Location of significant assets
at material physical risk
paragraph 66 (c)
Article 449a Regulation (EU)
No. 575/2013; Commission
Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47
Template 5: Banking book –
Climate change physical risk:
Exposures subject to physical risk
172
ESRS E1-9
Breakdown of the carrying
value of its real estate assets
by energy-efficiency classes
paragraph 67 (c)
Article 449a Regulation (EU)
No 575/2013; Commission
Implementing Regulation
(EU) 2022/2453 paragraph 34;
Template 2: Banking book –
Climate change transition risk:
Loans collateralised by immova-
ble property – Energy efficiency
of the collateral
172
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Disclosure requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Page
ESRS E1-9
Degree of exposure of the
portfolio to climate-related
opportunities
paragraph 69
Delegated Regulation
(EU) 2020/1818, Annex II
172
ESRS E2-4
Amount of each pollutant listed
in Annex II of the E-PRTR
Regulation (European Pollutant
Release and Transfer Register)
emitted to air, water and soil
paragraph 28
Indicator number 8
Table #1 of
Annex 1,
Indicator number 2
Table #2 of
Annex 1, Indicator
number 1 Table #2
of Annex 1 and
Indicator number 3
Table #2 of Annex 1
n.a.
ESRS E3-1
Water and marine resources
paragraph 9
Indicator number 7
Table #2 of Annex 1
n.a.
ESRS E3-1
Dedicated policy
paragraph 13
Indicator number 8
Table 2 of Annex 1
n.a.
ESRS E3-1
Sustainable oceans and seas
paragraph 14
Indicator
number 12
Table #2 of Annex 1
n.a.
ESRS E3-4
Total water recycled and reused
paragraph 28 (c)
Indicator
number 6.2
Table #2 of Annex 1
n.a.
ESRS E3-4
Total water consumption in m3
per net revenue on own
operations
paragraph 29
Indicator
number 6.1
Table #2 of Annex 1
n.a.
ESRS 2 – SBM-3 – E4
paragraph 16 (a) i
Indicator number 7
Table #1 of Annex 1
n.a.
ESRS 2 – SBM-3 – E4
paragraph 16 (b)
Indicator
number 10
Table #2 of Annex 1
n.a.
ESRS 2 – SBM-3 – E4
paragraph 16 (c)
Indicator
number 14
Table #2 of Annex 1
n.a.
ESRS E4-2
Sustainable land/agriculture
practices or policies
paragraph 24 (b)
Indicator
number 11
Table #2 of Annex 1
n.a.
ESRS E4-2
Sustainable oceans/seas
practices or policies
paragraph 24 (c)
Indicator
number 12
Table #2 of Annex 1
n.a.
ESRS E4-2
Policies to address deforestation
paragraph 24 (d)
Indicator
number 15
Table #2 of Annex 1
n.a.
ESRS E5-5
Non-recycled waste
paragraph 37 (d)
Indicator
number 13
Table #2 of Annex 1
n.a.
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Disclosure requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Page
ESRS E5-5
Hazardous waste and
radioactive waste
paragraph 39
Indicator number 9
Table #1 of Annex 1
n.a.
ESRS 2 SBM-3 – S1
Risk of incidents of forced labour
paragraph 14 (f)
Indicator
number 13
Table #3 of Annex I
176
ESRS 2 SBM-3 – S1
Risk of incidents of child labour
paragraph 14 (g)
Indicator
number 12
Table #3 of Annex I
176
ESRS S1-1
Human rights policy
commitments
paragraph 20
Indicator number 9
Table #3 and
Indicator
number 11
Table #1 of Annex I
177
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labour Organization
Conventions 1 to 8
paragraph 21
Delegated Regulation
(EU) 2020/1816, Annex I
177
ESRS S1-1
Processes and
measures for preventing
trafficking in human beings
paragraph 22
Indicator
number 11
Table #3 of Annex I
177
ESRS S1-1
Workplace accident prevention
policy or management system
paragraph 23
Indicator number 1
Table #3 of Annex I
177
ESRS S1-3
Grievance/complaints handling
mechanisms
paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
182
ESRS S1-14
Number of fatalities and number
and rate of work-related
accidents
paragraph 88 (b) and (c)
Indicator number 2
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
187
ESRS S1-14
Number of days lost to injuries,
accidents, fatalities or illness
paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
187
ESRS S1-16 Unadjusted gender
pay gap paragraph 97 (a)
Indicator
number 12
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
188
ESRS S1-16
Excessive CEO pay ratio
paragraph 97 (b)
Indicator number 8
Table #3 of Annex I
188
ESRS S1-17
Incidents of discrimination
paragraph 103 (a)
Indicator number 7
Table #3 of Annex I
189
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Disclosure requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Page
ESRS S1-17
Non-respect of UNGPs on
Business and Human Rights
and OECD guidelines
paragraph 104 (a)
Indicator number 10
Table #1 and
Indicator number 14
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II;
Delegated Regulation
(EU) 2020/1818 Article 12
189
ESRS 2 SBM-3 – S2
Significant risk of child labour or
forced labour in the value chain
paragraph 11 (b)
Indicator numbers 12
and 13 Table #3 of
Annex I
n.a.
ESRS S2-1
Human rights policy
commitments
paragraph 17
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex 1
n.a.
ESRS S2-1
Policies related to value chain
workers
paragraph 18
Indicator numbers 11
and 4 Table #3 of
Annex 1
n.a.
ESRS S2-1
Non-respect of UNGPs on
Business and Human Rights
and OECD guidelines
paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II;
Delegated Regulation
(EU) 2020/1818 Article 12
n.a.
ESRS S2-1
Due diligence policies on issues
addressed by the fundamental
International Labour Organization
Conventions 1 to 8
paragraph 19
Delegated Regulation
(EU) 2020/1816, Annex II
n.a.
ESRS S2-4
Human rights issues and
incidents connected to its
upstream and downstream
value chain
paragraph 36
Indicator number 14
Table #3 of Annex 1
n.a.
ESRS S3-1
Human rights policy
commitments
paragraph 16
Indicator number 9
Table #3
and Indicator
number 11
Table #1 of Annex 1
n.a.
ESRS S3-1
Non-respect of UNGPs on
Business and Human Rights,
ILO principles or OECD guidelines
paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II;
Delegated Regulation (EU)
2020/1818 Article 12
n.a.
ESRS S3-4
Human rights issues
and incidents
paragraph 36
Indicator number 14
Table #3 of Annex 1
n.a.
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Disclosure requirement
and related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU climate law
reference
Page
ESRS S4-1
Policies related to consumers
and end-users
paragraph 16
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex 1
191
ESRS S4-1
Non-respect of UNGPs on
Business and Human Rights
and OECD guidelines
paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II;
Delegated Regulation (EU)
2020/1818 Article 12
191
ESRS S4-4
Human rights issues
and incidents
paragraph 35
Indicator number 14
Table #3 of Annex 1
196
ESRS G1-1
United Nations Convention
against Corruption
paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
206
ESRS G1-1
Protection of whistleblowers
paragraph 10 (d)
Indicator number 6
Table #3 of Annex 1
206
ESRS G1-4
Fines for violation of
anti-corruption and
anti-bribery laws
paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
215
ESRS G1-4
Standards of anti-corruption
and anti-bribery
paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
215
Minimum disclosure requirements
regarding policies, actions,
metrics and targets (MDR-P,
MDR-A, MDR-M, MDR-T)
Details of the policies relating to material sustainability
matters can be found in the description in the topic-
specific standards.
The metrics reported in relation to material
sustainability matters currently comprise only those
metrics that are defined in the topic-specific standards.
The measurability of actions using targets will be taken
into account when drawing up future strategies and
actions.
Policies for managing material sustainability matters
are currently being drawn up.
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Governance
158
Strategy
158
E1-1 – Transition plan for climate change mitigation
158
Disclosure requirement related to ESRS 2 SBM-3 –
Material impacts, risks and opportunities and their
interaction with strategy and business model
159
Impact, risk and opportunity
management
161
Disclosure requirement related to ESRS 2 IRO-1 –
Description of the processes to identify and assess
material climate-related impacts, risks and
opportunities
161
E1-2 – Policies related to climate change mitigation
and adaptation
161
E1-3 – Actions and resources in
relation to climate change policies
165
Metrics and targets
166
E1-4 – Targets related to climate change mitigation
and adaptation
166
E1-5 – Energy consumption and mix
166
E1-6 – Gross Scopes 1, 2, 3 and total GHG emissions
167
E1-7 – GHG removals and GHG mitigation projects
financed through carbon credits
172
E1-8 – Internal carbon pricing
172
E1-9 – Anticipated financial effects from material
physical and transition risks and potential
climate-related opportunities
172
Environmental information
ESRS E1 – Climate change
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Governance
Disclosure requirement related to ESRS 2
GOV-3 – Integration of sustainability-related
performance in incentive schemes
(Art. 3 KlimaVO)
For the disclosures as to whether and how climate-
related considerations are factored into the remuneration
of members of the administrative, management and
supervisory bodies, reference is made to ESRS 2 GOV-3
– Integration of sustainability-related performance in
incentive schemes. Sustainability-related performance is
factored into variable remuneration but is not yet linked to
specific emission reduction targets.
Strategy
E1-1 – Transition plan for climate change
mitigation
(Art. 3 KlimaVO)
Baloise has defined various policies relating to climate
change mitigation and plans to consolidate these as part
of a Group-wide transition plan and embed them in a
comprehensive sustainability strategy in 2025.
Baloise’s current Simply Safe: Season 2 and Refocusing
strategy papers describe the strategic direction
that Baloise has taken until now and the strategic
direction that it will take going forward. The direction
of sustainability-related efforts will be specified in more
detail from 2025 onwards in connection with the new
sustainability strategy.
Baloise has set itself the target of reducing CO₂
emissions to net zero by 2050. To achieve this, it is defining
decarbonisation targets for its own business operations
and for financed and insured emissions.
Regarding its own business operations, Baloise
plans to develop a specific plan for reducing its carbon
footprint and to define in greater detail the target
that has already been set. A few years ago, it began
systematically collecting its CO₂ emissions data using
the Greenhouse Gas Protocol standard. Based on this
systematic collection of data, Baloise can identify the
areas with the biggest decarbonisation levers and define
actions that offer a reasonable level of effectiveness.
Furthermore, Baloise intends to use energy-efficient
technologies and sustainable means of transport
to minimise its fleet’s CO₂ emissions and continue to
maximise the use of renewable energies. Another lever for
Baloise is the application of environmentally responsible
building standards and the encouragement of the use of
renewable energies in its facilities.
Information on financed emissions is provided under
ESRS E1-2 – Policies related to climate change mitigation
and adaptation.
Baloise also considers sustainability and climate
change mitigation in respect of the risks that it insures.
In 2024, Baloise calculated the “insurance-associated
emissions” in its portfolio for the first time, following
the methodology of the Partnership for Carbon
Accounting Financials (PCAF). In order to be able to
define a reliable transition plan and specific targets,
Baloise is working hard to improve the data used to
calculate insured emissions.
Transition plan for climate change mitigation
Baloise is committed to the targets of the Paris climate
agreement and supports the efforts of Switzerland and
the European Union (EU) to reach net zero by 2050.
It wants to reduce its operational emissions (Scopes
1 and 2) by 25 per cent by 2030 compared with 2022. This
target will be defined in greater detail in the Group-wide
transition plan, which is due to be fleshed out in 2025.
Managing investments and insured risks in accordance
with climate criteria is another important lever in reducing
the consequences of climate change. This requires large
amounts of good quality data.
Baloise Asset Management has devised a climate
strategy for liquid assets that is an integral element of
the expanded responsible investment strategy. One of
Baloise’s main objectives under this strategy is to further
reduce financed CO₂ emissions. This target will be reflected
in the transition plan for investments, which contains
interim targets for decarbonisation in line with the Baloise
Group’s overall commitment to reach net zero by 2050.
Investments and funding supporting the implementation
of the transition plan
At present, data on investment in climate change
mitigation in respect of actions taken in Baloise’s own
operations is not systematically collected or documented.
As part of its ongoing strategic focus on sustainability,
Baloise will start collecting data on these investments.
In 2024, no capital expenditure (CapEx) was invested
that can be clearly assigned to the key performance
indicators for taxonomy-aligned CapEx and to the CapEx
Environmental information
ESRS E1 – Climate change
(Art. 964b (1) OR, Art. 3 KlimaVO)
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plans pursuant to Delegated Regulation (EU) 2021/2178
supplementing the Taxonomy Regulation (EU) 2020/852.
Assessment of potentially locked-in greenhouse gas
emissions
The extent to which potentially locked-in greenhouse gas
emissions could hinder Baloise’s achievement of its targets
is currently being thoroughly analysed and is taken into
consideration when formulating targets as part of the
transition plan.
Targets and plans for the taxonomy alignment of
economic activities
The investment portfolio and product range are not
actively managed in accordance with taxonomy metrics
at present. Doing so will be considered as part of Baloise’s
ongoing strategic focus.
In 2024, Baloise’s investments in the context of coal,
oil and gas-related economic activities amounted to
CHF 1,131,750,490.
Baloise is not excluded from the Paris-aligned EU
benchmarks of Delegated Regulation (EU) 2020/1818
supplementing Benchmark Regulation (EU) 2016/1011.
Disclosure requirement related to
ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with
strategy and business model
(Art. 3 KlimaVO)
In the following section, the most important impacts,
risks and opportunities relating to climate change
are considered. A detailed overview of the material
impacts, risks and opportunities and their interaction
with the strategy and business model are presented in
ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model.
That section contains a detailed description of the
identified impacts on people and the environment. The
processes to identify and assess the material impacts,
risks and opportunities, along with related information,
are explained in the disclosures under ESRS 2 IRO-1 –
Description of the process to identify and assess material
impacts, risks and opportunities.
The negative impacts of Baloise’s operations include
the emission of greenhouse gases (GHGs) produced using
energy and fuels and the emission of particulate matter,
heavy metals and other pollutants using fossil energy.
Direct and indirect GHG emissions in connection with
investments – real estate, liquid assets and illiquid assets
– are another negative impact.
A potential positive impact is the further reduction
of direct and indirect GHG emissions in connection with
investments.
The other positive impacts include the promotion
of sustainable customer behaviour. Baloise offers a
broad range of products that can influence customers’
energy efficiency. The shift in employees’ environmental
awareness as a result of awareness-raising actions
can also make employees more concerned for the
environment.
The opportunities of climate change include offering
new/innovative products and services, e.g. insurance
solutions in the areas of renewable energy, and offering
products that are more sustainable. There is also potential
for growth in claims resulting from increased risk caused
by climate change. Another opportunity is catering to
the increased importance to society of environmentally
responsible investments.
Material risks in connection with climate change
include strategic sustainability risks. This means there is
a risk that Baloise does not take adequate account of
sustainability in business decisions and when defining
its business strategy and risk strategy. Baloise is also
exposed to risk in respect of investments. Investments
may perform poorly owing to climate-related incidents
and issuers’ unsustainable business practices. There are
also material risks in underwriting management and
product management for climate change mitigation,
such as catastrophe risk, accumulation risk and premium
and reserve risk. Risks relating to environmental action in
business operations and collaboration with partners are
also material, including natural disaster risk.
Resilience of the strategy and business model in relation
to climate change
The resilience of Baloise’s strategy and business model is
determined using various analyses, as described below.
Climate risk analysis
Given the structural differences between climate risk and
the traditional types of risk covered by risk management,
climate risk undergoes a separate annual analysis as part
of the Own Risk and Solvency Assessment process (ORSA
process). This analysis, which is based on time horizons
that go beyond traditional planning horizons, examines
climate risk from both a qualitative and a quantitative
perspective. The first step is to identify material aspects
in the investment portfolio and insurance portfolio. These
aspects are then analysed using scenarios provided by the
Network for Greening the Financial System (NGFS).
Despite negative impacts in the scenarios considered,
the investment and insurance business can continue as a
going concern from the current perspective.
Exposure analysis
Both on the assets side and on the equity and liabilities
side of the balance sheet, this involves examining
aspects that are material in terms of their exposure and
significantly adversely affected either by climate change
or by action taken to mitigate climate change. Depending
on the data that is available, the exposure is determined
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using adequate KPIs on the assets side and the equity
and liabilities side or by referring to expert assessments.
The geographical location and the area of business
of the investment or insurance activity are taken into
consideration.
At present, exposures that are material in terms of
transition risks have been identified in the life insurance
business and in a number of asset classes in the
investment business.
Physical risks result from extreme weather events and
lead to the greater frequency and intensity of natural
disaster claims. At present, exposures that are material
in terms of physical risks have been identified primarily in
the non-life insurance business as well as in parts of the
investment business. The exposure to weather-related
disasters in property insurance business is routinely
monitored. Modelling and analysis is used to this end,
which provides a sound basis for risk management.
Data on the impact of climate-related transition and
physical risks has not yet been acquired for the Banking
segment. However, this is to be done in future to reflect
regulatory developments (such as the forthcoming FINMA
circular on nature-related risks).
Scenario analysis based on the exposures identified
The analysis looks at a scenario with high physical
risks associated with global warming of more than 2°C
(physical scenario) and a transition scenario involving
transition risks. The actions implemented in this context
should contribute to successfully reducing global warming
to below 2°C. As chronic changes to the climate and the
adaptation of actions will take place in the distant future,
this analysis considers time horizons that go beyond the
traditional planning horizons. Specifically, the analysis
considers the impacts up to 2030 (short term), 2050
(medium term) and 2080 (long term).
The scenario analysis carried out in connection with
ORSA covers the largest asset classes and the insurance
portfolio in the life and non-life businesses. For the non-life
business, possible losses from claims relating to flooding,
storms and hail are analysed. The reinsurance in place
also has an influence on the degree to which financial
positions are impacted. Information about Baloise’s own
portfolio is used, along with external data from NGFS.
Despite negative impacts in the scenarios considered,
the investment and insurance business can continue
as a going concern from the current perspective. This is
partly because strategic actions have been carried out to
counteract the negative impacts described. For example,
the Responsible Investment (RI) Policy already excludes
carbon-intensive assets from the investment horizon,
and the ESG Underwriting Policy includes an exclusion
strategy for certain sectors. In the real estate business, the
base data is being improved with regard to climate risk
information. This is to be used to develop and implement
pathways for lowering CO₂ emissions. The consideration
of natural perils in reinsurance and the ability to use
pricing to respond to emerging claim trends should also
help to limit losses in the non-life business. Premium and
reserve risk can be adequately managed in a similar way.
Furthermore, the monitoring of mortality and lapse rates
and trends ensures that the Company can respond to the
developments described in the scenarios in good time.
However, it must be remembered that the findings of the
analysis are rough estimates and that the inputs used
for the projections are subject to significant uncertainty,
particularly in view of the long time horizons.
The regular analyses carried out are integrated into the
usual risk assessment processes, e.g. ORSA. The resulting
risk situation is discussed in detail with the Corporate
Executive Committee and its committees – primarily the
Risk Committee – and signed off by the Board of Directors.
The integration of sustainability risks into existing
risk management processes ensures that the results of
regular analyses and assessments are incorporated into
Baloise’s strategic 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 employees from different departments
and operating segments. This ongoing integration of
sustainability risks and climate risks into the management
of risk constitutes an important step in implementing the
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).
A specific scenario analysis is not currently carried
out for the Asset Management or Banking segment. The
Group-wide risk management processes and evaluations
are used in these segments.
Vulnerability analysis
A vulnerability analysis was carried out for property in
Germany and Belgium as part of the taxonomy-related
“do no significant harm” analysis. The aim was to analyse
the physical climate-related hazards. All hazards that
are considered material in view of the vulnerability of
the business model and geographical location were
included in the analysis on the basis of data from the Sixth
Assessment Report of the Intergovernmental Panel on
Climate Change (IPCC). Location Risk Intelligence, a SaaS
platform from reinsurance company Munich Re, was used
obtain a location-specific, climate-related hazard analysis
in climate scenarios. The analysis was based on scenario
SSP5-8.5/RCP 8.5 up to 2050. The scenario describes
climate change involving a rise in temperatures in 2100
of more than 4°C above pre-industrial temperatures.
This is based on increased exploitation of fossil fuels and
an energy- and resource-intense lifestyle, which leads
to higher greenhouse gas emissions and an increased
burden on the climate. The findings of the analysis show
that the identified climate risks have no material negative
impact on the business model and thus on the Company’s
strategic direction.
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Impact, risk and opportunity
management
Disclosure requirement related to ESRS 2 IRO-1
– Description of the processes to identify and
assess material climate-related impacts, risks
and opportunities
(Art. 3 KlimaVO)
Regarding the identification and assessment of material
climate-related impacts, risks and opportunities, reference
is made to the disclosures under ESRS 2 GOV-5 – Risk
management and internal controls over sustainability
reporting and ESRS 2 IRO-1 – Description of the process
to identify and assess material impacts, risks and
opportunities, and the disclosures in connection with
ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
under ESRS E1 Climate change.
E1-2 – Policies related to climate change
mitigation and adaptation
(Art. 3 KlimaVO)
Baloise’s policies related to climate change mitigation and
adaptation are described in the table below.
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Name of rule set
Main content
General objectives
Review
Baloise Responsible
Investment Policy:
for insurance funds held by
Baloise Group companies
Definition of the responsible investment strategy, taking
the following into account:
•
General and expanded responsible investment strategy
•
Sustainability risks and risk management
•
ESG data
•
Memberships and partnerships
Definition of a strategy
on responsible
investment
At least
annually
Baloise Responsible
Investment Policy:
for third-party assets
and investment funds
Definition of the responsible investment strategy, taking
the following into account:
•
General and expanded responsible investment strategy
•
Sustainability risks and risk management
•
ESG data
•
Memberships and partnerships
Definition of a
strategy on
responsible
investment
At least
annually
Baloise asset management
climate strategy for liquid assets
Description of the climate focus as an integral element
of the Baloise responsible investment strategy
Definition of climate
strategy for liquid
assets
Adjustments as
required
Group Risk Policy
The Group Risk Policy defines Baloise’s risk management cycle
and comprises the following:
•
Definition of the risk strategy based on the business
strategy, taking account of risk preferences, risk-bearing
capacity, risk appetite, risk tolerance, risk limits and
capital management
•
escalation processes.
•
Risk governance
•
Monitoring and reporting
•
Risk appetite statement
Definition of the
risk management
framework
Annually
Own Risk and Solvency
Assessment Policy
•
Definition of the Own Risk and Solvency Assessment (ORSA)
governance model
•
Description of the elements of the ORSA process, comprising
the following:
- Identification of risks
- Assessment of risks
- Business planning
- Risk strategy
- Risk appetite
- Risk reporting
- Results and actions stemming from ORSA
Definition of the ORSA
process
Annually
Baloise Reinsurance Policy
In the Group Reinsurance Policy, the roles and responsibilities,
the process for analysing reinsurance requirements and
renewals, and the monitoring and reporting in connection with
reinsurance are defined.
Definition of the policy
on reinsurance
Annually
Underwriting Directive
The Underwriting Directive sets out the responsibilities, the
underwriting principles to be applied, the duties of the
underwriter and the placement of facultative reinsurance in
respect of indemnity insurance for business clients. It also
contains specific underwriting rules for the different types of
insurance.
Definition of the
underwriting rules
Annually
Policies relating to the transition plan for climate change mitigation (MDR-P)
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Report on non-financial matters
Area of
application
Responsible
organisational level
Reference to
third-party standards
or initiatives
Availability
of the policy to
stakeholders
Name of rule set
Baloise Asset
Management
Investment Insurance
Committee (IIC)
n/a
Website
Baloise Responsible
Investment Policy:
for insurance funds held by
Baloise Group companies
Baloise Asset
Management
Executive Committee and
Board of Directors Baloise Asset
Management
n/a
Website
Baloise Responsible
Investment Policy:
for third-party assets
and investment funds
Baloise Asset
Management
Executive Committee Baloise Asset
Management & Investment
Insurance Committee (IIC)
n/a
Website
Baloise asset management
climate strategy for liquid assets
Group-wide
Group Risk Management
n/a
Intranet
Group Risk Policy
Group-wide
Group Risk Management
n/a
Intranet
Own Risk and Solvency
Assessment Policy
Group-wide
Group Risk Management
n/a
Intranet
Baloise Reinsurance Policy
Switzerland
Indemnity insurance
for business clients
n/a
Intranet
Underwriting Directive
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Report on non-financial matters
Sustainability strategy
In 2024, Baloise decided on its future action areas and
defined the cornerstones of its sustainability strategy on
the basis of the recently performed double materiality
assessment. The sustainability strategy is designed to
ensure that Baloise can identify, assess, manage and
remediate the material impacts, risks and opportunities
relating to climate change mitigation and climate
change adaptation.
Baloise is drawing up the necessary targets and
actions, which will apply across the Group.
For Baloise, it is essential to ensure that the strategy is
implemented effectively and sustainably. The Company
has therefore made the necessary resources available.
Close contact between the national subsidiaries and
departments is also fundamentally important, ensuring
that the strategy developed is based on best practice
and standards. It should be emphasised that the
development of a sustainability strategy necessitates
an ongoing review process so that it can be adapted to
reflect current challenges.
The national subsidiaries integrate the requirements
of the overarching Group strategy into their individual
sustainability strategies when they update them. On this
basis, they draw up specific actions that align with the
regional circumstances and requirements. These actions
serve to achieve the joint targets in the Group strategy
and implement them at local level. This coordinated
approach ensures that the Baloise Group’s sustainability
targets are implemented consistently and effectively in all
national subsidiaries. Thanks to the Group’s shared focus
on sustainability ambitions, several policies have already
been drawn up by the national subsidiaries.
On a general level, this approach is designed to ensure
that sustainability matters are adequately factored into
business decisions and strategic considerations.
Action plans for the use of renewable energy are
implemented across the Group. They are described in the
disclosures under ESRS E1-3 – Actions and resources in
relation to climate change policies. These action plans are
incorporated into the local policies that are already
in place.
Responsible investment strategy
Baloise endeavours to reduce the financed emissions
in the investment business. In this business, Baloise
Asset Management has drawn up a climate strategy
for liquid assets that is an integral element of the
expanded responsible investment strategy. The expanded
responsible investment strategy specifically applies to
the majority of insurance investments, to Luxembourg
investment funds that are managed by Baloise and
promote environmental or social characteristics in
accordance with Article 8 SFDR, or a combination of
these characteristics, and to collective investments that
satisfy the Swiss criteria for sustainable investments
pursuant to the “Self-regulation on transparency and
disclosure for sustainability-related collective assets” of
the Asset Management Association Switzerland (AMAS)
and the FINMA guidance on preventing and combating
greenwashing.
The climate strategy is aimed at ensuring the
management of risks relating to climate change,
increasing the long-term profitability of investments and
thus contributing to the success of investments over
the long term. However, it is also aimed at making a
contribution to climate change mitigation. The existing
climate strategy will be updated in 2025 in line with
the target of net zero by 2050. This commitment will be
reflected in the transition plan for investments, which
contains interim targets for decarbonisation.
In both 2023 and 2024, the use of exclusions for
companies and countries helped to reduce greenhouse
gas emissions in the investment portfolio. The exclusion
criteria in respect of greenhouse emissions apply to the
following companies:
•
Companies that generate at least 10 per cent of their
revenue from coal.
•
Companies that generate at least 5 per cent of their
revenue from unconventional oil and gas.
•
Companies that generate at least 30 per cent of their
revenue from conventional oil and gas.
The exclusions are based on an assessment conducted by
MSCI ESG Research LLC and were applied using binding
threshold values. All liquid assets and a large proportion
of private assets (infrastructure and private debt) are
affected by these extended exclusions.
In addition, a best-in-class approach was used as part
of the expanded responsible investment strategy that is
aimed at consciously giving preference to investments
based on their MSCI ESG rating. The MSCI ESG rating
consists of multiple key performance indicators (KPIs)/
scores that are based on various sector-specific material
ESG criteria. Individual KPIs/scores can provide a direct
indicator of an issuer’s performance relative to its peer
group in terms of certain important negative impacts
on sustainability factors. They can also reflect this
performance implicitly. The main score in relation to
greenhouse gas emissions is the carbon emissions score,
which includes the carbon emissions management score
and the carbon emissions exposure score.
In its investment business, Baloise has a good
set of base data for all liquid assets. With regard to
illiquid assets, Baloise Asset Management is working
with its external investment managers to build up a
similarly comprehensive set of base data over time. The
responsible investment team has developed a dedicated
questionnaire for this purpose, enabling the necessary
data to be systematically collected on a regular basis. In
the Swiss real estate business, an energy management
system (EMS) was implemented in 2024 so that all of the
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Baloise Group Annual Report 2024
necessary actual consumption data for the properties in
Switzerland is available. This forms a solid basis for the
planned revision of the climate strategy and the transition
plan for investments in 2025.
Policies in the banking business for lowering greenhouse
gas emissions
Baloise Bank offers its private clients in the lending
business an extensive range of information on how to
improve the energy efficiency of their own homes and
their holiday homes. Specific sustainable products are not
currently offered in the lending business.
In connection with investment advice and portfolio
management, customers are given information in
accordance with the self-regulation published by the
SBA on ESG risks attaching to the sustainable products
and financial services offered, in addition to general risks.
Appropriate solutions are offered to sustainability-minded
customers.
E1-3 – Actions and resources in relation to
climate change policies
(Art. 3 KlimaVO)
In 2024 and previous years, Baloise carried out actions to
lower greenhouse gas emissions and, at the same time,
protect natural resources.
As part of its future efforts, Baloise will increase its
focus on improving the base data for ensuring the
transparency of its climate change mitigation actions so
that it can disclose reliable figures and information. This
relates not only to the achieved and expected reductions
in greenhouse gas emissions but also specific information
on the significant CapEx and OpEx monetary amounts.
The following climate change mitigation actions have
already been implemented or were initiated in 2024:
Germany
•
Optimise employees’ methods of travel
•
Optimise the energy efficiency of the Company’s own
buildings
•
Increase the use of renewable energies in the
Company’s own buildings
Switzerland
•
Increase the proportion of electric vehicles in the fleet
•
Optimise the energy efficiency of the Company’s own
buildings
•
Optimise the energy efficiency of rented buildings
•
Increase the use of renewable energies in the
Company’s own buildings
•
Reduce air travel and business trips in general
Belgium
•
Increase the proportion of electric vehicles in the fleet
•
Publish a policy for carpooling and carsharing
•
Optimise the energy efficiency of the Company’s own
buildings
•
Optimise the energy efficiency of rented buildings –
sustainable rental agreements, including energy effi-
ciency, water savings, waste reduction and air quality
•
Increase the use of renewable energies in the Compa-
ny’s own buildings
•
Increase the use of renewable energies in rented
buildings
•
Reduce air travel
•
Install heat pump boilers: reduction in gas
consumption
•
Install solar collectors
•
Renovate the Royale Belge building
Luxembourg
•
Increase the proportion of electric vehicles in the fleet
•
Optimise the energy efficiency of the Company’s own
buildings
•
Optimise the energy efficiency of rented buildings
•
Increase the use of renewable energies in the
Company’s own buildings
•
Increase the use of renewable energies in rented
buildings
The Baloise Group reviews the selection of climate change
mitigation projects at regular intervals and, working with
external partner companies, adapts them in line with
market developments.
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Metrics and targets
E1-4 – Targets related to climate change
mitigation and adaptation
(Art. 3 KlimaVO)
Climate-related targets
As described under ESRS E-2 Policies related to climate
change mitigation and adaptation, the direction of
sustainability-related efforts will be specified in more
detail from 2025 onwards in connection with the new
sustainability strategy. This includes setting targets in
connection with the transition plans for the Group’s own
operations and for financed and insured emissions. Baloise
will also reassess the existing climate-related targets
(net zero by 2050 and the reduction of emissions from
own operations (Scopes 1 and 2) by 25 per cent by 2030
compared with the 2022 base year) and integrate them
into the transition plans to be drawn up.
No targets have been set in the existing asset
management climate strategy for liquid assets. Interim
targets for decarbonisation in line with the Baloise Group’s
general commitment to reaching net zero by 2050, for
example, will be included in the planned transition plan
for investments. The revised climate strategy and the
transition plan for investments will be published in the
next reporting cycle.
E1-5 – Energy consumption and mix
(Art. 3 KlimaVO)
E1-5: Energy consumption and energy mix
Key figure
Unit
2024
2023
2022
Total energy consumption from fossil sources
MWh
10,502
9,578
11,424
Total energy consumption from nuclear sources
MWh
0
0
0
Total energy consumption from renewable energy sources, broken down into:
MWh
13,961
14,892
16,377
Fuel consumption for renewable sources, including biomass (including industrial and
municipal waste of biological origin), biofuels, biogas, hydrogen from renewable
sources, etc.
MWh
1,925
1,838
2,096
Consumption from purchased and received electricity, heat, steam and cooling from
renewable sources
MWh
11,910
12,961
14,236
Consumption of self-generated renewable energy other than fuels
MWh
126
94
45
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Information on energy consumption at the Baloise sites
is collected annually. The data basis is the same as for
the calculation of operational emissions in E1-6 – Gross
Scopes 1, 2, 3 and total GHG emissions. The energy
consumption of sites for which no detailed information
is available is estimated on the basis of comparable
sites using a conservative method of calculation. Energy
consumption from fossil sources includes the consumption
of all electricity without verifiable guarantees of origin and
the share of fossil fuels in district heating consumption.
E1-6 – Gross Scopes 1, 2, 3 and total GHG
emissions
(Art. 3 KlimaVO)
E1-6: GHG Gross emissions for Scope 1, 2 and 3 categories, and total GHG emissions
Key figure
Unit
2024
2023
2022
Scope 1 emissions
Total Scope 1 emissions
tCO2e
4,785
4,078
4,738
Share of Scope 1 GHG emissions from regulated ETS
per cent
0
0
0
Scope 2 emissions
Total Scope 2 emissions (location-based)
tCO2e
2,719
n/a
n/a
Total Scope 2 emissions (market-based)
tCO2e
616
632
1,004
Significant Scope 3 emissions
Total Scope 3 emissions
tCO2e
1,578,820
83,121
85,257
1 Purchased goods and services
tCO2e
79,640
76,065
79,452
2 Capital goods
tCO2e
914
1,306
1,348
3 Fuel- and energy-related emissions
(not included in Scope 1 or Scope 2)
tCO2e
1,733
1,790
1,481
5 Operational waste
tCO2e
176
174
115
6 Business travel
tCO2e
908
1,416
1,145
7 Commuting
tCO2e
3,323
2,369
1,718
15 Investments
tCO2e
1,492,125
n/a
n/a
Total GHG emissions
Total GHG emissions (location-based)
tCO2e
1,586,323
n/a
n/a
Total GHG emissions (market-based)
tCO2e
1,584,221
87,831
90,999
GHG emissions intensity
Total GHG emissions (location-based)
per million net revenue* in CHF
tCO2e / million CHF
285.5
n/a
n/a
Total GHG emissions (market-based)
per million net revenue* in CHF
tCO2e / million CHF
285.1
16.2
17.0
* corresponds to insurance revenue.
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Baloise’s GHG footprint is prepared in accordance with
the Greenhouse Gas Protocol Corporate Standard
(GHG Protocol Corporate Standard). It includes the
currently measured and estimated direct and indirect
environmental key figures. The emissions are recorded
in metric tonnes of carbon dioxide equivalents (tCO₂eq).
The organisational system limits for the calculation of
operational emissions were determined in accordance
with the operational control principle.
For operational emissions, data is collected from the
following sites as part of the annual carbon accounting
processes:
•
Switzerland: Basel, Lausanne, Lugano, Bern, Zurich,
Solothurn
•
Germany: Bad Homburg, Hamburg, Bremen
•
Belgium: Antwerp, Brussels, Ghent, Hasselt
•
Euromex: Antwerp
•
Luxembourg: Leudelange
The emissions of smaller sites and units for which no
activity data is available are extrapolated on the basis of
the Group-wide emissions and the number of employees.
This process ensures that all significant sources of
operational emissions are included in carbon accounting.
The emission factors that Baloise uses to calculate
Group-wide emissions are supplied by an external provider
that is established in the market. The emission factors are
based on state-of-the-art research, particularly the IPCC’s
Guidelines for National Greenhouse Gas Inventories.
Scope 1 emissions include the use of fuel to heat
buildings, the renewable energy generated on Baloise
sites, the company’s own vehicle fleet (petrol and diesel)
and the loss of coolant at Baloise sites.
Scope 2 emissions cover the use of purchased
electricity and district heating at Baloise sites. This scope
also includes the electricity consumption of electric cars
used for company business.
Scope 3 emissions comprise purchased goods and
services, and capital goods. They also include fuel-related
and energy-related emissions, emissions from refuse
generation and water consumption, and emissions from
business travel and commuting by employees, including
energy used by employees working from home.
Baloise makes an ongoing effort to improve the base
data. These efforts enabled Baloise to disclose market-
based and location-based Scope 2 emissions, Group-
wide emissions from purchased goods and services
and capital goods, and Group-wide financed emissions
for the first time in 2024. The continual improvement
in data quality and completeness leads to significant
changes in the amount of emissions disclosed, especially
Scope 3 emissions. Operational emissions, mainly in the
“purchased goods and services” and “capital goods”
categories, play a prominent role here. The emissions in
these two categories were estimated for the first time for
all years included in this report on the basis of Group-wide
procurement data covering around 90 per cent of Baloise’s
purchases. This calculation facilitates an initial estimate
and should be understood as an approximation. Baloise is
reviewing ways of making greater use of activity data to
calculate emissions in these categories.
Financed emissions in the investment portfolio
The gross GHG emissions in Scope 3 category 15 presented
below comprise the Scope 1 and Scope 2 emissions from
the insurance investment portfolio of the Baloise Group,
specifically the emissions for the following assets: loans to
listed companies, equities and real estate. They also cover
funds linked to loans to listed companies and equities.
Also included are bonds classified as public or government
bonds that have been issued by companies which are
partly or wholly owned by a government but operate in
certain sectors of industry. Government bonds are listed
separately at the end of this section.
Not currently included are figures for Baloise’s exposure
to private assets, mortgages, derivatives, commercial
paper, cash and long-term equity investments.
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E1-6: GHG Gross emissions Scope 3 Category 15
Absolute GHG emissions financed by investments per asset class
Key figure
Unit
Corporate loans
Listed shares
Funds
Real estate
GHG emissions
tCO2e
496,000
19,105
5,497
54,968
Coverage rate
per cent
91.2
97.3
35.0
94.1
Covered investment volume
CHF
14,679,848,428
613,581,838
92,154,633
8,628,125,469
To calculate financed emissions, Baloise aggregated the
emissions of the various in-scope assets. Emissions for
liquid assets were calculated using the Partnership for
Carbon Accounting Financials (PCAF) method and, where
available, emissions data from MSCI Ltd. for listed assets
based on data as at the end of 2024.
To calculate Baloise’s financed emissions in a company,
the sum of the company’s emissions are divided by the
enterprise value including cash (EVIC) and then multiplied
by the amount of Baloise’s investment. The sum of
financed emissions from all companies in the portfolio is
then used to calculate the total financed emissions
of Baloise.
The average data quality score of 2.34 for business
loans and 2.01 for equities was calculated on the basis of
PCAF data quality scoring from MSCI Ltd. Quality level 2
dominated for equities and bonds. This means that the
emissions were based either on reported emissions or on
data about the primary physical activity entailing energy
consumption by the company. For lower data quality
scores, missing emissions data was estimated by MSCI
Ltd. on the basis of the company’s production or revenue
figures, or, if these were not available either, on the basis of
industry averages for emissions intensity.
For real estate, Baloise used data from the end of 2023.
The emissions were estimated using the PCAF method and
emission factors in accordance with the Carbon Risk Real
Estate Monitor (CRREM). The average PCAF data quality
value is 4 for real estate.
The degree of coverage represents the sum of assets for
which weighted average carbon intensity (WACI) data is
available divided by the total sum of assets that are in
scope of the specific category. For example, the degree
of coverage for fixed-income investments is the sum of
fixed-income investments for which data is available
divided by the total sum of fixed-income investments that
are included in the analysis. For real estate, the degree of
coverage is calculated as follows: value of all properties
in the real estate portfolio for which emissions can be
estimated using available floor space data, divided by the
total value of the real estate portfolio
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E1-6: GHG Gross emissions Scope 3 Category 15
Liquid assets: weighted average carbon intensity by revenue
Key figure
Unit
Corporate loans
Listed shares
Funds
WACI
tCO2e / CHF million income
52.0
63.4
103.5
Coverage rate
per cent
92.7
97.3
35.7
Covered investment volume
CHF
14,924,501,072
613,581,838
94,006,940
For liquid assets, we measure the weighted average
carbon intensity (WACI), which covers the Scope 1 and
Scope 2 emissions of the insurance investment assets
and comprises, in particular, loans to listed companies,
equities and funds linked to such assets.
The approach for calculating intensity based on
revenue (tCO₂e/year/revenue) in accordance with PCAF is
based on data from MSCI Ltd. It has a weighted average
data quality score of 2.35 for business loans and 2.01 for
equities, based on the PCAF data quality score, which is
also from MSCI Ltd.
Quality level 2 dominated for equities and bonds. This
means that the emissions were based either on reported
emissions or on data about the primary physical activity
entailing energy consumption by the company. For
lower data quality scores, missing emissions data was
estimated by MSCI Ltd. on the basis of the company’s
production or revenue figures, or, if these were not
available either, on the basis of industry averages for
emissions intensity.
The degree of coverage represents the sum of assets
for which WACI data is available divided by the total
sum of assets that are in scope of the specific category.
For example, the degree of coverage for fixed-income
investments is the sum of fixed-income investments for
which data is available divided by the total sum of fixed-
income investments that are included in the analysis.
The covered investment volume represents the sum of
assets for which data is available, i.e. it is the numerator in
the degree of coverage.
E1-6: GHG Gross emissions Scope 3 Category 15
Real estate: weighted average carbon intensity per square meter
Key figure
Unit
Real estate
Intensity per square metre
kgCO2e / m2
25.2
Coverage rate
per cent
94.1
Covered investment volume
CHF
8,628,125,469
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For real estate, the intensity score for Scope 1 and Scope
2 emissions attributed to Baloise is measured in kgCO₂e/
m2 (financed emissions divided by the financed floor
space of the real estate). The method is based on the one
prescribed by PCAF. CRREM emissions factors from 2023
were used.
The overall estimate leads to a weighted average
PCAF quality score of 4 for directly held real estate. It
is anticipated that this score will improve in the next
reporting period as Baloise will include consumption data
in the measurement methods.
In addition to the above disclosures, Baloise has also
estimated its financed emissions from government bonds.
In accordance with the PCAF method, sub-national and
supranational bonds were excluded.
The figures reflect the attributed emissions as Baloise’s
exposure to government bonds was multiplied by the
emission factor for government bonds (in accordance with
the Emissions Database for Global Atmospheric Research
(EDGAR) 2023) and divided by GDP adjusted for PPP (gross
domestic product based on purchasing power parity
according to the World Bank, 2023). This is in line with the
PCAF method. For Baloise, this figure is 916,555 tCO₂e/year
from an exposure of CHF 7.27 billion in government bonds.
Insurance-associated emissions
In 2024, Baloise calculated the “insurance-associated
emissions” in its portfolio for the first time, following
the methodology of the PCAF. PCAF divides insurance-
associated emissions into two segments for this purpose:
commercial lines and personal motor lines. Baloise’s
first calculation highlighted the distribution of absolute
emissions within the various segments and business
units. The emissions intensity metric, which indicates the
emissions per Swiss franc of premiums, enabled specific
comparisons to be made in the overall market. Initial
calculations show that in the commercial lines segment,
the Swiss market has higher emissions than the other
business units. By contrast, Germany has the highest
emissions intensity in the personal motor lines segment.
The biggest challenge was obtaining good-quality data.
In the commercial lines segment in particular, barely any
data on emissions or revenue is available, so some of the
results are not meaningful. This deficiency will gradually
be eliminated going forward, thereby providing a more
reliable set of base data.
The actions planned include optimisation of coverage
of the insurance portfolio by integrating sectoral
and industry classifications, clearer assignment to
the insurance sectors and an automated process for
obtaining data. This will lay the foundations on which to
define targets for the insurance portfolio.
Carbon-related assets of the Banking segment
The Banking segment’s credit portfolio is largely focused
on mortgages on owner-occupied properties, so it does
not have a significant concentration of carbon-related
assets.
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E1-7 – GHG removals and GHG mitigation
projects financed through carbon credits
(Art. 3 KlimaVO)
The removal or storage of greenhouse gases does not
currently take place within Baloise’s own operations or
value chain.
When it defines specific sustainability targets and
develops the related reduction pathway, Baloise will look
at options for removing greenhouse gases in its value
chain.
Baloise currently uses emission allowances to
voluntarily offset the greenhouse gas emissions from its
own operations as follows:
The Baloise Group invests centrally in emissions
avoidance projects in order to offset greenhouse gas
emissions. It purchased and cancelled allowances
totalling 11,092 tonnes of CO₂ in 2024. This covers the
amount of carbon emissions caused by operations
based on the 2023 calculation. Further allowances for
cancellation at a future date were not purchased.
Baloise’s initiative to offset its own emissions is
undertaken on a voluntary basis and is not part of its
transition plans that are currently being drawn up for
the Group as a whole (see the disclosures under ESRS
E1-4 – Targets related to climate change mitigation and
adaptation).
The projects for the allowances were selected and
the allowances purchased with the assistance of an
established provider in Switzerland. The modalities and
methods of the projects were assessed and the projects
were certified against the following standards in terms of
impact on the environment and society:
•
The Gold Standard, which is an independent standard
of quality for high-quality climate change mitiga-
tion projects that pursue ecological objectives and
contribute to sustainable development (share of the
total volume: 2,213 tCO₂ (20 per cent))
•
The Verified Carbon Standard (VCS), which ensures
the environmental integrity and quality of climate
change mitigation projects (share of the total volume:
8,326 tCO₂ (75 per cent))
•
ISO 14064-2, validated by TÜV NORD, a recognised
standard for accurate quantification, monitoring and
reporting of greenhouse gas reductions at project level
(share of the total volume: 553 tCO₂ (5 per cent))
35 per cent of the CO₂ volume was generated through
projects within the EU and 5 per cent through projects in
Switzerland.
The Baloise Group reviews the selection of climate
change mitigation projects at regular intervals and
adapts its selection in line with market developments.
E1-8 – Internal carbon pricing
(Art. 3 KlimaVO)
Baloise has not implemented any internal carbon pricing
schemes as part of its management of the Company.
E1-9 – Anticipated financial effects from
material physical and transition risks and
potential climate-related opportunities
(Art. 3 KlimaVO)
The metrics currently available regarding the environment
and climate are disclosed in the chapters above. Baloise
will endeavour to publish additional metrics for measuring
climate-related risks and opportunities in future years.
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ESRS S1 – Own workforce
Strategy
176
Disclosure requirement related to
ESRS 2 SBM-2 – Interests and views of stakeholders
176
Disclosure requirement related to
ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy
and business model
176
Impact, risk and opportunity
management
177
S1-1 – Policies related to own workforce
177
S1-2 – Processes for engaging with own workers
and workers’ representatives about impacts
181
S1-3 – Processes to remediate negative impacts
and channels for own workers to raise concerns
182
S1-4 – Taking action on material impacts on the
Company’s own workforce, and approaches to
managing material risks and pursuing material
opportunities related to the Company’s own
workforce, and effectiveness of those actions and
approaches
182
Metrics and targets
184
S1-5 – Targets related to managing material
negative impacts, advancing positive impacts,
and managing material risks and opportunities
184
S1-6 – Characteristics of the Company’s employees
184
S1-7 – Characteristics of the Company’s
non-employees
185
S1-8 – Collective bargaining coverage and social
dialogue
186
S1-9 – Diversity metrics
186
S1-10 – Adequate wages
186
S1-11 – Social protection
187
S1-12 – Persons with disabilities
187
S1-13 – Training and skills development metrics
187
S1-14 – Health and safety metrics
187
S1-15 – Work-life balance metrics
188
S1-16 – Remuneration metrics
(pay gap and total remuneration)
188
S1-17 – Incidents, complaints and severe
human rights impacts
189
ESRS S4 – Consumers and end-users
Strategy
190
Disclosure requirement related to
ESRS 2 SBM-2 – Interests and views of stakeholders
190
Disclosure requirement related to
ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy
and business model
190
Impact, risk and opportunity
management
191
S4-1 – Policies related to consumers and end-users
191
S4-2 – Processes for engaging with consumers and
end-users about impacts
195
S4-3 – Processes to remediate negative impacts
and channels for consumers and end-users
to raise concerns
195
S4-4 – Taking action on material impacts on
consumers and end-users, and approaches to
managing material risks and pursuing material
opportunities related to consumers and end-users,
and effectiveness of those actions and approaches 196
Metrics and targets
203
S4-5 – Targets related to managing material
negative impacts, advancing positive impacts, and
managing material risks and opportunities
203
Social information
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Strategy
Disclosure requirement related to
ESRS 2 SBM-2 – Interests and views of
stakeholders
(Art. 964b (2) 1 OR)
Reference is made to ESRS 2 SBM-2 – Interests and views
of stakeholders, with regard to how the interests, views
and rights of Baloise’s own workforce, including respect for
workers’ human rights, inform the strategy and business
model.
Disclosure requirement related to
ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with
strategy and business model
(Art. 964b (2) 1 and 4 OR)
In the following section, the material topic-specific
impacts, risks and opportunities relating to Baloise’s
own workforce are considered. A detailed overview can
be found in ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model, which contains comprehensive disclosures
on the identified impacts on people and the environment.
Baloise’s workforce mainly comprises salaried
employees, including full-time and part-time staff,
temporary student employees and interns. There is only a
small number of non-employees, such as self-employed
people and people provided by third-party companies.
All workers may potentially be affected by the identified
impacts.
Negative impacts affecting Baloise’s own workforce
include deterioration in employees’ physical and/or
mental health as a result of discrimination, workload
or non-ergonomic workstations. Other examples are
unequal opportunities for promotion, violation of human
rights or a poor balance between family/personal life
and work. Negative impacts may also arise in connection
with remuneration, e.g. as a result of a pay gap or
stress resulting from a difficult financial situation that
is attributable to low pay. However, it should be noted
that negative impacts such as these tend to be linked to
individual circumstances and are not systemic.
Baloise attaches a high priority to employee
satisfaction. This applies to all employees, irrespective
of their racial and ethnic origin, colour, sex, sexual
orientation, gender identity, disability, age, religion,
political opinion, national extraction or social origin.
Baloise pays all its employees adequate and fair wages
that are in line with country-specific standards. In
accordance with the statutory requirements applicable
to the individual national subsidiaries, all employees
benefit from social protection against loss of income
due to major life events (sickness, unemployment
starting from when the employee works for the Company,
employment injuries and acquired disability, parental
leave and retirement). Flexible working models help
employees to maintain a good work-life balance. As a
responsible employer, Baloise protects the health of its
employees and carries out suitable actions to proactively
avoid risks in the workplace.
The material risks in relation to Baloise’s own workforce
include, for example, the risk of a shortage of skilled
workers. This means that positions cannot be filled with
sufficient and/or suitably qualified skilled workers because
they are not available in the labour market or because
they do not want to be recruited on the terms offered.
There is also a risk of capacity shortages when additional
project work is required, as specific expertise is often
needed at short notice. Inadequate knowledge transfer
due to insufficient training and development and due to
information not being properly passed on also poses a risk
to the success of the Company.
The material opportunities arising in relation to
Baloise’s own workforce include using digitalisation
to ease employees’ workloads, offering attractive and
forward-looking working models and offering attractive
development opportunities.
As Baloise has not yet implemented any transition
plans for reducing negative impacts on the environment
and achieving greener and climate-neutral operations, it
is currently not possible to identify any material impacts
on the Company’s own workforce.
The positive impact on the change in employees’
environmental awareness is presented in ESRS E1 Climate
change.
At Baloise, there are no operations that pose a
significant risk of incidents of forced labour or child labour.
As equal working conditions and structures are offered
at Baloise, all employees are treated equally regardless of
their position. No employee group in Baloise’s workforce
is disproportionately affected by negative impacts.
Nevertheless, supporting actions are carried out in
Social information
ESRS S1 – Own workforce
(Art. 964b (1) OR)
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Baloise Group Annual Report 2024
individual cases where required (e.g. making an office
building accessible for an employee with a disability).
The risks and opportunities identified relate to everyone
in the workforce.
Impact, risk and opportunity
management
S1-1 – Policies related to own workforce
(Art. 964b (2) 2-4 OR)
The material policies established by Baloise in relation
to its own workforce are presented in the following table.
Baloise implements these policies by taking specific
action, which is reported on in full under ESRS S1 Own
workforce.
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Name of rule set
Main content
General objectives Review
Area of application
HR strategy
•
Dimensions and objectives of
HR management
•
Analysis of employees’ satisfaction
and experiences
•
Process for recruiting new employees,
including onboarding
Recruitment and
retention of
employees
Annually
Group-wide
Group Policy on Human
Rights
•
Definition of the Baloise Group’s stance on
human rights and labour rights, including
the prohibition of child labour
•
Description of the Baloise Group’s
approach to the observance of human
rights
•
Definition of responsibilities in relation to
human rights and arrangements for
cooperation with the various stakeholders
in the Baloise Group
•
Description of the reporting process
Upholding of
human rights and
labour rights;
avoidance of child
labour
Annually
Group-wide
Code of Conduct
•
Ensuring confidentiality (confidentiality,
data protection, use of electronic
information and communication media)
•
Safeguarding integrity (money laundering
prevention and embargoes, insider dealing,
cartels, accounting, records management)
•
Dealing with customers and the public
(mandates, conflicts of interest, gifts,
donations, corruption, complaints, duty of
care, taxes, communications and media)
•
Employee relations (health, equal
treatment, bullying, sexual harassment)
•
Employees’ contribution to implementation
of the Code (responsibility, breaches,
sanctions, performance assessment)
•
Link to the whistleblowing system
Information about
the ethical and
legal principles and
duties applicable to
all employees
Annually
Group-wide
Policies related to own workforce (MDR-P)
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Report on non-financial matters
Responsible
organisational level
Reference to third-party standards or
initiatives
Availability of the policy to
stakeholders
Name of rule set
Group HR
n/a
Restricted, on a
need-to-know basis
HR strategy
Group Compliance
•
UN Principles for Sustainable Insurance
(PSI) and Responsible Investment (PRI)
•
UN Sustainable Development Goals (SDGs)
•
OECD Guidelines for Multinational Enter-
prises on Responsible Business Conduct
(OECD MNE Guidelines)
Intranet and summary
on the website
Group Policy on Human Rights
Group Compliance
n/a
Website and intranet
Code of Conduct
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Report on non-financial matters
HR strategy
Baloise’s HR strategy defines the central dimensions and
objectives of HR management and recruitment. It also
sets out the process for analysing employees’ satisfaction
and experiences.
Baloise’s success relies on skilled and customer-focused
employees working with dedication and commitment in
their areas of responsibility, thereby actively contributing
to the implementation of Baloise’s strategy. To be and
remain an employer of choice, Baloise attaches a high
priority to employee satisfaction and commitment. It
has therefore conducted a regular engagement survey
among all employees for more than ten years in order to
gauge their satisfaction and motivation and to implement
targeted action aimed at improvement based on the
outcome of the survey.
As part of the HR strategy, especially since the start
of the Season 2 strategy period, Baloise has been taking
a clearly structured approach to gauge employee
satisfaction and commitment on an ongoing basis and to
heighten its appeal as an employer:
•
Regular Company-wide survey
The employee engagement survey (EES) is used to
ask employees about their satisfaction and about
the factors that influence it. These surveys are aimed
at determining employee satisfaction and tracking
employees’ feedback over time to highlight positive
trends and to take early appropriate action in the
event of a deterioration. The results of these surveys
are shared with all participating units so that suitable
action aimed at improvement can be taken at all levels
– from the team to the Company as a whole.
•
More in-depth analysis of the main drivers of
satisfaction
Building on the main drivers identified in the EES,
Baloise carries out an ongoing survey of all employees
from the employee experience perspective using an
employee experience inventory (EXI). The purpose of
this additional survey is to find out about employees’
core experiences of what the Company offers. The
data collected provides valuable quantitative insights
to those responsible, which they can use to address
potential areas of improvement in the relevant
processes and functions.
•
Additional initiatives by the national subsidiaries
In addition to the Group-wide actions, Baloise encour-
ages national approaches to improving employee
satisfaction further. In Switzerland, for example, Baloise
has been awarded the Friendly Workspace label for
many years in recognition of its firm focus on good
working conditions and healthy employees. It under-
goes the necessary recertification process every three
years.
This comprehensive approach underlines Baloise’s
commitment as an employer of choice to creating
positive working conditions and maintaining employee
satisfaction in the long term.
To round off the Season 2 strategy period, Baloise
conducted the EES pulse check in November 2024,
measuring progress in this way for the final time. The new
strategy period will see the tried-and-trusted approach
to measuring employee commitment carried out in a
comparable way, because committed employees remain
a central pillar of Baloise’s success (see the Refocusing
Baloise strategy).
Baloise’s comprehensive efforts to increase
employee satisfaction under its HR strategy and ease
employees’ workloads through digitalisation and project
management tools allow Baloise to tackle the risks arising
as a result of the shortage of skilled workers, capacity
shortages and staff turnover.
To minimise the risk of inadequate knowledge transfer
and to build up employees’ skills, Baloise holds regular
training courses and personal development meetings. It
draws on additional external support where required.
Enabling employees to combine work and family
life through flexible working time models contributes
to employee satisfaction while also reducing the risks
associated with a poor work-life balance.
Group Policy on Human Rights
Upholding human rights and labour rights is enshrined
in Baloise’s Group Policy on Human Rights, as is the
avoidance of child labour.
With regard to the disclosures relating to respect for
human rights, including labour rights within Baloise’s own
workforce, see ESRS 2 SBM-1 – Strategy, business model
and value chain. That section also addresses human
trafficking, forced labour and child labour. A preventative
and/or corrective approach is taken to human rights-
related risks.
In the countries in which it operates, Baloise ensures
compliance with statutory requirements protecting labour
rights. To do so, it deploys specialists (e.g. in HR) and by
having elected employee representatives.
In addition to having a works council, Baloise works
closely with the representative committee for employees
with severe disabilities in Germany. The aim is to ensure
that the interests of the workforce as a whole and the
particular needs of employees with disabilities are taken
into account in all decision-making processes that may
potentially have a social or environmental impact.
Baloise Code of Conduct
Baloise also has a Code of Conduct that defines the
fundamental expectations and requirements in terms of
employees’ behaviour with regard to health and safety
and with regard to elimination of discrimination, including
harassment. It underlines adherence to compliance rules
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and their implementation in the compliance management
system, and includes information on the whistleblowing
system.
Health and safety
As a responsible employer, Baloise protects the health
of its employees and carries out targeted actions to
proactively mitigate risks in the workplace. The obligation
to both protect the health and safety of employees and
maintain appropriate working conditions is enshrined
in the Code of Conduct. Responsibility lies with the
individual national subsidiaries, which run various
initiatives in pursuit of these objectives. This ensures
that the local standards of occupational health and
safety are fully satisfied.
Elimination of discrimination including harassment
In its positioning as an employer, its recruitment processes
and its day-to-day operations, Baloise creates a working
environment for employees that is free of discrimination
on the grounds of racial and ethnic origin, colour, sex,
sexual orientation, gender identity, disability, age, religion,
political opinion, national extraction, social origin and
other forms of discrimination.
Collaborating across borders and embracing
differences are an important part of Baloise’s corporate
culture. For Baloise, diversity and inclusion mean utilising
employees’ different strengths and personalities while
remaining mutually respectful and accepting of each
other.
The national subsidiaries also undertake specific
action to further enhance diversity, inclusion and equal
opportunities. These include action to comply with local
statutory requirements and targeted initiatives, such as
those that support the advancement of women. Examples
in Germany include targets for the proportion of women in
management and the signing of the Diversity Charter.
S1-2 – Processes for engaging with own
workers and workers’ representatives about
impacts
(Art. 964b (2) 3 and 5 OR)
In all of Baloise’s national subsidiaries, there are formal
employee representative bodies or works councils
that represent the interests of employees vis-à-vis the
Company.
In consultation with the employee representatives,
Baloise uses a structured data collection method to
measure employee satisfaction and as a basis for
systematically defining action aimed at improvement:
Employee engagement surveys and EES pulse checks
•
Through the employee engagement survey (EES) that it
conducts every two years (most recently at the end of
2023, as per the schedule), Baloise asks all employees
for feedback on their satisfaction and the factors that
influence it (see details of the measurement approach
under ESRS S1-5 – Targets related to managing material
negative impacts, advancing positive impacts, and
managing material risks and opportunities)).
•
At intervals between these full surveys, all employees
are requested to complete a short EES pulse check on
progress in order to identify material developments as
promptly as possible.
Transparency and dialogue
•
The results of the EES surveys are broken down by team
and made available to all employees promptly after
the survey has taken place.
Definition of action aimed at improvement
•
All of the organisational units involved – from team
level up to Group level – are required to analyse
their results and to define suitable action aimed at
improvement.
•
Action areas affecting multiple units are identified at
the level of the operating segments by the relevant
management teams and at Company level by the
Group Strategy Board. The actions to be taken by the
operating segments are also shared on the Group
Strategy Board so that synergies can be identified.
•
The operating segments’ results are also made
available to the relevant employee representative
bodies, enabling necessary actions to be discussed in
partnership between the management teams and the
employee representatives. At the level of the Company
as a whole, this takes place in the context of the annual
European Forum (see ESRS S1-8).
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Employee experience inventory (EXI)
•
In addition to the EES, there is an employee experience
inventory approach (EXI), which involves asking a group
of employees on a monthly basis about their experi-
ences of the material benefits that the Company offers
them in the context of their work. The entire employee
lifecycle is covered, from recruitment through to the
end of the employment relationship.
Combination of EES and EXI
•
To link the two surveys – EES and EXI – and to provide
a leading indicator for the EES, the EXI also asks
employees about their satisfaction.
Using the results and drawing up actions
•
The EXI results are made available to the responsible
people in the national subsidiaries in order to identify
action areas at national or Group level. This information
is then provided to the people responsible for the rele-
vant processes and functions in order to define specific
action aimed at improvement.
Group-wide responsibility for the strategic design of
Baloise’s employee surveys, comprehensive analysis
of the results, and coordination of the Company-wide
improvement process lies with the CEO unit.
All in all, Baloise considers the data collection and
improvement methodology described above to be
extremely effective for implementing its strategy. It allows
all relevant teams and functions to be systematically
involved in the ongoing process of improvement. The
Group-wide participation rate for the most recent EES,
which was conducted in November 2023, was 77 per cent.
The EES captures anonymised data on key
characteristics, such as employees’ gender, years of
service and whether they are a manager, in order to
facilitate related analysis. The survey does not offer more
in-depth evaluations regarding possible minorities for
reasons of data protection.
S1-3 – Processes to remediate negative
impacts and channels for own workers to raise
concerns
(Art. 964b (2) 3 OR)
Baloise has put internal grievance mechanisms in place to
avoid or remedy negative impacts on its own workforce.
The mechanisms ensure that employees can voice their
concerns safely and in confidence. Baloise attaches great
importance to protecting the identity of the whistleblower
and any persons mentioned in the reports.
The channels through which employees can make
complaints about unlawful and unethical conduct are the
Integrity Line reporting platform, the responsible points of
contact in the Compliance function, the employees’ line
managers or another Company representative.
Baloise cultivates an open corporate culture and
encourages its employees to give their names when
reporting incidents. However, reports can also be made
anonymously. A dedicated page containing extensive
information on reporting suspicions has been created on
the intranet. Baloise has also put an action plan in place
to protect individuals from retaliation. Baloise does not
tolerate retaliation against employees who make reports
in good faith. Whistleblowers are protected from negative
consequences as a result of submitting a report, unless
they knew that the matter reported was not true. More
information on this and on the Integrity Line can also
be found in the disclosures under ESRS G1-1 – Business
conduct policies and corporate culture.
Baloise supports the availability of such channels
by regularly providing information on the channels for
submitting reports and keeping this information up to
date. Employees also receiving regular training on the
reporting channels, and participation in such training
is monitored.
Reported matters are investigated by an independent
internal office. Once the investigation has been completed,
this office recommends appropriate actions. The relevant
line managers are responsible for implementing and
tracking the actions. The actions can also be implemented
by independent offices in the second or third line of
defence where there is an elevated level of risk.
The Audit Committee is informed periodically about the
type and number of Integrity Line reports.
S1-4 – Taking action on material impacts
on the Company’s own workforce, and
approaches to managing material risks and
pursuing material opportunities related to the
Company’s own workforce, and effectiveness
of those actions and approaches
(Art. 964b (2) 3 OR)
Baloise systematically focuses on informed analysis
and targeted action to boost the satisfaction and
commitment of its employees. The following steps and
insights show how the Company addresses material risks,
utilises opportunities and ensures the effectiveness of the
action taken.
The results of the full EES survey conducted as
scheduled at the end of 2023 was able to be analysed
in detail in the first quarter of 2024. Action aimed at
improvement was derived on the basis of this analysis.
A material insight was the change in the ranking of
individual factors of influence. While issues such as
the stretched resource situation and the wellbeing
of employees during the pandemic had become less
relevant, emotional needs, such as a feeling of belonging
or feeling confidence about the future, became far more
important to employees.
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In 2024, a focus was placed on decentralised, team-
specific action, as the results of the employee survey were
made available at the level of teams. The most important
action areas affecting multiple units were defined and
specific actions for improving employee satisfaction were
implemented. The Group Strategy Board discussed the
results of the EES on three occasions and identified Group-
wide action areas such as “survey follow-up”, “trust in the
Executive Committees” and “outlook for the future”. These
action areas were translated into specific actions.
On the subject of “survey follow-up” in 2024, the Group
Strategy Board members attached great importance to
clearly linking the new action steps initiated in their areas
of responsibility with the EES in order to highlight their
relevance for employees.
To address the other two action areas (“trust in the
Executive Committee” and “outlook for the future”),
dialogue with employees in connection with the strategic
realignment was stepped up. New communication
formats, such as town hall meetings and platforms for
dialogue with senior management were established.
The management teams were also given training on
organisational leadership and communication. To prepare
their strategy communication, the management teams
in Germany and Luxembourg and at Baloise Bank took
part in this training course in 2024. The effectiveness of the
action taken was tracked through the EES pulse check in
November 2024. The results showed, in particular, that the
initial communication of the strategic realignment gave
employees the guidance that they had been looking for.
The tried-and-trusted approach to collecting data will be
continued in a comparable manner in the new strategy
period from 2025 in order to address the concerns of
employees and boost their satisfaction.
In addition to the employee surveys, other channels are
available for making complaints, such as the Integrity Line.
More information can be found in the disclosures under
ESRS S1-3 – Processes to remediate negative impacts and
channels for own workers to raise concerns.
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Metrics and targets
S1-5 – Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
(Art. 964b (2) 2 OR)
During the Season 2 strategy period, which was completed
in 2024, Baloise pursued its ambitious target for the Group
to become a leading employer in Europe. The specific
target was employee satisfaction in the 5th percentile
of all European companies, with an interim target to be
achieved by 2024 of joining the upper 10th percentile of
employers. A high level of employee satisfaction plays a
key part in implementing the business strategy because it
leads to happy customers, which in turn leads to success
for the business.
Specifically, Baloise measured employee satisfaction
by asking its employees “How happy are you to work at
Baloise?” At the end of each year, an external partner
institute that specialises in employee surveys provided
Baloise with a benchmark analysis of its percentile
position compared with all other companies in Europe.
Progress is tracked by employees in the CEO unit. This
includes reporting the results to the Group Strategy Board
and coordinating action aimed at improvement across
the Group. Progress is discussed annually with Baloise’s
employee representatives in the context of the European
Forum (see ESRS S1-8 – Collective bargaining coverage
and social dialogue).
In the previous strategy period, Baloise achieved
its target of the Group numbering among the 10th
percentile of employers in the financial sector in Europe.
The 5 per cent target for Season 2 was another milestone.
However, this target came with a new benchmark that
was introduced in connection with switching to Glint as
the survey partner. This opened the comparison up to
include more than the financial sector alone. The first
survey in 2021 placed Baloise in the upper 36th percentile
of employers in Europe. Baloise was able to maintain this
position in 2022 in what was a challenging environment. In
2023, the survey results improved slightly, placing Baloise
in the upper 29th percentile of employers.
The last EES pulse check in November 2024 indicated
that employee satisfaction remained steady in 2024
despite the strategic realignment. Baloise was able to
improve its benchmark ranking by 2 percentage points to
move into the top 27 per cent of employers. This is the final
figure for Season 2.
While the overly ambitious 5 per cent target was
not achieved by any means, ranking in the upper 27th
percentile of the best employers (measured on the
basis of customer satisfaction) is sufficient and suitable
for preventing material risks and negative impacts on
employees while enhancing positive impacts.
S1-6 – Characteristics of the Company’s
employees
(Art. 964b (2) 5 OR)
S1-6: Characteristics of the company’s employees
Total number of employees by gender
Gender
Unit
2024
2023
Female
Headcount
3,586
n/a
Male
Headcount
4,411
n/a
Not specified
Headcount
0
n/a
Total
Headcount
7,997
n/a
No prior-year data is available for this disclosure requirement.
Headcount relates to Baloise employees with a current
employment contract with Baloise as at the reporting
date of 31 December 2024.
S1-6: Characteristics of the company’s employees
Total number of employees by country
Country
Unit
2024
2023
Switzerland
Headcount
4,043
n/a
Germany
Headcount
1,563
n/a
Belgium
Headcount
1,767
n/a
Luxembourg
Headcount
624
n/a
Total
Headcount
7,997
n/a
No prior-year data is available for this disclosure requirement.
Baloise does not have any headcount figures for
employees in Poland, Liechtenstein, the Netherlands or
France. For organisational purposes, employees in these
countries are assigned to and counted in the figures for
the aforementioned country sub-groups.
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S1-6: Characteristics of the company’s employees
Total number of employees by employment contract and gender
Female
Male Not specified
Total
Employees with permanent contracts
Headcount
3,370
4,199
0
7,569
Employees on temporary contracts
Headcount
215
211
0
426
Call-off labour
Headcount
1
1
0
2
Total
Headcount
3,586
4,411
0
7,997
No prior-year data is available for this disclosure requirement.
A total of 95 per cent of employees are permanent.
S1-6: Characteristics of the company’s employees
Staff turnover
Key figure
Unit
2024
2023
Total number of
employees that left the
organisation during the
reporting period
Headcount
784
n/a
Employee turnover in the
reporting period
%
10.3
n/a
No prior-year data is available for this disclosure requirement.
All of the people who left during 2024 and average
headcount were compared (total number of people who
left divided by the average headcount for the year).
Total turnover includes employees who left the
Company for the following reasons in 2024:
•
Termination of employment by the employee
•
Termination of employment by the employer
•
Natural attrition due to retirement or death
•
Temporary employment contract coming to an end
•
Employment contracts being ended by mutual
agreement
All of the people who left during 2024 and average
headcount were compared.
S1-7 – Characteristics of the Company’s
non-employees
(Art. 964b (2) 5 OR)
The information under this disclosure requirement is not
disclosed for the reporting year.
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S1-8 – Collective bargaining coverage and
social dialogue
(Art. 964b (2) 5 OR)
S1-8: Collective bargaining coverage and social dialogue
Coverage
Collective bargaining
coverage
Social dialogue
Employees in
the EEA area
Employees
outside the
EEA area
0–19 %
20–39 %
40–59 %
60–79 %
Luxembourg
Switzerland
80–100 %
Germany
Belgium
Switzerland
Germany
Belgium
Luxembourg
All national subsidiaries have collective pay agreements
or collective labour agreements that cover a majority of
the workforce.
Of the employees of the Baloise Group, 85 per cent are
covered by collective pay agreements and/or the Swiss
collective bargaining agreement for trained office staff.
Employees in the countries listed are represented in
social dialogue by employee representative bodies such
as the employee commission and the works councils.
Together with the employee representatives, Baloise
set up the European Forum to promote dialogue at
international level. This forum provides a platform that
brings together the representatives, the Corporate
Executive Committee and senior management so that
they can discuss and seek common solutions to current
issues of relevance to the Group as a whole.
S1-9 – Diversity metrics
(Art. 964b (2) 5 OR)
S1-9: Diversity parameters
Gender distribution at top management
Gender
2024
2023
absolute
%
absolute
Per cent
Female
5
14.7
4
12.5
Male
29
85.3
28
87.5
Not specified
0
0.0
0
0.0
Total
34
100.0
32
100.0
At Group level, a standard hierarchy was drawn up
based on country-specific management tiers. The top
management level comprises the Corporate Executive
Committee and local Executive Committees.
The members of the top management level in
Belgium are self-employed and therefore belong to the
non-employee population. However, they are included in
the gender distribution for the top management level.
The breakdown of the workforce by age was as follows:
S1-9: Diversity parameters
Age distribution of the workforce
Age distribution
2024
2023
absolute
%
Com
pletely
%
Below 30
1,177
14.7
n/a
n/a
30 to 50
3,899
48.8
n/a
n/a
Over 50
2,921
36.5
n/a
n/a
Total
7,997
100.0
n/a
n/a
S1-10 – Adequate wages
(Art. 964b (2) 5 OR)
At Baloise, all employees are guaranteed fair and
adequate wages that are in line with country-specific
benchmarks. A significant proportion of the salaries are
based on collective pay agreements.
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S1-11 – Social protection
(Art. 964b (2) 5 OR)
All employees benefit, as a minimum, from social
protection in accordance with the statutory requirements
applicable to the individual national subsidiaries. This
protection comprises protection against loss of income
due to major life events, such as sickness, unemployment
(starting from when the employee works for Baloise),
employment injuries and acquired disability, parental
leave and retirement.
S1-12 – Persons with disabilities
(Art. 964b (2) 5 OR)
The information under this disclosure requirement is not
disclosed for the reporting year.
S1-13 – Training and skills development metrics
(Art. 964b (2) 5 OR)
The information under this disclosure requirement is not
disclosed for the reporting year.
S1-14 – Health and safety metrics
(Art. 964b (2) 5 OR)
As a responsible employer, Baloise protects and promotes
the health of its employees and various initiatives are run
in its national units with this aim in mind. Special safety
arrangements are made for activities or special occasions
with a potential risk of accidents.
S1-14: Health and safety metrics
Key figure
Unit
2024
2023
Percentage of persons in the labour force covered by the company’s health and safety
management system, based on legal requirements and / or recognised standards or guidelines
%
100
100
Number of deaths from work-related injuries and work-related illnesses
Quantity
0
n/a
Number of reportable work-related accidents
Quantity
59
n/a
Rate of reportable occupational accidents
%
5.0
n/a
No prior-year data is available for this disclosure requirement.
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The number of workplace accidents is recorded for Baloise
in Switzerland, Germany, Belgium and Luxembourg
and therefore covers more than 97 per cent of the total
workforce.
The rate of recordable work-related accidents is the
number of accidents per million hours worked.
While the actual hours worked in 2024 are available
for the Baloise sub-groups in Switzerland and Germany
and for Baloise Belgium NV, the hours worked for Baloise
Luxembourg and Euromex NV are estimated.
To do so, it was assumed that each employee – in
accordance with the local collective pay agreements –
worked seven hours per day in Belgium and eight hours
per day in Luxembourg on 220 working days in the year.
It was assumed that the accident rate was comparable
with that for other employees in the Group because the
work that they do is similar.
Due to data protection rules, Baloise does not have
any information on recordable work-related ill health.
Similarly, the number of days lost to work-related injuries
or to fatalities resulting from workplace accidents is only
recorded for Baloise Belgium NV and Baloise Germany. This
equates to coverage of 39 per cent of the total workforce.
In Switzerland and Luxembourg, no diagnoses of ill
health may be recorded due to data protection rules,
which is why the number of days lost to work-related
accidents and illnesses cannot be calculated.
S1-15 – Work-life balance metrics
(Art. 964b (2) 5 OR)
In accordance with the respective legislation in each
country, Baloise employees are entitled to take family-
related leave.
In 2024, 4 per cent of all men entitled to do so and
8 per cent of all women entitled to do so took family-
related leave.
The figures calculated cover 97 per cent of employees
in the Baloise Group.
It is assumed that the ratios calculated can be applied
analogously to the other 3 per cent of employees.
S1-16 – Remuneration metrics (pay gap and
total remuneration)
(Art. 964b (2) 5 OR)
The information under this disclosure requirement is not
disclosed for the reporting year.
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S1-17 – Incidents, complaints and severe
human rights impacts
(Art. 964b (2) 5 OR)
The following information is disclosed in relation to
incidents, complaints and severe human rights impacts:
S1-17: Incidents, complaints and severe human rights impacts
Incidents of discrimination, including harassement
Key figure
Unit
2024
2023
Total number of cases of discrimination, including harassment, reported during the reporting period Quantity
4
6
Number of grievances about operations and facilities in which the right to freedom of association
and collective bargaining has been violated, including through mechanisms provided for in
agreements with trade unions
Quantity
1
2
Total amount of significant fines, sanctions and damages, as well as a reconciliation of the stated
amounts of money with the most meaningful amount stated in the financial statements
CHF
0
0
The following information is disclosed in relation to
identified cases of severe human rights incidents (e.g.
forced labour, human trafficking or child labour):
S1-17: Incidents, complaints and severe human rights impacts
Cases of human rights incidents
Key figure
Unit
2024
2023
Number of serious incidents of human rights violations involving the company’s workforce during the
reporting period, including information on how many of them violate the UN Guiding Principles on
Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work or
the OECD Guidelines for Multinational Enterprises
Quantity
0
0
The total amount of fines, sanctions and damages, and a reconciliation of these amounts with the
most meaningful amount disclosed in the financial statements
CHF
0
0
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Strategy
Disclosure requirement related to
ESRS 2 SBM-2 – Interests and views of
stakeholders
(Art. 964b (2) 1 OR)
Reference is made to the disclosures under ESRS 2 SBM-2 –
Interests and views of stakeholders with regard to how the
interests, views and rights of consumers and/or end-users,
including respect for their human rights, inform the
strategy and business model.
Disclosure requirement related to
ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with
strategy and business model
(Art. 964b (2) 4 OR)
In the following section, the most important impacts, risks
and opportunities relating to consumers and end-users
are described. A detailed overview of the material impacts,
risks and opportunities and their interaction with the
strategy and business model is presented in ESRS 2 SBM-3
– Material impacts, risks and opportunities and their
interaction with strategy and business model. That section
contains a detailed description of the identified impacts
on people and the environment. The processes to identify
and assess the material impacts, risks and opportunities,
along with related information, are explained in the
disclosures under ESRS 2 IRO-1 – Description of the process
to identify and assess material impacts, risks
and opportunities.
The material actual negative impacts include harm to
customers as a result of the loss or theft of data, consumer
deception, strengthening of information asymmetries
as a result of advice or the contract formation process
not being adequately accessible, insufficient financial
protection for customers owing to poor advice or
unjustified refusal of payment of the sums insured.
Risks in connection with customers and end-users
relate to corporate communications, insurance, banking
and asset management business, and the provision of
advice and support to customers.
Risks in connection with corporate communications:
False, delayed or inaccurate public reporting can give
customers, shareholders, competitors and authorities an
inadequate picture of the Company’s situation.
Risks arising from Baloise’s operations: Financial losses
can arise if a counterparty, such as a policyholder or issuer,
is unable to fulfil its contractual obligations. There is also
a risk that larger claims or higher claims than expected
are incurred and the premiums collected are insufficient
(premium risk). Negative unfavourable capital market
movements can also affect investment products.
Another risk related to operations is non-compliance
with solvency capital or liquidity requirements: If the
Company’s capital levels fall or the solvency capital
requirements are tightened, the Company may no longer
have adequate coverage to maintain solvency. There is
a risk in banking activities that the short-term liquidity
and stable funding levels no longer meet the regulatory
requirements and can only be guaranteed at significant
additional cost.
Risks in connection with advising and supporting
customers: Data security is a material risk, as data
may end up in the wrong hands as a consequence of
cyberattacks or the improper handling of information. In
IT business continuity management, there is a risk that
IT applications and systems go down for periods and are
not available to customers as a result of natural disasters,
incorrect programming or external attacks.
In collection management, there is a risk that
collections can no longer be processed accurately owing
to the IT system being insufficient, a lack of knowledge
or inadequate organisational setup. This can lead
to incorrect payments, postings or processing, and
reputational risk such as customer complaints.
In the provision of investment advice, there is a risk
that customers receive incorrect advice. If they are not
given sufficient information about a product, this can
also constitute a breach of the banking advisers’ duty to
explain and clarify.
Baloise’s material opportunities arising from impacts
and dependencies on consumers and end-users lie in
digitalising the customer journey. This encompasses the
customers’ entire journey and includes everyone involved
in the process, such as sales and other employees,
especially through tailored omnichannel communication,
which facilitates seamless interaction through all
channels. There is also an opportunity to cater to the
increased importance to society of investing sustainably
and to actively support the companies in which Baloise
Social information
ESRS S4 – Consumers and end-users
(Art. 964b (1) OR)
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invests as they transition to a sustainable business model.
Further information on Baloise’s responsible investment
strategy is presented in the disclosures under ESRS 2 SBM-1
– Strategy, business model and value chain.
All types of Baloise customers – business clients and
individuals – can be affected by the material impacts,
risks and opportunities. Material impacts can relate to
individual incidents or to specific business relationships.
Baloise does not sell any products that are inherently
harmful to people and/or increase the risk of chronic
disease.
Impact, risk and opportunity
management
S4-1 – Policies related to consumers and
end-users
(Art. 964b (2) 2-5 OR)
Baloise has developed a number of Group-wide and
country-specific policies relating to consumers and
end-users. The Group-wide policies are shown in the
following table.
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Policies related to consumers and end-users
(MDR-P)
Name of rule set
Main content
General objectives
Review
Information security strategy
(2024–2027)
Information security strategy
•
Vision and mission
•
Strategic objectives
Identification of
strategic objectives in
information security
Quarterly
Data Protection Policy
•
Principles of data protection
•
Rights of data subjects
•
Consent of data subjects
•
Processing of special categories of personal data
•
Special processing situations
•
Data protection organisation at Baloise
•
Data protection officer
•
Sanctions/labour relations law
Data protection rules
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Area of
application
Responsible
organisational
level
Reference to third-party standards or
initiatives
Availability
of the policy to
stakeholders
Name of rule set
Group-wide
Group CISO
Cybersecurity & Data Privacy
Metaframework
Intranet
Information security strategy (2024–2027)
Group-wide
Group
Compliance
EU General Data Protection Regulation
Intranet
Data Protection Policy
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Some of the national subsidiaries have additional local
policies in place that relate to consumers and end-users.
•
Guidelines on the product development process
Guidelines for the development process for new prod-
ucts and for revising and reviewing existing products
•
Guidelines on sales
Rules and arrangements for implementing insurance
distribution regulations in line with the Swiss Insurance
Supervision Act (ISA) and implementation of the Euro-
pean Insurance Distribution Directive (EU) 2016/97 (IDD)
•
Guidelines for complaints management
Definition of the framework for handling complaints
in accordance with the regulatory requirements on
complaints handling by insurance companies
•
Information security strategy (2024–2027)
Description of the strategic objectives in the area of
information security aimed at protecting data and
ensuring data security, with a focus on the processing
of personal data
•
Underwriting guidelines
Definition of the underwriting rules and the underlying
principles and processes
•
ESG underwriting policies
Definition of rules on implementing ESG ambitions in
underwriting, e.g. through underwriting restrictions
•
Procedural instructions for claims handling
Definition of the approach to claims handling, including
prioritisation of claims by criticality and rules on
prompt processing
•
Target segment strategy for non-life
Definition of the current non-life target segments, which
serves as the basis for designing the product range
Each of these policies is managed by the relevant
department in the respective unit, reviewed at the
intervals specified locally in accordance with regulatory
requirements and made available to employees on the
local intranet.
Baloise’s policies related to consumers and end-users
mainly focus on the following topics:
1. Product range
2. Customer communication and transparency
3. Crisis management and claims strategy
4. Data protection and digital security
Policies on the product range include target segment
strategies and guidelines on product development,
which ensure the integration of customer needs and
consideration of disadvantaged groups. There are also
rules in the ESG underwriting policies that exclude certain
industries. Customer communication and transparency
focus on advising consumers and end-users on insurance
products. Key topics in this regard cover avoiding
consumer deception, reducing information asymmetries
and ensuring sufficient financial protection through
professional advice.
Another aspect is the opportunity to optimise
the customer journey through digitalisation and
implement tailored omnichannel communication in
order to respond to changing customer requirements.
In addition, Baloise actively supports the transition to a
sustainable business model by including ESG criteria in
line with ESG underwriting policies. Baloise has clearly
defined procedural instructions and processes for crisis
management and claims processing to ensure that claims
are dealt with quickly and efficiently.
The data protection and information security
strategy is prepared on a Group-wide basis with all
national subsidiaries and takes all local and European
requirements into account. In this way, Baloise addresses
the negative impact of harm to customers as a result of
data protection violations or the loss or theft of data.
The range of insurance products is also adjusted on
an ongoing basis in the interests of customers. It includes
elements that encourage customers to act in a more
sustainable manner.
With regard to respect for human rights that are
relevant to consumers and/or end-users, see “Respect for
human rights” under ESRS 2 SBM-1. Human rights-related
risks are identified on a precautionary basis and handled
in a preventative and corrective manner. No incidents
involving consumers and/or end-users were reported in
this context.
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S4-2 – Processes for engaging with consumers
and end-users about impacts
(Art. 964b (2) 3 OR)
The perspectives of consumers and end-users are decisi
vely important for Baloise in order for it to incorporate their
concerns and needs into its strategies and operations.
This is done in three ways: by calculating, monitoring and
managing the Net Promoter Score (NPS), through customer
surveys and by analysing the customer journey.
Baloise calculates its NPS and measures the
satisfaction of end customers and brokers by requesting
feedback every time they have been in contact. The
product range and customer service are evaluated from a
customer perspective. Internal key performance indicators
serve to improve processes and provide a basis for
strategic decisions.
The progress of ongoing initiatives is monitored using
the NPS and internal key performance indicators. These
indicators also serve as a basis for setting priorities
for new initiatives aimed at improving the customer
experience. An internal core team made up of members
from different national markets share experiences
relating to customer focus. This allows Baloise to use the
NPS internally in order to bring customer experiences
to employees’ attention and raise awareness of the
opportunities that Baloise unlocks by gaining insights
into these experiences. Baloise regularly updates its
local management teams at all sites on progress made
regarding the loyalty of customers and brokers and the
quality of the customer experience. This information
is then used as a basis for potential decisions on,
and the adjustment of, strategic and operational
matters. By promoting close collaboration between
all national subsidiaries, subject matter experts and
senior management, Baloise strengthens its customer-
oriented culture. As Baloise operates in various different
markets, it adapts its loyalty assessments to market-
specific conditions in order to take account of specific
requirements and expectations.
Baloise has conducted customer satisfaction surveys
at regular intervals since 2021. They help Baloise to review
its service offering and assess its performance relative to
its competitors.
The following surveys are carried out within the
national subsidiaries:
•
Switzerland
Customers are asked to rate their satisfaction after
the inception of a policy, at the end of a claims process
and after contact with customer services or with a
customer adviser.
•
Germany
Customers are asked for feedback on the claims
handling process for motor vehicle and property
insurance products. The Germany-wide agent survey
KUBUS is also carried out and market comparisons,
agent feedback and product comparisons are also
obtained via external providers.
•
Belgium
Customers of Baloise Belgium NV are asked for feed-
back on the claims handling process for fire and
buildings insurance. Baloise Belgium took part in the
Profacts benchmarking survey for the fifth time in 2024,
in which professional brokers are asked about their
working relationship with insurance companies.
•
Euromex
Given the specific nature of the sales channels,
Euromex does not contact customers directly, meas-
uring customer satisfaction through brokers instead.
Contact with brokers is sporadic and does not happen
after every interaction. Certain events or seminars are
selected after which the brokers are surveyed.
•
Luxembourg
Customers are asked to rate their satisfaction after the
inception of a policy and at the end of a claims process
for standard products and claims.
Baloise also analyses the customer journey for its
different target groups in order to identify potential for
improvement from a customer perspective and to improve
customers’ experience with Baloise.
S4-3 – Processes to remediate negative
impacts and channels for consumers and
end-users to raise concerns
(Art. 964b (2) 3 OR)
For Baloise, it is essential that business activities always
comply with the law and are ethical and moral.
Any advice that Baloise provides is therefore always
based on internal guidelines that take the requirements of
local statutory and regulatory requirements into account.
In combination with other compliance rules, this ensures
that advice is compliant.
Nonetheless, customers may wish to report concerns or
make complaints.
Baloise sees customer complaints as an opportunity
to bring about improvements. It is normal for Baloise to
enter into dialogue with customers making complaints,
be it through talking to them personally or on social
media. Proactive complaints management is anchored
within the Company and designed to remediate negative
impacts on consumers and end-users quickly and
effectively.
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All incoming complaints are tracked and monitored in
the complaints management system, and customers are
regularly informed about the status of their complaints.
Reports are thoroughly analysed and documented. If
material negative impacts are identified, Baloise takes
corrective action plus action to avoid future incidents. The
Company continually reviews the effectiveness of these
actions to ensure that they align with customer needs and
contribute to improvement.
Baloise has defined the following reporting channels for
customer concerns and complaints:
•
Instant message via digital communication platforms
•
Telephone during stipulated customer service hours
•
Post to the Company’s official address
•
Whistleblowing platform – Integrity Line (see the disclo-
sures under ESRS G1-1 – Business conduct policies and
corporate culture)
With the exception of the Integrity Line, which is an
independent platform provided through an external
service provider (EQS GmbH), Baloise set up these
channels itself. They ensure that customer concerns are
processed quickly and efficiently. The internal mechanisms
facilitate the structured recording and processing of all
incoming concerns.
In its business relationships, Baloise champions the
existence of channels for complaints and ensures that
sales partners use similar structures to guarantee a high
level of service quality and customer satisfaction. It is
ensured that channels for complaints are available along
the entire value chain.
Baloise reviews the effectiveness of the complaints
channels through ongoing feedback from the affected
customers and implements actions to improve the
channels when necessary.
The processes in place are firmly established in the
Company and are an integral element of IT security and
compliance training for new hires. They are also enshrined
in the compliance guidelines on fraud and the guidelines
on complaints handling. Baloise publishes these on
the intranet to aid awareness of the policies in place to
protect people using these structures or processes.
Through clear communication and transparent
processes, Baloise ensures that customers are aware
of the channels available for making complaints and
have faith in them. The Company also has whistleblower
protection policies in place to protect people lodging
complaints from reprisals.
S4-4 – Taking action on material impacts on
consumers and end-users, and approaches
to managing material risks and pursuing
material opportunities related to consumers
and end-users, and effectiveness of those
actions and approaches
(Art. 964b (2) 3-5 OR)
Actions in relation to material negative impacts on
consumers and/or end-users
Baloise divides the potentially material negative impacts
into the following categories:
•
Product range
•
Customer communication and transparency
•
Crisis management and claims strategy
•
Data protection and digital security
The actions in relation to the product range break down
as follows:
•
Simplification of the product portfolio
A simplified product portfolio is essential for digitalisa-
tion and will make it easier for customers and partners
to interact with Baloise. By streamlining the product
portfolio, activities in the value chain, such as claims
handling or customer services, are accelerated and
simplified. This not only boosts efficiency but also has a
positive impact on the related costs. Product simplifi-
cation is therefore one of the most important initiatives
within the strategic pillar “Focus on core business”.
Besides simplifying its product range, Baloise is also
pushing ahead with the full automation of product-re-
lated processes, such as the automated signing of
insurance contracts. Progress is measured using the
straight-through-processing (STP) rate. For example,
the Group-wide STP rate in the motor vehicle insur-
ance business is now at 90 per cent of all new quotes,
and the figure for the private real estate business is
over 95 per cent. Due to the high volume of policies
processed on a fully automated basis in property insur-
ance, liability insurance, accident insurance and health
insurance in private client business, Baloise believes
that simplifying its product portfolio is essential if it is
to remain competitive. Baloise in Germany is focusing
on simplifying the insurance terms and conditions and
integrating the retention of benefits and innovation
guarantees into current product lines. This involves
offering a policyholder all the benefits they had with
a previous insurer and updating policies to reflect
the latest insurance cover available in the market.
Customers therefore have uninterrupted cover, while
agents benefit from advice that is reliable in terms of
liability. In Belgium, Baloise’s product simplification
efforts involve an increased emphasis on brokers as
the most important sales channel. It is also tailoring
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Report on non-financial matters
its product range to focus on insurance products that
deliver an excellent customer experience.
•
Product development
The entire lifecycle of a new product is considered in
the round during the product development stage in
order to ensure that products are customer-focused
and sustainable. When product development begins,
the Company focuses on customer needs, trends and
standards as well as on ensuring sustainable customer
and claims management. It also establishes potential
downstream instruments to maintain customer loyalty
over the long term, e.g. regular monitoring of outcomes.
Baloise also scrutinises regulatory requirements and
technical dependencies. In Germany, for example,
Baloise has set itself six targets in the area of sustain-
ability that have been enshrined in a binding product
datasheet, which is part of the product development
guidelines, to make sure they are factored into product
development as standard. Baloise is also pushing
ahead with developing taxonomy-aligned products in
the taxonomy-eligible divisions, and taxonomy align-
ment is clearly described in the product datasheets.
The guidelines for product development in the national
subsidiaries are an integral element of Baloise’s process
landscape. They are communicated openly and
transparently to all employees. The guidelines can be
accessed on the intranet. Information on updates is
also promptly published on the intranet to ensure that
all employees are always kept up to date.
•
Consideration of disadvantaged groups
Baloise attaches great importance to people with
disabilities being able to take advantage of its services
without the assistance of other people. When devel-
oping products, they are tailored to the personal
circumstances of an individual group of customers
where possible. This includes insurance products aimed
at particular age groups (e.g. senior rate scales) and,
in Germany, insurance benefits that compensate phys-
ical or mental impairments in the event of a claim (e.g.
payouts under personal liability insurance due to loss
or damage caused by individuals who are not consid-
ered legally responsible). Failing to adequately consider
the needs of disadvantaged groups can give rise to
discriminatory actions and can entail legal repercus-
sions and reputational damage.
•
Insurance for welfare and educational settings
Beyond primary expectations of turning a profit, Baloise
pursues the objective of making a positive contribu-
tion to integration, inclusion and social protection. To
this end, its insures social welfare establishments and
educational settings, such as childcare facilities, shel-
tered workshops, advice centres and residential homes.
•
Sustainability criteria in the underwriting process
In August 2020, Baloise signed up to the Principles of
Sustainable Insurance (PSI), which include the gradual
integration of sustainability matters into Baloise’s
underwriting guidelines. Since 2022, the Company has
applied environmental, social and corporate govern-
ance criteria in its ESG underwriting principles, which
were revised and tightened once more with effect
from 1 April 2023. Certain sectors and activities are no
longer supported, and activities are only continued
if customers are prepared to switch to a sustainable
business model within a transitional period. In addition,
Baloise aims to work in partnership with customers
whose business model is currently undergoing this
transformation in order to understand the challenges
they face with regard to sustainable development
and to support them. The integration of sustaina-
bility matters into the underwriting guidelines is a risk
management tool that can be used to support the
transition of the economy to sustainable business
models and to minimise potential losses and risks.
Baloise can thus actively manage critical ESG risks
in its underwriting policy, because existing risks are
reduced and potential risks are mitigated. This view
of risk is complemented by the targeted exploitation
of opportunities. For example, Baloise is committed
to encouraging the use of renewable energy sources
through its tailored insurance solutions.
The actions in relation to customer communication and
transparency break down as follows:
•
High-quality advice
In order to guarantee the quality of advice in the insur-
ance sales organisation, Baloise complies with the
statutory requirements of the Swiss ISA and the IDD
in the EU. Baloise focuses on clear and understand-
able communication of information about insurance
products and knowledgeable and ethical customer
advice that takes individual preferences into account.
To make the products on offer more understandable to
customers and minimise the risk of misunderstandings,
Baloise gives customers easily understandable product
information documents when providing advice. Baloise
relies on well informed and trained partners to provide
high-quality advice, as well as training its own sales
employees to equip customers with the necessary
information. Regular webinars, ad hoc presentations
and meetings, and training and e-learning are used
to showcase products and explain their added value.
An overview containing up-to-date information on
training and development initiatives is available on the
website and sales portals. The national subsidiaries
have defined local training requirements and polices
for their sales organisations. For example, advisers in
Switzerland and Germany have to take regular tests
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Report on non-financial matters
on specific subjects during their basic training. Brokers
are obliged to undertake a reasonable amount of
continuing professional development every year, which
Baloise monitors. Sales partners can also keep up with
news about Baloise, its products, webinars and events
via a regular newsletter. There are also internal rules of
conduct and procedural rules for the sales organisa-
tions, which insurance brokers must adhere to in order
to provide customers with consistently high-quality
advice that matches their preferences and needs. In
the case of pension products, the broker must also
check the appropriateness of the retirement benefit
and the suitability of the pension product based on the
customer’s investment preferences and knowledge.
In the EU, customers must also be asked about their
sustainability preferences when advising them. Advice
is documented in a record of investment advice. The
quality of the advice provided and the satisfaction
of customers feed into the variable remuneration of
sales staff. In other departments too, the strategic
team targets are formulated using the NPS. For quality
assurance purposes, regular feedback is obtained from
policyholders and brokers. More information is provided
in this regard under ESRS S4-2 Processes for engaging
with consumers and end-users about impacts.
•
Lead management
Another example of actions to avoid or mitigate mate-
rial negative impacts such as consumer deception,
information asymmetries and insufficient financial
protection is lead management in Germany. It helps
agencies to manage existing customer relationships
strategically in order to identify and address gaps in
coverage at the earliest opportunity. The customer
hotline in the life insurance business offers customers
needs-based advice in order to provide them with
targeted support for their enquiries. Customers can
also make simple changes themselves in the self-ser-
vice area of Baloise’s Germany website, which promotes
transparency and security. Special actions are defined
on the basis of customer surveys.
•
Sustainability and corporate social responsibility in
customer contact
Communicating sustainability matters is essential for
raising awareness of the issue among the sales force.
Baloise in Germany, for example, carries out training
on the topic of sustainability with the agencies. It also
publishes sustainability action plans for transitioning to
sustainable agency operations. The corporate commu-
nications function offers ongoing support to reme-
diate misunderstandings or problems in sustainability
communication. In Switzerland, content is currently
being created for sustainability training for sales
employees, as the topic is gaining importance in Swit-
zerland and the EU alike.
•
Service portal
Baloise in Switzerland and Baloise in Germany use a
customer relationship management portal from soft-
ware provider BSI in the private client business. This
software provides an overview of customers’ insurance
contracts across the divisions and gives customer
advisers better information on which to base their
advice, enabling them to process customer requests in
a service-oriented way.
The actions in relation to crisis management and claims
handling break down as follows:
•
Financial distress of consumers and end customers
For customers who unexpectedly find themselves in
financial distress, life insurance products offer specific
liquidity options that help to bridge financial bottle-
necks. There are also options for making adjustments
to contracts, such as premium waivers, that provide
customer-specific solutions for continuing a contract
and avoiding terminating it early in the event of finan-
cial difficulties.
•
Actions in relation to claims handling
Baloise aims to provide service-oriented claims
handling for its customers and, to this end, it refines
its active claims management process on an ongoing
basis. Automated and streamlined processes, trans-
parent practices, speed and efficiency are key pillars of
the Company’s strategic direction. Baloise’s aim is to
process claims in an unbureaucratic manner, focusing
on active claims handling and telephone contact.
These actions are enshrined in procedural instructions
for claims handling in the national subsidiaries. Proce-
dural instructions provide an overview of processes and
specific resources for day-to-day administration. Topics
such as the prioritisation and processing of claims are
set out in detail, including specific details of processing
windows.
The actions in relation to data protection and information
security break down as follows:
As an insurance company that handles sensitive customer
data, Baloise is aware of the high importance of data
protection. The loss or theft of customer data and
violations of data protection can have significant negative
consequences, such as reputational damage and
financial loss, which can potentially lead to compensation
payments and fines. Due to the risk of human error
or cyberattack, Baloise has taken extensive action to
mitigate risk.
The Baloise Group’s data protection and information
security strategy is prepared in cooperation with all
national subsidiaries and takes all local and European
requirements into account, such as the Digital Operational
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Resilience Act (EU) 2022/2554 (DORA), the General Data
Protection Regulation (EU) 2016/679 and the General Data
Protection Regulation (GDPR) in the EU and the Swiss Data
Protection Act (FADP). This strategy applies to all groups of
people, whether individuals or legal entities.
The data protection strategy not only sets out the
principles for processing personal data within the
Company but it also covers customers, upstream and
downstream service providers and employees. The defined
actions are intended to ensure an appropriate level of
protection across the entire value chain.
Compliance with the statutory requirements is ensured
by providing regular training and regularly reviewing the
defined action. Baloise updates its systems, processes and
training at regular intervals, monitors them for weaknesses
and adjusts them where necessary. Employees are given
data protection and information security training, and
internal and external audits are also carried out. Reporting
and handling processes are in place for security incidents.
In the event of a data protection incident or a
cyberattack, established processes ensure that they
can be identified and responded to rapidly in order to
minimise the harm for the affected persons. The security
incident and event management (SIEM) system aids the
swift identification of threats and the implementation of
mitigation actions so as to avert harm or minimise it as
much as possible.
Besides damage limitation, Baloise also initiates
additional action to enhance data security and increase
the affected persons’ trust in Baloise’s data protection
strategies. The Company is currently implementing a
Group-wide tool to improve and standardise information
security and data protection management processes.
This tool helps Baloise to analyse the need for protection,
define and track security actions, perform security and
IT risk assessments, evaluate and document violations
of security rules and perform data protection impact
assessments.
Baloise fully informs persons affected by the processing
of their data (prospective customers, employees, etc.)
about the relevant processes. The Company also includes
customers in a current contractual relationship with it in
its approach to data protection, e.g. when they make a
claim, and informs them about action and asks for their
consent when required to do so by law.
Processes to identify actions in relation to potential or
actual negative impacts
As described under ESRS S4-2 – Processes for engaging
with consumers and end-users about impacts and
ESRS S4-3 – Processes to remediate negative impacts and
channels for consumers and end-users to raise concerns,
the needs of the customer are identified and, building
on that, the requisite actions are determined. These are
then implemented in the context of, for example, product
development, claims management and the provision of
advice to customers.
In data protection, Baloise has implemented processes
for the early detection and reduction of negative impacts
and risks. See the information above on actions in relation
to data protection and digital security.
Approaches to taking action in relation to specific
negative impacts
The approaches to taking action in relation to specific
negative impacts are explained in ESRS S4-3 and in the
information above.
With regard to IT and data protection, Baloise has
established ongoing review and improvement processes.
These approaches are intended to minimise the risk of
harm to customers as a result of data loss.
Baloise checks at regular intervals and whenever
necessary whether the implemented actions, processes
and systems are up to date and effective. This ensures
that they reflect the latest developments and that
security guidelines meet the latest requirements. In order
to identify and remedy potential weaknesses at an early
stage, Baloise refines these actions on an ongoing basis or
defines new ones where required.
Service providers processing personal data on
behalf of Baloise must comply with strict contractual
arrangements and security requirements. Contractual
and statutory requirements are regularly reviewed
through audits of service providers in order to ensure
adherence to security standards and to minimise the risk
of a potential data loss.
This approach ensures that specific negative impacts
are addressed proactively through preventative and reac
tive action in order to protect the security of customer data.
Ensuring the effectiveness of mitigation actions in the
event of material negative impacts
Baloise measures the effectiveness of actions in
connection with customers and end-users through regular
customer surveys. A KPI from the surveys is the NPS.
Baloise uses specific indicators to assess the
effectiveness of mitigation actions in the event of data
protection violations or IT outages that affect end
customers. Once such actions have been implemented,
their effectiveness is checked on a regular basis in order
to ensure that they are providing the anticipated level of
protection.
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The indicators used include the frequency and severity
of security incidents following the implementation of
an action and the response times and success rates in
averting potential threats. These metrics help to gauge
the success of the actions and to make adjustments
where necessary.
In order to continually improve security actions,
Baloise retrospectively analyses all incidents, including
those that did not directly lead to a security incident.
These investigations are aimed at identifying potential
weaknesses, which can then be remedied in a targeted
manner. Actions that have already been implemented
are also reviewed at regular intervals to ensure that they
are in line with the latest security requirements. They are
improved where necessary.
This ongoing process is intended to ensure not only
that the mitigation actions are effective in the short term
but also that they are continually adapted to new threats
and security standards in order to minimise the risk of
harm to customers due to data loss.
Action on material risks in relation to consumers and
end-users
The aforementioned actions in relation to impacts also
relate to material risks in relation to consumers and
end-users. Various other actions have also been defined,
which can be assigned to the different risk types as
follows:
•
Regulatory risk
Baloise has a comprehensive compliance manage-
ment system in place to ensure that regulatory
changes are implemented promptly and accurately.
This system comprises extensive legal monitoring,
which is carried out by both the legal and compliance
functions and the relevant departments. This allows
regulatory changes to be identified at an early stage
and suitable communication actions to be taken. Regu-
latory changes affecting customers are communicated
to them in a suitable manner, including by writing to
them, updating privacy notices or issuing contract
addendums. This ensures that customers are always
informed of their rights and the protection of their data.
In this way, Baloise ensures compliance with regulatory
requirements and also boosts customers’ faith in the
Company’s data protection and security processes.
•
Public reporting
Baloise has implemented processes to ensure timely
and accurate communication of its key figures, thereby
ensuring that it communicates verified content with
the public punctually.
•
Counterparty risk and collection management
To mitigate counterparty risk, Baloise has set up collec-
tion processes to remind customers about payments
in good time before further steps are initiated. The risk
that day-to-day collection management processes
can no longer be operated adequately and accurately
(incorrect payments, postings or processing) and could
give rise to reputational risk (customer complaints)
owing to the IT system being insufficient, a lack of
knowledge, inadequate organisational setup or incor-
rectly assigned responsibilities, is mitigated by the
use of standardised processes and clear procedural
instructions.
•
Advisory risks in the investment process
There is a risk that customers will receive incorrect
advice in the investment advice process. If they are not
given sufficient information, this constitutes a breach of
customer advisers’ duty to explain and clarify. Actions
that cover this risk are outlined in the above section
on actions in relation to customer communication and
transparency.
•
Calculation of premiums
Baloise’s products and the associated claims are
continuously monitored to be able to assess the
assumptions on which their pricing is based. Where the
need for adjustment is identified, the product devel-
opment process is initiated and the product is revised.
Equally, it is possible to review the underwriting policy
for the relevant products.
•
Data security risk
Data security risk actions are described under “Actions
in relation to data protection and digital security”.
•
IT BCM risk
There is a danger that IT applications and systems go
down for a short or extended period and are not avail-
able to customers as a result of natural disasters, incor-
rect programming or external attacks. Baloise has imple-
mented security policies and business continuity plans to
safeguard the functionality of its IT infrastructure.
•
Non-compliance with solvency capital or liquidity
requirements
These risks are mitigated through a variety of actions.
They include, for example, performing financial control
actions, actively managing liquidity through asset/
liability management, monitoring the solvency ratio,
applying a limit system and preparing short-, medium-
and long-term forecasts of the solvency ratio as part of
the Own Risk and Solvency Assessment (ORSA).
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Action on material opportunities in relation to consumers
and end customers
Baloise has taken the following action to pursue material
opportunities in relation to consumers and end-users:
•
Transition to a sustainable business model
Actively marketing sustainable products and services
provides opportunities to raise customers’ aware-
ness of sustainable solutions of which they are not
yet aware. The more popular these solutions become
in the market, the more they will oust conventional
products. Sustainability is increasingly becoming
customer focus. In fact, most consumers will already
give preference to a sustainable or more sustainable
solution at the same price. There is also a clear target
demographic that explicitly seeks such solutions when
deciding what to buy. In the long term, alignment with
sustainability topics will give rise to new insurance
solutions and upselling potential, justifying invest-
ment in this area. Baloise can seize the opportunity to
present itself as an innovative and responsible partner
to its customers. This strengthens the corporate image
and customer loyalty.
•
Customer journey and designing it from the customer
perspective
Digitalising the customer journey is a central element
of product design. In this connection, a number of
innovative products have been developed to make the
customer journey as pleasant as possible, such as the
new parametric holiday insurance in Switzerland or the
Rapid Damage Cockpit (RDC) project, which facilitates
the automatic reporting of a claim by email or text
message in the wake of a severe storm. The Compe-
tence Centre Automation digitalises the customer
journey and relieves employees of the burden of repeti-
tive tasks in order to unlock efficiency gains.
Baloise in Germany focuses on personalised
communication using advanced marketing automation
software, which allows relevant information to be sent out
automatically. Customer advisers benefit from automated
campaigns. The foundations have been laid for data-
driven campaigns and the platform has been optimised.
In Belgium, Baloise is improving the customer and
partner experience through the NPS programme and
is pushing ahead with digitalisation. Brokers are being
assisted with the digitalisation of administrative
processes. A fully digital customer journey has been
introduced for motor vehicle and property claims. The
digital sales process for private clients is also being
simplified with a new lead generator.
In Luxembourg, an interdisciplinary team continually
analyses the customer journey and implements effective
solutions for improvement, especially in the claims
handling process. Through a proactive customer retention
initiative, Baloise reaches out to dissatisfied customers
with the aim of resolving problems promptly and
improving the customer experience.
Actions to avoid material negative impacts
By complying with regulatory and statutory requirements,
Baloise ensures that the Company’s marketing strategy is
not associated with negative impacts on consumers (such
as misleading advertising or targeted manipulation).
Many actions for avoiding consumer deception can be
found under the relevant actions earlier in this chapter.
Baloise offers an extensive training programme for
its agents that includes insurance-related, technical
and regulatory elements. A centrally managed training
database ensures that rules regarding time spent on
training are observed. Advice must be documented and
the documentation is archived with the application.
Advertising in conjunction with the Baloise brand must be
agreed with marketing. Agents are obliged to comply with
competition rules.
To ensure that customer data is given maximum
protection in the Baloise Group, a number of processes
and security actions have been implemented. Checks are
performed regularly and whenever necessary to ascertain
whether the processes and systems are up to date
and effective. Baloise refines the security actions on an
ongoing basis to ensure that the processes and systems
reflect the latest developments. It checks new processes
for compliance with data protection rules and implements
action where necessary. For example, during the
procurement process for new software products, Baloise
checks for compliance with internal data protection rules.
The implemented actions are checked for effectiveness at
regular intervals.
Potential data protection incidents that could lead to
a breach of customer privacy are investigated in detail as
soon as Baloise becomes aware of them. There were no
severe data protection incidents involving breaches of end
customer privacy in the reporting period. No severe human
rights issues or incidents connected to consumers and/or
end-users were reported either.
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Resources for managing material impacts
Baloise has provided the following resources for managing
material impacts:
•
Personnel resources
Specially trained employees and teams deal with
actions to minimise and remediate impacts.
•
Budgeting
The Company sets aside an appropriate budget for
implementing the actions to manage material impacts,
such as carrying out training and maintaining moni-
toring systems.
•
Technological resources
Baloise invests in technologies and tools that record
and analyse data on end customers and their experi-
ences. These comprise customer relationship manage-
ment (CRM) systems and digital channels for customer
interaction as well as the expansion of self-services for
customers.
•
Training
To ensure that employees in the different segments
have the requisite skills, Baloise relies on training and
development programmes.
•
Data protection and digital security
To avoid digital security impacts, employees are given
regular training on data protection and IT security.
The IT systems are monitored by a SIEM system to
protect them from malicious code or anomalies, such
as unusual changes in data or data downloads. The
systems are protected by authorisation policies that
are regularly reviewed.
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Metrics and targets
S4-5 – Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks and
opportunities
(Art. 964b (2) 5 OR)
Baloise did not set any time-bound or outcome-oriented
targets within the meaning of this disclosure requirement
in connection with the stated impacts, risks and
opportunities in relation to consumers and/or end-users
in 2024.
Nevertheless, the Company has implemented various
policies and actions to mitigate material negative
impacts, promote positive impacts and manage material
risks and opportunities. As already mentioned, customer
focus is at the heart of Baloise’s strategy. Customer
satisfaction is one of Baloise’s core targets and is gauged
using the NPS. Under its strategic business planning
approach, Baloise uses internal key performance
indicators for ongoing monitoring and improvement
purposes. This strengthens Baloise’s customer-oriented
corporate culture and allows processes to be designed
and fine-tuned with the aim of maintaining customer
satisfaction and loyalty. With regard to data protection,
Baloise’s IT infrastructure is also designed with security
in mind to protect against the loss of business and
customer data.
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Governance
206
Disclosure requirement related to
ESRS 2 GOV-1 – The role of the administrative,
management and supervisory bodies
206
Impact, risk and opportunity
management
206
Disclosure requirement related to
ESRS 2 IRO-1 – Description of the processes to
identify and assess material impacts, risks and
opportunities
206
G1-1 – Business conduct policies and
corporate culture
206
G1-2 – Management of relationships with suppliers
213
G1-3 – Prevention and detection of corruption
and bribery
214
Metrics and targets
215
G1-4 – Incidents of corruption and bribery
215
G1-5 – Political influence and lobbying activities
215
G1-6 – Payment practices
216
Governance information
ESRS G1 – Business conduct
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Baloise Group Annual Report 2024
Governance information
ESRS G1 – Business conduct
(Art. 964b (1) OR)
Governance
Disclosure requirement related to ESRS
2 GOV-1 – The role of the administrative,
management and supervisory bodies
(Art. 964b (2) 1 OR)
For disclosures on the role and expertise of the
administrative, management and supervisory bodies
related to business conduct, see ESRS GOV-1 – The role of
the administrative, management and supervisory bodies.
Impact, risk and opportunity
management
Disclosure requirement related to ESRS 2
IRO-1 – Description of the processes to identify
and assess material impacts, risks and
opportunities
(Art. 964b (2) 4 OR)
In the following section, the most important impacts,
risks and opportunities relating to business conduct
are considered. A detailed overview of the material
impacts, risks and opportunities and their interaction
with the strategy and business model is presented under
ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model,
which also contains a detailed description of the
identified impacts on people and the environment. The
processes to identify and assess the material impacts,
risks and opportunities, along with related information,
are explained in the disclosures under ESRS 2 IRO-1 –
Description of the process to identify and assess material
impacts, risks and opportunities.
The potential negative impacts include stakeholders’
unwillingness to report irregularities owing to a lack of
protection for whistleblowers. A further negative aspect
is the loss of trust in the industry as a result of incidents
of corruption and bribery. An impact that can be both
positive and negative is influence on policy decisions.
A positive impact, by contrast, is the contribution to
sustainability (ESG) matters that companies can make
through investments.
Material risks relating to business conduct include
non-compliance with sustainability requirements, which
can mean that the sustainability strategy and regulatory
requirements are not adequately applied. There is also the
risk of inaccurate risk analysis and reports in connection
with sustainability reporting. Outsourcing activities are a
further key risk due to the danger of dependencies or poor
service standards from service providers. Furthermore,
reputational risk may arise if external communications
are not aligned with the corporate strategy and values
or if wrong/inappropriate information is published. The
danger of not satisfying legal and regulatory requirements
is a further material risk and can give rise to considerable
legal risk. Business processes can also prove to be
inadequate or deficient, impacting on efficiency and
quality. Competition risks arise as a result of changes in
the market environment or pressure from competitors.
Wrong decisions by senior management, driven by
unsuitable incentive schemes, can also have significant
repercussions. Finally, there is a risk that targets for growth
or profitability are not achieved due to external factors,
such as geopolitical tensions or inflation.
G1-1 – Business conduct policies and corporate
culture
(Art. 964b (2) 2-4 OR)
Baloise has developed a number of policies relating
to business conduct and corporate culture. They are
presented in the following table.
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Name of rule set
Main content
General objectives Review
Area of application
Group Policy on Human
Rights
•
Definition of the Baloise Group’s stance on
human rights and labour rights, including
the prohibition of child labour
•
Description of the Baloise Group’sapproach
to the observance of human rights
•
Definition of responsibilities in relation
to human rights and arrangements for
cooperation with the various stakeholders
in the Baloise Group
•
Description of the reporting
Upholding of
human rights and
labour rights;
avoidance of child
labour
Annually
Group-wide
Code of Conduct
•
Ensuring confidentiality
(confidentiality, data protection, use
of electronic information and
communication media)
•
Safeguarding integrity
(money laundering prevention and embar-
goes, insider dealing, cartels, accounting,
records management)
•
Dealing with customers and the public
(mandates, conflicts of interest, gifts,
donations, corruption, complaints, duty of
care, taxes, communications and media)
•
Employee relations (health, equal
treatment, bullying, sexual harassment)
•
Employees’ contribution to implementation
of the Code (responsibility, breaches, sanc-
tions, performance assessment)
•
Link to the whistleblowing system
Information about
the ethical and
legal principles and
duties applicable to
all employees
Annually
Group-wide
Baloise Vendor
Code of Conduct
•
Description of the criteria for ensuring a fair
and transparent procurement process and
the responsible selection of suppliers on
the basis of a number of factors, including
a range of criteria relating to sustainability,
human rights and quality
Assurance
of a fair and
transparent
procurement
process and the
responsible
selection of
suppliers
As required
Group-wide
Group Compliance Policy
The Group Compliance Policy defines
•
responsibilities under the compliance
management system;
•
tasks and authorisation levels for
compliance and compliance-enabling
functions;
•
rules for reporting and interfaces within
the Baloise Group;
•
escalation processes.
Compliance
framework of the
Baloise Group
Annually
Group-wide
Instructions regarding
active and passive bribery
•
Rules for the acceptance of gifts and
hospitality
•
Rules for the granting of gifts and
hospitality
•
Preferential treatment in connection with
Baloise individual life insurance policies
•
Donations (gifts) and sponsorship
•
Approvals
•
Sanctions
Rules for the
prevention of
bribery
Annually
Switzerland
Business conduct policies and corporate culture (MDR-P)
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Report on non-financial matters
Responsible
organisational level
Reference to third-party standards or
initiatives
Availability of the policy to
stakeholders
Name of rule set
Group Compliance
•
UN Principles for Sustainable Insurance
(PSI) and Responsible Investment (PRI)
•
UN sustainable development goals (SDGs)
•
UN Guiding Principles on Business and
Human Rights (UNGPs)
•
OECD Guidelines for Multinational Enter-
prises on Responsible Business Conduct
(OECD MNE Guidelines)
Intranet and summary
on the website
Group Policy on Human
Rights
Group Compliance
n/a
Website and intranet
Code of Conduct
Group Procurement
•
UN Sustainable Development Goals (SDGs)
•
UN Guiding Principles on Business and
Human Rights (UNGPs)
•
General and industry-specific sustainability
standards
Website and intranet
Baloise Vendor
Code of Conduct
Group Compliance
n/a
Intranet
Group Compliance Policy
•
Group Compliance
•
Corporate Division
Switzerland Risk and
Compliance
•
Corporate Division Asset
Management Compliance
Guild
•
Bank Compliance
n/a
Intranet
Instructions regarding active
and passive bribery
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Report on non-financial matters
Name of rule set
Main content
General objectives Review
Area of application
Group Outsourcing
Policy
Definition of clear rules on the outsourcing of
material or critical functions throughout the
entire outsourcing lifecycle in terms of the
following:
•
Selection, instruction and monitoring of the
service provider
•
Rules on data protection and security,
business continuity management,
assurance of data protection
•
Audit and oversight of the service provider
•
Rules on outsourcing to other countries
•
Rules on contractual arrangements and
compliance with regulatory requirements
Rules on
management of
outsourcing
arrangements
Annually
Group-wide
Group Compliance
Controlling Standards
Description of the compliance reporting
process, which comprises the following
material steps:
•
Identification and assessment of
compliance risks and key controls
•
Reporting on changes in
regulations
•
Compliance reporting
•
Compliance plan
•
Roles and responsibilities
Description of the
compliance
reporting process
Annually
Group-wide
ICS standards of the
Baloise Group
Description of internal control system
requirements and processes:
1. ICS organisational structure
•
Requirements for ICS control mechanisms
•
Processes, process risks and process
controls
•
Documentation requirements
•
ICS assessment of outsourcing
2. ICS operational structure
•
ICS cycle (scoping, framework adjustment,
evaluation, remedying of shortcomings,
reporting, communication and monitoring)
Rules on the
internal
control system
Annually
Group-wide
Conflict of
interest guidelines
Instructions on dealing with
conflicts of interest
Instructions on
dealing with
conflicts of interest
Annually
Switzerland
Group Risk Policy
The Group Risk Policy defines Baloise’s risk
management cycle and comprises the
following:
•
Definition of the risk strategy based on
the business strategy, taking account of
risk preferences, risk-bearing capacity,
risk appetite, risk tolerance, risk limits and
capital management
•
Escalation processes
•
Risk governance
•
Monitoring and reporting
•
Risk appetite statement
Definition of the risk
management
framework
Annually
Group-wide
Social media guideline
•
Target: Make employees’ use of
social media safer and protect
Baloise’s reputation
•
Direct media enquiries to the responsible
department
Make employees’
use of social media
safer and protect
Baloise’s reputation
As required
Group-wide
Publication of
information
Instructions on the approach to
publishing information
Maintain
professional secrecy
and comply with
data protection and
stock exchange
rules
As required
Group-wide
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Responsible
organisational level
Reference to third-party standards or
initiatives
Availability of the policy to
stakeholders
Name of rule set
Group Risk Management
n/a
Intranet
Group Outsourcing
Policy
Group Compliance
n/a
Intranet
Group Compliance
Controlling Standards
Group ICS Office
n/a
Intranet
ICS standards of the
Baloise Group
Group Compliance
n/a
Intranet
Conflict of
interest guidelines
Group Risk Management
n/a
Intranet
Group Risk Policy
Corporate Communications/
Marketing
n/a
Intranet
Social media guideline
Corporate Communications
n/a
Intranet
Publication of
information
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Compliance policies and compliance culture
The Group Compliance Policy sets out responsibilities,
authorisation levels and tasks under the compliance
management system and provides rules for reporting,
collaboration between different areas of the business
and escalation processes. The Group Compliance
Controlling Standards define the process for monitoring
and managing compliance risks. The Code of Conduct
defines the fundamental expectations and requirements
in terms of employees’ behaviour. It underlines adherence
to compliance rules and their implementation in
the compliance management system, and includes
information on the whistleblowing system. The Group
Policy on Human Rights sets out Baloise’s approach to
respecting and promoting human rights. Baloise has
introduced its Remuneration Policy, instructions regarding
active and passive bribery, and guidelines on conflicts of
interest in order to avoid bribery and conflicts of interest.
Compliance plays a key role in creating sustainable
value for different stakeholder groups such as customers,
partners, employees and shareholders. A fundamental
attitude of self-responsibility is at the heart of Baloise’s
compliance culture and is encouraged to ensure that
employees understand the guidelines and are able
to operate within the set framework. Compliance
requirements in a regulated company are strict and
becoming ever stricter.
Baloise promotes a strong compliance culture and
standards of ethical behaviour by raising employees’
awareness of compliance through issuing instructions
and providing regular training. This training is held every
one to three years on various compliance topics, such as
data protection, anti-money laundering, competition law,
bribery and corruption.
All Baloise employees, including the Corporate
Executive Committee, must complete the compliance
training. The participants and the degree to which the
training is completed is monitored in the internal training
system. The Compliance department is the central
point of contact for employees’ questions and reports
relating to compliance matters defined in the Code of
Conduct. In order to avoid legal risk, the department
monitors important legal developments. It also provides
information about the status of the implementation of
and adherence to the internal and external legal and
regulatory provisions. Existing compliance risks are also
systematically identified, assessed and monitored.
Projects are set up on an ongoing basis to incorporate
new regulatory topics – including in the area of
sustainability – into the Baloise Group’s corporate
governance. Sustainability risks are also covered by the
standard and regular risk management process in order
to avoid shortcomings in the identification, analysis or
assessment of risk.
The prevention of negative impacts relating to the
granting and acceptance of gifts and non-cash benefits
is addressed through clearly defined approval processes
in the internal instructions and in the Baloise Code of
Conduct.
Every six months, compliance reports are submitted
to the local Executive Committees and, in consolidated
form, to the Corporate Executive Committee and the
Audit Committee of the Board of Directors. Ultimate
responsibility rests with the Corporate Executive
Committee and the Board of Directors.
Baloise defines Group-wide standards and a control
framework for combating corruption in line with Swiss
law. In 2009, Switzerland ratified the United Nations
Convention against Corruption (UNCAC), and Baloise’s
policies on anti-corruption and anti-bribery are therefore
consistent with the requirements of the UNCAC.
Suspected compliance violations can be reported
via a number of channels, including an anonymous
whistleblower platform that is also open to external
parties. Clearly defined, Group-wide rules are in place that
govern how reports and cases are to be dealt with.
The Integrity Line is an externally operated reporting
platform that uses security precautions to allow users
to make anonymous written or audio reports in defined
categories, such as bribery and corruption. Whistleblowers
receive confirmation of the receipt of their report within
three days. Information received is examined by the
relevant Compliance department in line with the local
fraud response guidelines and the necessary actions are
taken. The investigations are performed without undue
delay, independently and objectively.
A link to the Integrity Line is published in the
compliance information on the Group’s intranet and
website and is accessible to all employees. A link is also
available on Baloise’s website together with the Code
of Conduct.
Further business conduct policies and corporate culture
Baloise also has a Vendor Code of Conduct, which
describes criteria for the selection of suppliers in an ethical
and responsible value chain. The Group Risk Policy, the ICS
standards of the Baloise Group and the Group Outsourcing
Policy play a central role in Baloise’s governance system.
Strategies relating to animal welfare
Baloise is currently incorporating ESG criteria relating
to animal welfare into its underwriting guidelines in
Germany, taking into account aspects of animal welfare
such as livestock farming practices, animal transport,
slaughterhouses and animal testing in cosmetics
research. Across the Group, all these sectors are
considered sensitive areas in accordance with the current
underwriting policies.
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G1-2 – Management of relationships with
suppliers
(Art. 964b (2) 2-4 OR)
It is very important to Baloise that it too is a fair business
partner for its suppliers. For Baloise, fair supplier
management begins with transparent call for tenders
processes. Tender documents contain a description of
standard requirements for all suppliers and evaluation
criteria for awarding the tender in order to ensure fairness
and objectivity. When choosing business partners for
the outsourcing of activities that are material, relevant
from a regulatory perspective or critical, the associated
risks are considered in sufficient depth for regulatory
purposes in order to avoid risks from outsourcing in the
shape of dependencies or poor service standards from
service providers. Risks associated with outsourcing
arrangements are recorded in the risk management
system, kept up to date and monitored. On request and
to provide full transparency for suppliers, dedicated
debriefing sessions are held in order to explain to the
suppliers in detail why they did not win the tender over
their competitors. Throughout the entire supplier lifecycle,
Baloise ensures that suppliers have a clear point of
contact within the Company.
Baloise also demonstrates fairness towards suppliers
in its receivables management. Baloise has implemented
a transparent payment system to avoid causing late
payments, particularly for small and medium-sized
enterprises (SMEs). The following actions are taken in
addition to a daily payment run:
•
Proactive invoice control
All incoming invoices are checked for accuracy and
completeness immediately in order to avoid delays in
the payment process.
•
Reliable payment deadlines
Baloise adheres to contractually agreed payment
deadlines and ensures that they are not exceeded,
particularly for SMEs.
•
Ongoing communication
In the event of discrepancies or questions, Baloise
communicates directly and promptly with the supplier
to clarify the situation quickly and minimise delays.
Long-term and enduring relationships with suppliers are
important to Baloise. With this in mind, it created the
Baloise Vendor Code of Conduct, which is applicable in
Switzerland and Germany. The other national subsidiaries
follow their own local rules in this respect. The Vendor
Code of Conduct places a clear focus on sustainability
criteria, which encompass key considerations related to
environmental stewardship, social wellbeing and ethical
corporate governance. In this context, compliance with
all applicable laws, regulations and industry standards is
of prime importance, especially in terms of environmental
compatibility, resource conservation, human rights,
labour rights, and health and safety. Baloise has defined
general principles and specific requirements for various
purchasing categories, with the reduction of CO₂ emissions
being a core element. Baloise’s environmental mindset
in procurement is “avoid, reduce, recycle”. Goods that
are particularly environmentally friendly or come from
environmentally certified manufacturers are generally
given preference over goods with otherwise comparable
features and terms and conditions.
There is a danger of strategic partners exerting
considerable price pressure given their importance
for Baloise’s ability to compete. To avoid this, contract
extensions are initiated at an early stage to maintain
price stability. There are also competition risks and other
external factors resulting from changes in the market
and competitive environment. These are identified at
the earliest opportunity by observing and analysing the
market. This allows suitable action to be taken, such as in
product design or pricing.
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G1-3 – Preventing and detecting corruption
and bribery
(Art. 964b (2) 3 and 4 OR)
Baloise makes a distinction between active and passive
bribery. Active bribery involves employees promising
gifts or hospitality with the aim of inducing holders of
public office or individuals bound by a duty of allegiance
to violate their obligations towards their organisation
or company or to exercise their discretionary powers
in favour of Baloise. Passive bribery is when employees
let themselves be induced to make certain decisions or
behave in a certain way by accepting gifts or hospitality.
The fundamental rule is that gifts and hospitality must
not be accepted if this could influence employees’
decisions or their behaviour. Baloise’s approach to
suspected compliance violations and dealing with them
is described in the disclosures under ESRS G1-1 – Business
conduct policies and corporate culture. The investigators/
investigating committee are separate from the chain
of management involved in the matter. The results of
an investigation are also reported to the responsible
Executive Committee members and, in certain cases, also
to the full Executive Committees. An aggregated report of
all cases is also made as part of the annual compliance
reporting process at Group level. Reports on internal
investigations are provided to line management and other
administrative and supervisory bodies if required once the
process has been completed.
Group Compliance Controlling Standards set forth the
fundamental compliance topics entailing the most risk
as well as the related control targets that all of Baloise’s
strategic business units (SBUs) must implement as a
minimum. Corruption and bribery have been identified as
a specific compliance risk and appropriate controls have
been drawn up.
Baloise has specific instructions that explain what
corruption and bribery is and how gifts, hospitality,
courtesies, donations and sponsorship must be handled.
The individual strategic business units in Belgium,
Germany, Luxembourg, Liechtenstein and Switzerland
must appoint anti-corruption and anti-bribery officers.
Each company has internal instructions in place that
reflect local law.
Regular training ensures that employees are familiar
with anti-corruption regulations and are informed of
any changes to the legal situation. Country-specific
web-based training is held on the Code of Conduct and on
compliance in general as part of e-learning. The training is
geared to real-world needs and is intended to encourage
active participation by employees.
The following topics are addressed and the proper
conduct taught:
•
Code of Conduct
•
Compliance breaches, Integrity Line
•
Conflicts of interest
•
Corruption, especially how to deal with gifts and
hospitality, fraud
•
Competition law
•
Data protection
•
Advice
•
Anti-money laundering
•
Automatic Exchange of Information (AEOI) / Foreign
Account Tax Compliance Act (FATCA)
The training content is based on compliance risks that
have been classed as material. Regulatory and statutory
obligations are met and all relevant legal changes and
legislative procedures are covered.
Training on selected compliance topics is held for all
new hires within three months of joining Baloise and for
all employees every three years. Responsibility for carrying
out training lies with the national subsidiaries’ Compliance
department or anti-money laundering officer. Employees
who, as a result of their tasks, are at heightened risk of
being exposed to money laundering generally receive
additional specific anti-money laundering training once a
year (the frequency depends on local law).
Additional compliance training and workshops are
carried out in relevant departments as required. They are
run in accordance with the specific needs of individual
departments. For example, such training or workshops
are offered if compliance risks have materialised in the
department concerned and it is deemed prudent to raise
awareness further among employees. This offer of training
is also available to departments that have an increased
need for information in relation to specific compliance
topics.
The proportion of functions-at-risk covered by training
programmes is 100 per cent.
Scope of training for administrative, management and
supervisory bodies
There is no specific training on corruption or bribery for
members of the Board of Directors of the Baloise Group.
The members of the Supervisory Boards of Baloise
Lebensversicherung AG Deutschland and Baloise
Sachversicherung AG Deutschland are subject to statutory
and regulatory fit and proper requirements. In particular,
the requirements of the German Federal Financial
Supervisory Authority (BaFin) are observed. An individual
training plan is prepared annually for members of the
Supervisory Boards and is sent to BaFin. In addition, an
annual assessment is carried out to ascertain whether the
Supervisory Board members’ knowledge of investment,
underwriting and financial reporting is up to date. The
outcome of this assessment is also sent to BaFin.
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Metrics and targets
G1-4 – Incidents of corruption and bribery
(Art. 964b (2) 5 OR)
Information on incidents of corruption or bribery during
the reporting period:
G1-4: Incidents of corruption or bribery
Key figure
Unit
2024
2023
Number of convictions for
corruption and bribery
offences
Quantity
0
0
Amount of fines for
violations of corruption
and bribery laws
CHF
0
0
No public legal cases involving corruption or bribery were
brought against Baloise and its own workforce during the
reporting period.
G1-5 – Political influence and lobbying
activities
Baloise is a member of the national insurance industry
associations in Germany (German Insurance Association
(GDV), Belgium (Assuralia), Luxembourg (Association des
Compagnies d’Assurances et de Réassurances (ACA)),
Liechtenstein (Liechtenstein Insurance Association) and
Switzerland (Swiss Insurance Association (SIA)). Baloise
Bank in Switzerland is a member of the Association of
Swiss Regional Banks (VSRB) and the Swiss Bankers
Association (SBA). Baloise Asset Management AG
is a member of the Asset Management Association
Switzerland (AMAS).
The national industry associations represent the
interests of insurers and banks, and also provide a number
of services for their members aimed at supporting and
promoting the industry. They focus on helping to ensure
that the regulatory framework allows the insurance
industry to operate its core business for the benefit of
its customers and the economy. On their respective
websites, the national insurance associations publish the
issues that they address in the interests of the private
insurance industry. In Switzerland, Baloise supports
pro-business political parties. The Swiss political system
is founded on the principle of volunteering and there is no
state funding of political parties, which means that this
support strengthens the system of direct democracy. The
contributions are not tied to any obligations. The Executive
Committee of each national subsidiary is responsible for
monitoring any financial or in-kind contributions that are
made. The Chairman of the Board of Directors, the Group
CEO and the CEO for Switzerland are responsible for
financial contributions to political parties in Switzerland.
The following direct and indirect financial contributions
were made in 2024:
G1-5: Political influence and lobbying activities
Financial contributions
National Units
Unit
2024
2023
Switzerland
CHF
1,772,914
n/a
Germany
CHF
626,969
n/a
Belgium
CHF
787,925
n/a
Luxembourg
CHF
147,205
n/a
Liechtenstein
CHF
14,923
n/a
Total
CHF
3,349,936
n/a
No prior-year data is available for this disclosure requirement.
The aforementioned contributions mainly relate to
memberships of associations. The financial support of
parties in Switzerland in the financial year amounted to
CHF 82,000.- (2023: CHF 100,500.-)
Baloise did not make any in-kind contributions in the
context of political lobbying.
In 2024, no persons were appointed to the Corporate
Executive Committee or the Board of Directors who had
held a comparable position in public administration or
with regulatory authorities in the two years preceding their
appointment.
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G1-6 – Payment practices
(Art. 964b (2) 5 OR)
Baloise’s relationship with suppliers is reflected in the
metrics on its payment practices. Across the Group,
Baloise’s standard payment terms are 30 days and apply
for the majority of supplier relationships – regardless of the
category of goods. For all other supplier relationships, the
individual payment terms of the relevant supplier apply.
Baloise pays invoices promptly within the payment
deadlines. The average payment duration varies for each
national subsidiary and is between nine and 30 days.
During the reporting period, there were no public court
proceedings against Baloise for late payment.
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This page has been intentionally left blank.
217
Baloise Group Annual Report 2024
Report on non-financial matters
Table of references for the
Swiss Code of Obligations (OR)
220
Table of references for the Task Force
on Climate-related Financial Disclosures
(TCFD)
225
Independent practitioner’s report on the
non-financial reporting for 2024
228
Appendix
219
Baloise Group Annual Report 2024
Disclosures in accordance with Art. 964b of the Swiss Code of Obligations (OR)
Topic
Requirements
Chapter
Page
Business model
(Art. 964b (2) 1 OR)
ESRS 2, Governance (GOV–1 – The role of the administrative,
management and supervisory bodies)
115
ESRS 2, Governance (GOV-2 – Information provided to and
sustainability matters addressed by the Company’s
administrative, management and supervisory bodies)
118
ESRS 2, Strategy (SBM-1 – Strategy, business model and value
chain)
122
ESRS 2, Strategy (SBM-2 – Interests and views of stakeholders)
127
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
Environmental
matters
(Art. 964b (1) OR)
Art. 3 KlimaVO and recommendations
of the TCFD
The references to the relevant disclosures are contained
in the following table of references for the Task Force on
Climate-related Financial Disclosures.
225
Social matters
(Art. 964b (1) OR)
Policies, including the
due diligence approach
(Art. 964b (2) 2 OR)
ESRS 2, Governance (GOV-3 – Integration of
sustainability-related performance in incentive schemes)
118
ESRS 2, Governance (GOV-4 – Statement on due diligence)
118
ESRS 2, Impact, risk and opportunity management (IRO-1 –
Description of the process to identify and assess material
impacts, risks and opportunities)
148
ESRS S4, Impact, risk and opportunity management
(S4-1 – Policies related to consumers and end-users)
191
Actions and their effectiveness
(Art. 964b (2) 3 OR)
ESRS S4, Impact, risk and opportunity management
(S4-2 – Processes for engaging with consumers and end-users
about impacts)
195
ESRS S4, Impact, risk and opportunity management
(S4-3 – Processes to remediate negative impacts and channels
for consumers and end-users to raise concerns)
195
ESRS S4, Impact, risk and opportunity management
(S4-4 – Taking action on material impacts on consumers and
end-users, and approaches to managing material risks and
pursuing material opportunities related to consumers and
end-users, and effectiveness of those actions and approaches)
196
Table of references for the Swiss
Code of Obligations
Report on non-financial matters
220
Baloise Group Annual Report 2024
Topic
Requirements
Chapter
Page
Social matters
(Art. 964b (1) OR)
Material risks and their management
(Art. 964b (2) 4 OR)
ESRS 2, Governance (GOV-5 – Risk management and internal
controls over sustainability reporting)
120
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
ESRS S4, Strategy (ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and business
model)
190
ESRS S4, Impact, risk and opportunity management
(S4-4 – Taking action on material impacts on consumers and
end-users, and approaches to managing material risks and
pursuing material opportunities related to consumers and
end-users, and effectiveness of those actions and approaches)
196
Material key performance indicators
(Art. 964b (2) 5 OR)
ESRS S4, Metrics and targets (S4-5 – Targets related to
managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities)
203
ESRS G1, Metrics and targets (G1-6 – Payment practices)
216
Employee matters
(Art. 964b (1) OR)
Policies, including the due diligence
approach
(Art. 964b (2) 2 OR)
ESRS 2, Governance (GOV-3 – Integration of
sustainability-related performance in incentive schemes)
118
ESRS 2, Governance (GOV-4 – Statement on due diligence)
118
ESRS 2, Impact, risk and opportunity management
(IRO-1 – Description of the process to identify and assess
material impacts, risks and opportunities)
148
ESRS S1, Impact, risk and opportunity management
(S1-1 – Policies related to own workforce)
177
ESRS S1, Impact, risk and opportunity management
(S1-5 – Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities)
184
Actions and their effectiveness
(Art. 964b (2) 3 OR)
ESRS S1, Impact, risk and opportunity management
(S1-1 – Policies related to own workforce)
177
ESRS S1, Impact, risk and opportunity management
(S1-2 – Processes for engaging with own workers and workers’
representatives about impacts)
181
ESRS S1, Impact, risk and opportunity management
(S1-3 – Processes to remediate negative impacts and channels
for own workers to raise concerns)
182
ESRS S1, Impact, risk and opportunity management
(S1-4 – Taking action on material impacts on the Company’s
own workforce, and approaches to managing material risks and
pursuing material opportunities related to the Company’s own
workforce, and effectiveness of those actions and approaches)
182
Report on non-financial matters
221
Baloise Group Annual Report 2024
Topic
Requirements
Chapter
Page
Employee matters
(Art. 964b (1) OR)
Material risks and their management
(Art. 964b (2) 4 OR)
ESRS 2, Governance (GOV-5 – Risk management and internal
controls over sustainability reporting)
120
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
ESRS S1, Strategy (ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and business
model)
176
Material key performance indicators
(Art. 964b (2) 5 OR)
ESRS S1, Impact, risk and opportunity management
(S1-2 – Processes for engaging with own workers and workers’
representatives about impacts)
181
ESRS S1, Metrics and targets (S1-6 – Characteristics of the
Company’s employees)
184
ESRS S1, Metrics and targets (S1-7 – Characteristics of the
Company’s non-employees)
185
ESRS S1, Metrics and targets (S1-8 – Collective bargaining
coverage and social dialogue)
186
ESRS S1, Metrics and targets (S1-9 – Diversity metrics)
186
ESRS S1, Metrics and targets (S1-10 – Adequate wages)
186
ESRS S1, Metrics and targets (S1-11 – Social protection)
187
ESRS S1, Metrics and targets (S1-12 – Persons with disabilities)
187
ESRS S1, Metrics and targets (S1-13 – Training and skills
development metrics)
187
ESRS S1, Metrics and targets (S1-14 – Health and safety metrics) 187
ESRS S1, Metrics and targets (S1-15 – Work-life balance metrics) 188
ESRS S1, Metrics and targets (S1-16 – Remuneration metrics
(pay gap and total remuneration))
188
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Report on non-financial matters
Topic
Requirements
Chapter
Page
Respect for human
rights
(Art. 964b (1) OR)
Policies, including the
due diligence approach
(Art. 964b (2) 2 OR)
ESRS 2, Governance (GOV-3 – Integration of
sustainability-related performance in incentive schemes)
118
ESRS 2, Governance (GOV-4 – Statement on due diligence)
118
ESRS 2, Strategy (SBM-1 – Strategy, business model and value
chain)
122
ESRS 2, Impact, risk and opportunity management
(IRO-1 – Description of the process to identify and assess
material impacts, risks and opportunities)
148
ESRS S1, Impact, risk and opportunity management
(S1-1 – Policies related to own workforce)
177
ESRS S4, Impact, risk and opportunity management
(S4-1 – Policies related to consumers and end-users)
191
ESRS G1, Impact, risk and opportunity management
(G1-1 – Business conduct policies and corporate culture)
206
Actions and their effectiveness
(Art. 964b (2) 3 OR)
ESRS 2, Strategy (SBM-1 – Strategy, business model and value
chain)
122
ESRS S1, Impact, risk and opportunity management
(S1-1 – Policies related to own workforce)
177
ESRS S4, Impact, risk and opportunity management
(S4-1 – Policies related to consumers and end-users)
191
Material risks and their management
(Art. 964b (2) 4 OR)
ESRS 2, Governance (GOV-5 – Risk management and internal
controls over sustainability reporting)
120
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
ESRS S1, Strategy (ESRS 2 SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and business
model)
176
ESRS S1, Impact, risk and opportunity management
(S1-1 – Policies related to own workforce)
177
ESRS S4, Impact, risk and opportunity management
(S4-1 – Policies related to consumers and end-users)
191
Material key performance indicators
(Art. 964b (2) 5 OR)
ESRS S1, Metrics and targets (S1-17 – Incidents, complaints
and severe human rights impacts
189
ESRS S4, Impact, risk and opportunity management
(S4-1 – Policies related to consumers and end-users)
191
ESRS S4, Impact, risk and opportunity management
(S4-4 – Taking action on material impacts on consumers and
end-users, and approaches to managing material risks and
pursuing material opportunities related to consumers and
end-users, and effectiveness of those actions and approaches)
196
223
Baloise Group Annual Report 2024
Report on non-financial matters
Topic
Requirements
Chapter
Page
Anti-corruption
measures
(Art. 964b (1) OR)
Policies, including the due diligence
approach
(Art. 964b (2) 2 OR)
ESRS 2, Governance (GOV-3 – Integration of
sustainability-related performance in incentive schemes)
118
ESRS 2, Governance (GOV-4 – Statement on due diligence)
118
ESRS 2, Impact, risk and opportunity management
(IRO-1 – Description of the process to identify and assess
material impacts, risks and opportunities)
148
ESRS G1, Impact, risk and opportunity management
(G1-1 – Business conduct policies and corporate culture)
206
ESRS G1, Impact, risk and opportunity management
(G1-2 – Management of relationships with suppliers)
213
Actions and their effectiveness
(Art. 964b (2) 3 OR)
ESRS G1, Impact, risk and opportunity management
(G1-1 – Business conduct policies and corporate culture)
206
ESRS G1, Impact, risk and opportunity management
(G1-2 – Management of relationships with suppliers)
213
ESRS G1, Impact, risk and opportunity management
(G1-3 – Prevention and detection of corruption and bribery)
214
Material risks and their management
(Art. 964b (2) 4 OR)
ESRS 2, Governance (GOV-5 – Risk management and internal
controls over sustainability reporting)
120
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
ESRS G1, Impact, risk and opportunity management
(ESRS 2 IRO-1 – Description of the processes to identify and
assess material impacts, risks and opportunities)
206
ESRS G1, Impact, risk and opportunity management
(G1-1 – Business conduct policies and corporate culture)
206
ESRS G1, Impact, risk and opportunity management
(G1-2 – Management of relationships with suppliers)
213
ESRS G1, Impact, risk and opportunity management
(G1-3 – Prevention and detection of corruption and bribery)
214
Material key performance indicators
(Art. 964b (2) 5 OR)
ESRS G1, Metrics and targets (G1-4 – Incidents of corruption
and bribery)
215
Report on non-financial matters
224
Baloise Group Annual Report 2024
Table of references for the Task Force
on Climate-related Financial Disclo-
sures (TCFD)
Disclosures in accordance with Art. 3 of the Swiss Ordinance on Climate Disclosures (KlimaVO)
and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD),
which are referenced in the ordinance, in connection with environmental matters in accordance
with Art. 964b (1) OR
The disclosures in the relevant chapters of this report follow the TCFD disclosure recommendations and also reflect the
supplemental TCFD guidance for the financial sector.
Topic
Disclosure recommendation
Chapter
Page
Governance
Disclosure of governance in
relation to climate-related
risks and opportunities
a) Monitoring of climate-related risks
and opportunities by the Board of
Directors
ESRS 2, Governance (GOV–1 – The role of the
administrative, management and supervisory bodies)
115
ESRS 2, Governance (GOV-2 – Information provided to
and sustainability matters addressed by the
Company’s administrative, management and
supervisory bodies)
118
ESRS 2, Governance (GOV-4 – Statement on
due diligence)
118
ESRS 2, Governance (GOV-5 – Risk management and
internal controls over sustainability reporting)
120
b) Role of senior management in
assessing and managing climate-
related risks and opportunities
ESRS 2, Governance (GOV–1 – The role of the
administrative, management and supervisory bodies)
115
Report on non-financial matters
225
Baloise Group Annual Report 2024
Topic
Disclosure recommendation
Chapter
Page
Strategy
Disclosure of the actual and
potential impacts of climate-
related risks and opportunities
on operations, strategy and
financial planning
a) Short-, medium- and long-term
climate-related risks and opportunities
of the organisation
ESRS 2, Basis for preparation (BP-2 – Disclosures in
relation to specific circumstances)
114
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
ESRS E1, Strategy (ESRS 2 SBM-3 – Material impacts,
risks and opportunities and their interaction with
strategy and business model)
159
ESRS 2, Impact, risk and opportunity management
(IRO-1 – Description of the process to identify and
assess material
impacts, risks and opportunities)
148
ESRS E1, Metrics and targets
(E1-6 – Gross Scopes 1, 2, 3 and total GHG emissions)
167
b) Impacts of climate-related risks and
opportunities on operations, strategy
and financial planning
ESRS 2, Strategy (SBM-1 – Strategy, business model and
value chain)
122
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
ESRS E1, Strategy (ESRS 2 SBM-3 – Material impacts,
risks and opportunities and their interaction with
strategy and business model)
159
ESRS E1, Strategy (E1-1 – Transition plan for climate
change mitigation)
158
c) Resilience of the strategy based on
different climate scenarios, including a
scenario in which global warming is 2°C
or less
ESRS 2, Strategy (SBM-1 – Strategy, business model and
value chain)
122
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
ESRS E1, Strategy (ESRS 2 SBM-3 – Material impacts,
risks and opportunities and their interaction with
strategy and business model)
159
Report on non-financial matters
226
Baloise Group Annual Report 2024
Topic
Disclosure recommendation
Chapter
Page
Risk management
Disclosure of the processes to
identify, assess and manage
climate-related risks
a) Processes to identify and assess
climate-related risks
ESRS 2, Governance (GOV-5 – Risk management and
internal controls over sustainability reporting)
120
ESRS 2, Strategy (SBM-1 – Strategy, business model
and value chain)
122
b) Processes to manage climate-
related risks
ESRS 2, Governance (GOV-5 – Risk management and
internal controls over sustainability reporting)
120
ESRS 2, Strategy (SBM-1 – Strategy, business model
and value chain)
122
a) Integration of processes to identify,
assess and manage climate-related
risks into general risk management
ESRS 2, Governance (GOV-5 – Risk management and
internal controls over sustainability
reporting)
120
Metrics and targets
Disclosure of the metrics and
targets to assess and manage
relevant climate-related risks
and opportunities
a) Metrics to assess climate-related
risks and opportunities based on
the strategy and risk management
process
ESRS 2, Governance (GOV-3 – Integration of
sustainability-related performance in
incentive schemes)
118
ESRS E1, Governance (ESRS 2 GOV-3 – Integration of
sustainability-related performance in incentive
schemes)
158
ESRS E1, Strategy (E1-1 – Transition plan for climate
change mitigation)
158
ESRS 2, Strategy (SBM-3 – Material impacts, risks and
opportunities and their interaction with strategy and
business model)
129
ESRS E1, Strategy (ESRS 2 SBM-3 – Material impacts,
risks and opportunities and their interaction with
strategy and business model)
159
ESRS E1, Impact, risk and opportunity management
(E1-2 – Policies related to climate change mitigation
and adaptation)
161
ESRS E1, Impact, risk and opportunity management
(E1-3 – Actions and resources in relation to climate
change policies)
165
ESRS E1, Metrics and targets (E1-4 – Targets related
to climate change mitigation and adaptation)
166
ESRS E1, Metrics and targets (E1-5 Energy consumption
and mix)
166
ESRS E1, Metrics and targets
(E1-6 – Gross Scopes 1, 2, 3 and total GHG emissions)
167
ESRS E1, Metrics and targets (E1-7 – GHG removals
and GHG mitigation projects financed through carbon
credits)
172
ESRS E1, Metrics and targets (E1-8 – Internal carbon
pricing)
172
ESRS E1, Metrics and targets (E1-9 – Anticipated
financial effects from material physical and transition
risks and potential climate-related opportunities)
172
b) Scope 2 and – where appropriate –
Scope 3 GHG emissions and the
related risks
ESRS E1, Metrics and targets
(E1-6 – Gross Scopes 1, 2, 3 and total GHG emissions)
167
c) Targets for managing climate-
related risks
and opportunities, including
performance with regard to these
targets
ESRS E1, Strategy (E1-1 – Transition plan for climate
change mitigation)
158
ESRS E1, Impact, risk and opportunity management
(E1-2 – Policies related to climate change mitigation
and adaptation)
161
ESRS E1, Metrics and targets (E1-4 – Targets related to
climate change mitigation and adaptation)
166
Report on non-financial matters
227
Baloise Group Annual Report 2024
Report of the statutory auditor to the Annual General Meeting of
Baloise Holding Ltd, Basel
Please refer to the German version of the Baloise Annual Report 2024, page 228, for the report of the statutory auditor
on greenhouse gas emissions performance indicators for 2024. The auditor’s opinion dated 20 March 2025 confirms
compliance with Swiss law and the Company’s articles of incorporation.
Please also refer to the disclosure on page 439, “Information on the Baloise Group”, referencing the fact that only the
German text of the annual report is legally binding.
228
Baloise Group Annual Report 2024
Report on non-financial matters
This page has been intentionally left blank.
229
Baloise Group Annual Report 2024
Report on non-financial matters
This page has been intentionally left blank.
230
Baloise Group Annual Report 2024
Report on non-financial matters
This page has been intentionally left blank.
231
Baloise Group Annual Report 2024
Report on non-financial matters
232
Baloise Group Annual Report 2024
233
Baloise Group Annual Report 2024
233
Baloise Group Annual Report 2023
Consolidated income statement
234
Consolidated statement of comprehensive income 235
Consolidated balance sheet
236
Consolidated statement of changes in equity
238
Consolidated cash flow statement
240
Notes to the consolidated annual
financial statements
242
1.
General comments
242
2. Segment information
245
3. Insurance business
250
4. Investments and financial liabilities
279
5. Funding
306
6. Employee benefits
309
7.
Taxes
317
8. Other income statement line items
321
9. Other balance sheet line items
322
10. Other disclosures
330
11. Risk management
340
12. Principles of consolidation; accounting policies 368
Report of the statutory auditor
to the Annual General Meeting of
Baloise Holding Ltd, Basel
400
Financial report
234
Baloise Group Annual Report 2024
Financial report
Consolidated income statement
Note
2024
2023
CHF million
Insurance revenue
3.1.1
5,556.8
5,412.4
Insurance service expenses
3.1.2
– 4,681.7
– 4,666.9
Insurance service result from reinsurance contracts
3.1.3
– 158.7
– 151.8
Insurance service result
716.4
593.7
Insurance finance income and expenses from insurance contracts
3.2
– 1,937.8
– 2,833.2
Insurance finance income and expenses from reinsurance contracts
3.2
10.4
26.8
Insurance finance income and expenses
– 1,927.5
– 2,806.4
Interest revenue calculated using the effective interest method
4.1
310.7
296.8
Investment income
4.1
921.6
970.6
Realised gains and losses on investments
4.1
2,055.7
2,555.4
Change in expected credit loss
4.1
2.3
2.2
Result from financial contracts
4.3.1
– 1,090.2
– 842.7
Result from investments and financial contracts
2,200.0
2,982.2
Income from services rendered
8.1
142.4
141.7
Other operating income
8.2
167.3
161.6
Other operating expenses
8.3
– 732.0
– 691.7
Share of profit (loss) of associates and joint ventures
10.2.3
– 14.8
– 20.7
Profit and loss from owner-occupied properties FVPL
9.1
– 6.5
– 16.0
Profit before borrowing costs and taxes
545.3
344.4
Borrowing costs
5.1
– 24.9
– 26.2
Profit before taxes
520.5
318.2
Income taxes
7.1
– 141.1
– 81.9
Profit for the period
379.4
236.2
Profit attributable to:
Shareholders
384.8
239.6
Non-controlling interests
– 5.4
– 3.3
Earnings / loss per share:
10.1
Basic (CHF)
8.48
5.29
Diluted (CHF)
8.47
5.29
235
Baloise Group Annual Report 2024
Financial report
Consolidated statement of comprehensive income
Note
2024
2023
CHF million
Profit for the period
379.4
236.2
Other comprehensive income
Items not to be reclassified to the income statement
Change in reserves arising from reclassification of investment property
0.0
0.1
Change in reserves arising from assets and liabilities of post-employment benefits
(defined benefit plans)
– 12.2
– 55.1
Change in other reserves on equity instruments at FVOCI
– 14.1
1.2
Total items not to be reclassified to the income statement
9.5
– 26.3
– 53.7
Items to be reclassified to the income statement
Change in other reserves on associates and joint ventures
– 3.6
– 2.2
Change in hedging reserves for derivative financial instruments held as hedges of
a net investment in a foreign operation
– 71.9
77.2
Change in other reserves on debt investments at FVOCI
94.0
266.0
Change in other reserves on loans at FVOCI
8.5
22.6
Insurance finance income and expenses from insurance contracts
181.1
– 63.6
Insurance finance income and expenses from reinsurance contracts
– 38.1
– 0.5
Exchange differences of foreign operations
173.9
– 328.1
Total items to be reclassified to the income statement
9.5
343.9
– 28.6
Total other comprehensive income
9.5
317.5
– 82.3
Comprehensive income
696.9
154.0
Attributable to:
Shareholders
702.2
157.4
Non-controlling interests
– 5.3
– 3.5
236
Baloise Group Annual Report 2024
Financial report
Consolidated balance sheet
Note
31.12.2024
31.12.2023
CHF million
Assets
Property, plant and equipment
9.1
540.2
636.1
Intangible assets
9.2
200.6
214.8
Investments in associates and joint ventures
10.2.3
312.1
318.1
Investment property
4.2.1
7,706.7
8,248.6
Financial instruments with characteristics of equity
4.2
16,613.7
14,932.9
Recognised at fair value through OCI (FVOCI)
339.4
336.7
Recognised at fair value through profit or loss (FVPL)
16,274.3
14,596.2
Financial instruments with characteristics of debt
4.2
32,605.3
32,153.4
Recognised at amortised cost (AC)
155.9
125.0
Recognised at fair value through OCI (FVOCI)
6,315.1
5,654.7
Recognised at fair value through profit or loss (FVPL)
26,134.4
26,373.7
Mortgages and loans
4.2
16,089.3
15,602.3
Recognised at amortised cost (AC)
11,020.3
10,138.4
Recognised at fair value through OCI (FVOCI)
504.1
555.0
Recognised at fair value through profit or loss (FVPL)
4,564.9
4,909.0
Derivative financial instruments
4.2
902.8
1,072.6
Insurance contract assets
3.4
29.4
68.4
Reinsurance contract assets
3.5
1,171.7
450.5
Receivables from employee benefits
6.1
6.0
6.3
Financial receivables
4.2
607.1
727.2
Deferred tax assets
7.3
208.1
207.1
Current income tax assets
45.5
57.7
Other assets
9.3
103.6
100.3
Cash and cash equivalents
4.2
2,714.4
2,985.3
Non-current assets and disposal groups classified as held for sale
10.2.5
120.5
91.1
Total assets
79,976.9
77,872.8
237
Baloise Group Annual Report 2024
Financial report
Note
31.12.2024
31.12.2023
CHF million
Equity and liabilities
Equity
Share capital
9.4
4.6
4.6
Capital reserves
398.4
378.6
Treasury shares
– 40.5
– 48.8
Other reserves
9.5
– 1,581.1
– 1,892.6
Retained earnings
4,848.3
4,808.3
Equity before non-controlling interests
3,629.7
3,250.0
Non-controlling interests
6.7
9.3
Total equity
3,636.3
3,259.3
Liabilities
Insurance contract liabilities
3.4
49,506.2
49,819.5
Reinsurance contract liabilities
3.5
9.0
2.5
Liabilities arising from financial contracts
4.3.2
22,182.1
19,936.3
Recognised at amortised cost (AC)
8,890.3
8,123.3
Recognised at fair value through profit or loss (FVPL)
13,291.8
11,813.1
Financial liabilities
5.2
2,388.8
2,391.3
Non-technical provisions
9.6
114.0
111.9
Derivative financial instruments
4.2.5
161.5
83.4
Liabilities arising from employee benefits
6.1
655.9
635.5
Deferred tax liabilities
7.3
542.6
419.4
Current income tax liabilities
57.6
56.5
Other liabilities and other financial liabilities
676.9
1,002.4
Liabilities included in non-current assets and disposal groups
classified as held for sale
10.2.5
45.8
154.7
Total liabilities
76,340.5
74,613.5
Total equity and liabilities
79,976.9
77,872.8
238
Baloise Group Annual Report 2024
Financial report
2024
Share capital
Capital
reserves
Treasury
shares
Other
reserves
Retained
earnings
Equity
before non-
controlling
interests
Non-
controlling
interests
Total
equity
CHF million
Balance as at 1 January
4.6
378.6
– 48.8
– 1,892.6
4,808.3
3,250.0
9.3
3,259.3
Profit / loss for the period
–
–
–
–
384.8
384.8
– 5.4
379.4
Other comprehensive
income
–
–
–
317.4
–
317.4
0.1
317.5
Comprehensive income
–
–
–
317.4
384.8
702.2
– 5.3
696.9
Other reserves
transferred directly
to retained earnings
–
–
–
– 5.9
5.9
–
–
–
Dividend
–
–
–
–
– 349.1
– 349.1
–
– 349.1
Capital increase /
repayment
–
–
–
–
–
–
–
–
Purchase of
treasury shares
–
–
– 28.3
–
–
– 28.3
–
– 28.3
Sale of treasury shares
–
34.2
13.5
–
–
47.7
–
47.7
Purchase and sale of
options on treasury shares
–
8.9
–
–
–
8.9
–
8.9
Share-based payments
–
– 0.1
–
–
–
– 0.1
1.3
1.1
Allocation of treasury
shares as part of share-
based remuneration
programmes
–
– 23.1
23.1
–
–
–
–
–
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 share-
holding
–
–
–
–
– 1.4
– 1.4
1.4
–
Balance as at
31 December
4.6
398.4
– 40.5
– 1,581.1
4,848.3
3,629.7
6.7
3,636.3
Consolidated statement of changes in equity
239
Baloise Group Annual Report 2024
Financial report
2023
Share capital
Capital
reserves
Treasury
shares
Other
reserves
Retained
earnings
Equity
before non-
controlling
interests
Non-
controlling
interests
Total
equity
CHF million
Balance as at 1 January
4.6
377.3
– 71.6
– 1,803.3
4,898.2
3,405.2
12.2
3,417.4
Profit / loss for the period
–
–
–
–
239.6
239.6
– 3.3
236.2
Other comprehensive
income
–
–
–
– 82.2
–
– 82.2
– 0.1
– 82.3
Comprehensive income
–
–
–
– 82.2
239.6
157.4
– 3.5
154.0
Other reserves
transferred directly
to retained earnings
–
–
–
– 7.1
7.1
0.0
–
0.0
Dividend
–
–
–
–
– 335.3
– 335.3
– 0.4
– 335.7
Capital increase /
repayment
–
–
–
–
–
–
–
–
Purchase of
treasury shares
–
–
– 33.3
–
–
– 33.3
–
– 33.3
Sale of treasury shares
–
25.5
28.7
–
–
54.1
–
54.1
Purchase and sale of
options on treasury shares
–
0.1
–
–
–
0.1
–
0.1
Share-based payments
–
3.2
–
–
–
3.2
0.8
4.0
Allocation of treasury
shares as part of share-
based remuneration
programmes
–
– 27.4
27.4
–
–
–
–
–
Increase / decrease in
non-controlling interests
due to change in the scope
of consolidation
–
–
–
–
0.3
0.3
– 1.4
– 1.1
Increase / decrease in
non-controlling interests
due to change in the
percentage of share-
holding
–
–
–
–
– 1.6
– 1.6
1.6
–
Balance as at
31 December
4.6
378.6
– 48.8
– 1,892.6
4,808.3
3,250.0
9.3
3,259.3
240
Baloise Group Annual Report 2024
Financial report
Consolidated cash flow statement
Note
2024
2023
CHF million
Cash flow from operating activities
Profit before taxes
520.5
318.2
Adjustments for
Depreciation, amortisation and impairment of property, plant and equipment and
of intangible assets
8.4
73.5
76.0
Realised gains and losses on property, plant and equipment and on intangible assets
3.9
– 0.1
Share of profit (loss) of associates and joint ventures
14.8
20.7
Realised gains and losses on financial assets and investment property
– 2,055.7
– 2,555.4
Profit and loss from owner-occupied properties FVPL
6.5
16.0
Change in expected credit loss
– 2.3
– 2.2
Share-based payments
1.1
4.0
Other non-cash income and expenses
– 9.4
– 36.4
Change in assets and liabilities from operating activities
Insurance contract assets and liabilities
– 319.1
1,126.8
Reinsurance contract assets and liabilities
– 846.5
108.8
Liabilities arising from financial contracts
2,128.0
675.4
Financial receivables
121.5
– 164.5
Change in other assets and other liabilities
– 270.3
232.6
Change in operating assets and liabilities
Purchase and sale of owner-occupied properties FVPL
– 2.0
– 2.9
Purchase and sale of investment property
4.2.1
566.6
269.6
Purchase and sale of financial instruments with characteristics of equity
– 89.1
1,589.7
Purchase and sale of financial instruments with characteristics of debt
681.9
– 270.8
Addition and disposal of mortgages and loans
– 285.3
– 892.0
Addition and disposal of derivative financial instruments
– 75.2
– 8.4
Borrowing costs
5.1
24.9
26.2
Taxes paid
– 65.6
– 35.9
Cash flow from operating activities
122.6
495.5
Cash flow from investing activities
Purchase of property, plant and equipment
9.1
– 28.9
– 16.2
Sale of property, plant and equipment
7.9
0.6
Purchase of intangible assets
9.2
– 36.0
– 40.1
Sale of intangible assets
6.7
2.2
Acquisition of companies, net of cash and cash equivalents
–
– 145.8
Disposal of companies, net of cash and cash equivalents
10.2.1
– 0.3
16.0
Purchase of investments in associates and joint ventures
– 21.9
– 17.9
Sale of investments in associates and joint ventures
1.7
2.4
Dividends from associates and joint ventures
8.2
7.2
Cash flow from investing activities
– 62.5
– 191.6
241
Baloise Group Annual Report 2024
Financial report
Note
2024
2023
CHF million
Cash flow from financing activities
Additions to financial liabilities 1
5.2.1
150.0
274.9
Disposals of financial liabilities 1
5.2.1
– 150.0
– 525.0
Borrowing costs paid
5.2.1
– 15.4
– 19.8
Repayment of lease liabilities
5.2.2
– 11.7
– 12.3
Purchase of treasury shares
– 28.3
– 33.3
Sale of treasury shares
47.7
54.1
Purchase and sale of options on treasury shares
8.9
0.1
Dividends attributable to non-controlling interests
–
– 0.4
Dividends paid
– 349.1
– 335.3
Cash flow from financing activities
– 347.8
– 596.9
Total cash flow
– 287.8
– 293.1
Cash and cash equivalents
Balance as at 1 January
2,985.3
3,370.8
Change during the financial year
– 287.8
– 293.1
Reclassification to non-current assets and disposal groups classified as held for sale
– 10.3
–
Effect of changes in exchange rates on cash and cash equivalents
27.2
– 92.5
Balance as at 31 December
2,714.4
2,985.3
Breakdown of cash and cash equivalents at the balance sheet date
Cash and bank balances
1,927.4
2,068.9
Cash equivalents
0.1
0.1
Cash and cash equivalents for the account and at the risk of customers and third parties
786.9
916.3
Balance as at 31 December
2,714.4
2,985.3
of which: restricted cash and cash equivalents
68.7
188.2
Supplemental disclosures on cash flow from operating activities
Interest received
690.7
854.7
Dividends received
23.1
36.4
Interest paid
– 46.0
– 25.8
1 The prior-year figures have been adjusted.
242
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Notes to the consolidated annual financial
statements
1. General comments
1.1
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 Baloise 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 subsid-
iaries 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 manage-
ment companies in Luxembourg.
The amounts shown in the consolidated financial statements are stated in Swiss francs (CHF). The reporting year is
the same as the calendar year. The consolidated financial statements are prepared in accordance with IFRS accounting
standards. Financial instruments and the insurance business are predominantly measured at fair value through other
comprehensive income or at fair value through profit or loss. Other assets and liabilities are generally measured at
historical cost.
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 20 March 2025 the Baloise 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 Baloise Holding Ltd.
IFRS 9 and IFRS 17 contain numerous technical terms that, in practice, are often used only in their abbreviated form.
The Baloise Group uses the most common abbreviations, which are set out below:
List of abbreviations IFRS
Abbreviation
Original English term
AC
amortised cost
CF
cash flow
CSM
contractual service margin
CU
coverage unit
DAC
deferred acquisition costs
DPF
discretionary participation feature
EaD
exposure at default
ECL
expected credit loss
ESG
environmental, social and governance
FRA
full retrospective approach
FCF
fulfilment cash flows
FV
fair value
FVA
fair value approach
FVOCI
fair value through OCI
FVPL
fair value through profit or loss
GIC
groups of insurance contracts
GMM
general measurement model
IACF
insurance acquisition cash flows
IFIE
insurance finance income or expenses
LC
loss component
LGD
loss given default
243
Baloise Group Annual Report 2024
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LIC
liability for incurred claims
LRC
liability for remaining coverage
LORECO
loss recovery component
MRA
modified retrospective approach
OCI
other comprehensive income
PAA
premium allocation approach
PD
probability of default
PIC
portfolios of insurance contracts
POCI
purchased or originated credit-impaired
PVFCF
present value of future cash flows
RA
risk adjustment
SPPI
solely payments of principal and interest
VFA
variable fee approach
1.2
Application of new financial reporting standards
1.2.1
Newly applied IFRS and interpretations
The following amendments to the financial reporting standards must be applied from 1 January 2024 although they have
no impact on the Baloise Group’s consolidated financial statements as at 31 December 2024:
•
IAS 1 “Classification of Liabilities as Current or Non-current”
•
IAS 1 “Non-current Liabilities with Covenants”
•
IFRS 16 “Lease Liability in a Sale and Leaseback”
•
AS 7 and IFRS 7 “Supplier Finance Arrangements”
1.2.2
Early application of amendments
IFRS 7/9 Amendments regarding the classification and measurement of financial instruments
The application notes now provide a more precise definition of the criteria for determining whether a financial asset
satisfies the SPPI criterion. They clarify that assets with ESG-linked or similar features that relate to borrower-specific
conditions – but not general market conditions – meet the SPPI test under certain conditions.
The early application of the amendments to the classification of financial instruments (IFRS 9.4.1) resulted, on a small
scale, in the reclassification of financial instruments with characteristics of liabilities (ESG bonds) from measurement at
fair value through profit or loss (FVPL) to measurement at fair value through other comprehensive income (FVOCI). Only
the application notes on the classification of financial instruments and their disclosure requirements were applied early.
The new disclosure requirements regarding financial instruments with characteristics of equity measured at FVOCI were
not applied early (IFRS 9.7.1.13).
244
Baloise Group Annual Report 2024
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1.2.3
IFRSs and interpretations not yet applied
The following new standards and interpretations relevant to the Baloise Group have been published by the IASB but
have not yet come into effect. With the exception of the application notes on the classification of financial instruments,
they were not yet applied in the 2024 consolidated annual financial statements:
Standard /
Interpretation
Content
Applicable to annual
periods beginning on or
after:
IAS 21
Lack of Exchangeability
01.01.2025
IFRS 7 / 9
Amendments to the Classification and Measurement of Financial Instruments
01.01.2026
IFRS 18
Presentation and Disclosure in Financial Statements
01.01.2027
IFRS 19
Subsidiaries without Public Accountability: Disclosures
01.01.2027
IFRS 7/9 Amendments regarding the classification and measurement of financial instruments
In addition to the application notes on the classification of financial instruments, new disclosure requirements regarding
financial instruments with characteristics of equity measured at FVOCI were introduced. Only the application notes on
the classification of financial instruments were applied early. The new disclosure requirements regarding financial instru-
ments with characteristics of equity measured at FVOCI were not applied early (IFRS 9.7.1.13).
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 was published by the IASB on 9 April 2024 and is required to be applied to annual periods beginning on or after
1 January 2027. IFRS 18 replaces IAS 1 Presentation of Financial Statements. In particular, the standard introduces three
specific categories for the structure of the income statement (operating, investing and financing) plus defined subtotals.
IFRS 18 also sets out principles for aggregation and disaggregation in the annual financial statements. The impact of
IFRS 18 on Baloise is currently being analysed. Based on an initial assessment, adjustments to the presentation of the
consolidated income statement and cash flow statement are expected, along with adjustments to individual disclo-
sures in the notes to the consolidated financial statements.
245
Baloise Group Annual Report 2024
Financial report
2. Segment information
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 decision-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 the 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 has been transferred to the Group’s run-off port-
folio, plus a portfolio of variable annuities products.
The revenue generated by the Baloise Group is broken down into the “Non-Life”, “Life”, “Asset Management & Banking” and
“Other Activities” operating segments.
The Non-Life operating 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 operating segment provides individuals and companies with a wide range of endowment policies, term insur-
ance, investment-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.
Reporting units that do not operate insurance business were reclassified from the Life operating segment to the
Other Activities operating segment in the reporting period. The prior-year figures have therefore been adjusted.
The accounting policies applied to the presentation of the segment reporting are those used throughout 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.
246
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2.1
Segment reporting by strategic business unit
Switzerland
Germany
Belgium
Luxembourg
2024
2023
2024
2023
2024
2023
2024
2023
CHF million
Insurance revenue
2,532.2
2,440.4
1,121.8
1,066.0
1,676.7
1,690.3
182.7
172.6
Insurance service expenses
– 2,159.3
– 2,169.3
– 934.4
– 878.7
– 1,339.9
– 1,392.7
– 184.6
– 145.6
Insurance service result from
reinsurance contracts
– 57.3
– 68.1
– 39.3
– 54.4
– 61.1
– 69.7
– 8.9
– 3.5
Insurance service result
315.6
202.9
148.1
132.9
275.7
227.9
– 10.8
23.6
Insurance finance income and
expenses from insurance contracts
– 1,227.6
– 1,651.6
– 389.4
– 573.5
– 246.6
– 517.7
– 69.8
– 87.8
Insurance finance income and
expenses from reinsurance
contracts
0.8
2.0
4.7
7.0
8.9
17.1
1.3
5.5
Insurance finance income
and expenses
– 1,226.8
– 1,649.6
– 384.7
– 566.5
– 237.7
– 500.6
– 68.5
– 82.3
Interest revenue calculated using
the effective interest method
235.1
224.6
24.7
23.3
58.8
54.6
6.9
5.6
Investment income
618.0
642.5
142.5
150.8
143.5
160.6
17.5
16.6
Realised gains and losses
on investments
667.0
1,019.7
231.3
411.1
97.3
336.2
1,013.5
803.5
Change in expected credit loss
1.9
2.1
0.1
0.1
– 0.2
0.0
0.5
– 0.1
Result from financial contracts
– 112.8
– 112.3
– 1.5
7.3
– 25.7
– 17.8
– 925.8
– 720.0
Result from investments
and financial contracts
1,409.3
1,776.5
397.3
592.6
273.7
533.7
112.5
105.7
Income from services rendered
120.6
117.2
32.7
32.7
8.4
9.7
1.5
1.9
Other operating income
70.2
83.3
36.3
19.1
21.0
17.2
30.2
3.6
Other operating expenses
– 314.2
– 328.8
– 131.4
– 122.6
– 183.3
– 175.5
– 30.4
– 34.3
Share of profit (loss) of associates
and joint ventures
– 14.8
– 21.1
9.1
7.2
– 4.6
– 0.6
– 0.1
–
Profit and loss from
owner-occupied properties FVPL
– 1.3
– 14.3
– 5.1
– 1.7
–
–
–
–
Profit / loss before borrowing
costs and taxes
358.5
166.2
102.2
93.6
153.3
111.7
34.4
18.2
Income between segments
– 42.0
– 39.6
– 22.0
– 16.6
– 15.3
– 11.5
– 3.0
– 3.0
Borrowing costs
– 4.8
– 7.4
0.0
0.0
0.0
0.0
– 0.3
– 0.4
Profit / loss before
taxes
353.7
158.9
102.2
93.6
153.3
111.7
34.0
17.8
Income taxes
– 56.6
– 21.7
– 35.1
– 35.2
– 37.8
– 35.3
– 7.8
– 1.5
Profit / loss for the period
(segment result)
297.1
137.2
67.1
58.4
115.5
76.4
26.3
16.3
Segment assets
as at 31 December
43,996.9
43,508.0
10,217.9
9,978.5
11,371.2
11,358.6
14,015.9
12,675.4
247
Baloise Group Annual Report 2024
Financial report
Sub-total
Group business
Eliminated
Total
2024
2023
2024
2023
2024
2023
2024
2023
CHF million
5,513.4
5,369.3
164.7
205.8
– 121.3
– 162.7
5,556.8
5,412.4
Insurance revenue
– 4,618.2
– 4,586.4
– 179.8
– 207.2
116.3
126.6
– 4,681.7
– 4,666.9
Insurance service expenses
– 166.6
– 195.6
2.1
2.8
5.9
41.1
– 158.7
– 151.8
Insurance service result from
reinsurance contracts
728.5
587.3
– 13.1
1.4
0.9
5.0
716.4
593.7
Insurance service result
– 1,933.4
– 2,830.5
– 10.5
– 9.8
6.1
7.1
– 1,937.8
– 2,833.2
Insurance finance income and
expenses from insurance contracts
15.8
31.6
0.5
2.9
– 5.9
– 7.7
10.4
26.8
Insurance finance income and
expenses from reinsurance
contracts
– 1,917.6
– 2,798.9
– 10.0
– 6.9
0.1
– 0.6
– 1,927.5
– 2,806.4
Insurance finance income
and expenses
325.6
308.2
26.1
23.3
– 41.0
– 34.7
310.7
296.8
Interest revenue calculated using
the effective interest method
921.5
970.6
0.1
0.0
–
–
921.6
970.6
Investment income
2,009.1
2,570.4
46.5
– 15.0
–
–
2,055.7
2,555.4
Realised gains and losses
on investments
2.3
2.1
0.0
0.0
–
–
2.3
2.2
Change in expected credit loss
– 1,065.8
– 842.9
– 65.6
– 34.8
41.2
35.0
– 1,090.2
– 842.7
Result from financial contracts
2,192.7
3,008.4
7.0
– 26.5
0.2
0.3
2,200.0
2,982.2
Result from investments
and financial contracts
163.3
161.4
168.1
158.9
– 189.0
– 178.7
142.4
141.7
Income from services rendered
157.7
123.1
48.0
72.7
– 38.3
– 34.2
167.3
161.6
Other operating income
– 659.4
– 661.1
– 298.7
– 238.7
226.1
208.1
– 732.0
– 691.7
Other operating expenses
– 10.4
– 14.5
– 4.4
– 6.3
–
–
– 14.8
– 20.7
Share of profit (loss) of associates
and joint ventures
– 6.5
– 16.0
–
–
–
–
– 6.5
– 16.0
Profit and loss from
owner-occupied properties FVPL
648.4
389.8
– 103.1
– 45.4
–
–
545.3
344.4
Profit / loss before borrowing
costs and taxes
– 82.3
– 70.7
– 184.9
– 209.8
267.2
280.5
–
–
Income between segments
– 5.2
– 7.7
– 19.7
– 18.5
–
–
– 24.9
– 26.2
Borrowing costs
643.2
382.0
– 122.7
– 63.8
–
–
520.5
318.2
Profit / loss before
taxes
– 137.3
– 93.7
– 3.8
11.8
–
–
– 141.1
– 81.9
Income taxes
505.9
288.3
– 126.6
– 52.0
–
–
379.4
236.2
Profit / loss for the period
(segment result)
79,601.9
77,520.6
2,819.6
2,419.5
– 2,444.7
– 2,067.3
79,976.9
77,872.8
Segment assets
as at 31 December
248
Baloise Group Annual Report 2024
Financial report
2.2
Segment reporting by operating segment
Non-Life
Life 1
Asset Management &
Banking
2024
2023
2024
2023
2024
2023
CHF million
Insurance revenue
4,101.3
4,020.8
1,461.7
1,399.4
–
–
Insurance service expenses
– 3,497.0
– 3,555.4
– 1,190.2
– 1,118.9
–
–
Insurance service result from reinsurance contracts
– 183.4
– 143.4
23.8
– 8.8
–
–
Insurance service result
421.0
321.9
295.3
271.8
–
–
Insurance finance income and expenses from
insurance contracts
– 101.3
– 104.3
– 1,836.7
– 2,729.0
–
–
Insurance finance income and expenses from
reinsurance contracts
7.0
24.1
3.5
2.8
–
–
Insurance finance income and expenses
– 94.3
– 80.2
– 1,833.1
– 2,726.3
–
–
Interest revenue calculated using the effective
interest method
149.5
133.0
19.1
21.2
148.5
140.3
Investment income
58.5
64.0
859.2
903.2
0.6
0.5
Realised gains and losses on investments
13.8
– 68.8
1,985.3
2,617.0
20.5
18.4
Change in expected credit loss
4.0
0.1
0.1
0.0
0.2
1.1
Result from financial contracts
– 15.2
– 15.1
– 966.2
– 759.5
– 86.1
– 69.0
Result from investments and financial contracts
210.6
113.2
1,897.5
2,781.9
83.8
91.4
Income from services rendered
76.7
82.1
15.2
14.8
184.4
162.8
Other operating income
63.9
82.8
89.0
50.8
22.0
14.7
Other operating expenses
– 412.4
– 383.4
– 180.0
– 180.8
– 200.9
– 186.5
Share of profit (loss) of associates and joint ventures
– 4.3
– 2.4
4.8
6.9
– 0.2
– 0.1
Profit and loss from owner-occupied properties FVPL
–
–
– 6.5
– 16.0
–
–
Profit / loss before borrowing costs and taxes
261.1
134.0
282.3
203.1
89.1
82.3
Borrowing costs
– 0.5
– 0.5
– 0.1
0.0
0.0
0.0
Profit / loss before taxes
260.6
133.5
282.2
203.1
89.1
82.2
Income taxes
– 79.9
– 44.4
– 52.0
– 34.8
– 12.3
– 12.6
Profit / loss for the period (segment result)
180.7
89.1
230.2
168.3
76.8
69.6
1 The prior-year figures have been adjusted owing to the reclassification of reporting units that do not operate direct life insurance business, and are not part of the underlying
items, to the Other Activities operating segment.
249
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Other activities 1
Eliminated
Total
2024
2023
2024
2023
2024
2023
CHF million
–
–
– 6.3
– 7.8
5,556.8
5,412.4
Insurance revenue
–
–
5.5
7.4
– 4,681.7
– 4,666.9
Insurance service expenses
–
–
0.9
0.5
– 158.7
– 151.8
Insurance service result from reinsurance contracts
–
–
0.1
0.0
716.4
593.7
Insurance service result
–
–
0.1
0.1
– 1,937.8
– 2,833.2
Insurance finance income and expenses from
insurance contracts
–
–
– 0.2
– 0.1
10.4
26.8
Insurance finance income and expenses from
reinsurance contracts
–
–
0.0
0.0
– 1,927.5
– 2,806.4
Insurance finance income and expenses
34.9
35.3
– 41.3
– 32.9
310.7
296.8
Interest revenue calculated using the effective
interest method
3.3
2.8
–
–
921.6
970.6
Investment income
36.0
– 11.2
–
0.0
2,055.7
2,555.4
Realised gains and losses on investments
– 2.1
0.9
–
–
2.3
2.2
Change in expected credit loss
– 64.3
– 32.4
41.5
33.3
– 1,090.2
– 842.7
Result from financial contracts
7.9
– 4.5
0.2
0.3
2,200.0
2,982.2
Result from investments and financial contracts
155.3
150.7
– 289.3
– 268.8
142.4
141.7
Income from services rendered
36.5
53.5
– 44.0
– 40.2
167.3
161.6
Other operating income
– 271.7
– 249.5
333.0
308.6
– 732.0
– 691.7
Other operating expenses
– 15.1
– 25.1
–
–
– 14.8
– 20.7
Share of profit (loss) of associates and joint ventures
–
–
–
–
– 6.5
– 16.0
Profit and loss from owner-occupied properties FVPL
– 87.1
– 75.0
–
–
545.3
344.4
Profit / loss before borrowing costs and taxes
– 24.2
– 25.6
–
–
– 24.9
– 26.2
Borrowing costs
– 111.4
– 100.7
–
–
520.5
318.2
Profit / loss before taxes
3.0
9.9
–
–
– 141.1
– 81.9
Income taxes
– 108.4
– 90.7
–
–
379.4
236.2
Profit / loss for the period (segment result)
250
Baloise Group Annual Report 2024
Financial report
3. Insurance business
3.1
Insurance revenue and insurance service expenses
3.1.1
Insurance revenue
2024
2023
CHF million
Insurance revenue from non-life contracts
4,095.0
4,013.0
Measured with PAA
4,095.0
4,013.0
Measured with GMM
–
–
Insurance revenue from life insurance contracts
1,461.7
1,399.4
Measured with VFA
1,322.2
1,255.9
Measured with GMM
139.5
143.5
Insurance revenue
5,556.8
5,412.4
Insurance revenue non-life
Insurance revenue from non-life contracts amounted to CHF 4,095.0 million (previous year: CHF 4,013.0 million) and was
generated solely from contracts measured using the premium allocation approach.
Insurance revenue life
The following table shows revenue from life insurance contracts measured using the variable fee approach:
2024
2023
CHF million
Expected incurred claims and other expected insurance service expenses
1,043.2
1,102.3
Release risk adjustment for non-financial risk
3.4
3.0
CSM for the service provided in the period (release)
248.5
224.3
Other
– 145.0
– 226.6
Change in the liability for remaining coverage
1,150.1
1,103.0
Recovery of insurance acquisition cash flows
172.1
152.9
Total insurance revenue from life insurance contracts (VFA)
1,322.2
1,255.9
251
Baloise Group Annual Report 2024
Financial report
The following table shows revenue from life insurance contracts measured using the general measurement model:
2024
2023
CHF million
Expected incurred claims and other expected insurance service expenses
108.3
111.0
Release risk adjustment for non-financial risk
– 0.7
6.3
CSM for the service provided in the period (release)
35.6
28.0
Other
– 6.0
– 6.8
Change in the liability for remaining coverage
137.1
138.5
Recovery of insurance acquisition cash flows
2.4
5.1
Total insurance revenue from life insurance contracts (GMM)
139.5
143.5
3.1.2
Insurance service expenses
2024
2023
CHF million
Insurance service expenses from non-life contracts
– 3,491.5
– 3,548.1
Measured with PAA
– 3,491.5
– 3,548.1
Measured with GMM
–
–
Insurance service expenses from life insurance contracts
– 1,190.2
– 1,118.9
Measured with VFA
– 1,061.7
– 1,014.6
Measured with GMM
– 128.5
– 104.3
Insurance service expenses
– 4,681.7
– 4,666.9
3.1.3
Insurance service result from reinsurance contracts
2024
2023
CHF million
Insurance service result from non-life reinsurance contracts
– 183.4
– 143.4
Measured with PAA
– 183.4
– 143.4
Measured with GMM
–
–
Insurance service result from life reinsurance contracts
24.7
– 8.3
Measured with PAA
– 1.8
– 1.3
Measured with GMM
26.5
– 7.0
Insurance service result from reinsurance contracts
– 158.7
– 151.8
252
Baloise Group Annual Report 2024
Financial report
3.1.4
Expected recognition of the contractual service margin
Expected recognition of the contractual service margin for insurance contracts in profit or loss
The table below shows the expected recognition of the CSM in profit or loss for the individual portfolios according to
the latest projection. In addition to the effect of the release, the CSM also changes due to the interest expected to be
accreted on it. Such interest increases the CSM. The table shows the total combined change resulting from these two
effects. Consequently, the table cannot be used to draw direct conclusions about future earnings.
2024
2023
Life
VFA
GMM
Total
VFA
GMM
Total
CHF million
< 5 years
855.1
85.2
940.3
789.8
104.5
894.2
6 – 10 years
805.4
91.0
896.3
784.8
82.0
866.7
11 – 15 years
682.7
96.5
779.1
671.3
83.9
755.2
16 – 20 years
549.7
85.8
635.5
537.7
74.3
611.9
> 20 years
1,571.5
179.4
1,750.9
1,572.3
164.3
1,736.6
Total
4,464.3
537.8
5,002.1
4,355.8
509.0
4,864.8
Expected recognition of the contractual service margin for reinsurance contracts in profit or loss
The table below shows the expected recognition of the CSM in profit or loss for the individual portfolios according to
the latest projection. In addition to the effect of the release, the CSM also changes due to the interest expected to be
accreted on it. Such interest increases the CSM. The table shows the total combined change resulting from these two
effects. Consequently, the table cannot be used to draw direct conclusions about future earnings.
Life
2024
2023
CHF million
< 5 years
11.1
– 24.5
6 – 10 years
– 12.5
– 19.3
11 – 15 years
– 44.4
– 37.5
16 – 20 years
– 66.9
– 52.5
> 20 years
– 338.9
– 249.6
Total
– 451.7
– 383.3
For the purpose of the above table, a CSM balance with a negative sign represents an asset and any release of such
asset represents an expense.
253
Baloise Group Annual Report 2024
Financial report
3.2
Insurance finance income or expenses
The net finance income or expenses from insurance and reinsurance business relates as follows to the net investment
income generated by the Baloise Group:
2024
Non-life
Life
Total
CHF million
Comprehensive income from underlying items and other assets backing insurance contracts
Result from investments
203.5
1,898.3
2,101.8
of which: interest revenue calculated using the effective interest method
127.1
18.5
145.6
of which: investment income
58.5
706.3
764.8
of which: realised gains and losses on investments
13.8
1,173.4
1,187.2
of which: change in expected credit loss
4.0
0.1
4.1
Share of profit (loss) of associates and joint ventures
– 4.3
– 0.9
– 5.2
Gains and losses on owner-occupied properties FVPL
–
– 6.5
– 6.5
Result from other underlying items
–
– 10.1
– 10.1
Total return from underlying items and other assets backing insurance contracts
199.2
1,880.9
2,080.1
Gains and losses recognised in OCI
81.6
35.5
117.1
Comprehensive income from underlying items and other assets backing insurance contracts
280.8
1,916.4
2,197.2
Insurance finance income or expenses from insurance contracts
Change in fair value of underlying items
–
– 1,673.1
– 1,673.1
Interest accreted
– 140.8
– 261.8
– 402.6
Effect of changes in interest rates and other financial assumptions
174.5
186.2
360.7
Effect of measuring changes in estimates at current rates and adjusting the CSM
at rates on initial recognition
–
30.2
30.2
Net foreign exchange effect
– 1.4
– 0.3
– 1.7
Insurance finance income or expenses from insurance contracts
32.3
– 1,718.8
– 1,686.5
of which: recognised in profit or loss
– 101.2
– 1,836.7
– 1,937.8
of which: recognised in other comprehensive income
133.5
117.9
251.3
Insurance finance income or expenses from reinsurance contracts
Interest accreted
14.4
– 5.6
8.8
Effect of changes in interest rates and other financial assumptions
– 36.7
– 29.7
– 66.3
Effect of measuring changes in estimates at current rates and adjusting the CSM
at rates on initial recognition
–
12.3
12.3
Net foreign exchange effect
0.0
0.0
0.0
Insurance finance income or expenses from reinsurance contracts
– 22.3
– 22.9
– 45.2
of which: recognised in profit or loss
7.0
3.4
10.4
of which: recognised in other comprehensive income
– 29.3
– 26.3
– 55.6
Total
290.8
174.7
465.5
of which: recognised in profit or loss
105.0
47.6
152.6
of which: recognised in other comprehensive income
185.8
127.1
312.9
254
Baloise Group Annual Report 2024
Financial report
2023
Non-life
Life
Total
CHF million
Comprehensive income from underlying items and other assets backing insurance contracts
Result from investments
113.4
2,750.4
2,863.9
of which: interest revenue calculated using the effective interest method
118.1
21.3
139.4
of which: investment income
64.0
856.7
920.8
of which: realised gains and losses on investments
– 68.8
1,872.3
1,803.5
of which: change in expected credit loss
0.1
0.0
0.1
Share of profit (loss) of associates and joint ventures
– 2.4
2.2
– 0.3
Gains and losses on owner-occupied properties FVPL
–
– 16.0
– 16.0
Result from other underlying items
–
– 6.2
– 6.2
Total return from underlying items and other assets backing insurance contracts
111.0
2,730.5
2,841.5
Gains and losses recognised in OCI
348.2
– 99.2
249.0
Comprehensive income from underlying items and other assets backing insurance contracts
459.2
2,631.2
3,090.4
Insurance finance income or expenses from insurance contracts
Change in fair value of underlying items
–
– 2,126.2
– 2,126.2
Interest accreted
– 145.4
– 242.0
– 387.4
Effect of changes in interest rates and other financial assumptions
– 180.5
– 302.1
– 482.6
Effect of measuring changes in estimates at current rates and adjusting the CSM
at rates on initial recognition
–
48.4
48.4
Net foreign exchange effect
0.4
26.6
26.9
Insurance finance income or expenses from insurance contracts
– 325.6
– 2,595.3
– 2,920.9
of which: recognised in profit or loss
– 104.2
– 2,729.0
– 2,833.2
of which: recognised in other comprehensive income
– 221.4
133.7
– 87.7
Insurance finance income or expenses from reinsurance contracts
Interest accreted
28.2
– 3.9
24.3
Effect of changes in interest rates and other financial assumptions
5.2
– 4.6
0.6
Effect of measuring changes in estimates at current rates and adjusting the CSM
at rates on initial recognition
–
1.3
1.3
Net foreign exchange effect
3.2
– 0.2
3.1
Insurance finance income or expenses from reinsurance contracts
36.7
– 7.4
29.3
of which: recognised in profit or loss
24.1
2.7
26.8
of which: recognised in other comprehensive income
12.6
– 10.1
2.5
Total
170.3
28.5
198.8
of which: recognised in profit or loss
30.9
4.2
35.1
of which: recognised in other comprehensive income
139.4
24.4
163.7
255
Baloise Group Annual Report 2024
Financial report
3.3
Composition and fair values of underlying items
The following table shows the fair values of underlying items for life insurance contracts measured using the variable fee
approach.
31.12.2024
31.12.2023
CHF million
Fair value of underlying items
Investment property
5,989.7
6,286.7
Owner-occupied property (FVPL)
379.6
474.2
Investments 1
236.9
179.5
Financial instruments with characteristics of equity
6,128.1
7,548.4
Financial instruments with characteristics of debt
17,392.4
15,837.5
Mortgages and loans
4,628.3
4,991.8
Derivative financial instruments
– 60.4
168.8
Other
954.5
846.1
Total underlying items
35,649.1
36,332.8
1 Directly held long-term equity investments and investments in associates and joint ventures
256
Baloise Group Annual Report 2024
Financial report
3.4
Insurance contract assets and liabilities
The insurance contract assets and liabilities consist of the following:
Insurance contract
assets
Insurance contract
liabilities
as at 31.12.
2024
2023
2024
2023
CHF million
Non-life contracts (PAA)
29.4
68.4
6,019.0
6,166.0
of which: liability for remaining coverage
– 0.9
– 2.4
972.0
1,019.0
of which: liability for incurred claims
30.3
70.8
5,067.5
5,179.3
of which: deferred acquisition costs (DAC)
–
–
– 20.4
– 32.3
Non-life contracts (GMM)
0.0
0.0
0.7
1.1
Total non-life
29.4
68.4
6,019.7
6,167.1
Life contracts (VFA)
–
–
36,191.2
36,219.3
Life contracts (GMM)
–
–
7,295.3
7,433.1
Total life
–
–
43,486.5
43,652.4
Total insurance contract assets and liabilities
29.4
68.4
49,506.2
49,819.5
In the non-life insurance business, the Baloise Group anticipates the following changes over time in respect of the
deferred insurance acquisition cash flows:
Non-Life
2024
2023
CHF million
< 1 year
14.3
24.0
1 – 2 years
5.0
7.0
2 – 3 years
1.0
1.1
3 – 4 years
0.1
0.2
4 – 5 years
–
–
> 5 years
–
–
Total
20.4
32.3
In the life insurance business, no insurance acquisition cash flows were recognised as at 31 December 2024 or as at
31 December 2023.
257
Baloise Group Annual Report 2024
Financial report
3.4.1
Non-life – Insurance contracts measured using the premium allocation approach
Reconciliation for remaining coverage and claims already incurred:
Liability for
remaining coverage
Liability for
incurred claims
Deferred
acquisition
costs
Total
2024
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
CHF million
Insurance contract assets
– 2.4
–
70.1
0.7
–
68.4
Insurance contract liabilities
– 959.4
– 59.6
– 5,009.0
– 170.3
32.3
– 6,166.0
Net balance as at 1 January
– 961.8
– 59.6
– 4,938.9
– 169.6
32.3
– 6,097.6
Changes recognised in the statement of
comprehensive income
Insurance revenue
4,095.0
–
–
–
–
4,095.0
Insurance service expenses
– 609.9
– 1.5
– 2,879.1
2.0
– 3.0
– 3,491.5
of which: incurred claims and other incurred
service expenses
–
80.9
– 2,688.6
– 55.2
–
– 2,662.9
of which: adjustments to the liability
for incurred claims
–
–
– 190.5
57.2
–
– 133.3
of which: losses and reversals of losses
on onerous contracts
–
– 82.4
–
–
–
– 82.4
of which: amortisation of insurance acquisition
cash flows
– 609.9
–
–
–
–
– 609.9
of which: impairment and reversal of impairment
of deferred acquisition costs
–
–
–
–
– 3.0
– 3.0
Insurance service result from insurance contracts
3,485.2
– 1.5
– 2,879.1
2.0
– 3.0
603.5
Insurance finance income or expenses
–
–
34.4
– 2.1
–
32.3
Exchange differences
– 5.0
– 0.2
– 36.4
– 1.0
0.2
– 42.4
Changes recognised in the statement of
comprehensive income
3,480.1
– 1.7
– 2,881.2
– 1.0
– 2.8
593.4
Premiums received
– 4,065.8
–
–
–
–
– 4,065.8
Claims and other insurance service expenses paid
–
–
3,086.7
–
–
3,086.7
Insurance acquisition cash flows paid
601.2
–
–
–
15.2
616.3
Other cash flows
– 2.8
–
–
–
–
– 2.8
Cash flows
– 3,467.5
–
3,086.7
–
15.2
– 365.6
Allocation from deferred acquisition costs to groups
of insurance contracts
24.2
–
–
–
– 24.2
–
Other movements 1
3.3
10.2
– 112.8
– 20.3
–
– 119.7
Net balance as at 31 December
– 921.6
– 51.2
– 4,846.2
– 191.0
20.4
– 5,989.6
of which: insurance contract assets
– 0.9
–
29.9
0.4
–
29.4
of which: insurance contract liabilities
– 920.7
– 51.2
– 4,876.1
– 191.4
20.4
– 6,019.0
1 Includes the reclassification to non-current assets classified as held for sale.
258
Baloise Group Annual Report 2024
Financial report
Liability for
remaining coverage
Liability for
incurred claims
Deferred
acquisition
costs
Total
2023
Excluding
loss
component
Loss
component
Present
value of
future cash
flows
Risk
adjustment
CHF million
Insurance contract assets
0.4
–
42.2
0.4
–
43.0
Insurance contract liabilities
– 995.1
– 66.1
– 4,905.6
– 180.8
40.4
– 6,107.2
Net balance as at 1 January
– 994.7
– 66.1
– 4,863.4
– 180.4
40.4
– 6,064.2
Changes recognised in the statement of
comprehensive income
Insurance revenue
4,013.0
–
–
–
–
4,013.0
Insurance service expenses
– 589.9
5.4
– 2,972.3
13.6
– 4.8
– 3,548.1
of which: incurred claims and other incurred
service expenses
–
72.9
– 3,033.3
– 59.1
–
– 3,019.5
of which: adjustments to the liability
for incurred claims
–
–
61.0
72.7
–
133.7
of which: losses and reversals of losses
on onerous contracts
–
– 67.5
–
–
–
– 67.5
of which: amortisation of insurance acquisition
cash flows
– 589.9
–
–
–
–
– 589.9
of which: impairment and reversal of impairment
of deferred acquisition costs
–
–
–
–
– 4.8
– 4.8
Insurance service result from insurance contracts
3,423.1
5.4
– 2,972.3
13.6
– 4.8
464.9
Insurance finance income or expenses
–
–
– 313.0
– 12.7
–
– 325.6
Exchange differences
24.1
1.1
189.4
6.5
– 0.7
220.2
Changes recognised in the statement of
comprehensive income
3,447.1
6.5
– 3,096.0
7.4
– 5.6
359.5
Premiums received
– 4,030.2
–
–
–
–
– 4,030.2
Claims and other insurance service expenses paid
–
–
3,010.4
–
–
3,010.4
Insurance acquisition cash flows paid
587.0
–
–
–
21.9
608.9
Other cash flows
4.5
–
–
–
–
4.5
Cash flows
– 3,438.7
–
3,010.4
–
21.9
– 406.4
Allocation from deferred acquisition costs to groups
of insurance contracts
24.5
–
–
–
– 24.5
–
Other movements
–
–
10.1
3.4
–
13.5
Net balance as at 31 December
– 961.8
– 59.6
– 4,938.9
– 169.6
32.3
– 6,097.6
of which: insurance contract assets
– 2.4
–
70.1
0.7
–
68.4
of which: insurance contract liabilities
– 959.4
– 59.6
– 5,009.0
– 170.3
32.3
– 6,166.0
259
Baloise Group Annual Report 2024
Financial report
Claims settlement
Accident year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total
CHF million
Estimated undiscount-
ed claims incurred
(gross)
At the end of the year
in which the
claims occurred
1,912.6
2,053.2
2,203.0
2,614.0
2,418.6
2,652.7
2,548.0
One year later
1,863.7
2,001.4
2,097.1
2,203.0
2,656.3
2,478.0
2,681.7
Two years later
1,798.4
1,882.9
2,000.0
2,079.1
2,238.9
2,599.1
2,482.6
Three years later
1,747.1
1,812.7
1,875.7
1,983.9
2,077.1
2,223.9
2,598.5
Four years later
1,755.8
1,825.2
1,867.1
1,995.8
2,049.6
2,223.4
Five years later
1,761.8
1,812.5
1,868.5
1,963.8
2,052.6
Six years later
1,736.0
1,822.4
1,843.0
1,985.1
Seven years later
1,769.9
1,808.2
1,873.7
Eight years later
1,737.4
1,861.7
Nine years later
1,743.6
Estimated claims
incurred
1,743.6
1,861.7
1,873.7
1,985.1
2,052.6
2,223.4
2,598.5
2,482.6
2,681.7
2,548.0
22,050.9
Claims paid to date
– 1,605.8
– 1,663.0
– 1,682.4
– 1,789.0
– 1,862.9
– 1,965.6
– 2,311.1
– 2,066.7
– 1,972.8
– 1,167.2
– 18,086.5
Claims reserves (gross)
137.8
198.8
191.3
196.1
189.7
257.7
287.5
415.9
708.8
1,380.8
3,964.5
Gross liabilities
more than 10 years old
2,118.1
Total claims reserves
(gross)
6,082.6
Effect of discounting
– 1,045.4
Present value of
expected future claims
payments (gross)
5,037.2
Reinsurance ceded
– 284.2
Present value of
expected future claims
payments (net)
4,753.0
Owing to the agreement for the sale of the FRIDAY insurance portfolio, this portfolio is no longer taken into account in the claims triangle; see note 10.2.5.
Baloise is not disclosing any previously unpublished information on claims that were incurred more than seven years
before the end of the reporting period in which IFRS 17 was applied for the first time.
260
Baloise Group Annual Report 2024
Financial report
3.4.2
Life – Insurance contracts measured using the variable fee approach
Reconciliation for remaining coverage and claims already incurred:
Liability for
remaining coverage
Liability for
incurred
claims
Total
2024
Excluding
loss
component
Loss
component
CHF million
Insurance contract assets
–
–
–
–
Insurance contract liabilities
– 36,002.6
– 2.7
– 213.9
– 36,219.3
Net balance as at 1 January
– 36,002.6
– 2.7
– 213.9
– 36,219.3
Changes recognised in the statement of comprehensive income
Insurance revenue
1,322.2
–
–
1,322.2
of which: contracts under the modified retrospective approach
1,001.8
–
–
1,001.8
of which: contracts under the fair value approach
202.6
–
–
202.6
of which: other contracts
117.8
–
–
117.8
Insurance service expenses
– 172.1
0.4
– 890.0
– 1,061.7
of which: incurred claims and other incurred service expenses
–
0.2
– 890.0
– 889.8
of which: adjustments to the liability for incurred claims
–
–
–
–
of which: losses and reversals of losses on onerous contracts
–
0.2
–
0.2
of which: amortisation of insurance acquisition cash flows
– 172.1
–
–
– 172.1
Investment components
3,339.3
–
– 3,339.3
–
Insurance service result from insurance contracts
4,489.4
0.4
– 4,229.3
260.5
Insurance finance income or expenses
– 1,673.4
–
0.0
– 1,673.4
Exchange differences
– 97.9
0.0
– 0.5
– 98.5
Changes recognised in the statement of comprehensive income
2,718.1
0.4
– 4,229.8
– 1,511.4
Premiums received
– 2,840.4
–
–
– 2,840.4
Claims and other insurance service expenses paid, incl. investment components
–
–
4,221.9
4,221.9
Insurance acquisition cash flows paid
154.0
–
–
154.0
Other cash flows
4.0
–
–
4.0
Cash flows
– 2,682.4
–
4,221.9
1,539.5
Other movements
–
–
–
–
Net balance as at 31 December
– 35,967.0
– 2.3
– 221.8
– 36,191.2
of which: insurance contract assets
–
–
–
–
of which: insurance contract liabilities
– 35,967.0
– 2.3
– 221.8
– 36,191.2
261
Baloise Group Annual Report 2024
Financial report
Liability for
remaining coverage
Liability for
incurred
claims
Total
2023
Excluding
loss
component
Loss
component
CHF million
Insurance contract assets
–
–
–
–
Insurance contract liabilities
– 35,848.6
– 3.2
– 198.3
– 36,050.2
Net balance as at 1 January
– 35,848.6
– 3.2
– 198.3
– 36,050.2
Changes recognised in the statement of comprehensive income
Insurance revenue
1,255.9
–
–
1,255.9
of which: contracts under the modified retrospective approach
953.9
–
–
953.9
of which: contracts under the fair value approach
215.1
–
–
215.1
of which: other contracts
86.9
–
–
86.9
Insurance service expenses
– 152.9
0.4
– 862.1
– 1,014.6
of which: incurred claims and other incurred service expenses
–
0.4
– 862.1
– 861.7
of which: adjustments to the liability for incurred claims
–
–
–
–
of which: losses and reversals of losses on onerous contracts
–
0.1
–
0.1
of which: amortisation of insurance acquisition cash flows
– 152.9
–
–
– 152.9
Investment components
3,153.9
–
– 3,153.9
–
Insurance service result from insurance contracts
4,256.9
0.4
– 4,016.0
241.3
Insurance finance income or expenses
– 2,099.7
–
0.1
– 2,099.6
Exchange differences
503.0
0.1
3.8
506.9
Changes recognised in the statement of comprehensive income
2,660.2
0.5
– 4,012.2
– 1,351.5
Premiums received
– 2,964.8
–
–
– 2,964.8
Claims and other insurance service expenses paid, incl. investment components
–
–
3,996.5
3,996.5
Insurance acquisition cash flows paid
149.6
–
–
149.6
Other cash flows
1.0
–
–
1.0
Cash flows
– 2,814.2
–
3,996.5
1,182.3
Other movements
–
–
–
–
Net balance as at 31 December
– 36,002.6
– 2.7
– 213.9
– 36,219.3
of which: insurance contract assets
–
–
–
–
of which: insurance contract liabilities
– 36,002.6
– 2.7
– 213.9
– 36,219.3
262
Baloise Group Annual Report 2024
Financial report
Reconciliation for measurement components:
Present
value of
future cash
flows
Risk
adjustment
Contractual service margin
Total
2024
Modified
retro-
spective
approach
Fair value
approach
Other
CHF million
Insurance contract assets
–
–
–
–
–
–
Insurance contract liabilities
– 31,745.8
– 117.7
– 2,904.7
– 487.7
– 963.4
– 36,219.3
Net balance as at 1 January
– 31,745.8
– 117.7
– 2,904.7
– 487.7
– 963.4
– 36,219.3
Changes that relate to current services
8.3
3.4
175.2
41.1
32.2
260.3
of which: CSM for the service provided in the period
(release)
–
–
175.2
41.1
32.2
248.5
of which: change in risk adjustment for
non-financial risk
–
3.4
–
–
–
3.4
of which: experience adjustments
8.3
–
–
–
–
8.3
Changes that relate to future services
27.7
– 26.2
37.3
– 31.9
– 6.6
0.2
of which: contracts initially recognised in the period 1
80.6
– 7.0
–
–
– 74.2
– 0.5
of which: changes in estimates reflected in the CSM
– 53.7
– 19.2
37.3
– 31.9
67.5
–
of which: changes in estimates that relate to losses
and reversals of losses
0.8
0.0
–
–
–
0.8
Changes that relate to past services
–
–
–
–
–
–
of which: changes in fulfilment cash flows relating to
incurred claims
–
–
–
–
–
–
Insurance service result from insurance contracts
36.0
– 22.8
212.5
9.2
25.5
260.5
Insurance finance income or expenses
– 1,358.5
32.2
– 103.4
– 109.0
– 134.6
– 1,673.4
Exchange differences
– 89.4
– 0.3
– 0.1
– 4.4
– 4.2
– 98.5
Changes recognised in the statement of
comprehensive income
– 1,412.0
9.1
108.9
– 104.2
– 113.3
– 1,511.4
Premiums received
– 2,840.4
–
–
–
–
– 2,840.4
Claims and other insurance service expenses paid,
incl. investment components
4,221.9
–
–
–
–
4,221.9
Insurance acquisition cash flows paid
154.0
–
–
–
–
154.0
Other cash flows
4.0
–
–
–
–
4.0
Cash flows
1,539.5
–
–
–
–
1,539.5
Other movements
–
–
–
–
–
–
Net balance as at 31 December
– 31,618.3
– 108.6
– 2,795.8
– 591.8
– 1,076.7
– 36,191.2
of which: insurance contract assets
–
–
–
–
–
–
of which: insurance contract liabilities
– 31,618.3
– 108.6
– 2,795.8
– 591.8
– 1,076.7
– 36,191.2
1 New contracts in the Swiss group life reporting unit are shown together with existing contracts.
263
Baloise Group Annual Report 2024
Financial report
Present
value of
future cash
flows
Risk
adjustment
Contractual service margin
Total
2023
Modified
retro-
spective
approach
Fair value
approach
Other
CHF million
Insurance contract assets
–
–
–
–
–
–
Insurance contract liabilities
– 31,188.0
– 111.3
– 3,421.4
– 618.8
– 710.7
– 36,050.2
Net balance as at 1 January
– 31,188.0
– 111.3
– 3,421.4
– 618.8
– 710.7
– 36,050.2
Changes that relate to current services
14.0
3.0
167.5
33.8
23.0
241.3
of which: CSM for the service provided in the period
(release) 2
–
–
167.5
33.8
23.0
224.3
of which: change in risk adjustment for
non-financial risk
–
3.0
–
–
–
3.0
of which: experience adjustments 2
14.0
–
–
–
–
14.0
Changes that relate to future services
101.1
– 9.2
15.5
119.2
– 226.5
0.0
of which: contracts initially recognised in the period 1
101.9
– 3.5
–
–
– 98.8
– 0.4
of which: changes in estimates reflected in the CSM 2
– 1.3
– 5.7
15.5
119.2
– 127.7
–
of which: changes in estimates that relate to losses
and reversals of losses
0.4
0.0
–
–
–
0.4
Changes that relate to past services
–
–
–
–
–
–
of which: changes in fulfilment cash flows relating to
incurred claims
–
–
–
–
–
–
Insurance service result from insurance contracts
115.0
– 6.3
183.0
153.1
– 203.5
241.3
Insurance finance income or expenses 2
– 2,300.7
– 1.9
319.5
– 40.9
– 75.6
– 2,099.6
Exchange differences
445.5
1.8
14.2
19.0
26.4
506.9
Changes recognised in the statement of
comprehensive income
– 1,740.1
– 6.4
516.7
131.1
– 252.7
– 1,351.5
Premiums received
– 2,964.8
–
–
–
–
– 2,964.8
Claims and other insurance service expenses paid,
incl. investment components
3,996.5
–
–
–
–
3,996.5
Insurance acquisition cash flows paid
149.6
–
–
–
–
149.6
Other cash flows
1.0
–
–
–
–
1.0
Cash flows
1,182.3
–
–
–
–
1,182.3
Other movements
–
–
–
–
–
–
Net balance as at 31 December
– 31,745.8
– 117.7
– 2,904.7
– 487.7
– 963.4
– 36,219.3
of which: insurance contract assets
–
–
–
–
–
–
of which: insurance contract liabilities
– 31,745.8
– 117.7
– 2,904.7
– 487.7
– 963.4
– 36,219.3
1 New contracts in the Swiss group life reporting unit are shown together with existing contracts.
2 Adjustment of the figures to ensure that presentation is consistent with the changed breakdown used for 2024.
264
Baloise Group Annual Report 2024
Financial report
Contracts recognised for the first time in the financial year, measured using the variable fee approach:
31.12.2024
31.12.2023
Total
insurance
contracts
Of which:
Contracts
acquired
Of which:
Onerous
contracts
Total
insurance
contracts
Of which:
Contracts
acquired
Of which:
Onerous
contracts
CHF million
Present value of future cash inflows
– 1,178.6
–
– 10.7
– 1,131.1
–
– 8.2
Present value of future cash outflows
1,098.0
–
11.2
1,029.2
–
8.5
of which: expected claims and insurance
service expenses
963.0
–
10.5
893.3
–
8.0
of which: expected insurance acquisition cash flows
135.0
–
0.7
135.9
–
0.5
Risk adjustment for non-financial risk
7.0
–
0.1
3.5
–
0.1
Contractual service margin
74.2
–
–
98.8
–
–
Loss component recognised on initial recognition
0.5
–
0.5
0.4
–
0.4
265
Baloise Group Annual Report 2024
Financial report
3.4.3
Life – Insurance contracts measured using the general measurement model
Reconciliation for remaining coverage and claims already incurred:
Liability for
remaining coverage
Liability for
incurred
claims
Total
2024
Excluding
loss
component
Loss
component
CHF million
Insurance contract assets
–
–
–
–
Insurance contract liabilities
– 7,347.9
– 17.9
– 67.4
– 7,433.1
Net balance as at 1 January
– 7,347.9
– 17.9
– 67.4
– 7,433.1
Changes recognised in the statement of comprehensive income
Insurance revenue
139.5
–
–
139.5
of which: contracts under the modified retrospective approach
3.1
–
–
3.1
of which: contracts under the fair value approach
69.3
–
–
69.3
of which: other contracts
67.1
–
–
67.1
Insurance service expenses
– 2.4
– 24.0
– 102.1
– 128.5
of which: incurred claims and other incurred service expenses
–
2.7
– 102.1
– 99.4
of which: adjustments to the liability for incurred claims
–
–
–
–
of which: losses and reversals of losses on onerous contracts
–
– 26.7
–
– 26.7
of which: amortisation of insurance acquisition cash flows
– 2.4
–
–
– 2.4
Investment components
715.2
–
– 715.2
–
Insurance service result from insurance contracts
852.3
– 24.0
– 817.3
11.0
Insurance finance income or expenses
– 45.4
–
–
– 45.4
Exchange differences
– 90.5
0.1
– 0.8
– 91.1
Changes recognised in the statement of comprehensive income
716.4
– 23.9
– 818.1
– 125.5
Premiums received
– 568.7
–
–
– 568.7
Claims and other insurance service expenses paid, incl. investment components
–
–
815.1
815.1
Insurance acquisition cash flows paid
13.1
–
–
13.1
Other cash flows
3.8
–
–
3.8
Cash flows
– 551.8
–
815.1
263.3
Other movements
–
–
–
–
Net balance as at 31 December
– 7,183.2
– 41.7
– 70.4
– 7,295.3
of which: insurance contract assets
–
–
–
–
of which: insurance contract liabilities
– 7,183.2
– 41.7
– 70.4
– 7,295.3
266
Baloise Group Annual Report 2024
Financial report
Liability for
remaining coverage
Liability for
incurred
claims
Total
2023
Excluding
loss
component
Loss
component
CHF million
Insurance contract assets
–
–
–
–
Insurance contract liabilities
– 7,521.8
– 18.2
– 55.3
– 7,595.2
Net balance as at 1 January
– 7,521.8
– 18.2
– 55.3
– 7,595.2
Changes recognised in the statement of comprehensive income
Insurance revenue
143.5
–
–
143.5
of which: contracts under the modified retrospective approach
3.2
–
–
3.2
of which: contracts under the fair value approach
117.2
–
–
117.2
of which: other contracts
23.2
–
–
23.2
Insurance service expenses
– 5.1
– 0.8
– 98.4
– 104.3
of which: incurred claims and other incurred service expenses
–
0.8
– 98.4
– 97.6
of which: adjustments to the liability for incurred claims
–
–
–
–
of which: losses and reversals of losses on onerous contracts
–
– 1.6
–
– 1.6
of which: amortisation of insurance acquisition cash flows
– 5.1
–
–
– 5.1
Investment components
618.3
–
– 618.3
–
Insurance service result from insurance contracts
756.8
– 0.8
– 716.8
39.2
Insurance finance income or expenses
– 495.7
–
–
– 495.7
Exchange differences
461.8
1.1
4.0
466.9
Changes recognised in the statement of comprehensive income
722.9
0.4
– 712.8
10.5
Premiums received
– 560.4
–
–
– 560.4
Claims and other insurance service expenses paid, incl. investment components
–
–
700.6
700.6
Insurance acquisition cash flows paid
14.6
–
–
14.6
Other cash flows
– 3.2
–
–
– 3.2
Cash flows
– 549.0
–
700.6
151.6
Other movements
–
–
–
–
Net balance as at 31 December
– 7,347.9
– 17.9
– 67.4
– 7,433.1
of which: insurance contract assets
–
–
–
–
of which: insurance contract liabilities
– 7,347.9
– 17.9
– 67.4
– 7,433.1
267
Baloise Group Annual Report 2024
Financial report
Reconciliation for measurement components:
Present
value of
future cash
flows
Risk
adjustment
Contractual service margin
Total
2024
Modified
retro-
spective
approach
Fair value
approach
Other
CHF million
Insurance contract assets
–
–
–
–
–
–
Insurance contract liabilities
– 6,839.6
– 84.6
– 10.7
– 223.0
– 275.3
– 7,433.1
Net balance as at 1 January
– 6,839.6
– 84.6
– 10.7
– 223.0
– 275.3
– 7,433.1
Changes that relate to current services
2.3
– 0.3
0.9
18.8
16.0
37.7
of which: CSM for the service provided in the period
(release)
–
–
0.9
18.8
16.0
35.6
of which: change in risk adjustment for
non-financial risk
–
– 0.3
–
–
–
– 0.3
of which: experience adjustments
2.3
–
–
–
–
2.3
Changes that relate to future services
47.2
– 22.2
0.7
– 6.2
– 46.2
– 26.7
of which: contracts initially recognised in the period
52.0
– 8.1
–
–
– 46.8
– 2.9
of which: changes in estimates reflected in the CSM
18.7
– 13.8
0.7
– 6.2
0.6
–
of which: changes in estimates that relate to losses
and reversals of losses
– 23.5
– 0.2
–
–
–
– 23.8
Changes that relate to past services
–
–
–
–
–
–
of which: changes in fulfilment cash flows relating
to incurred claims
–
–
–
–
–
–
Insurance service result from insurance contracts
49.5
– 22.4
1.6
12.6
– 30.3
11.0
Insurance finance income or expenses
– 41.7
3.4
– 0.1
– 4.0
– 3.0
– 45.4
Exchange differences
– 84.7
– 0.7
– 0.1
– 2.8
– 2.8
– 91.1
Changes recognised in the statement of
comprehensive income
– 76.9
– 19.8
1.3
5.9
– 36.0
– 125.5
Premiums received
– 568.7
–
–
–
–
– 568.7
Claims and other insurance service expenses paid,
incl. investment components
815.1
–
–
–
–
815.1
Insurance acquisition cash flows paid
13.1
–
–
–
–
13.1
Other cash flows
3.8
–
–
–
–
3.8
Cash flows
263.3
–
–
–
–
263.3
Other movements
–
–
–
–
–
–
Net balance as at 31 December
– 6,653.1
– 104.4
– 9.4
– 217.1
– 311.3
– 7,295.3
of which: insurance contract assets
–
–
–
–
–
–
of which: insurance contract liabilities
– 6,653.1
– 104.4
– 9.4
– 217.1
– 311.3
– 7,295.3
268
Baloise Group Annual Report 2024
Financial report
Present
value of
future cash
flows
Risk
adjustment
Contractual service margin
Total
2023
Modified
retro-
spective
approach
Fair value
approach
Other
CHF million
Insurance contract assets
–
–
–
–
–
–
Insurance contract liabilities
– 6,884.2
– 70.2
– 12.5
– 246.7
– 381.7
– 7,595.2
Net balance as at 1 January
– 6,884.2
– 70.2
– 12.5
– 246.7
– 381.7
– 7,595.2
Changes that relate to current services
6.3
6.6
1.0
16.4
10.5
40.8
of which: CSM for the service provided in the period
(release) 1
–
–
1.0
16.4
10.5
28.0
of which: change in risk adjustment for
non-financial risk
–
6.6
–
–
–
6.6
of which: experience adjustments 1
6.3
–
–
–
–
6.3
Changes that relate to future services
– 62.5
– 13.1
0.3
– 5.8
79.5
– 1.6
of which: contracts initially recognised in the period
61.1
– 8.3
–
–
– 53.5
– 0.7
of which: changes in estimates reflected in the CSM 1
– 122.7
– 4.8
0.3
– 5.8
133.0
–
of which: changes in estimates that relate to losses
and reversals of losses
– 0.9
0.0
–
–
–
– 0.9
Changes that relate to past services
–
–
–
–
–
–
of which: changes in fulfilment cash flows relating to
incurred claims
–
–
–
–
–
–
Insurance service result from insurance contracts
– 56.2
– 6.5
1.3
10.7
90.0
39.2
Insurance finance income or expenses
– 478.9
– 12.9
– 0.2
– 1.3
– 2.4
– 495.7
Exchange differences
428.0
5.1
0.7
14.3
18.9
466.9
Changes recognised in the statement of
comprehensive income
– 107.1
– 14.4
1.8
23.7
106.4
10.5
Premiums received
– 560.4
–
–
–
–
– 560.4
Claims and other insurance service expenses paid,
incl. investment components
700.6
–
–
–
–
700.6
Insurance acquisition cash flows paid
14.6
–
–
–
–
14.6
Other cash flows
– 3.2
–
–
–
–
– 3.2
Cash flows
151.6
–
–
–
–
151.6
Other movements
–
–
–
–
–
–
Net balance as at 31 December
– 6,839.6
– 84.6
– 10.7
– 223.0
– 275.3
– 7,433.1
of which: insurance contract assets
–
–
–
–
–
–
of which: insurance contract liabilities
– 6,839.6
– 84.6
– 10.7
– 223.0
– 275.3
– 7,433.1
1 Adjustment of the figures to ensure that presentation is consistent with the changed breakdown used for 2024.
269
Baloise Group Annual Report 2024
Financial report
Contracts recognised for the first time in the financial year, measured using the general measurement model:
31.12.2024
31.12.2023
Total
insurance
contracts
Of which:
Contracts
acquired
Of which:
Onerous
contracts
Total
insurance
contracts
Of which:
Contracts
acquired
Of which:
Onerous
contracts
CHF million
Present value of future cash inflows
– 438.6
–
– 45.3
– 406.1
–
– 13.6
Present value of future cash outflows
386.6
–
47.7
344.9
–
14.1
of which: expected claims and insurance
service expenses
373.0
–
44.8
330.0
–
12.9
of which: expected insurance acquisition cash flows
13.6
–
2.9
15.0
–
1.1
Risk adjustment for non-financial risk
8.1
–
0.5
8.3
–
0.1
Contractual service margin
46.8
–
–
53.5
–
–
Loss component recognised on initial recognition
2.9
–
2.9
0.7
–
0.7
3.5
Reinsurance contract assets and liabilities
The reinsurance contract assets and liabilities consist of the following:
Reinsurance contract
assets
Reinsurance contract
liabilities
as at 31.12.
2024
2023
2024
2023
CHF million
Non-life contracts (PAA)
273.4
346.5
7.5
2.2
Non-life contracts (GMM)
–
–
–
–
Total non-life
273.4
346.5
7.5
2.2
Life contracts (PAA)
21.0
19.2
–
–
Life contracts (GMM)
877.3
84.7
1.5
0.3
Total life
898.3
103.9
1.5
0.3
Total reinsurance contract assets and liabilities
1,171.7
450.5
9.0
2.5
270
Baloise Group Annual Report 2024
Financial report
3.5.1
Non-life reinsurance contracts held
Reinsurance contracts held, measured using the premium allocation approach
Expected
recovery
(remaining
coverage)
Expected recovery for
incurred claims
Total
2024
Present value
of future
cash flows
Risk
adjustment
CHF million
Reinsurance contract assets
1.0
329.2
16.4
346.5
Reinsurance contract liabilities
– 3.7
2.5
– 1.0
– 2.2
Net balance as at 1 January
– 2.7
331.6
15.4
344.3
Changes recognised in the statement of comprehensive income
Allocation of reinsurance premium paid
– 216.9
–
–
– 216.9
Amounts recoverable from reinsurers
1.2
34.7
– 2.3
33.6
of which: recoveries of incurred claims and other insurance service expenses
– 17.4
53.4
2.1
38.1
of which: changes of loss recovery component for losses on onerous
insurance contracts
18.6
–
–
18.6
of which: adjustments to assets for incurred claims
–
– 18.7
– 4.3
– 23.0
of which: effect of changes in non-performance risk of reinsurers
–
– 0.1
0.0
– 0.1
Insurance service result from reinsurance contracts
– 215.7
34.7
– 2.3
– 183.4
Insurance finance income or expenses
–
– 22.7
0.4
– 22.3
Exchange differences
0.1
4.3
0.2
4.5
Changes recognised in the statement of comprehensive income
– 215.7
16.2
– 1.6
– 201.1
Premiums paid to the reinsurer
206.7
–
–
206.7
Claims and other insurance service expenses reimbursed
–
– 69.0
–
– 69.0
Insurance acquisition cash flows paid (brokerage)
0.2
–
–
0.2
Other cash flows
0.0
–
–
0.0
Cash flows
207.0
– 69.0
–
137.9
Other movements 1
– 6.9
– 9.7
1.3
– 15.3
Net balance as at 31 December
– 18.3
269.1
15.1
265.9
of which: reinsurance contract assets
– 13.2
271.6
15.0
273.4
of which: reinsurance contract liabilities
– 5.1
– 2.5
0.1
– 7.5
1 Includes the reclassification to non-current assets classified as held for sale.
271
Baloise Group Annual Report 2024
Financial report
Expected
recovery
(remaining
coverage)
Expected recovery for
incurred claims
Total
2023
Present value
of future
cash flows
Risk
adjustment
CHF million
Reinsurance contract assets
8.2
468.8
16.0
493.0
Reinsurance contract liabilities
– 5.8
– 64.8
3.2
– 67.5
Net balance as at 1 January
2.4
404.0
19.2
425.5
Changes recognised in the statement of comprehensive income
Allocation of reinsurance premium paid
– 246.2
–
–
– 246.2
Amounts recoverable from reinsurers
– 3.7
121.0
– 14.5
102.7
of which: recoveries of incurred claims and other insurance service expenses
– 20.8
109.3
4.4
93.0
of which: changes of loss recovery component for losses on onerous
insurance contracts
17.1
–
–
17.1
of which: adjustments to assets for incurred claims
–
11.6
– 18.9
– 7.3
of which: effect of changes in non-performance risk of reinsurers
–
0.0
0.0
0.0
Insurance service result from reinsurance contracts
– 249.8
121.0
– 14.5
– 143.4
Insurance finance income or expenses
–
24.0
12.7
36.7
Exchange differences
0.2
– 18.3
– 0.9
– 19.1
Changes recognised in the statement of comprehensive income
– 249.7
126.6
– 2.8
– 125.9
Premiums paid to the reinsurer
244.9
–
–
244.9
Claims and other insurance service expenses reimbursed
–
– 198.7
–
– 198.7
Insurance acquisition cash flows paid (brokerage)
– 0.2
–
–
– 0.2
Other cash flows
– 0.2
–
–
– 0.2
Cash flows
244.6
– 198.7
–
45.8
Other movements
–
– 0.2
– 1.0
– 1.2
Net balance as at 31 December
– 2.7
331.6
15.4
344.3
of which: reinsurance contract assets
1.0
329.2
16.4
346.5
of which: reinsurance contract liabilities
– 3.7
2.5
– 1.0
– 2.2
272
Baloise Group Annual Report 2024
Financial report
3.5.2
Life reinsurance contracts held
Reinsurance contracts held, measured using the premium allocation approach
Reconciliation for remaining coverage and claims already incurred:
Expected
recovery
(remaining
coverage)
Expected recovery for
incurred claims
Total
2024
Present
value of
future cash
flows
Risk
adjustment
CHF million
Reinsurance contract assets
0.1
19.1
–
19.2
Reinsurance contract liabilities
–
–
–
–
Net balance as at 1 January
0.1
19.1
–
19.2
Changes recognised in the statement of comprehensive income
Allocation of reinsurance premium paid
– 8.4
–
–
– 8.4
Amounts recoverable from reinsurers
–
6.6
–
6.6
of which: recoveries of incurred claims and other insurance service expenses
–
1.3
–
1.3
of which: changes of loss recovery component for losses on onerous
insurance contracts
–
–
–
–
of which: adjustments to assets for incurred claims
–
5.3
–
5.3
of which: effect of changes in non-performance risk of reinsurers
–
–
–
–
Insurance service result from reinsurance contracts
– 8.4
6.6
–
– 1.8
Insurance finance income or expenses
–
0.0
–
0.0
Exchange differences
–
0.2
–
0.2
Changes recognised in the statement of comprehensive income
– 8.4
6.8
–
– 1.6
Premiums paid to the reinsurer
9.2
–
–
9.2
Claims and other insurance service expenses reimbursed,
incl. investment components
–
– 5.8
–
– 5.8
Insurance acquisition cash flows paid (brokerage)
–
–
–
–
Other cash flows
–
–
–
–
Cash flows
9.2
– 5.8
–
3.3
Other movements
–
–
–
–
Net balance as at 31 December
0.9
20.0
–
21.0
of which: reinsurance contract assets
0.9
20.0
–
21.0
of which: reinsurance contract liabilities
–
–
–
–
273
Baloise Group Annual Report 2024
Financial report
Expected
recovery
(remaining
coverage)
Expected recovery for
incurred claims
Total
2023
Present
value of
future cash
flows
Risk
adjustment
CHF million
Reinsurance contract assets
0.4
20.2
–
20.6
Reinsurance contract liabilities
–
–
–
–
Net balance as at 1 January
0.4
20.2
–
20.6
Changes recognised in the statement of comprehensive income
Allocation of reinsurance premium paid
– 9.4
–
–
– 9.4
Amounts recoverable from reinsurers
–
8.0
–
8.0
of which: recoveries of incurred claims and other insurance service expenses
–
1.5
–
1.5
of which: changes of loss recovery component for losses on onerous
insurance contracts
–
–
–
–
of which: adjustments to assets for incurred claims
–
6.6
–
6.6
of which: effect of changes in non-performance risk of reinsurers
–
–
–
–
Insurance service result from reinsurance contracts
– 9.4
8.0
–
– 1.3
Insurance finance income or expenses
–
0.0
–
0.0
Exchange differences
–
– 1.0
–
– 1.0
Changes recognised in the statement of comprehensive income
– 9.4
7.1
–
– 2.3
Premiums paid to the reinsurer
9.1
–
–
9.1
Claims and other insurance service expenses reimbursed,
incl. investment components
–
– 8.2
–
– 8.2
Insurance acquisition cash flows paid (brokerage)
–
–
–
–
Other cash flows
–
–
–
–
Cash flows
9.1
– 8.2
–
0.9
Other movements
–
–
–
–
Net balance as at 31 December
0.1
19.1
–
19.2
of which: reinsurance contract assets
0.1
19.1
–
19.2
of which: reinsurance contract liabilities
–
–
–
–
274
Baloise Group Annual Report 2024
Financial report
Reinsurance contracts held, measured using the general measurement model
Reconciliation for remaining coverage and claims already incurred:
2024
Expected
recovery
(remaining
coverage)
Expected
recovery for
incurred
claims
Total
CHF million
Reinsurance contract assets
84.4
0.4
84.7
Reinsurance contract liabilities
– 0.3
–
– 0.3
Net balance as at 1 January
84.1
0.4
84.4
Changes recognised in the statement of comprehensive income
Allocation of reinsurance premium paid
– 89.9
–
– 89.9
Amounts recoverable from reinsurers
0.0
116.3
116.3
of which: recoveries of incurred claims and other insurance service expenses
0.0
116.3
116.3
of which: changes of loss recovery component for losses on onerous insurance contracts
0.0
–
0.0
of which: adjustments to assets for incurred claims
–
–
–
of which: effect of changes in non-performance risk of reinsurers
–
–
–
Investment components and premium refunds
–
–
–
Insurance service result from reinsurance contracts
– 89.9
116.3
26.5
Insurance finance income or expenses
– 22.9
–
– 22.9
Exchange differences
– 10.2
0.1
– 10.1
Changes recognised in the statement of comprehensive income
– 123.0
116.5
– 6.5
Premiums paid to the reinsurer
923.0
–
923.0
Claims and other insurance service expenses reimbursed,
incl. investment components
–
– 125.1
– 125.1
Insurance acquisition cash flows paid (brokerage)
–
–
–
Other cash flows
–
–
–
Cash flows
923.0
– 125.1
797.9
Other movements
–
–
–
Net balance as at 31 December
884.1
– 8.3
875.8
of which: reinsurance contract assets
881.0
– 3.7
877.3
of which: reinsurance contract liabilities
3.1
– 4.6
– 1.5
275
Baloise Group Annual Report 2024
Financial report
2023
Expected
recovery
(remaining
coverage)
Expected
recovery for
incurred
claims
Total
CHF million
Reinsurance contract assets
100.5
0.5
101.0
Reinsurance contract liabilities
– 0.3
0.3
0.0
Net balance as at 1 January
100.1
0.8
101.0
Changes recognised in the statement of comprehensive income
Allocation of reinsurance premium paid
– 19.6
–
– 19.6
Amounts recoverable from reinsurers
0.0
12.6
12.6
of which: recoveries of incurred claims and other insurance service expenses
0.0
12.6
12.6
of which: changes of loss recovery component for losses on onerous insurance contracts
–
–
–
of which: adjustments to assets for incurred claims
–
–
–
of which: effect of changes in non-performance risk of reinsurers
–
–
–
Investment components and premium refunds
–
–
–
Insurance service result from reinsurance contracts
– 19.6
12.6
– 7.0
Insurance finance income or expenses
– 7.4
–
– 7.4
Exchange differences
– 5.3
0.0
– 5.3
Changes recognised in the statement of comprehensive income
– 32.3
12.5
– 19.7
Premiums paid to the reinsurer
16.2
–
16.2
Claims and other insurance service expenses reimbursed,
incl. investment components
–
– 13.0
– 13.0
Insurance acquisition cash flows paid (brokerage)
–
–
–
Other cash flows
–
–
–
Cash flows
16.2
– 13.0
3.2
Other movements
–
–
–
Net balance as at 31 December
84.1
0.4
84.4
of which: reinsurance contract assets
84.4
0.4
84.7
of which: reinsurance contract liabilities
– 0.3
–
– 0.3
276
Baloise Group Annual Report 2024
Financial report
Reconciliation for measurement components:
Present
value of
future cash
flows
Risk
adjustment
Contractual service margin
Total
2024
Modified
retro-
spective
approach
Fair value
approach
Other
CHF million
Reinsurance contract assets
– 301.8
3.4
110.7
0.9
271.6
84.7
Reinsurance contract liabilities
– 0.5
0.0
–
– 0.2
0.3
– 0.3
Net balance as at 1 January
– 302.3
3.4
110.7
0.7
271.9
84.4
Changes that relate to current services
27.3
0.0
– 2.6
– 1.0
2.7
26.5
of which: CSM related to the service received
(release)
–
–
– 2.6
– 1.0
2.7
– 0.9
of which: expected release of risk adjustment for
non-financial risk
–
0.0
–
–
–
0.0
of which: experience adjustments
27.3
–
–
–
–
27.3
of which: effect of changes in non-performance
risk of reinsurers
–
–
–
–
–
–
Changes that relate to future services
– 67.7
5.0
– 3.6
1.7
64.6
0.0
of which: contracts initially recognised in the period
32.3
– 2.9
–
–
– 29.3
–
of which: changes in estimates that adjust the CSM
– 99.9
7.9
– 3.6
1.7
93.9
–
of which: changes in estimates that relate to losses
and reversals of losses of underlying contracts
0.0
–
–
–
–
0.0
Changes that relate to past services
–
–
–
–
–
–
of which: changes in fulfilment cash flows relating
to incurred claims ceded to reinsurer
–
–
–
–
–
–
Insurance service result from reinsurance contracts
– 40.4
5.0
– 6.2
0.7
67.3
26.5
Insurance finance income or expenses
– 24.6
– 1.2
1.9
0.0
0.9
– 22.9
Exchange differences
– 13.7
0.0
1.4
0.0
2.3
– 10.1
Changes recognised in the statement of
comprehensive income
– 78.7
3.8
– 2.8
0.7
70.5
– 6.5
Premiums paid to the reinsurer
923.0
–
–
–
–
923.0
Claims and other insurance service expenses
reimbursed, incl. investment components
– 125.1
–
–
–
–
– 125.1
Insurance acquisition cash flows paid (brokerage)
–
–
–
–
–
–
Other cash flows
–
–
–
–
–
–
Cash flows
797.9
–
–
–
–
797.9
Other movements
–
–
–
–
–
–
Net balance as at 31 December
416.9
7.2
107.8
1.4
342.4
875.8
of which: reinsurance contract assets
418.4
7.2
107.8
1.2
342.6
877.3
of which: reinsurance contract liabilities
– 1.5
0.0
–
0.2
– 0.2
– 1.5
277
Baloise Group Annual Report 2024
Financial report
Present
value of
future cash
flows
Risk
adjustment
Contractual service margin
Total
2023
Modified
retro-
spective
approach
Fair value
approach
Other
CHF million
Reinsurance contract assets
– 234.0
1.6
119.4
– 0.2
214.2
101.0
Reinsurance contract liabilities
– 0.3
0.0
–
0.1
0.2
0.0
Net balance as at 1 January
– 234.3
1.7
119.4
– 0.2
214.4
101.0
Changes that relate to current services
– 1.3
0.0
– 2.0
– 0.4
– 3.3
– 7.0
of which: CSM related to the service received
(release)
–
–
– 2.0
– 0.4
– 3.3
– 5.7
of which: expected release of risk adjustment for
non-financial risk
–
0.0
–
–
–
0.0
of which: experience adjustments
– 1.3
–
–
–
–
– 1.3
of which: effect of changes in non-performance
risk of reinsurers
–
–
–
–
–
–
Changes that relate to future services
– 76.5
0.4
– 1.5
1.3
76.3
–
of which: contracts initially recognised in the period
–
–
–
–
–
–
of which: changes in estimates that adjust the CSM
– 76.5
0.4
– 1.5
1.3
76.3
–
of which: changes in estimates that relate to losses
and reversals of losses of underlying contracts
–
–
–
–
–
–
Changes that relate to past services
–
–
–
–
–
–
of which: changes in fulfilment cash flows relating
to incurred claims ceded to reinsurer
–
–
–
–
–
–
Insurance service result from reinsurance contracts
– 77.9
0.4
– 3.5
0.9
73.0
– 7.0
Insurance finance income or expenses
– 11.3
1.6
1.8
0.0
0.6
– 7.4
Exchange differences
18.0
– 0.2
– 7.1
0.0
– 16.1
– 5.3
Changes recognised in the statement of
comprehensive income
– 71.1
1.8
– 8.7
0.9
57.5
– 19.7
Premiums paid to the reinsurer
16.2
–
–
–
–
16.2
Claims and other insurance service expenses
reimbursed, incl. investment components
– 13.0
–
–
–
–
– 13.0
Insurance acquisition cash flows paid (brokerage)
–
–
–
–
–
–
Other cash flows
–
–
–
–
–
–
Cash flows
3.2
–
–
–
–
3.2
Other movements
–
–
–
–
–
–
Net balance as at 31 December
– 302.3
3.4
110.7
0.7
271.9
84.4
of which: reinsurance contract assets
– 301.8
3.4
110.7
0.9
271.6
84.7
of which: reinsurance contract liabilities
– 0.5
0.0
–
– 0.2
0.3
– 0.3
Financial report
278
Baloise Group Annual Report 2024
The following amounts were recognised for reinsurance contracts held that were recognised for the first time in the
financial year:
31.12.2024
31.12.2023
Total ceded
reinsurance
Of which
contracts
acquired
Total ceded
reinsurance
Of which
contracts
acquired
CHF million
Present value of future cash outflows
989.3
–
–
–
Present value of future cash inflows
– 1,021.6
–
–
–
of which: expected claims and insurance service expenses ceded to reinsurer
– 1,021.6
–
–
–
of which: expected insurance acquisition cash flows (brokerage)
–
–
–
–
Risk adjustment for non-financial risk
2.9
–
–
–
Contractual service margin
29.3
–
–
–
Loss recovery component
–
–
–
–
279
Baloise Group Annual Report 2024
Financial report
4. Investments and financial liabilities
Investments encompass both investment property and financial assets. Financial assets consist of financial instruments
with characteristics of equity, financial instruments with characteristics of debt, mortgages, loans, derivatives (assets),
cash and cash equivalents, and receivables.
Financial liabilities consist of liabilities arising from financial contracts, derivatives (liabilities) and other financial
liabilities.
4.1
Comprehensive income on investments
A distinction is made between investments and financial liabilities for own account and at own risk on the one hand and
investments and financial liabilities for the account and at the risk of customers and third parties on the other. Invest-
ments for the account and at the risk of customers and third parties are assets from premiums for unit-linked or invest-
ment-linked life insurance contracts in which policyholders themselves bear the investment risk in accordance with the
investment objectives. Accordingly, and in contrast to investments for own account and at own risk, the Baloise Group
has no rights in respect of these investments.
280
Baloise Group Annual Report 2024
Financial report
2024
Interest
revenue
calculated
using the
effective
interest
method
Investment
income
Realised
gains and
losses
Change in
expected
credit loss
Investment
return
CHF million
Investment return
Investment property
–
272.4
– 0.9
–
271.6
Financial instruments with characteristics of equity
–
94.0
35.5
–
129.5
Recognised at fair value through OCI (FVOCI)
–
6.8
–
–
6.8
Recognised at fair value through profit or loss (FVPL) 1
–
87.2
35.5
–
122.7
Financial instruments with characteristics of debt
116.2
460.3
618.6
1.8
1,196.9
Recognised at amortised cost (AC)
2.6
–
0.0
0.0
2.6
Recognised at fair value through OCI (FVOCI)
113.6
–
29.7
1.9
145.2
Recognised at fair value through profit or loss (FVPL)
–
460.3
588.9
–
1,049.1
– of which: mandatorily FVPL
–
1.2
1.0
–
2.2
– of which: designated as FVPL
–
459.1
587.9
–
1,047.0
Mortgages and loans
165.5
86.9
155.9
– 0.9
407.4
Recognised at amortised cost (AC)
161.0
–
35.7
– 0.9
195.8
Recognised at fair value through OCI (FVOCI)
4.5
–
–
0.0
4.5
Recognised at fair value through profit or loss
–
86.9
120.1
–
207.0
– of which: mandatorily FVPL
–
0.0
– 7.3
–
– 7.3
– of which: designated as FVPL
–
86.9
127.4
–
214.3
Derivative financial instruments 2
–
–
– 266.9
–
– 266.9
Financial receivables
16.2
–
–
1.3
17.5
Cash and cash equivalents
12.8
–
– 0.5
–
12.3
Investment return for own account and at own risk
310.7
913.5
541.8
2.3
1,768.3
Investment return for the account and risk
of customers and third parties
–
8.0
1,513.9
–
1,521.9
Total investment return
310.7
921.6
2,055.7
2.3
3,290.2
1 The position "Financial instruments with characteristics of equity - recognised at fair value through profit or loss (FVPL)" comprises gains and losses from hedging operations.
2 The position "Derivative financial instruments" comprises gains and losses on derivative financial assets and derivative financial liabilities.
281
Baloise Group Annual Report 2024
Financial report
2023
Interest
revenue
calculated
using the
effective
interest
method
Investment
income
Realised
gains and
losses
Change in
expected
credit loss
Investment
return
CHF million
Investment return
Investment property
–
280.1
– 72.0
–
208.1
Financial instruments with characteristics of equity
–
110.2
68.0
–
178.2
Recognised at fair value through OCI (FVOCI)
–
8.9
–
–
8.9
Recognised at fair value through profit or loss (FVPL) 1
–
101.3
68.0
–
169.3
Financial instruments with characteristics of debt
107.3
479.0
1,153.4
0.5
1,740.2
Recognised at amortised cost (AC)
1.3
–
–
–
1.3
Recognised at fair value through OCI (FVOCI)
106.0
–
– 90.8
0.5
15.6
Recognised at fair value through profit or loss (FVPL)
–
479.0
1,244.2
–
1,723.2
– of which: mandatorily FVPL
–
4.4
9.9
–
14.3
– of which: designated as FVPL
–
474.6
1,234.3
–
1,708.9
Mortgages and loans
155.7
93.6
155.2
1.8
406.4
Recognised at amortised cost (AC)
150.5
–
20.1
1.8
172.4
Recognised at fair value through OCI (FVOCI)
5.2
–
0.0
0.0
5.2
Recognised at fair value through profit or loss
–
93.6
135.2
–
228.8
– of which: mandatorily FVPL
–
– 0.1
1.3
–
1.2
– of which: designated as FVPL
–
93.7
133.9
–
227.6
Derivative financial instruments 2
–
–
120.7
–
120.7
Financial receivables
19.9
–
–
– 0.1
19.8
Cash and cash equivalents
14.0
–
– 0.5
–
13.4
Investment return for own account and at own risk
296.8
962.9
1,424.9
2.2
2,686.8
Investment return for the account and risk
of customers and third parties
–
7.7
1,130.5
–
1,138.2
Total investment return
296.8
970.6
2,555.4
2.2
3,825.0
1 The position “Financial instruments with characteristics of equity – recognised at fair value through profit or loss (FVPL)” comprises gains and losses from hedging operations.
2 The position “Derivative financial instruments” comprises gains and losses on derivative financial assets and derivative financial liabilities.
Income from investment property consists mainly of rental income. Income from financial instruments with charac-
teristics of equity primarily comprises dividend income, while income from financial instruments with characteristics
of debt essentially contains interest income and net income from the recognition and reversal of impairment losses
owing to application of the effective interest method. The income from mortgages and loans is derived from the interest
paid thereon and from the recognition and reversal of impairment losses owing to application of the effective interest
method. Income from cash and cash equivalents is mainly derived from the interest paid thereon.
The change in the realised gains and losses predominantly results from market-related fluctuations in the measure-
ment of financial instruments with characteristics of debt that are designated as measured at FVPL.
282
Baloise Group Annual Report 2024
Financial report
The income from financial assets with characteristics of equity that are classified as measured at fair value through
other comprehensive income (FVOCI) can be broken down as follows:
2024
2023
CHF million
Income from financial instruments with characteristics of equity (FVOCI)
Income from financial instruments held at the balance sheet date
0.5
2.6
Income from financial instruments sold during the reporting period
6.3
6.3
Total income from financial instruments with characteristics of equity (FVOCI)
6.8
8.9
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 32.3 million was reported for 2024 (previous year: loss of CHF 100.5 million).
Other currency gains or losses
A gross currency loss of CHF 166.0 million was recognised directly in equity for the reporting year (previous year: loss of
CHF 294.8 million). Allowing for hedges of a net investment in a foreign operation (hedge accounting), a net loss of CHF
81.3 million was recognised for 2024 (previous year: net loss of CHF 204.0 million).
4.2
Investments on the balance sheet
Investments for own
account and own risk
Investments for
the account and
risk of customers
and third parties
Total investments
as at 31.12.
2024
2023
2024
2023
2024
2023
CHF million
Investment property
7,706.7
8,248.6
–
–
7,706.7
8,248.6
Financial instruments with characteristics of equity
3,245.6
3,105.6
13,368.2
11,827.2
16,613.7
14,932.9
Financial instruments with characteristics of debt
29,356.6
29,267.0
3,248.7
2,886.5
32,605.3
32,153.4
Mortgages and loans
16,089.3
15,602.3
–
–
16,089.3
15,602.3
Derivative financial instruments
263.1
449.8
639.7
622.8
902.8
1,072.6
Financial receivables
607.1
727.2
0.0
0.0
607.1
727.2
Cash and cash equivalents
1,927.5
2,069.0
786.9
916.3
2,714.4
2,985.3
Total investments
59,195.8
59,469.5
18,043.5
16,252.8
77,239.3
75,722.3
283
Baloise Group Annual Report 2024
Financial report
4.2.1
Investment property
2024
2023
CHF million
Balance as at 1 January
8,248.6
8,495.1
Additions
38.6
121.9
Additions from capitalisable investments
5.4
7.6
Additions arising from change in scope of consolidation
–
152.9
Disposals
– 610.6
– 399.1
Reclassification
93.4
– 30.7
Reclassification from / to non-current assets classified as held for sale
– 83.6
56.4
Change in fair value
– 0.9
– 72.0
Exchange differences
15.8
– 83.5
Balance as at 31 December
7,706.7
8,248.6
Operating expenses arising from investment property that generates rental income
90.0
82.9
Operating expenses arising from investment property that does not generate rental income
–
–
The Baloise Group intends to dispose of five Baloise Insurance Ltd and Baloise Life Ltd properties within the next twelve
months, which is why these properties have been reclassified as non-current assets held for sale. As at the time of reclas-
sification, the fair value of these properties totalled CHF 83.6 million.
In addition, an owner-occupied property in Germany measured at FVPL with a fair value of CHF 93.4 million was
reclassified as an investment property. The reclassification was carried out due to the property’s change of use.
In 2023, six investment properties held for sale, which had a total fair value of CHF 56.4 million were reclassified as invest-
ment properties again as the parties to the sale were unable to reach an agreement.
Also in 2023, an owner-occupied property measured at FVPL with a fair value of CHF 5.1 million was reclassified as
an investment property. Furthermore, an investment property with a fair value of CHF 35.8 million was reclassified as an
owner-occupied property measured at FVPL. Both of these reclassifications were carried out due to the change of use of
the properties.
284
Baloise Group Annual Report 2024
Financial report
Baloise as lessor
Where it leases investment properties to third parties, the Baloise Group has entered into operating leases from which it
receives lease income.
Leasing in the income statement
2024
2023
CHF million
Fixed lease income
362.4
363.0
Variable lease income
0.1
1.4
Lease income
362.6
364.4
Due dates of lease income
2024
2023
CHF million
Due within one year
341.5
345.2
Due after one to three years
657.4
664.8
Due after three to five years
457.1
471.4
Due after five years or more
231.8
239.4
Total
1,687.8
1,720.7
4.2.2
Financial instruments with characteristics of equity
31.12.2024
Equities
Equity
funds
Other
funds
Private
equity
Total
CHF million
Financial instruments with characteristics of equity
Recognised at fair value through OCI (FVOCI)
221.1
–
–
118.3
339.4
Recognised at fair value through profit or loss (FVPL)
425.2
65.9
1,366.8
1,048.3
2,906.2
Financial instruments with characteristics of equity
for own account and at own risk
646.3
65.9
1,366.8
1,166.6
3,245.6
of which: publicly listed
606.5
54.7
321.6
1.2
983.9
of which: not publicly listed
39.8
11.2
1,045.2
1,165.4
2,261.6
31.12.2023
Equities
Equity
funds
Other
funds
Private
equity
Total
CHF million
Financial instruments with characteristics of equity
Recognised at fair value through OCI (FVOCI)
216.8
–
–
120.0
336.7
Recognised at fair value through profit or loss (FVPL)
406.5
75.1
1,288.5
998.7
2,768.9
Financial instruments with characteristics of equity
for own account and at own risk
623.3
75.1
1,288.5
1,118.7
3,105.6
of which: publicly listed
580.4
49.2
201.3
1.2
832.0
of which: not publicly listed
42.9
25.9
1,087.3
1,117.5
2,273.7
285
Baloise Group Annual Report 2024
Financial report
For equities in the non-life segment that are not held for trading, Baloise uses the FVOCI option in order to avoid
accounting mismatches. Gains and losses on individual equities in this group of financial instruments are recognised in
other comprehensive income, as are currency effects; dividends are recognised in the income statement. Upon disposal
or derecognition, the cumulative gains and losses are transferred from other comprehensive income to retained earn-
ings. The majority of the equities measured at fair value through comprehensive income are publicly traded shares that
are held for the purpose of collecting dividends.
2024
2023
CHF million
Balance as at 1 January
336.7
611.6
Additions
60.8
118.1
Disposals
– 45.4
– 387.7
Disposals arising from change in scope of consolidation
–
– 1.4
Change in fair value 1
– 12.7
– 3.8
Balance as at 31 December
339.4
336.7
1 Includes fair value revaluations as well as exchange rate differences.
In 2023, financial instruments with characteristics of equity and measured at fair value through other comprehensive
income were derecognised in an amount of CHF 389.1 million on the basis of strategic business decisions or adjustments
to the asset allocation. Of this total, CHF 387.7 million was attributable to disposals. The cumulative gains and losses on
these instruments recognised in other comprehensive income, amounting to CHF 7.3 million, were transferred to retained
earnings.
4.2.3
Financial instruments with characteristics of debt
31.12.2024
Public
corporations
Industrial
enterprises
Financial
institutions
Private
debt
Other
Total
CHF million
Financial instruments with characteristics of debt
Recognised at amortised cost (AC)
78.8
–
30.8
16.2
30.0
155.9
Recognised at fair value through OCI (FVOCI)
2,661.8
1,590.7
1,764.3
298.2
–
6,315.1
Recognised at fair value through profit or loss (FVPL)
12,321.9
3,383.0
4,572.6
2,608.2
–
22,885.7
of which: mandatorily FVPL
–
6.2
0.7
–
–
6.9
of which: designated as FVPL
12,321.9
3,376.8
4,571.9
2,608.2
–
22,878.8
Financial instruments with characteristics of debt
for own account and at own risk
15,062.5
4,973.7
6,367.8
2,922.6
30.0
29,356.6
of which: publicly listed
15,062.5
4,943.4
6,341.1
–
30.0
26,377.0
of which: not publicly listed
–
30.3
26.7
2,922.6
–
2,979.7
286
Baloise Group Annual Report 2024
Financial report
31.12.2023
Public
corporations
Industrial
enterprises
Financial
institutions
Private
debt
Other
Total
CHF million
Financial instruments with characteristics of debt
Recognised at amortised cost (AC)
81.6
–
11.5
2.0
29.9
125.0
Recognised at fair value through OCI (FVOCI)
2,509.9
1,338.0
1,579.1
227.7
–
5,654.7
Recognised at fair value through profit or loss (FVPL)
13,059.1
3,759.7
4,531.1
2,137.4
–
23,487.3
of which: mandatorily FVPL
16.1
170.4
59.0
–
–
245.5
of which: designated as FVPL
13,043.1
3,589.2
4,472.1
2,137.4
–
23,241.8
Financial instruments with characteristics of debt
for own account and at own risk
15,650.6
5,097.7
6,121.8
2,367.0
29.9
29,267.0
of which: publicly listed
15,650.6
5,071.3
6,096.4
–
29.9
26,848.2
of which: not publicly listed
–
26.4
25.4
2,367.0
–
2,418.8
Financial instruments with characteristics of debt (AC)
Gross amount
Impairment (ECL)
Carrying amount
Fair value
as at 31.12.
2024
2023
2024
2023
2024
2023
2024
2023
CHF million
Financial instruments
with characteristics of
debt carried at cost
Public corporations
78.8
81.6
–
–
78.8
81.6
80.7
81.6
Industrial enterprises
–
–
–
–
–
–
–
–
Financial institutions
30.8
11.5
–
–
30.8
11.5
31.5
11.5
Private debt
16.2
2.0
0.0
–
16.2
2.0
16.2
2.0
Other
30.0
29.9
–
–
30.0
29.9
31.3
30.5
Financial instruments
with characteristics of
debt carried at cost
155.9
125.0
0.0
–
155.9
125.0
159.7
125.5
287
Baloise Group Annual Report 2024
Financial report
4.2.4
Mortgages and loans
31.12.2024
Mortgages
Promissory
notes
Registered
bonds
Time
deposits
Reverse
repurchase
agree-
ments Other loans
Total
CHF million
Mortgages and loans
Recognised at amortised cost (AC)
8,470.6
–
–
228.9
1,875.0
445.8
11,020.3
Recognised at fair value through OCI (FVOCI)
–
208.2
295.9
–
–
–
504.1
Recognised at fair value through profit or loss (FVPL)
3,052.9
946.0
531.9
–
–
34.0
4,564.9
of which: mandatorily FVPL
–
0.5
–
–
–
33.9
34.4
of which: designated as FVPL
3,052.9
945.5
531.9
–
–
0.1
4,530.5
Mortgages and loans for own account and
at own risk
11,523.5
1,154.2
827.8
228.9
1,875.0
479.8
16,089.3
31.12.2023
Mortgages
Promissory
notes
Registered
bonds
Time
deposits
Reverse
repurchase
agree-
ments Other loans
Total
CHF million
Mortgages and loans
Recognised at amortised cost (AC)
8,017.5
0.2
–
762.7
1,015.0
343.1
10,138.4
Recognised at fair value through OCI (FVOCI)
–
228.6
326.4
–
–
–
555.0
Recognised at fair value through profit or loss (FVPL)
3,104.3
999.4
765.4
2.5
–
37.4
4,909.0
of which: mandatorily FVPL
–
4.6
–
–
–
31.7
36.2
of which: designated as FVPL
3,104.3
994.8
765.4
2.5
–
5.7
4,872.7
Mortgages and loans for own account and
at own risk
11,121.8
1,228.1
1,091.8
765.2
1,015.0
380.5
15,602.3
Gross amount
Impairment (ECL)
Carrying amount
Fair value
as at 31.12.
2024
2023
2024
2023
2024
2023
2024
2023
CHF million
Mortgages and loans (AC)
Mortgages
8,486.4
8,034.2
– 15.8
– 16.7
8,470.6
8,017.5
8,851.5
8,089.6
Promissory notes
0.2
0.2
– 0.2
–
–
0.2
–
0.2
Time deposits
228.9
762.7
–
–
228.9
762.7
228.9
762.6
Reverse repurchase
agreements
1,875.0
1,015.0
–
–
1,875.0
1,015.0
1,875.0
1,015.0
Other loans
446.4
343.3
– 0.6
– 0.3
445.8
343.1
461.6
341.6
Total mortgages and
loans (AC)
11,036.9
10,155.3
– 16.6
– 16.9
11,020.3
10,138.4
11,417.0
10,208.9
288
Baloise Group Annual Report 2024
Financial report
4.2.5
Derivatives
Contract value
Fair value assets
Fair value liabilities
as at 31.12.
2024
2023
2024
2023
2024
2023
CHF million
Interest rate instruments
Swaps
1,049.3
1,018.5
5.0
39.0
7.0
27.1
Other 1
2.0
1.7
247.9
205.8
59.5
51.9
Total interest rate instruments
1,051.2
1,020.1
252.9
244.8
66.4
79.0
Equity instruments
OTC options
707.7
251.7
6.8
3.4
–
–
Total equity instruments
707.7
251.7
6.8
3.4
–
–
Foreign currency instruments
Forward contracts
5,141.6
5,451.3
3.4
201.6
95.1
4.4
Total foreign currency instruments
5,141.6
5,451.3
3.4
201.6
95.1
4.4
Derivative financial instruments for own account
and at own risk
6,900.6
6,723.1
263.1
449.8
161.5
83.4
of which: designated as fair value hedges
1,049.3
1,018.5
5.0
39.0
7.0
27.1
of which: designated as hedges
of a net investment in a foreign operation
1,552.9
1,423.3
0.5
60.6
47.9
1.1
1 The “Other” line item contains structured products of Baloise Life Ltd.
For disclosure purposes, the contract value or notional amount is used for derivatives where the principal can be
exchanged at maturity (options, futures and currency swaps). The contract value or notional amount is also used for
instruments where the principal is only notionally lent or borrowed (interest rate swaps). The contract value or notional
amount is disclosed in order to show the volume of derivative transactions in which the Baloise Group is involved.
289
Baloise Group Annual Report 2024
Financial report
Hedging of interest rate risk using fair value hedges
To hedge interest rate risk on receivables arising from fixed-rate mortgages and on liabilities arising from fixed-rate
mortgage-backed bonds, Baloise Bank uses interest rate swap derivatives (payer and receiver swaps). It designates
these derivatives as hedging instruments and designates the mortgages and mortgage-backed bonds as hedged
items as part of a fair value hedge. This eliminates the accounting mismatches between the hedging instruments
measured at fair value through profit or loss and the hedged items measured at amortised cost. Any gain or loss on the
hedging instrument is recognised in profit or loss; the hedging gain or loss leads to an interest rate-related adjustment
of the hedged item’s carrying amount that is also recognised in profit or loss. The following tables show how the hedge
accounting is presented on the balance sheet.
Carrying amount
Nominal amount
Assets
Liabilities
as at 31.12.
2024
2023
2024
2023
2024
2023
CHF million
Interest rate risk
Interest rate swaps – mortgages
765.9
762.6
5.0
39.0
–
–
Interest rate swaps – mortgage-backed bonds
283.4
255.9
–
–
7.0
27.1
The hedging instruments that are held for the purpose of hedging mortgages and mortgage-backed bonds are recog-
nised in the “Derivative financial instruments” line item on the balance sheet.
Carrying amount
Accumulated amount of fair value hedge adjustments
on the hedged item included in the carrying amount
of the hedged item
Assets
Liabilities
Assets
Liabilities
as at 31.12.
2024
2023
2024
2023
2024
2023
2024
2023
CHF million
Mortgages
760.8
723.1
–
–
– 5.1
– 39.5
–
–
Mortgage-backed bonds
–
–
276.3
228.7
–
–
– 7.1
– 27.2
The hedged mortgages are recognised in the “Mortgages and loans” line item on the balance sheet.
The hedged mortgage-backed bonds are recognised in the “Liabilities arising from financial contracts” line item on
the balance sheet.
290
Baloise Group Annual Report 2024
Financial report
Change in fair value used
for calculating hedge
ineffectiveness
Ineffectiveness recognised
in profit or loss
2024
2023
2024
2023
CHF million
Interest rate risk
Interest rate swaps – mortgages
– 34.0
– 32.8
– 0.1
– 0.5
Interest rate swaps – mortgage-backed bonds
– 20.2
– 20.4
0.1
0.1
Hedge ineffectiveness is recognised in the “Realised gains and losses on investments” line item.
Change in value used for
calculating hedge
ineffectiveness
Accumulated amount of
fair value hedge adjust-
ments remaining in the
statement of financial
position for any hedged
items that have ceased to
be adjusted for hedging
gains and losses
2024
2023
2024
2023
CHF million
Mortgages
34.4
30.8
–
–
Mortgage-backed bonds
20.1
20.2
–
–
291
Baloise Group Annual Report 2024
Financial report
Hedges of a net investment in a foreign operation
The Group’s own companies, Baloise Private Equity (Luxembourg) SCS and Baloise Alternative Invest S. A. SICAV-RAIF,
manage the substantial investments in alternative financial assets such as private equity and senior secured loans.
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).
Contract value
Fair value assets
Fair value liabilities
as at 31.12.
2024
2023
2024
2023
2024
2023
CHF million
Foreign currency instruments
Forward contracts
1,552.9
1,423.3
0.5
60.6
47.9
1.1
Total foreign currency instruments used as hedges
of a net investment in a foreign operation
1,552.9
1,423.3
0.5
60.6
47.9
1.1
as at 31.12.
2024
2023
CHF million
Amount recognised directly in equity
– 84.4
118.1
Hedge ineffectiveness reclassified to the income statement
–
–
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.
292
Baloise Group Annual Report 2024
Financial report
4.2.6
Financial receivables
Gross amount
Impairment (ECL)
Carrying amount
Fair value
as at 31.12.
2024
2023
2024
2023
2024
2023
2024
2023
CHF million
Financial receivables (AC)
Receivables from financial
contracts
66.8
71.5
– 0.7
– 1.4
66.1
70.1
67.8
70.4
Receivables from
investments
434.3
522.8
– 1.2
– 1.5
433.1
521.3
433.0
520.9
Other financial receivables
110.4
136.9
– 2.4
– 1.1
108.0
135.8
107.8
134.5
Financial receivables (AC)
611.4
731.3
– 4.3
– 4.0
607.1
727.2
608.7
725.9
Financial receivables
(FVPL)
Receivables from
investments
0.0
0.0
–
–
0.0
0.0
0.0
0.0
Financial receivables
(FVPL)
0.0
0.0
–
–
0.0
0.0
0.0
0.0
of which:
mandatorily FVPL
0.0
0.0
–
–
0.0
0.0
0.0
0.0
of which:
designated as FVPL
–
–
–
–
–
–
–
–
Total financial receivables
for own account and at
own risk
611.4
731.3
– 4.3
– 4.0
607.1
727.2
608.7
725.9
Other receivables include CHF 0.2 million in premiums that are due but have not yet been paid relating to contracts
measured using the PAA and not recognised as part of the LRC (previous year: CHF 0.2 million).
4.3
Financial liabilities
4.3.1
Gains or losses on financial contracts
2024
2023
CHF million
Result from financial contracts for own account and at own risk
Interest expenses
– 55.2
– 53.7
Realised gains and losses
– 22.2
– 0.1
Other result from financial contracts
– 12.1
– 9.3
Total result from financial contracts for own account and at own risk
– 89.5
– 63.2
Result from financial contracts for the account and at the risk of policyholders and third parties
– 1,000.7
– 779.6
Total result from financial contracts
– 1,090.2
– 842.7
293
Baloise Group Annual Report 2024
Financial report
2024
2023
CHF million
Interest expenses arising from financial contracts (AC)
Interest on loans
– 22.0
– 19.6
Interest due
0.0
– 0.3
Interest arising from banking business
– 28.7
– 16.8
Interest expenses on repurchase agreements
– 2.7
– 3.3
Expenses arising from other financial contracts
–
– 13.5
Interest expenses arising from financial contracts (AC)
– 53.4
– 53.4
Interest expenses arising from financial contracts (FVPL)
Interest due
0.0
–
Expenses arising from other financial contracts
– 1.8
– 0.3
Interest expenses arising from financial contracts (FVPL)
– 1.8
– 0.3
of which: mandatorily FVPL
– 1.8
– 0.3
of which: designated as FVPL
–
–
Total interest expense from financial contracts for own account and at own risk
– 55.2
– 53.7
4.3.2
Financial contracts on the balance sheet
2024
2023
CHF million
Liabilities arising from financial contracts at own account and at own risk
9,003.7
8,170.4
Liabilities arising from financial contracts at the account and risk of customers and third parties
13,178.4
11,766.0
Total liabilities arising from financial contracts
22,182.1
19,936.3
Financial liabilities for the account and at the risk of customers and third parties are financial contracts 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, market-related fluctuations in
the measurement of the portfolio (recognised in profit or loss) and exchange rate movements.
294
Baloise Group Annual Report 2024
Financial report
Carrying amount
Fair value
as at 31.12.
2024
2023
2024
2023
CHF million
Liabilities arising from financial contracts (AC)
Liabilities to banks
105.4
30.1
105.6
29.9
Repurchase agreements
215.0
–
215.0
–
Loans
5.5
5.8
5.5
6.3
Mortgages
–
5.4
–
5.4
Savings and customer deposits
5,314.6
5,256.1
5,314.4
5,183.4
Medium-term bonds
487.3
286.7
502.8
289.8
Mortgage-backed bonds
2,762.5
2,529.1
2,843.2
2,477.9
Other financial contracts
0.1
10.0
0.1
10.0
Liabilities arising from financial contracts (AC)
8,890.3
8,123.3
8,986.5
8,002.8
Liabilities arising from financial contracts (FVPL)
Other financial contracts
113.4
47.1
113.4
47.1
Liabilities arising from financial contracts (FVPL)
113.4
47.1
113.4
47.1
of which: mandatorily FVPL
113.4
47.1
113.4
47.1
of which: designated as FVPL
–
–
–
–
Total liabilities arising from financial contracts for own account and at own risk
9,003.7
8,170.4
9,099.9
8,049.8
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.
295
Baloise Group Annual Report 2024
Financial report
4.4
Offsetting of financial assets and liabilities
The relevant information used to determine the amount of the counterparty risk exposure includes information on the
offsetting of financial assets and liabilities on the balance sheet and any existing offsetting agreements in this context.
This information is summarised in the table below.
The table also shows the scope of the offsetting agreements that exist, even though no offsetting as defined in IFRS
is carried out on the balance sheet. The offsetting agreements are ISDA and Swiss master agreements for OTC derivative
transactions, Swiss master agreements for repos (multilateral version), and global master securities lending agreements.
In the event of insolvency or if one of the parties fails to fulfil its contractual obligations, each party has the right to close
the current contracts and to offset outstanding receivables with liabilities and collateral received within the offsetting
agreement.
Offsetting recognised
on the balance sheet
Netting potential not recognised
on the balance sheet
2024
Gross assets
before offset
Offset with
gross
liabilities
Net assets
recognised
on the
balance
sheet
Financial
liability
Collateral
received
Assets after
consideration
of netting
potential
CHF million
Financial assets
1,977.1
– 83.7
1,893.5
–
– 1,888.0
5.5
Offsetting recognised
on the balance sheet
Netting potential not recognised
on the balance sheet
2023
Gross assets
before offset
Offset with
gross
liabilities
Net assets
recognised
on the
balance
sheet
Financial
liability
Collateral
received
Assets after
consideration
of netting
potential
CHF million
Financial assets
1,264.0
– 2.6
1,261.3
–
– 1,178.8
82.5
296
Baloise Group Annual Report 2024
Financial report
Offsetting recognised
on the balance sheet
Netting potential not recognised
on the balance sheet
2024
Gross
liabilities
before offset
Offset with
gross assets
Net liabilities
recognised
on the
balance
sheet
Financial
asset
Collateral
pledged
Liabilities
after
consideration
of netting
potential
CHF million
Financial liabilities
– 315.5
–
– 315.5
–
301.7
– 13.8
Offsetting recognised
on the balance sheet
Netting potential not recognised
on the balance sheet
2023
Gross
liabilities
before offset
Offset with
gross assets
Net liabilities
recognised
on the
balance
sheet
Financial
asset
Collateral
pledged
Liabilities
after
consideration
of netting
potential
CHF million
Financial liabilities
30.0
–
30.0
–
– 27.1
2.8
4.5
Fair value measurement of investments and financial liabilities
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 associa-
tion, pricing service or regulatory authority, provided these prices are current, in sufficient volume and represent regularly
occurring 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 reli-
able conclusions to be drawn with regard to fair value.
Detailed information about measurement principles and the measurement methods used can be found in note 12.2.
297
Baloise Group Annual Report 2024
Financial report
Details of the methods used to measure level 2 and 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
Recognised at fair value through OCI (FVOCI)
Internal
measurement
methods
Price of underlying instrument,
liquidity discount, balance sheet
and income statement figures
–
Net asset value
n.a.
–
Recognised at fair value through profit or loss (FVPL)
Net asset value
n.a.
–
Financial instruments with characteristics of debt
Recognised at fair value through OCI (FVOCI)
Present-value model
Yield curve,
swap rates, default risk
–
Recognised at fair value through profit or loss (FVPL)
Present-value model
Net asset value
Interest rate, credit spread, market
price
n.a.
–
Mortgages and loans
Recognised at amortised cost (AC)
Present-value model
Interest rate, credit spread
–
Recognised at fair value through profit or loss (FVPL)
Present-value model
SARON, swap rates
–
Derivative financial instruments
Black-Scholes
option pricing model
Money market interest rate, volatility,
price of underlying instrument,
exchange rates
–
Black-76
Volatility, forward interest rate
–
Liabilities arising from financial contracts
Recognised at fair value through profit or loss (FVPL)
Stochastic
present-value model
Investment fund prices,
interest rates, cancellation rate
–
Present-value model
SARON, swap rates
–
Level 3
Financial instruments
with characteristics of equity
Net asset value
n.a.
n.a.
Financial instruments with characteristics of debt
Present-value model
Interest rate, credit spread
–
Mortgages and loans
Recognised at amortised cost (AC)
Present-value model
Swap curve, individual spread
–
Recognised at fair value through OCI (FVOCI)
Present-value model
Swap curve, individual spread
–
Recognised at fair value through profit or loss (FVPL)
Present-value model
Swap curve, individual spread
–
Liabilities arising from financial contracts
Recognised at fair value through profit or loss (FVPL)
Stochastic
present-value model
Investment fund prices,
interest rates, cancellation rate
–
Present-value model
SARON, swap rates
–
Investment property
DCF method
Discount rate 1
2.30 % – 3.78 % 3
Rental income 2
300 – 320 CHF
million 3
Vacancy costs 1
13 – 19 CHF million 3
Running costs 1
26 – 32 CHF million 3
Maintenance costs 1
28 – 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.
298
Baloise Group Annual Report 2024
Financial report
Determining the fair value of assets and liabilities classified as level 3
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 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
inconsistencies and classification issues by formal or informal committees at each reporting date. Appropriate adjust-
ments are made where necessary.
Financial instruments with characteristics of equity classed as FVOCI or FVPL 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 net asset value
(NAV). These external providers generally use non-public information to calculate the individual investments’ NAV.
Financial instruments with characteristics of debt 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.
The mortgages and loans classified as level 3 are predominantly promissory notes and registered bonds, the fair
value of which is determined individually with a present value model using a spread on the EUR and CHF swap curve
calculated for instruments with a comparable maturity period and a similar risk profile.
299
Baloise Group Annual Report 2024
Financial report
Fair value of investments and financial liabilities for own account and at own risk
31.12.2024
Total
carrying
amount
Total fair
value
Level 1
Level 2
Level 3
CHF million
Investments
Investment property
7,706.7
7,706.7
–
–
7,706.7
Financial instruments with characteristics of equity
3,245.6
3,245.6
983.9
273.5
1,988.2
Recognised at fair value through OCI (FVOCI)
339.4
339.4
187.9
26.8
124.7
Recognised at fair value through profit or loss (FVPL)
2,906.2
2,906.2
796.1
246.7
1,863.4
Financial instruments with characteristics of debt
29,356.6
29,360.5
26,377.3
2,983.2
–
Recognised at amortised cost (AC)
155.9
159.7
143.5
16.2
–
Recognised at fair value through OCI (FVOCI)
6,315.1
6,315.1
6,015.4
299.7
–
Recognised at fair value through profit or loss (FVPL)
22,885.7
22,885.7
20,218.3
2,667.3
–
Mortgages and loans
16,089.3
16,486.0
–
13,779.4
2,706.6
Recognised at amortised cost (AC)
11,020.3
11,417.0
–
10,726.5
690.5
Recognised at fair value through OCI (FVOCI)
504.1
504.1
–
–
504.1
Recognised at fair value through profit or loss (FVPL)
4,564.9
4,564.9
–
3,052.9
1,512.0
Derivative financial instruments
263.1
263.1
–
263.1
–
Financial receivables
607.1
608.7
129.5
4.9
474.4
Financial liabilities
Liabilities arising from financial contracts
9,003.7
9,099.9
113.6
8,980.9
5.5
Recognised at amortised cost (AC)
8,890.3
8,986.5
0.2
8,980.9
5.5
Recognised at fair value through profit or loss (FVPL)
113.4
113.4
113.4
–
0.0
Derivative financial instruments
161.5
161.5
1.4
160.1
0.0
Outstanding bonds 1
2,334.1
2,372.2
2,372.2
–
–
1 Details of the outstanding bonds can be found in note 5.2.1.
300
Baloise Group Annual Report 2024
Financial report
31.12.2023
Total
carrying
amount
Total fair
value
Level 1
Level 2
Level 3
CHF million
Investments
Investment property
8,248.6
8,248.6
–
–
8,248.6
Financial instruments with characteristics of equity 1
3,105.6
3,105.6
831.5
317.4
1,956.8
Recognised at fair value through OCI (FVOCI)
336.7
336.7
180.9
22.9
132.9
Recognised at fair value through profit or loss (FVPL)
2,768.9
2,768.9
650.6
294.5
1,823.8
Financial instruments with characteristics of debt
29,267.0
29,267.5
26,848.7
2,418.8
–
Recognised at amortised cost (AC)
125.0
125.5
123.6
2.0
–
Recognised at fair value through OCI (FVOCI)
5,654.7
5,654.7
5,427.0
227.7
–
Recognised at fair value through profit or loss (FVPL)
23,487.3
23,487.3
21,298.2
2,189.1
–
Mortgages and loans1
15,602.3
15,672.9
–
12,208.9
3,464.0
Recognised at amortised cost (AC)
10,138.4
10,208.9
–
9,104.6
1,104.4
Recognised at fair value through OCI (FVOCI)
555.0
555.0
–
–
555.0
Recognised at fair value through profit or loss (FVPL)
4,909.0
4,909.0
–
3,104.3
1,804.7
Derivative financial instruments
449.8
449.8
0.2
449.6
–
Financial receivables
727.2
725.9
323.8
6.7
395.4
Financial liabilities
Liabilities arising from financial contracts
8,170.4
8,049.8
42.7
7,981.0
26.1
Recognised at amortised cost (AC)
8,123.3
8,002.8
0.7
7,981.0
21.0
Recognised at fair value through profit or loss (FVPL)
47.1
47.1
42.0
–
5.1
Derivative financial instruments
83.4
83.4
–
83.4
0.0
Outstanding bonds 2
2,334.0
2,270.8
2,270.8
–
–
1 Owing to a more detailed set of base data, the assignment to the levels of the hierarchy has been adjusted for 2023. Financial instruments with characteristics of equity
(FVPL) of CHF 101.9 million and mortgages and loans (AC) of CHF 100.0 million were reclassified from level 2 to level 3.
2 Details of the outstanding bonds can be found in note 5.2.1.
301
Baloise Group Annual Report 2024
Financial report
Fair value of investments and financial liabilities for the account and risk of customers and third parties
31.12.2024
Total
carrying
amount
Total fair
value
Level 1
Level 2
Level 3
CHF million
Investments
Financial instruments with characteristics of equity
13,368.2
13,368.2
12,301.8
585.8
480.6
Financial instruments with characteristics of debt
3,248.7
3,248.7
2,690.3
338.8
219.6
Derivative financial instruments
639.7
639.7
–
639.7
–
Financial liabilities
Liabilities arising from financial contracts
13,178.4
13,178.4
11,697.7
807.0
673.7
31.12.2023
Total
carrying
amount
Total fair
value
Level 1
Level 2
Level 3
CHF million
Investments
Financial instruments with characteristics of equity
11,827.2
11,827.2
10,794.8
577.5
455.0
Financial instruments with characteristics of debt
2,886.5
2,886.5
2,529.3
233.5
123.7
Derivative financial instruments
622.8
622.8
–
622.8
–
Financial liabilities
Liabilities arising from financial contracts
11,766.0
11,766.0
10,532.5
687.3
546.2
302
Baloise Group Annual Report 2024
Financial report
Investments and financial liabilities measured at fair value on a recurring basis for own account and at own risk
classified as Level 3
Investment
property
Financial instruments with
characteristics of equity
Mortgages and loans
Total
investments
Liabilities
arising from
financial
contracts
Total
financial
liabilities
2024
FVPL
FVOCI
FVPL
FVOCI
FVPL
FVPL
CHF million
Balance as at 1 January
8,248.6
132.9
1,823.8
555.0
1,804.7
12,565.0
5.1
5.1
Additions
44.0
11.2
100.8
–
9.3
165.3
– 5.2
– 5.2
Disposals
– 610.6
– 3.2
– 134.5
– 66.2
– 335.5
– 1,150.0
–
–
Reclassified to level 3
93.4
–
–
–
–
93.4
–
–
Reclassified from level 3
–
–
–
–
–
–
–
–
Reclassification to
non-current assets
classified as held for sale
– 83.6
–
–
–
–
– 83.6
–
–
Changes in fair value
recognised in profit or loss
– 0.9
–
2.3
– 5.2
12.7
8.9
–
–
Changes in fair value not
recognised in profit or loss
–
– 17.6
–
13.2
–
– 4.4
–
–
Exchange differences
15.8
1.5
71.1
7.4
20.7
116.4
0.1
0.1
Balance as at 31
December
7,706.7
124.7
1,863.4
504.1
1,512.0
11,710.9
0.0
0.0
Changes in fair value of
financial instruments held
at the balance sheet date
and recognised in profit
or loss
– 56.4
–
– 56.4
–
21.1
– 91.7
–
–
The Baloise Group intends to dispose of five Baloise Insurance Ltd and Baloise Life Ltd properties within the next twelve
months, which is why these properties have been reclassified as non-current assets held for sale. As at the time of reclas-
sification, the fair value of these properties totalled CHF 83.6 million.
In addition, an owner-occupied property in Germany measured at FVPL with a fair value of CHF 93.4 million was
reclassified as an investment property. The reclassification was carried out due to the property’s change of use.
303
Baloise Group Annual Report 2024
Financial report
Investment
property
Financial instruments with
characteristics of equity 1
Mortgages and loans
Total
investments
Liabilities
arising from
financial
contracts
Total
financial
liabilities
2023
FVPL
FVOCI
FVPL
FVOCI
FVPL
FVPL
CHF million
Balance as at 1 January
8,495.1
155.3
1,873.1
583.4
1,928.8
13,035.6
–
–
Additions
129.5
11.1
192.7
13.6
64.7
411.6
5.1
5.1
Additions arising from
change in the scope of
consolidation
152.9
–
–
–
–
152.9
–
–
Disposals
– 399.1
– 1.5
– 122.9
– 29.2
– 179.8
– 732.5
–
–
Reclassified to level 3
5.1
–
16.8
–
–
21.8
–
–
Reclassified from level 3
– 35.8
–
–
–
–
– 35.8
–
–
Reclassification to
non-current assets
classified as held for sale
56.4
–
–
–
–
56.4
–
–
Changes in fair value
recognised in profit or loss
– 72.0
–
– 1.5
– 6.0
84.6
5.0
–
–
Changes in fair value not
recognised in profit or loss
–
– 24.1
–
28.3
–
4.2
–
–
Exchange differences
– 83.5
– 7.8
– 134.3
– 35.1
– 93.6
– 354.3
–
–
Balance as at
31 December
8,248.6
132.9
1,823.8
555.0
1,804.7
12,565.0
5.1
5.1
Changes in fair value of
financial instruments held
at the balance sheet date
and recognised in profit
or loss
– 88.6
–
– 30.2
–
82.9
– 35.9
–
–
1 The differentiation between levels was adjusted slightly in 2023 as a result of more detailed base data.
In 2023, six investment properties held for sale, which had a total fair value of CHF 56.4 million were reclassified as invest-
ment properties again as the parties to the sale were unable to reach an agreement.
Also in 2023, an owner-occupied property measured at FVPL with a fair value of CHF 5.1 million was reclassified as
an investment property. Furthermore, an investment property with a fair value of CHF 35.8 million was reclassified as an
owner-occupied property measured at FVPL. Both of these reclassifications were carried out due to the change of use of
the properties.
304
Baloise Group Annual Report 2024
Financial report
Investments and financial liabilities of customers and third parties measured at fair value on a recurring basis
classified as Level 3
Financial
instruments
with
characteris-
tics of equity
Financial
instruments
with
characteris-
tics of debt
Total
investments
Liabilities
arising from
financial
contracts
Total
financial
liabilities
2024
FVPL
FVPL
FVPL
CHF million
Balance as at 1 January
455.0
123.7
578.7
546.2
546.2
Additions
130.6
100.1
230.7
4.0
4.0
Disposals
– 112.4
– 16.2
– 128.6
0.0
0.0
Reclassified to level 3
0.4
12.7
13.1
11.6
11.6
Reclassified from level 3
– 0.3
– 0.7
– 1.0
– 1.0
– 1.0
Changes in fair value recognised in profit or loss
2.3
– 0.2
2.1
108.0
108.0
Exchange differences
5.1
0.2
5.3
4.8
4.8
Balance as at 31 December
480.6
219.6
700.2
673.7
673.7
Changes in fair value of financial instruments
held at the balance sheet date and recognised in profit or loss
2.3
– 0.2
2.1
– 107.2
– 107.2
Financial
instruments
with
characteris-
tics of equity
Financial
instruments
with
characteris-
tics of debt
Total
investments
Liabilities
arising from
financial
contracts
Total
financial
liabilities
2023
FVPL
FVPL
FVPL
CHF million
Balance as at 1 January
406.5
112.1
518.6
8,698.1
8,698.1
Additions
75.5
18.0
93.5
10.6
10.6
Disposals
– 69.0
– 1.2
– 70.2
– 2.6
– 2.6
Reclassified to level 3
0.2
2.3
2.5
0.8
0.8
Reclassified from level 3
–
– 1.1
– 1.1
– 8,799.6
– 8,799.6
Changes in fair value recognised in profit or loss
69.2
1.1
70.2
802.7
802.7
Exchange differences
– 27.4
– 7.6
– 34.9
– 163.8
– 163.8
Balance as at 31 December
455.0
123.7
578.7
546.2
546.2
Changes in fair value of financial instruments
held at the balance sheet date and recognised in profit or loss
69.2
1.1
70.2
– 803.5
– 803.5
Financial report
305
Baloise Group Annual Report 2023
Reclassification of assets and liabilities between level 1 and level 2
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 for these instruments owing to their low daily trading volumes or lack of liquidity or if the instru-
ments 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.
Reclassification of assets and liabilities to and from level 3
In the reporting period, an owner-occupied property measured at FVPL with a fair value of CHF 93.4 million was reclassified
as an investment property in Germany.
The reclassifications of investment properties made to and from level 3 in 2023 were attributable to the change of use
of two owner-occupied properties measured at FVPL.
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, 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.
306
Baloise Group Annual Report 2024
Financial report
5. Funding
5.1
Borrowing costs
2024
2023
CHF million
Interest expense from outstanding bonds
24.2
25.6
Interest expense from lease liabilities
0.6
0.5
Total borrowing costs
24.9
26.2
5.2
Financial liabilities
2024
2023
CHF million
Outstanding bonds
2,334.1
2,334.0
Lease liabilities
54.6
57.3
Total financial liabilities
2,388.8
2,391.3
The maturity analysis of undiscounted cash flows from senior debt and lease liabilities is presented in note 11.3.3.
5.2.1
Outstanding bonds
2024
2023
Senior
debt
Subordinated
debt
Total
Senior
debt
Subordinated
debt
Total
CHF million
Balance as at 1 January
2,134.6
199.4
2,334.0
2,084.7
499.0
2,583.8
Additions 1
150.0
–
150.0
274.9
–
274.9
Disposals / repayments 1
– 150.0
–
– 150.0
– 225.0
– 300.0
– 525.0
Interest expenses
19.7
4.6
24.2
18.4
7.3
25.6
Borrowing costs paid
– 13.3
– 2.1
– 15.4
– 13.5
– 6.3
– 19.8
Accrued borrowing costs
– 6.3
– 2.4
– 8.7
– 4.9
– 0.7
– 5.6
Interest costs (sub-total)
0.0
0.1
0.1
0.0
0.3
0.3
Balance as at 31 December
2,134.6
199.5
2,334.1
2,134.6
199.4
2,334.0
1 The prior-year figures have been adjusted.
On 7 June 2024, Baloise Holding Ltd placed a senior bond on behalf of the Baloise Group with a volume of CHF 150 million
and a coupon of 1.75 per cent (maturity period: 2024–2034) for general company purposes.
On 19 December 2024, a CHF-denominated senior bond with a volume of CHF 150 million and a coupon of 1.125 per
cent issuedby Baloise Holding Ltd was repaid.
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In 2023, the Baloise Group issued two bonds as part of its funding activities: the senior green bond issued through
Baloise Holding Ltd on 30 January 2023 with a volume of CHF 175 million and a coupon of 2.20 per cent (maturity period:
2023–2032) and the senior bond issued on 2 May 2023 with a volume of CHF 100 million and a coupon of 2.35 per cent
(maturity period 2023–2033).
Furthermore, a senior bond with a volume of CHF 225 million and a coupon of 1.75 per cent issued by Baloise Holding
Ltd was repaid on 26 April 2023. On 19 June 2023, Baloise Life Ltd repaid a further, open-ended subordinated bond with
a volume of CHF 300 million and a coupon of 1.75 per cent on the earliest possible call date.
Terms & conditions of outstanding bonds as at 31 December 2024
Issuer
Baloise
Life Ltd
Baloise
Holding Ltd
Baloise
Holding Ltd
Baloise
Holding Ltd
Baloise
Holding Ltd
Face value (CHF million)
200
200
100
125
175
Interest rate
2.200 %
0.500 %
0.000 %
0.000 %
0.250 %
Redemption value
100 %
100 %
100 %
100 %
100 %
Issue date
19.09.2017
28.01.2019
25.09.2019
25.09.2019
16.07.2020
Repayment date
19.06.2048
28.11.2025
25.09.2026
25.09.2029
16.12.2026
ISIN
CH0379611004
CH0458097976
CH0496692978
CH0496692986
CH0553331817
Ranking
subordinated 1
senior
senior
senior
senior
Issuer
Baloise
Holding Ltd
Baloise
Holding Ltd
Baloise
Holding Ltd
Baloise
Holding Ltd
Baloise
Holding Ltd
Face value (CHF million)
125
250
200
200
110
Interest rate
0.500 %
0.150 %
0.125 %
0.300 %
1.900 %
Redemption value
100 %
100 %
100 %
100 %
100 %
Issue date
16.07.2020
15.02.2021
27.09.2021
16.02.2022
19.07.2022
Repayment date
16.12.2030
17.02.2031
27.06.2030
16.02.2027
19.07.2028
ISIN
CH0553331825
CH0593641068
CH1130818839
CH1148728210
CH1199322350
Ranking
senior
senior
senior
senior
senior
Issuer
Baloise
Holding Ltd
Baloise
Holding Ltd
Baloise
Holding Ltd
Baloise
Holding Ltd
Face value (CHF million)
225
175
100
150
Interest rate
2.200 %
2.200 %
2.350 %
1.750 %
Redemption value
100 %
100 %
100 %
100 %
Issue date
30.11.2022
30.01.2023
02.05.2023
07.06.2024
Repayment date
30.05.2029
30.01.2032
02.05.2033
07.06.2034
ISIN
CH1206367661
CH1232107180
CH1256367199
CH1348614145
Ranking
senior
senior
senior
senior
1 The first scheduled call date for the issuer is 19 June 2028.
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5.2.2
Lease liabilities
Baloise as lessee
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 and recognises it on its balance sheet. On the
balance sheet, right-of-use assets are recognised under the “Property, plant and equipment” line item and the lease
liabilities under “Financial liabilities”. 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 sufficiently certain that the options will be exercised. Any non-lease components within
a rental contract are not treated separately. Instead, they are also taken into account in the measurement of the rele-
vant lease liability.
Leases of low-value assets 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.
2024
2023
CHF million
Balance as at 1 January
57.3
25.6
Additions
15.3
46.6
Disposals
– 7.2
– 0.4
Disposals arising from change in scope of consolidation
–
– 0.5
Interest expenses
0.2
0.5
Repayment of lease liabilities
– 11.7
– 12.3
Exchange differences
0.7
– 2.3
Balance as at 31 December
54.6
57.3
Leases in the income statement
2024
2023
CHF million
Expenses relating to leases of low-value and short-term leases
– 5.3
– 3.8
Interest expenses on lease liabilities
– 0.2
– 0.5
Depreciation and impairment of right-of-use assets
– 14.5
– 12.0
309
Baloise Group Annual Report 2024
Financial report
6. Employee benefits
6.1
Receivables and liabilities arising from employee benefits
31.12.2024
31.12.2023
CHF million
Receivables from employee benefits
Short-term employee benefits
3.7
4.1
Post-employment benefits – defined benefit plans
2.3
2.2
Total receivables from employee benefits
6.0
6.3
Liabilities from employee benefits
Short-term employee benefits
79.4
70.2
Post-employment benefits – defined benefit plans
538.7
537.3
Other long-term employee benefits
27.6
25.4
Termination benefits
10.2
2.6
Total liabilities from employee benefits
655.9
635.5
6.2
Post-employment benefits – defined benefit plans
The Baloise Group provides a range of pension benefits, which vary from country to country in line with local circum-
stances. The funded – or partially funded – liabilities relate to the occupational pension provision offered in Switzerland,
in Liechtenstein 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.
310
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6.2.1
Comprehensive income on defined benefit plans
2024
2023
CHF million
Current service cost (net)
– 68.0
– 40.6
Net interest cost
– 16.5
– 17.8
Unrecognised past service cost
– 0.1
–
Gains and losses on plan settlements
–
–
Expected return on reimbursement rights
–
–
Total expenses for defined benefit plans recognised in the income statement
– 84.7
– 58.4
Actuarial gains / losses
– 71.4
– 392.3
Return on plan assets
173.1
22.3
Effect of the asset ceiling, excluding the time value of money
– 112.9
293.0
Total other comprehensive income on defined benefit plans
– 11.2
– 77.0
Total comprehensive income on defined benefit plans
– 95.9
– 135.4
6.2.2
Net actuarial liabilities under defined benefit plans
31.12.2024
31.12.2023
CHF million
Fair value of plan assets
3,033.3
2,853.7
Present value of (partially) funded liabilities
– 2,714.3
– 2,645.0
Present value of unfunded liabilities
– 526.5
– 530.8
Effect of the asset ceiling, including the time value of money
– 329.0
– 212.8
Net actuarial liabilities under defined benefit plans
– 536.5
– 535.0
Fair value of plan assets
2024
2023
CHF million
Balance as at 1 January
2,853.7
2,780.3
Interest rate effect
43.3
67.3
Return on plan assets (after deduction of the time value of money)
173.1
22.3
Employees’ savings and purchases
41.3
41.4
Exchange differences
0.3
– 2.7
Employer contribution
70.8
71.2
Employee contribution
42.2
41.9
Benefits paid
– 191.4
– 168.1
Cash flow between Baloise Group and plan assets
(excl. benefits paid to employees and employer contribution)
–
–
Gains and losses on plan settlements
–
–
Balance as at 31 December
3,033.3
2,853.7
311
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Partially funded liabilities under defined benefit plans
2024
2023
CHF million
Balance as at 1 January
– 2,645.0
– 2,286.7
Current service cost (net)
– 58.8
– 32.0
Interest rate effect
– 40.1
– 58.9
Employee contribution
– 42.2
– 41.9
Employees' savings and purchases
– 41.3
– 41.4
Actuarial gains / losses on defined benefit obligations arising from
– 77.5
– 355.2
Changes in financial assumptions
– 163.7
– 257.6
Changes in demographic assumptions
13.4
– 12.9
Experience adjustments
72.7
– 84.8
Exchange differences
– 0.3
3.0
Unrecognised past service cost
–
–
Benefits paid
191.0
168.1
Gains and losses on plan settlements
–
–
Balance as at 31 December
– 2,714.3
– 2,645.0
Unfunded liabilities under defined benefit plans
2024
2023
CHF million
Balance as at 1 January
– 530.8
– 526.2
Current service cost (net)
– 9.3
– 8.6
Interest rate effect
– 16.5
– 18.9
Employee contribution
– 1.0
– 1.0
Employees' savings and purchases
–
–
Actuarial gains / losses on defined benefit obligations arising from
6.1
– 37.0
Changes in financial assumptions
3.4
– 37.8
Changes in demographic assumptions
– 0.8
1.2
Experience adjustments
3.5
– 0.5
Exchange differences
– 6.1
31.1
Unrecognised past service cost
– 0.1
–
Benefits paid
31.1
29.9
Gains and losses on plan settlements
–
–
Balance as at 31 December
– 526.5
– 530.8
312
Baloise Group Annual Report 2024
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Asset ceiling
2024
2023
CHF million
Balance as at 1 January
– 212.8
– 498.6
Interest rate effect
– 3.2
– 7.2
Effect of the asset ceiling (excluding interest rate effect)
– 112.9
293.0
Exchange differences
0.0
–
Balance as at 31 December
– 329.0
– 212.8
6.2.3
Asset allocation
31.12.2024
31.12.2023
CHF million
Cash and cash equivalents
36.9
66.4
Real estate
717.5
670.6
Equities and investment funds
1,795.8
1,642.6
publicly listed
1,742.7
1,601.3
not publicly listed
53.2
41.2
Fixed-interest assets
78.5
73.3
publicly listed
78.5
73.3
not publicly listed
–
–
Mortgages and loans
357.8
364.1
Derivatives
– 5.9
4.2
publicly listed
–
–
not publicly listed
– 5.9
4.2
Other
52.7
32.4
Fair value of plan assets
3,033.3
2,853.7
of which: Baloise Holding Ltd shares (fair value)
23.0
18.5
of which: real estate leased to the Baloise Group
–
–
The line item “Equities and investment funds” predominantly consists of fixed-income funds.
6.2.4
Actuarial assumptions
2024
2023
per cent
Discount rate
1.4
1.8
Expected wage and salary increases
1.4
1.4
Expected increase in pension benefits
0.2
0.2
Weighted annuity option take-up rate
57.6
61.5
Years
Average life expectancy of a 65-year-old woman
24.6
24.5
Average life expectancy of a 65-year-old man
22.6
22.5
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.
313
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Financial report
6.2.5
Sensitivity analysis for liabilities under defined benefit plans
31.12.2024
31.12.2023
CHF million
Total defined benefit obligation as shown
– 3,240.9
– 3,175.9
Discount rate plus 0.5 % age points
193.8
197.2
Discount rate minus 0.5 % age points
– 213.1
– 221.4
Expected wage and salary increases plus 0.5 % age points
– 25.3
– 22.7
Expected wage and salary increases minus 0.5 % age points
25.1
21.5
Expected pension benefits increases plus 0.5 % age points
– 139.2
– 137.7
Expected pension benefits increases minus 0.5 % age points
17.2
17.9
Mortality probabilities for 65-year-olds plus 10.0 % age points 1
66.1
60.7
Mortality probabilities for 65-year-olds minus 10.0 % age points 1
– 67.3
– 67.1
Share of annuity option plus 10.0 % age points
– 12.4
– 2.7
1 The prior-year figures have been adjusted.
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.
6.2.6
Funding of plan benefits
The plan assets of the Swiss plans are funded jointly by the employer and employee. The amount of individual contribu-
tions 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.
6.2.7
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 78.5 million for the 2025 financial year.
6.2.8
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; current
benefit entitlements under pension commitments are designed for an average of 17.1 years.
6.3
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 2024
totalled CHF 27.6 million (previous year: CHF 25.4 million). There were no disposals of plan assets for long-term employee
benefits. Benefits paid out amounted to CHF 0.5 million (previous year: CHF 2.5 million).
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Financial report
6.4
Share-based payment plan
For some time now, the Baloise Group has offered employees and management team members the chance to partic-
ipate in various plans under which shares are granted as part of their overall remuneration packages: the Employee
Incentive Plan, the Share Subscription Plan, the Share Participation Plan (discontinued with effect from 1 January 2024)
and the Performance share units (PSU) Plan. The PSU Plan 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 notes 4, 5 and 6 of the Compensation Report.
In 2024, a sum of CHF 30.9 million (previous year: CHF 29.0 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.
6.4.1
Employee Incentive Plan
2024
2023
Number of shares subscribed
234,337
238,410
Restricted until
31.08.2027
31.08.2026
Subscription price per share (CHF)
79.20
67.90
Value of shares subscribed (CHF million)
18.6
16.2
Fair value of subscribed shares on subscription date (CHF million)
38.4
33.1
Employees entitled to participate
3,423
3,471
Participating employees
2,622
2,646
Subscribed shares per participant (average)
89.4
90.1
6.4.2
Share Subscription Plan
Share Subscription Plan for senior managers (SSP) 1
2024
2023
Number of shares subscribed
27,565
22,694
Restricted until
28.02.2027
28.02.2026
Subscription price per share (CHF)
117.89
134.28
Value of shares subscribed (CHF million)
3.2
3.0
Fair value of subscribed shares on subscription date (CHF million)
3.9
3.6
Employees entitled to participate
1,165
1,113
Participating employees
177
132
SSP portion of variable remuneration
16 %
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
2024
2023
Number of shares subscribed
6,163
7,207
Restricted until
31.05.2027
31.05.2026
Subscription price per share (CHF)
137.98
125.91
Value of shares subscribed (CHF million)
0.9
0.9
Fair value of subscribed shares on subscription date (CHF million)
1.0
1.0
Participating members of the Board of Directors
10
10
315
Baloise Group Annual Report 2024
Financial report
6.4.3
Share Participation Plan
2023
Number of shares subscribed 1
108,923
Restricted until
28.02.2026
Subscription price per share 2 (CHF)
127.14
Value of shares subscribed 2 (CHF million)
13.8
Fair value of subscribed shares on subscription date (CHF million)
17.0
Employees entitled to participate
1,086
Participating employees
181
SPP portion of variable remuneration
9 %
1 Including shares financed by loans.
2 Net of the discounted dividend right over three years.
The Share Participation Plan was discontinued as of 1 January 2024.
6.4.4
Performance Share Units (PSU) Plan
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:
PSUs granted
PSUs converted
Change in
value 3
Date
Price (CHF) 1
Date
Multiplier
Price (CHF) 1 Value (CHF) 2
2020
01.03.2020
154.90
01.03.2023
0.61
156.50
95.47
– 38 %
2021
01.03.2021
158.90
01.03.2024
0.00
142.60
0.00
– 100 %
2022
01.03.2022
154.10
01.03.2025
0.83 4
164.104
135.56 4
-12 % 4
2023
01.03.2023
156.50
01.03.2026
0.63 4
164.104
102.56 4
-34 % 4
2024
01.03.2024
142.60
01.03.2027
1.45 4
164.104
237.66 4
67 % 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 2020: ([{0.61*156.50}–154.90] / 154.90) * 100 = –38 %.
4 Interim measurement as at 31 December 2024.
Measurement of the PSUs 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:
●risk-free interest rate
●The volatilities of all shares in the peer group and their correlations with each other are measured over a three-year
track record.
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Plan 2024
Plan 2023
Plan 2022
Employees entitled to participate at launch of programme
68
68
78
Number of allocated PSU
39,018
29,812
33,914
of which: expired (departures in 2022)
–
–
–
Number of active PSUs as at 31 December 2022
–
–
33,914
of which: expired (departures in 2023)
–
– 309
– 1,402
Number of active PSUs as at 31 December 2023
–
29,503
32,512
of which: expired (departures in 2024)
– 724
– 1,207
– 697
Number of active PSUs as at 31 December 2024
38,294
28,296
31,815
Value of allocated PSUs on issue date (CHF million)
5.4
4.4
5.1
PSU expense incurred by the Baloise Group for 2022 (CHF million)
–
–
1.4
PSU expense incurred by the Baloise Group for 2023 (CHF million)
–
1.2
1.8
PSU expense incurred by the Baloise Group for 2024 (CHF million)
1.9
1.4
1.5
6.4.5
Employee Stock Option Programme
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. 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 deter-
mined 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.
2024
2023
Participating employees
71
79
Number of allocated options
4,064,156
3,989,458
of which: expired (departures in 2021)
416,260
416,260
of which: expired (departures in 2022)
518,213
518,213
of which: expired (departures in 2023)
591,345
591,345
of which: expired (departures in 2024)
538,633
–
Number of active options as at 31 December 2024
1,999,705
2,463,640
ESOP expense (CHF million)
1.3
0.9
317
Baloise Group Annual Report 2024
Financial report
7. Taxes
7.1
Current income taxes and deferred taxes
2024
2023
CHF million
Current income taxes
– 78.8
– 69.5
Domestic top-up tax OECD Pillar two
– 0.1
–
Deferred taxes
– 62.3
– 12.4
Total income taxes
– 141.1
– 81.9
Expected and current income taxes
The expected average tax rate for the Baloise Group was 22.5 per cent in 2024 and 27.7 per cent in 2023. These rates corre-
spond to the weighted average tax rates in those countries where the Baloise Group operates.
2024
2023
CHF million
Profit before taxes
520.5
318.2
Expected average tax rate (per cent)
22.46 %
27.67 %
Expected income taxes
– 116.9
– 88.0
Increase / reduction owing to
Tax-exempt profits and losses
5.6
12.4
Non-deductible expenses
– 4.4
– 6.4
Withholding taxes on dividends
0.0
– 1.6
Change in tax rates
– 1.1
0.0
Change in unrecognised tax losses 1
– 29.4
2.3
Recognition of tax credits
–
–
Tax items related to other reporting periods
2.6
9.1
Non-taxable measurement differences
2.8
– 3.0
Intercompany effects
8.0
6.1
Other impacts
– 8.5
– 12.8
Current income taxes
– 141.1
– 81.9
1 Largely as a result of the reversal of recognised prior-year losses of CHF -24.2 million at FRIDAY (transfer of insurance portfolio) and of CHF -5.5 million at Baloise Luxembourg.
Baloise falls within the scope of the OECD rules on global minimum tax.
Baloise identifies as strategic business units (Switzerland, Germany, Belgium and Luxembourg), and which are
covered by the OECD rules on global minimum tax, the legislative position is that domestic top-up taxes apply with
effect from 1 January 2024.
The rules for international top-up taxes (Income Inclusion Rule) apply from 1 January 2024 (except in Switzerland,
where they apply from 1 January 2025); the Undertaxed Profits Rule applies from 1 January 2025 (except in Switzerland,
where it will not come into effect for the time being).
Under the global minimum tax rules, Baloise would be required to pay a national top-up tax in the event that,
according to the OECD pillar two rules, the effective tax rate in a jurisdiction was below 15 per cent. The OECD has
defined 15 per cent as the minimum tax rate.
Based on a comprehensive quantitative analysis for 2023, the specific adjustments set out in the OECD pillar two
rules result in effective tax rates that are different to the tax rates calculated in accordance with IAS 12 and/or local tax
legislation. A risk-based analysis for 2024 ascertained that no jurisdiction of the strategic business units in Switzerland,
Germany, Belgium and Luxembourg has a tax rate below the minimum tax rate of 15 per cent defined by the OECD and
318
Baloise Group Annual Report 2024
Financial report
therefore no national top-up taxes are owed. The risk-based analysis shows that the effective tax rate calculated in
accordance with the OECD pillar two rules is only below 15 per cent in Liechtenstein. However, the resulting national
top-up tax is immaterial.
Baloise is applying the temporary exception granted by IAS 12 that exempts it from recognising and disclosing
deferred tax assets and liabilities in connection with the pillar two international tax reform (global minimum tax).
7.2
Deferred taxes in other comprehensive income
2024
2023
Items not to
be reclassi-
fied to the
income
statement
Items to be
reclassi-
fied to the
income
statement
Total
Items not to
be reclassi-
fied to the
income
statement
Items to be
reclassi-
fied to the
income
statement
Total
CHF million
Deferred taxes in other comprehensive income
From financial instruments and loans FVOCI
– 0.6
– 29.0
– 29.6
– 1.8
– 73.8
– 75.6
From hedging
–
12.8
12.8
–
– 13.8
– 13.8
From insurance finance income or expenses
–
– 49.5
– 49.5
–
16.5
16.5
From defined benefit pension plans
0.3
–
0.3
16.3
–
16.3
From other
–
1.7
1.7
–
0.4
0.4
Total deferred taxes in other comprehensive income
– 0.3
– 63.9
– 64.2
14.4
– 70.7
– 56.2
7.3
Deferred tax assets and liabilities
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 239.0 million as at
31 December 2024 (previous year: CHF 372.4 million) that will expire after five years or more.
As at 31 December 2024, the Baloise Group had a tax credit of CHF 109.4 million (previous year: CHF 109.4 million) for
which no deferred tax assets were recognised as the requirements for recognition were not met. These tax assets remain
valid until the end of 2025.
No deferred tax assets had been recognised on tax loss carryforwards amounting to CHF 861.3 million as at 31
December 2024 (previous year: CHF 436.2 million) because the relevant offsetting criteria had not been met. Of this total,
CHF 0.0 million will expire after one year (previous year: CHF: 0.8 million), CHF 11.2 million after two to four years (previous
year: CHF 12.6 million) and CHF 850.1 million after five years or more (previous year: CHF 422.8 million).
31.12.2024
31.12.2023
CHF million
Deferred tax assets
1,401.9
1,428.4
Deferred tax liabilities
– 1,736.4
– 1,640.7
Total (net)
– 334.5
– 212.3
of which: recognised as deferred tax assets
208.1
207.1
of which: recognised as deferred tax liabilities
– 542.6
– 419.4
319
Baloise Group Annual Report 2024
Financial report
7.3.1
Deferred tax assets
2024
Balance
as at
1 January
Change
recognised
in profit or
loss
Change
recognised
directly in
equity
Change in
the scope
of conso-
lidation
Reclassi-
fication
in accor-
dance
with IFRS 5
Exchange
differences
Balance
as at 31
December
CHF million
Deferred tax assets
Investments
645.7
– 196.2
–
–
–
6.9
456.4
Other comprehensive income
275.8
–
– 50.4
–
–
3.2
228.6
Tax credits and losses carried forward
100.2
– 39.1
–
–
–
1.1
62.3
Insurance contract assets and liabilities
231.0
105.2
–
–
–
– 0.1
336.1
Reinsurance contract assets and liabilities
13.6
35.2
–
–
–
– 0.6
48.2
Liabilities arising from financial contracts
41.8
89.9
–
–
–
0.0
131.8
Liabilities arising from employee benefits
42.6
– 0.3
–
–
–
0.5
42.7
Other
77.7
18.1
–
– 0.2
–
0.2
95.9
Total deferred tax assets
1,428.4
12.9
– 50.4
– 0.2
–
11.2
1,401.9
2023
Balance
as at
1 January
Change
recognised
in profit or
loss
Change
recognised
directly in
equity
Change in
the scope
of conso-
lidation
Reclassi-
fication
in accor-
dance
with IFRS 5
Exchange
differences
Balance
as at 31
December
CHF million
Deferred tax assets
Investments
998.6
– 322.0
–
0.0
1.0
– 31.9
645.7
Other comprehensive income
345.8
–
– 54.8
–
–
– 15.2
275.8
Tax credits and losses carried forward
76.9
26.7
–
–
–
– 3.4
100.2
Insurance contract assets and liabilities
107.0
124.1
–
–
–
0.0
231.0
Reinsurance contract assets and liabilities
13.6
0.5
–
–
–
– 0.5
13.6
Liabilities arising from financial contracts
32.7
11.2
–
–
–
– 2.1
41.8
Liabilities arising from employee benefits
48.0
– 3.0
–
–
–
– 2.5
42.6
Other
103.9
– 23.8
–
0.3
–
– 2.7
77.7
Total deferred tax assets
1,726.6
– 186.3
– 54.8
0.3
1.0
– 58.3
1,428.4
Financial report
320
Baloise Group Annual Report 2024
7.3.2
Deferred tax liabilities
2024
Balance
as at
1 January
Change
recognised
in profit or
loss
Change
recognised
directly in
equity
Change in
the scope
of conso-
lidation
Reclassi-
fication
in accor-
dance
with IFRS 5
Exchange
differences
Balance
as at 31
December
CHF million
Deferred tax liabilities
Property, plant and equipment
25.7
– 1.9
–
–
–
0.3
24.1
Owner-occupied properties FVPL
44.0
– 15.4
–
–
–
0.5
29.1
Intangible assets
8.2
– 1.7
–
– 0.2
–
0.1
6.4
Long-term equity investments
161.2
– 72.6
–
–
–
1.8
90.4
Investment property
421.5
– 11.5
–
–
– 4.8
1.3
406.5
Financial assets
188.1
– 30.9
–
–
–
6.7
163.9
Other comprehensive income
117.6
–
13.8
–
–
0.5
131.9
Insurance contract assets and liabilities
574.5
91.8
–
–
–
3.5
669.8
Reinsurance contract assets and liabilities
10.8
42.0
–
–
–
– 0.2
52.6
Other
89.1
73.1
–
0.0
–
– 0.3
161.9
Total deferred tax liabilities
1,640.7
72.8
13.8
– 0.2
– 4.8
14.1
1,736.4
2023
Balance
as at
1 January
Change
recognised
in profit or
loss
Change
recognised
directly in
equity
Change in
the scope
of conso-
lidation
Reclassi-
fication
in accor-
dance
with IFRS 5
Exchange
differences
Balance
as at 31
December
CHF million
Deferred tax liabilities
Property, plant and equipment
15.6
11.0
–
–
–
– 0.9
25.7
Owner-occupied properties FVPL
38.0
7.3
–
–
–
– 1.3
44.0
Intangible assets
22.5
– 13.6
–
–
–
– 0.6
8.2
Long-term equity investments
87.1
78.8
–
–
–
– 4.7
161.2
Investment property
479.6
– 55.0
–
4.9
– 0.1
– 7.8
421.5
Financial assets
272.9
– 72.5
–
–
–
– 12.4
188.1
Other comprehensive income
120.9
–
1.4
0.0
–
– 4.7
117.6
Insurance contract assets and liabilities
698.3
– 95.2
–
–
–
– 28.6
574.5
Reinsurance contract assets and liabilities
34.4
– 22.8
–
–
–
– 0.8
10.8
Other
98.5
– 8.6
–
– 0.3
–
– 0.6
89.1
Total deferred tax liabilities
1,867.9
– 170.6
1.4
4.6
– 0.1
– 62.4
1,640.7
321
Baloise Group Annual Report 2024
Financial report
8. Other income statement line items
8.1
Income from services rendered
2024
2023
CHF million
Asset management
2.8
22.7
Services
65.0
55.5
Banking services
46.3
41.4
Investment management
28.2
22.1
Income from services rendered
142.4
141.7
8.2
Other operating income
2024
2023
CHF million
Gains on disposal of intangible assets and property, plant and equipment
1.1
0.5
Currency gains on assets and liabilities
38.2
30.4
External income from owner-occupied property
2.8
2.3
Income from development properties
0.4
1.2
Other income
124.7
127.2
Other operating income
167.3
161.6
8.3
Other operating expenses
2024
2023
CHF million
Operating and administrative expenses of the insurance business 1
– 299.9
– 304.2
Operating and administrative expenses for non-insurance companies
– 184.8
– 179.1
Expenses for investment management
– 46.3
– 52.2
Expense for maintenance, depreciation / amortisation / impairment and disposal of property,
plant and equipment and of intangible assets 2
– 33.3
– 37.3
Expense for brokerage of banking services and for broker sales of insurance products
– 24.8
– 25.6
Currency expense
– 40.1
– 21.0
Other expenses
– 102.8
– 72.3
Other operating expenses
– 732.0
– 691.7
1 Costs that are not directly attributable to underwriting business (IFRS 17 non-attributable expenses).
2 If these costs are not already assigned to “Insurance service expenses” or “Other operating and administrative expenses”.
8.4
Personnel expenses and depreciations / impairments
2024
2023
CHF million
Personnel expenses
– 994.1
– 1,024.5
Depreciation and impairment of property, plant and equipment
– 29.6
– 22.9
Amortisation and impairment of intangible assets
– 43.9
– 53.1
Total depreciation / amortisation and impairments
– 73.5
– 76.0
322
Baloise Group Annual Report 2024
Financial report
9. Other balance sheet line items
9.1
Property, plant and equipment
2024
Land
Buildings
Owner-
occupied
properties
FVPL
Operating
equipment
Other
Right-of-use
assets
Total
CHF million
Balance as at 1 January
11.4
53.9
474.2
6.0
33.6
57.0
636.1
Additions
–
0.9
2.0
7.0
20.9
17.9
48.8
Disposals
– 1.0
– 1.6
–
– 2.3
– 6.2
– 8.3
– 19.4
Disposals arising from change
in the scope of consolidation
–
–
–
–
– 0.3
–
– 0.3
Reclassification
–
–
– 93.4
–
–
–
– 93.4
Depreciation and impairment 1
–
– 2.9
–
– 1.6
– 10.5
– 14.5
– 29.6
Depreciation
–
– 2.9
–
– 1.6
– 10.5
– 14.5
– 29.6
Impairment losses recognised in profit
or loss
–
–
–
–
–
–
–
Reversal of impairment losses
recognised in profit or loss
–
–
–
–
–
–
–
Changes in fair value
–
–
– 6.5
–
–
–
– 6.5
Exchange differences
0.1
0.3
3.2
0.0
0.1
0.7
4.4
Balance as at 31 December
10.4
50.7
379.6
9.2
37.6
52.7
540.2
Acquisition costs
11.2
170.3
–
33.0
130.3
131.4
–
Accumulated depreciation and
impairment
– 0.9
– 119.6
–
– 23.8
– 92.7
– 78.7
–
Balance as at 31 December
10.4
50.7
379.6
9.2
37.6
52.7
540.2
1 Depreciation and impairment form part of other operating expenses.
In Germany, an owner-occupied property measured at FVPL with a fair value of CHF 93.4 million was reclassified as an
investment property. This reclassifications was carried out due to the change of use of the property.
The change in value, recognised in profit or loss, of the owner-occupied properties measured at FVPL and held as at the
balance sheet date amounted to CHF – 6.5 million in 2024 (previous year: CHF – 16.0 million).
The fair value of the owner-occupied properties measured at FVPL is determined using the DCF method. Measurement
is carried out annually by internal experts and at regular intervals by external property valuers. As is the case for invest-
ment properties, owner-occupied properties measured at FVPL are assigned to level 3. Details of assignment to the
different levels of the hierarchy can be found in note 4.5.
323
Baloise Group Annual Report 2024
Financial report
2023
Land
Buildings
Owner-
occupied
properties
FVPL
Operating
equipment
Other
Right-of-use
assets
Total
CHF million
Balance as at 1 January
11.7
54.4
466.0
7.1
29.9
25.5
594.6
Additions
–
0.5
2.9
0.8
14.9
46.6
65.7
Additions arising from change
in the scope of consolidation
–
–
–
–
0.2
–
0.2
Disposals
0.0
–
–
–
– 0.4
– 0.4
– 0.8
Disposals arising from change
in the scope of consolidation
–
–
–
– 0.1
0.0
– 0.5
– 0.6
Reclassification
0.0
–
30.7
–
–
–
30.7
Depreciation and impairment 1
–
0.7
–
– 1.6
– 10.0
– 12.0
– 22.9
Depreciation
–
– 3.2
–
– 1.6
– 10.0
– 12.0
– 26.8
Impairment losses recognised in profit
or loss
–
–
–
–
–
–
–
Reversal of impairment losses
recognised in profit or loss
–
3.9
–
–
–
–
3.9
Changes in fair value
–
–
– 16.0
–
–
–
– 16.0
Exchange differences
– 0.3
– 1.7
– 9.4
– 0.2
– 0.9
– 2.2
– 14.8
Balance as at 31 December
11.4
53.9
474.2
6.0
33.6
57.0
636.1
Acquisition costs
12.2
174.1
–
30.2
142.9
122.6
–
Accumulated depreciation and
impairment
– 0.8
– 120.3
–
– 24.1
– 109.3
– 65.6
–
Balance as at 31 December
11.4
53.9
474.2
6.0
33.6
57.0
636.1
1 Depreciation and impairment form part of other operating expenses.
In 2023, an owner-occupied property measured at FVPL with a fair value of CHF 5.1 million was reclassified as an invest-
ment property. Also in 2023, an investment property with a fair value of CHF 35.8 million was reclassified as an owner-
occupied property measured at FVPL. Both of these reclassifications were carried out due to the change of use of the
properties.
324
Baloise Group Annual Report 2024
Financial report
9.2
Intangible assets
2024
2023
Goodwill
Software and
other
intangible
assets
Total
Goodwill
Software and
other
intangible
assets
Total
CHF million
Balance as at 1 January
92.1
122.7
214.8
96.3
141.1
237.4
Additions
–
36.0
36.0
–
40.1
40.1
Additions arising from change
in the scope of consolidation
–
–
–
0.0
3.1
3.1
Disposals
–
– 7.4
– 7.4
–
– 2.3
– 2.3
Disposals arising from change
in the scope of consolidation
–
– 0.8
– 0.8
0.0
– 0.7
– 0.8
Amortisation and impairment
–
– 43.9
– 43.9
–
– 53.1
– 53.1
Amortisation
–
– 43.9
– 43.9
–
– 53.1
– 53.1
Impairment losses recognised in profit or loss
–
–
–
–
–
–
Reversal of impairment losses
recognised in profit or loss
–
–
–
–
–
–
Exchange differences
0.8
1.1
1.9
– 4.2
– 5.4
– 9.6
Balance as at 31 December
92.9
107.7
200.6
92.1
122.7
214.8
Acquisition costs
239.9
654.6
894.5
237.6
701.8
939.4
Accumulated amortisation and impairment
– 147.0
– 546.9
– 693.9
– 145.5
– 579.1
– 724.6
Balance as at 31 December 1
92.9
107.7
200.6
92.1
122.7
214.8
By strategic business unit
Switzerland
25.6
33.9
59.5
25.6
37.6
63.2
Germany
13.6
0.8
14.4
13.5
0.9
14.3
Belgium
33.7
23.8
57.5
33.3
38.4
71.7
Luxembourg
19.9
3.6
23.5
19.7
3.6
23.3
Group business
–
45.7
45.7
–
42.3
42.3
Balance as at 31 December
92.9
107.7
200.6
92.1
122.7
214.8
1 With the possible exception of goodwill, the Baloise Group has no intangible assets with indefinite useful lives.
325
Baloise Group Annual Report 2024
Financial report
Assumptions used to test the impairment of significant goodwill items
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 12.7.3.
Goodwill as at 31.12.
CHF million
Discount rate
per cent
Growth rate
per cent
2024
2023
2024
2023
2024
2023
Baloise Insurance Ltd
25.6
25.6
7.7
8.1
1.0
1.0
Baloise Financial Services GmbH
11.9
11.8
8.1
8.1
1.0
1.0
Baloise Vie Luxembourg S. A.
7.3
7.2
8.0
8.5
2.5
2.5
Baloise Assurances Luxembourg S. A.
12.2
12.0
8.0
8.5
2.5
2.5
Baloise Belgium NV
32.7
32.3
8.3
8.6
2.6
2.6
The impairment test in 2024 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 2024 or in 2023, to the carrying amount of an entity being significantly higher
than its recoverable value.
9.3
Other assets
31.12.2024
31.12.2023
CHF million
Accrued income
51.1
32.4
Development properties
–
3.0
Tax credits indirect taxes (withholding tax etc.)
33.7
34.6
Other assets
19.0
33.0
Impairments
– 0.3
– 2.7
Total other assets
103.6
100.3
326
Baloise Group Annual Report 2024
Financial report
9.4
Share capital
2024
Number of
treasury
shares
Number of
shares in
circulation
Number of
shares
issued
Share capital
(CHF million)
Balance as at 1 January
386,340
45,413,660
45,800,000
4.6
Purchase / sale of treasury shares
– 80,426
80,426
–
–
Balance as at 31 December
305,914
45,494,086
45,800,000
4.6
2023
Number of
treasury
shares
Number of
shares in
circulation
Number of
shares
issued
Share capital
(CHF million)
Balance as at 1 January
545,636
45,254,364
45,800,000
4.6
Purchase / sale of treasury shares
– 159,296
159,296
–
–
Balance as at 31 December
386,340
45,413,660
45,800,000
4.6
The share capital of Baloise 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 (previous year: CHF 0.10). The Baloise Group buys and sells its own
shares for employee share ownership programmes.
The Annual General Meeting held on 26 April 2024 voted in favour of a total dividend distribution of CHF 352.7 million
for the 2023 financial year. This amounts to a gross dividend of CHF 7.70 per share. Excluding the treasury shares held
by Baloise Holding Ltd at the time that the dividend was paid, the total distribution effectively amounted to CHF 349.1
million.
For the 2024 financial year, a total dividend distribution of CHF 371.0 million will be proposed for approval at the Annual
General Meeting on 25 April 2025. This amounts to a gross dividend of CHF 8.10 per share. The dividend distribution will
be recognised upon approval at the Annual General Meeting.
327
Baloise Group Annual Report 2024
Financial report
9.5
Other reserves
2024
from
financial
instruments
and loans
from
hedging
from
insurance
business
from
defined
benefit
pension
plans
from
foreign
currency
translation
from
other
Total
CHF million
Balance as at 1 January
– 303.0
187.8
– 131.1
– 163.5
– 1,517.1
32.2
– 1,894.8
Other comprehensive income from items
not to be reclassified to the income statement
Gains and losses arising during the reporting period
– 14.3
–
–
– 11.2
–
–
– 25.5
Deferred taxes
– 0.6
–
–
0.3
–
–
– 0.3
Exchange differences
0.8
–
–
– 1.3
–
0.0
– 0.5
Total other comprehensive income from items
not to be reclassified to the income statement
– 14.1
–
–
– 12.2
–
0.0
– 26.3
Other comprehensive income from items to be
reclassified to the income statement
Gains and losses arising during the reporting period
149.5
– 84.4
195.8
–
174.9
– 5.7
430.1
Gains and losses reclassified to the income
statement
– 16.8
– 0.3
–
–
– 1.0
–
– 18.1
ECL on financial instruments (FVOCI)
3.2
–
–
–
–
–
3.2
Deferred taxes
– 29.0
12.8
– 49.5
–
–
1.7
– 63.9
Exchange differences
– 4.4
–
– 3.3
–
–
0.3
– 7.4
Total other comprehensive income from items
to be reclassified to the income statement
102.5
– 71.9
143.0
–
173.9
– 3.6
343.9
Total other comprehensive income
88.4
– 71.9
143.0
– 12.2
173.9
– 3.7
317.5
Other reserves reclassified directly to
retained earnings
– 5.9
–
–
–
–
–
– 5.9
Balance as at 31 December
– 220.5
115.9
11.9
– 175.7
– 1,343.3
28.5
– 1,583.2
of which: shareholders
– 1,581.1
of which: non-controlling interests
– 2.1
328
Baloise Group Annual Report 2024
Financial report
2023
from
financial
instruments
and loans
from
hedging
from
insurance
business
from
defined
benefit
pension
plans
from
foreign
currency
translation
from
other
Total
CHF million
Balance as at 1 January (restated)
– 585.7
110.6
– 67.0
– 108.5
– 1,189.0
34.3
– 1,805.3
Other comprehensive income from items
not to be reclassified to the income statement
Gains and losses arising during the reporting period
6.4
–
–
– 77.1
–
–
– 70.6
Deferred taxes
– 1.8
–
–
16.3
–
–
14.4
Exchange differences
– 3.4
–
–
5.7
–
0.1
2.5
Total other comprehensive income from items
not to be reclassified to the income statement
1.2
–
–
– 55.1
–
0.1
– 53.7
Other comprehensive income from items to be
reclassified to the income statement
Gains and losses arising during the reporting period
333.2
118.1
– 85.2
–
– 330.6
– 1.3
34.2
Gains and losses reclassified to the income
statement
– 1.5
– 27.1
–
–
2.5
–
– 26.1
ECL on financial instruments (FVOCI)
3.1
–
–
–
–
–
3.1
Deferred taxes
– 73.8
– 13.8
16.5
–
–
0.4
– 70.7
Exchange differences
27.6
–
4.6
–
–
– 1.3
30.9
Total other comprehensive income from items
to be reclassified to the income statement
288.7
77.2
– 64.1
–
– 328.1
– 2.2
– 28.6
Total other comprehensive income
289.9
77.2
– 64.1
– 55.1
– 328.1
– 2.1
– 82.3
Other reserves reclassified directly to
retained earnings
– 7.1
–
–
–
–
–
– 7.1
Balance as at 31 December
– 303.0
187.8
– 131.1
– 163.5
– 1,517.1
32.2
– 1,894.8
of which: shareholders
– 1,892.6
of which: non-controlling interests
– 2.2
329
Baloise Group Annual Report 2024
Financial report
9.6
Non-technical provisions
2024
2023
Restructuring
Other
Total Restructuring
Other
Total
CHF million
Balance as at 1 January
4.6
107.3
111.9
8.1
104.4
112.5
Additions arising from change
in scope of consolidation
–
–
–
–
–
–
Disposals arising from change
in scope of consolidation
–
0.0
0.0
–
–
–
Increases and additional provisions recognised
in profit or loss
–
34.7
34.7
–
15.8
15.8
Unused provisions reversed through profit or loss
–
– 26.4
– 26.4
–
– 6.5
– 6.5
Usage not recognised in profit or loss
– 4.5
– 3.0
– 7.5
– 3.1
– 1.9
– 5.1
Unwinding of discount
–
–
–
–
0.0
0.0
Exchange differences
0.1
1.2
1.3
– 0.3
– 4.5
– 4.8
Balance as at 31 December
0.2
113.8
114.0
4.6
107.3
111.9
The restructuring provisions largely relate to the German entities.
The balance shown for other non-technical provisions includes not only provisions for unavoidable costs relating to
investment contracts without significant insurance risk but also typical amounts for legal advice and litigation risks.
The recognition of other non-technical provisions in profit or loss and their usage recognised or not recognised in profit
or loss primarily relate to the Swiss and Luxembourg entities.
330
Baloise Group Annual Report 2024
Financial report
10. Other disclosures
10.1
Earnings per share
2024
2023
Profit for the period attributable to shareholders (CHF million)
384.8
239.6
Average number of shares outstanding
45,393,010
45,298,246
Basic earnings per share (CHF)
8.48
5.29
2024
2023
Profit for the period attributable to shareholders (CHF million)
384.8
239.6
Average number of shares outstanding
45,393,010
45,298,246
Adjustment due to theoretical exercise of share-based payment plans
55,380
–
Adjusted average number of shares outstanding
45,448,390
45,298,246
Diluted earnings per share (CHF)
8.47
5.29
The dilution of earnings for 2024 was attributable to the Performance Share Units (PSUs) share-based payment plan.
In 2023, earnings per share was not affected by any dilutive effects.
331
Baloise Group Annual Report 2024
Financial report
10.2
Long-term equity investments and structure of the Baloise Group
10.2.1 Acquisition and disposal of companies
Cumulative
acquisitions
Cumulative
disposals
2024
2023
2024
2023
CHF million
Investments
–
–
1.5
2.6
Other assets
–
–
6.2
17.5
Cash and cash equivalents
–
–
0.3
8.9
(Re)insurance assets and liabilities
–
–
–
–
Other accounts payable
–
–
– 6.9
– 20.6
Non-controlling interests
–
–
–
– 2.1
Net assets acquired / disposed of
–
–
1.2
6.2
Funds used / received for acquisitions and disposals
Cash and cash equivalents
–
–
–
24.9
Offsetting
–
–
–
–
Transfer of assets
–
–
–
–
Directly attributable costs
–
–
–
–
Financial assets
–
–
5.8
–
Reclassification of investments in associates and joint ventures
–
–
–
–
Acquisition / disposal price
–
–
5.8
24.9
Net assets acquired / disposed of
–
–
– 1.2
– 6.2
Other comprehensive income 1
–
–
–
0.1
Current year earnings of disposed companies
–
–
–
– 1.3
Goodwill / negative goodwill or proceeds from disposals
–
–
4.7
17.5
Cash and cash equivalents used / received for acquisitions and disposals
–
–
–
24.9
Cash and cash equivalents acquired / disposed of
–
–
– 0.3
– 8.9
Outflow / inflow of cash and cash equivalents
–
–
– 0.3
16.0
1 This includes primarily historical cumulative exchange differences.
Bubble Box AG was sold in the second half of 2024 as part of the refocusing strategy. This sale had no material impact
on earnings in the consolidated financial statements.
Also in 2024, the fully consolidated company Devis.ch was merged into Houzy, a long-term equity investment recog-
nised as an associate. This had no material impact on earnings. The investment in Houzy continues to be recognised
as a joint venture.
On 5 December 2023, Baloise sold its 74.75 per cent stake in the subsidiary Haakon AG and Haakon AG’s wholly owned
subsidiary, Haakon Asia Ltd. Haakon AG and its subsidiary operate as reinsurance brokers. The gain on the sale was an
amount in the low double-digit millions and was posted as other operating income in the Group business segment.
Financial report
332
Baloise Group Annual Report 2024
10.2.2 Changes to shareholdings
There were no transactions resulting in a change of control over a subsidiary, as had also been the case in 2023.
10.2.3 Investments in associates and joint ventures
The Baloise Group holds investments in a number of non-significant associates and joint ventures.
2024
2023
CHF million
Carrying amount
312.1
318.1
2024
2023
CHF million
Baloise’s share of
Profit or loss for the period from continuing operations
– 14.8
– 20.7
Other comprehensive income
– 5.7
– 1.3
Share of comprehensive income
– 20.5
– 22.0
In 2024, the fully consolidated company Devis.ch was merged into Houzy, a long-term equity investment recognised as
an associate. This had no material impact on earnings. The investment in Houzy continues to be recognised as a joint
venture.
In the second half of 2023, the Baloise Group acquired 50 percent stakes in two real estate investment companies head-
quartered in Belgium. These stakes are classified and reported as joint ventures.
As at 31 December 2024 or 31 December 2023, the Baloise Group held more than 20 per cent of the capital of further
companies 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 2024 or 31 December 2023.
10.2.4 Other changes in the scope of consolidation
The long-term equity investment in FRIDAY Insurance S. A. increased by 0.7 per cent to a total of 90.1 per cent in 2024 as
a result of an additional capital transaction. Following the buyout of non-controlling interests on 16 January 2025, the
shareholding in FRIDAY Insurance S.A. stands at 100.0 per cent.
On 13 September 2023, the real-estate company Souverain 25 NV, located in Woluwe-Saint-Pierre, Belgium, was acquired.
Its sole property is the Royale Belge office building. The purchase is classified as the acquisition of assets.
The long-term equity investment in FRIDAY Insurance S. A. increased by 0.8 per cent to a total of 89.4 per cent in 2023
as a result of an additional capital transaction.
Financial report
333
Baloise Group Annual Report 2024
10.2.5 Non-current assets and disposal groups classified as held for sale
31.12.2024
31.12.2023
Disposal
groups
Non-current
assets
Total
Disposal
groups
Non-current
assets
Total
CHF million
Property, plant and equipment
–
–
–
–
–
–
Intangible assets
–
–
–
–
–
–
Investment property
–
81.8
81.8
–
–
–
Financial instruments with characteristics
of equity and debt
2.9
–
2.9
–
–
–
Mortgages and loans
–
–
–
–
–
–
Derivative financial instruments
–
–
–
–
–
–
Insurance and reinsurance contract assets
25.6
–
25.6
10.3
–
10.3
Financial receivables
–
–
–
80.8
–
80.8
Other assets
–
–
–
–
–
–
Cash and cash equivalents
10.3
–
10.3
–
–
–
Total assets
38.7
81.8
120.5
91.1
–
91.1
Insurance and reinsurance contract liabilities
38.7
–
38.7
154.7
–
154.7
Liabilities arising from financial contracts
–
–
–
–
–
–
Other liabilities
–
7.1
7.1
– 0.2
0.2
–
Total equity and liabilities
38.7
7.1
45.8
154.5
0.2
154.7
Unrealised losses directly associated with non-current
assets and disposal groups classified as held for sale
–
–
–
0.8
–
0.8
In October 2024, Baloise signed an agreement with Allianz Direct Versicherungs-AG for the transfer of the FRIDAY insur-
ance portfolio in Germany and France. The assets and liabilities affected by the transfer satisfy the IFRS 5 criteria for
separate recognition as non-current assets and disposal groups classified as held for sale and were reclassified for the
first time as at 31 December 2024. The transfer still needs to be approved by the relevant supervisory authorities, which
is expected to take place by mid-2025.
The Baloise Group intends to dispose of five Baloise Insurance Ltd and Baloise Life Ltd properties within the next
twelve months, which is why these properties have been reclassified as non-current assets held for sale. The fair value
of the reclassified properties totals CHF 81.8 million. As at the time of reclassification, the fair value of these properties
totalled CHF 83.6 million.
The assets and liabilities for the German run-off portfolio for hospital liability insurance were reclassified to the Group
business segment as at 31 December 2024. As a sale was no longer highly probable, the criteria for classification as held
for sale were no longer met.
In 2023, six investment properties held for sale, which had a total fair value of CHF 56.4 million were reclassified as invest-
ment properties again as the parties to the sale were unable to reach an agreement. The remaining seven investment
properties held for sale in 2022 were sold in 2023.
Financial report
334
Baloise Group Annual Report 2024
10.2.6 Significant subsidiaries
Entities are defined as significant if they either individually or together contribute a significant proportion of the insur-
ance contracts, net income or total assets of the Baloise Group. Other long-term equity investments may be included for
qualitative reasons, e. g. they are listed on a stock exchange.
31.12.2024
Primary
activity
Operating
segment 1
Group’s share
of voting
rights /
capital
(per cent) 2
Direct share of
voting rights /
capital
(per cent) 2
Method
of
consoli-
dation 3 Currency
Share
capital
(million)
Total
assets
(million)
Switzerland
Baloise Holding Ltd, Basel
Holding
O
Holding
Holding
F
CHF
4.6
4,317.1
Baloise Insurance Ltd, Basel
Non-Life
NL
100.00
100.00
F
CHF
75.0
5,226.7
Baloise Life Ltd, Basel
Life
L
100.00
100.00
F
CHF
50.0
29,986.4
Baloise Bank SoBa AG, Solothurn
Banking
B
100.00
100.00
F
CHF
50.0
9,325.7
Baloise Asset Management Schweiz AG,
Basel
Investment
manage-
ment
B
100.00
100.00
F
CHF
1.0
109.6
Baloise Asset Management International
AG, Basel
Investment
consulting
B
100.00
100.00
F
CHF
1.5
27.7
Germany
Baloise Lebensversicherung AG, Hamburg
Life
L
100.00
100.00
F
EUR
22.0
9,062.3
Baloise Sachversicherung AG, Bad
Homburg
Non-Life
NL
100.00
100.00
F
EUR
15.1
1,810.5
Baloise Sach Holding AG, Hamburg
Holding
NL
100.00
100.00
F
EUR
3.6
180.5
1 L: Life, NL: Non-Life, B: Banking, O: Other activities / Group business.
2 Shares stated as a percentage are rounded down.
3 F: Full consolidation.
Financial report
335
Baloise Group Annual Report 2024
31.12.2024
Primary
activity
Operating
segment 1
Group’s share
of voting
rights /
capital
(per cent) 2
Direct share of
voting rights /
capital
(per cent) 2
Method
of
consoli-
dation 3 Currency
Share
capital
(million)
Total
assets
(million)
Belgium
Baloise Belgium NV, Antwerp
Life and
Non-Life
L/NL
100.00
100.00
F
EUR
355.3
11,888.7
Euromex NV, Antwerp
Non-Life
NL
100.00
100.00
F
EUR
2.7
277.0
Luxembourg
Baloise Luxembourg Holding S. A.,
Bertrange (Luxembourg)
Holding
O
100.00
100.00
F
CHF
50.0
732.4
Baloise Assurances Luxembourg S. A.,
Bertrange (Luxembourg)
Non-Life
NL
100.00
100.00
F
EUR
15.8
371.4
Baloise Vie Luxembourg S. A.,
Bertrange (Luxembourg)
Life
L
100.00
100.00
F
EUR
32.7
12,012.2
Baloise Private Equity (Luxembourg) SCS,
Luxembourg
Investment
manage-
ment
L/NL
100.00
100.00
F
USD
0.0
750.5
Baloise Alternative Invest S. A. SICAV-RAIF,
Luxembourg
Investment
manage-
ment
L/NL / O
100.00
100.00
F
USD
–
1,384.3
Baloise Private Assets Fund S.C.S SI-
CAV-RAIF, Luxembourg
Investment
manage-
ment
L/NL
100.00
100.00
F
EUR
–
1,031.6
Other territories
Baloise Life (Liechtenstein) AG, Balzers
Life
L
100.00
100.00
F
EUR
8.1
2,510.3
1 L: Life, NL: Non-Life, B: Banking, O: Other activities / Group business.
2 Shares stated as a percentage are rounded down.
3 F: Full consolidation.
336
Baloise Group Annual Report 2024
Financial report
10.3
Contingent and future liabilities
10.3.1 Contingent liabilities
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 2024 and that could have a significant impact on the 2024 consolidated annual financial statements.
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 contrac-
tually 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.
31.12.2024
31.12.2023
CHF million
Guarantees
55.3
55.6
Collateral
502.5
495.4
Total guarantees and collateral for the benefit of third parties
557.8
551.0
Credit ratings of guarantees and collateral
31.12.2024
31.12.2023
CHF million
Guarantees
Very low credit risk (AAA)
–
–
Low credit risk (AA to A)
42.2
41.7
Moderate / medium credit risk (BBB)
–
–
High credit risk or no rating (BB and lower or no rating)
13.1
14.0
Total
55.3
55.6
Collateral
Very low credit risk (AAA)
–
–
Low credit risk (AA to A)
–
–
Moderate / medium credit risk (BBB)
–
–
High credit risk or no rating (BB and lower or no rating)
502.5
495.4
Total
502.5
495.4
337
Baloise Group Annual Report 2024
Financial report
Pledged or ceded assets, securities lending assets and collateral held
Carrying amounts of assets pledged or ceded as collateral
31.12.2024
31.12.2023
CHF million
Financial assets under repurchase agreements
195.0
–
Financial assets in the context of securities lending
2,305.9
1,941.2
Investments
3,492.8
3,290.1
Total
5,993.7
5,231.3
Fair value of collateral held
31.12.2024
31.12.2023
CHF million
Financial assets under reverse repurchase agreements
1,875.1
1,017.0
Financial assets in the context of securities lending
2,565.1
2,233.9
Total
4,440.2
3,251.0
Of which: sold or repledged
– with an obligation to return the assets
–
–
– with no obligation to return the assets
–
–
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. Additional 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.
338
Baloise Group Annual Report 2024
Financial report
10.3.2 Future liabilities
Capital commitments
31.12.2024
31.12.2023
CHF million
Commitments undertaken for future acquisition of
Investment property
111.6
88.3
Financial assets
1,656.6
2,901.8
Intangible assets
73.6
–
Total commitments undertaken
1,841.8
2,990.0
of which: in connection with joint ventures
–
–
of which: own share of joint ventures’ capital commitments
–
–
31.12.2024
31.12.2023
CHF million
Capital commitments
Very low credit risk (AAA)
–
4.7
Low credit risk (AA to A)
5.8
3.2
Moderate / medium credit risk (BBB)
–
–
High credit risk or no rating (BB and lower or no rating)
1,835.9
2,982.2
Total
1,841.8
2,990.0
Obligations undertaken by the Baloise Group to make future purchases of investments include unfunded commitments
to invest directly in private equity or to invest in private equity funds and additional investment obligations in connec-
tion with the Dutch mortgage fund.
339
Baloise Group Annual Report 2024
Financial report
10.4
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 Baloise Holding Ltd’s Board of Directors and Corporate
Executive Committee.
Related party transactions
Paid premiums
Investment
income
Expenses
Mortgages and loans
Liabilities
2024
2023
2024
2023
2024
2023
31.12.2024
31.12.2023
31.12.2024
31.12.2023
CHF million
Associates and joint ventures
–
–
0.9
– 1.0
– 14.5
– 16.3
32.3
44.0
– 2.3
– 2.4
Key management personnel
0.1
0.1
0.0
0.0
– 10.4
– 10.4
1.7
4.6
–
–
Executive management team remuneration
2024
2023
CHF million
Short-term employee benefits
– 5.7
– 6.1
Post-employment benefits
– 1.0
– 1.1
Payments under share-based payment plans
– 3.6
– 3.2
Total
– 10.4
– 10.4
In 2023, shares worth CHF 1.6 million were repurchased from members of the Corporate Executive Committee under the
Share Participation Plan (note 6.4.3). The Share Participation Plan was discontinued as at 1 January 2024.
10.5
Events after the balance sheet date
By the time that these consolidated annual financial statements had been completed on 20 March 2025, we had not
become aware of events that would have a material impact on the consolidated annual financial statements as a whole.
340
Baloise Group Annual Report 2024
Financial report
11. Risk management
The Baloise Group offers its customers non-life and life insurance, asset management services and, in Switzerland,
banking products. In the course of its business, the Baloise Group is exposed to a number of different risks.
11.1
Organisation of risk management in the Baloise Group
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 com-
patible with one another.
Within the Baloise Group and within each business unit, a risk owner is responsible for each individual risk that has
been identified. 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. The overall risk controller is the
Chief Executive Officer of the Baloise Group.
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.
The Baloise Group categorises the risks that it has identified in a risk map, which, at the highest level, is broken into the
following risk categories:
●Business risk
●Investment risk
●Financial-structure risk
●Business-environment risk
●Operational risk
●Management and information risk
341
Baloise Group Annual Report 2024
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 iden-
tified, 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.
Various limits and rules covering business risk and investment risk are in place, such as underwriting and investment
guidelines, which restrict identified individual risks to an acceptable level or eliminate them altogether.
Risk control within the Baloise Group focuses on business risk (actuarial and banking risks), investment risk, risks to
the Group’s financial structure and operational risks including compliance.
Separate reporting is undertaken for each identified risk category. The business units prepare an annual Own Risk
and Solvency Assessment (ORSA) report. These reports together form the basis for the Baloise Group’s report. The ORSA
reporting is used as a basis for business strategy and risk strategy considerations that are factored into management
decisions.
The information below is based on the risk terminology in IFRS 7 Financial Instruments: Disclosures and IFRS 17 Insurance
Contracts and can diverge from the terminology and structure in the risk map.
342
Baloise Group Annual Report 2024
Financial report
11.2
Material risk from underwritten policies
Risk arising from insurance business is presented below for non-life insurance and life insurance in line with the following
breakdown of the Baloise Group’s portfolio. The life insurance business comprises savings business, risk business and
unit-linked and similar contracts. The Baloise Group also writes financial contracts in the banking business and financial
contracts with characteristics of unit-linked contracts without significant insurance risk.
The intention of the sensitivities described in notes 11.2.1, 11.2.2 and 11.3.1 is to show possible effects on the results given
that crucial effects in the reporting period would show a different realisation. For sensitivities with a potential material
asymmetry, both upside and downside shocks have been calculated, for the others the downside shock only, assuming a
response of the same size but opposite sign for a shock in the other direction. The effect shown in the sensitivities on the
insurance contracts is either a direct effect from stressed fulfilment cash flows or the indirect effect from a stressed fair
value of the underlying items. In life insurance contracts, the fair value of the underlying items denotes the fair value of
assets backing liabilities in either the VFA or the GMM approach. All sensitivities are shocks which take effect at the end
of the reporting period and therefore do not stress the effective cash flows which occurred in the period.
11.2.1 Non-life insurance
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 & liability, marine and technical insurance divi-
sions are mainly offered by Baloise Insurance Ltd in Basel, Baloise Sachversicherung AG in Bad Homburg (Germany) and
Baloise Belgium NV in Antwerp.
Actuarial risk in non-life business comprises claims risk and risk from the recognition of reserves. Claims risk describes
the risk that claims not yet incurred will turn out to be larger than anticipated or occur more frequently than anticipated
in future (e. g. due to natural disasters or due to changes in legislation). Risk from the recognition of reserves describes
the risk that reserves recognised for future claim payments for claims already incurred are insufficient (e. g. due to infla-
tion for divisions which take a long time to process claims).
Contacts in the non-life business are also exposed to market risk, credit risk and liquidity risk.
Management of risk
Baloise counters actuarial risk with an appropriate underwriting strategy (underwriting limits and risk assessment),
extensive analysis of claims and dangers and a reinsurance strategy that is tailored to the portfolio.
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 insur-
ance 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.
The entire insurance business is comprehensively analysed on a regular basis. The results of this analysis are taken
into account when recognising reserves, setting insurance rates, designing insurance products and formulating reinsur-
ance contracts. In non-life business, the exposure and the appropriate level of risk transfer are analysed and determined
in collaboration with reinsurers and brokers.
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Building on this analysis, Group Reinsurance structures and places in the market the Baloise Group’s non-life treaty rein-
surance for all business units in the Corporate Division Finance. When structuring the programmes, Group Reinsurance
focuses on the risk-bearing capacity of the Baloise Group as a whole.
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 is therefore placed by the business units
themselves.
For its exposure to natural disasters the Baloise Group purchased reinsurance cover of up to CHF 500 million in total.
In addition, Baloise Insurance Ltd Switzerland purchased reinsurance cover of up to CHF 1’000 million for earthquakes
and Baloise Belgium NV purchased reinsurance cover of up to CHF 700 million for storms and tempests.
Risk exposure
The table below provides information on the risk exposure and risk concentration for each division. Contracts comprising
several types of cover were separated by risk for this breakdown. Where separation did not make sense, the contract was
assigned to the division with the largest risk exposure.
Insurance revenue (gross) Liability for incurred claims
as at 31.12.
2024
2023
2024
2023
CHF million
Motor – liability
628.1
629.2
1,143.1
1,299.9
Motor – hull
647.9
616.9
115.9
103.7
General liability – private
111.3
109.5
118.7
124.2
General liability – commercial
281.0
269.8
798.7
688.0
Accident (incl. Swiss accident business (UVG))
231.1
238.8
1,262.1
1,292.6
Other accident
204.4
207.8
278.7
284.5
Health
197.7
181.4
139.7
143.5
Property – private customers
824.7
782.1
310.3
305.2
Property – small and medium-sized enterprises
646.6
600.6
585.4
559.0
Marine
187.2
250.5
191.6
258.7
Other
135.1
126.3
123.3
120.0
Total
4,095.0
4,013.0
5,067.5
5,179.3
Assumptions
The portfolios on the Group’s books must be structured in such a way that the data available is sufficiently homoge-
neous 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. The reserve for claims handling costs assumes that costs will follow previous patterns. 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.
In many cases, the assumptions used in the measurement of current pension obligations are based on the criteria
prescribed by the regulatory authorities (e. g. mortality tables). The adequacy of these annuity reserves is reviewed
annually and the reserves strengthened accordingly in the event of a shortfall.
The Baloise Group has not changed its method of determining the material assumptions for insurance risk compared
with the prior year.
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Sensitivity analysis
For contracts in non-life business, the sensitivities reflect the effect of a 10 per cent increase in the reserve required for
all loss or damage already incurred and the effect of a 10 per cent increase in the loss or damage expected for coverage
yet to be provided. For coverage yet be to be provided, the negative effect of the sensitivity at the level of the individual
group of insurance contracts is netted, where permissible, with any positive margin as at the reporting date.
Impact on
profit for the period
Impact on equity
(incl. profit for the period)
2024
2023
2024
2023
CHF million
LIC increase +10 % 1
before reinsurance
– 387.8
– 387.0
– 379.3
– 387.6
after reinsurance
– 355.2
– 347.5
– 349.8
– 349.2
Increase in the expected claims in the FCFs in LRC +10 % 2
before reinsurance
– 37.8
– 38.4
– 37.8
– 38.4
after reinsurance
– 35.9
– 35.3
– 35.9
– 35.3
1 This sensitivity examines the effect of a relative change of the LIC (excluding payables and receivables) by 10 %.
2 This sensitivity examines the effect of a relative change of the expected future claims in the LRC of PAA contracts by 10 %, increasing existing loss components or leading
to new ones.
11.2.2 Life insurance
Savings and risk business
Savings and risk life insurance business generally comprises long-dated contracts that entail a significant exposure
to at least one of the following biometric risks:
●Longevity risk for pension and pure endowment insurance
●Mortality risk for whole-life insurance and endowment insurance
●Disability risk for (occupational) disability and incapacity insurance
Whole-life insurance and pure endowment insurance are often combined in endowment insurance which then, like
pension insurance, comprises savings and substantial guaranteed cash surrender values for policyholders. For the
savings, a minimum rate of interest is guaranteed that is contractually stipulated and generally applies for the entire
term. In addition to the direct market and credit risk, the guarantee element in these products therefore gives rise to
a risk for the Baloise Group in terms of policyholder behaviour and the timing and frequency of surrenders. The same
applies for those pension insurance policies where the policyholders have the option to receive a lump-sum payment.
Baloise also offers group life insurance, particularly in Switzerland in the context of the law on occupational insur-
ance, and in Belgium and Luxembourg. The biometric risks and the guaranteed rate of return and guaranteed minimum
cash surrender values in this business are similar in nature to those in the traditional business. There are differences from
other traditional business in that policyholders are not generally individuals and there are some very specific regula-
tory requirements. In Switzerland, for example, the Swiss Federal Council stipulates the minimum rate of interest for the
compulsory savings component of retirement assets covered by the Federal Law on Occupational Retirement, Survivors’
and Disability Pension Plans (BVG) and the conversion rates for retirement pensions.
In all life insurance contracts, the biometric risk is impacted by different factors. Changes in lifestyle, for example,
or an epidemic or terrorist attack can have a material effect on mortality risk. Longevity risk can stem from medical
advances and rising living standards. Disability risk can grow as a result of legislative changes and pension benefits can
rise as a result of increasing life expectancy.
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A key feature of many traditional life insurance contracts, including in group life business, is the sharing of some insur-
ance and market risk between Baloise and the policyholder through the participation feature. For example, higher death
benefits generally mean lower surpluses, so the additional expense is therefore not borne solely by the Baloise Group.
The aim of participation systems is to allow policyholders to participate in residual surpluses generated by the
respective group of policyholders. This statutory or discretionary participation varies depending on the country, oper-
ating segment (such as individual or group life business) and source of the surplus (e. g. interest rate gain or risk return).
Under traditional contracts in Germany, the Baloise Group is obliged by law to return a minimum percentage of its
profit to policyholders by letting them share in surpluses.
Minimum percentages also apply to some of the occupational pensions business in Switzerland, which impacts
policyholders’ dividends.
Unit-linked and similar contracts
Unit-linked and similar contracts are generally endowment insurance or deferred annuity insurance where the policy-
holders usually bear the entire investment risk and benefit fully from any positive return.
If the policyholder dies, the beneficiary receives the sum insured or the fund assets, if the latter exceed the sum
insured. During the deferment period, unit-linked annuities behave in a similar way to unit-linked endowment life insur-
ance, but during the payout period the policy converts into a traditional annuity with guaranteed benefits.
A key feature of unit-linked life insurance and similar contracts is that the Baloise Group does not guarantee either
the cash surrender value or the maturity value.
A closed sub-portfolio of unit-linked contracts in Switzerland represents an exception to this. These contracts were
written as part of the statutory pension scheme (Pillar 3a) and on the endowment date guarantee the net investment
premium plus accrued interest at an interest rate of 3.25 per cent.
The Baloise Group also has a number of variable annuities products, primarily in its Swiss units, that offer unit-linked
and, in some cases, guaranteed whole-life annuities which are hedged using external reinsurance.
All of the above guarantees are measured in line with other products with a guaranteed rate of return. In addition, the
Baloise Group offers a minimum maturity value for certain contracts in Switzerland and Germany linked to the choice of
underlying fund. The funds are typically those with the type of investment strategy that guarantees a certain fund value
at maturity for a specific policy term.
Some closed-end funds in Switzerland also offer a guaranteed maturity value. The funds are managed and the guar-
antees are provided by banks outside the Baloise Group.
Management of risk
Longevity risk, mortality risk and disability risk are specific to life insurance and are monitored on an ongoing basis.
The companies in the Baloise Group review and analyse mortality, along with the frequency with which the policies are
cancelled, invalidated and reactivated, on a decentralised basis using standard actuarial methods. The information
they gather is used to ensure that rates are adequate, with acceptable safety margins, and to set aside sufficient local
reserves to meet future insurance liabilities. The risks in this context are manageable because rates have to be calcu-
lated conservatively by law and the base data is relatively good. In pension insurance, there is also the risk that the
constant upward trend in life expectancy will lead to annuities having to be paid for longer. Appropriate bases of calcu-
lation are used to account for this risk.
There are clear risk-specific authorisation levels and underwriting limits in respect of underwriting in the life insurance
business. Reinsurance is also used for risk management purposes in the life insurance business but is less important in
this area as a means of transferring risk.
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Risk exposure
Life insurance is generally offered as fixed-sum insurance under which – instead of payments for an incurred loss – a
fixed sum is paid on occurrence of an insured event, which can be survival or death. Risk insurance options pay capital
and/or pension benefits in the event of premature death (whole-life insurance) or disability (disability insurance). The
table below quantifies actuarial risk exposure in the life insurance business by liability for remaining coverage, LRC,
for the portfolio of insurance contracts (see note 12.1).
Liability for
remaining coverage
as at 31.12.
2024
2023
CHF million
Endowments and pure death benefit products
8,873.9
9,132.7
Annuities
4,370.3
4,447.0
Disability products
199.7
185.9
Unit-linked products
3,169.1
2,955.7
Hybrid products
1,826.1
1,601.1
Investment contracts with DPF
4,295.7
4,437.2
Group life
20,451.6
20,594.8
Other
7.9
16.7
Total
43,194.3
43,371.1
Assumptions
For measurement in accordance with IFRS 17, Baloise uses assumptions about actuarial risk. These assumptions are
updated annually and include, for example:
●Mortality assumptions for whole-life and endowment policies
●Probability of disability and a policyholder being able to return to work for products with (occupational) disability
and incapacity insurance
●Assumptions relating to the policyholder options in the rate scales, including assumptions about cancellations
and probabilities of pensions being drawn
Where Baloise itself has a sufficiently large volume of business from which to derive best estimates for these assump-
tions, it makes use of that data to do so. Where portfolios are too small or too new to be the basis or sole basis of statis-
tical methods, Baloise uses industry data and other sources. Besides historical and current trends, certain assumptions
also take foreseeable trends into account, including the ongoing improvement of mortality rates.
Sensitivity analysis
The following sensitivity analysis shows the consequences of realistic changes in actuarial risk parameters to which
the Baloise Group is exposed at the balance sheet date. These consequences impact on its consolidated equity, profit
for the period and CSM. Where risk factors are largely symmetrical, only the negative impact is analysed. Managing the
factors to move them in the opposite direction would have the opposite effect, but to roughly the same degree (i. e. an
increase instead of a decrease of the same magnitude). In the case of asymmetrical risk factors, both the positive and
the negative impact are analysed.
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When determining sensitivities, only the assumption being tested is varied. However, the model takes into account addi-
tional effects, such as associated changes in profit sharing, using the same rules as applied in the baseline scenario. In
general, sensitivities do not behave in a linear fashion and relate to a specific date, meaning that conclusions about future
behaviour, particularly where sensitivities are combined, do not necessarily prove correct. For the sensitivities presented
below, the effect is calculated of changes in assumptions on profit for the period and on equity after deferred taxes:
Impact on the CSM
Impact on
profit for the period
Impact on equity
(incl. profit for the period)
2024
2023
2024
2023
2024
2023
CHF million
Mortality risk + 10 % for risk-like contracts 1
before reinsurance
– 39.2
– 46.1
– 1.3
– 1.4
– 2.7
– 2.8
after reinsurance
– 36.8
– 44.0
– 1.1
– 1.4
– 2.7
– 3.0
Mortality risk – 10 % for annuity-like contracts 2
before reinsurance
– 62.5
– 108.1
– 3.4
– 5.2
– 3.4
– 5.2
after reinsurance
– 62.6
– 108.4
– 3.2
– 5.3
– 3.0
– 5.2
Longevity risk +25 % 3
before reinsurance
– 17.2
– 39.8
– 0.8
– 1.7
– 0.8
– 1.7
after reinsurance
– 17.0
– 39.6
– 0.7
– 1.8
– 0.7
– 1.8
Disability risk +10 % 4
before reinsurance
– 50.4
– 63.4
– 1.6
– 2.1
– 2.0
– 2.7
after reinsurance
– 0.5
– 29.7
– 1.7
– 2.2
– 13.2
– 7.0
Surrender rates +10 % 5
before reinsurance
– 75.0
– 85.3
0.6
0.2
– 5.5
– 0.4
after reinsurance
– 62.8
– 75.0
1.1
0.4
– 6.9
– 1.5
Surrender rates –10 % 5
before reinsurance
78.6
90.6
– 0.6
– 0.2
5.6
0.2
after reinsurance
66.2
80.2
– 0.8
– 0.6
7.5
1.2
1 This sensitivity measures the effect of a relative increase of 10 per cent in future annual mortality rates on contracts where this would mean an increase in the obligation,
e. g. pure risk contracts.
2 This sensitivity measures the effect of a relative decrease of 10 per cent in future annual mortality rates on contracts where this would mean an increase in the obligation,
e. g. life annuities.
3 This sensitivity examines the effect of a relative change in the future trend parametrisation in mortality by 25 %. It applies only to annuities, and quantifies a parameter risk
rather than a biometric risk.
4 This sensitivity examines the effect of a relative change in the yearly future disability rates by 10 %.
5 This sensitivity measures the impact of a future relative change in annual surrender rates (redemptions, partial redemptions, cancellations, premium waivers, etc.)
of 10 per cent.
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11.2.3 Financial contracts
The Baloise Group’s banking business in Switzerland is run by Baloise Bank Ltd. Its most important line of business is
interest margin business, with lending mainly occurring on a mortgage-backed basis. Baloise Bank Ltd also runs the
brokerage and services business.
The main risk categories in the banking business of the Baloise Group are therefore credit risk, interest-rate risk,
funding risk and liquidity risk.
Contracts with characteristics of unit-linked contracts but with no significant insurance risk are also deemed finan-
cial contracts. They are mainly written in Luxembourg and Liechtenstein. Policyholder behaviour is the central risk with
these contracts. There is also an indirect market risk as the Baloise Group’s compensation for expenses from these
contracts partly depends on the fair value of the underlying assets.
The Group also reports as financial contracts those contracts that do not have significant insurance protection, do
not have a significant participation feature and are not unit-linked. Such contracts exist in Belgium. The financial risks
are similar to those of traditional insurance products.
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11.3
Financial risk
In the course of its business, the Baloise Group is exposed to a number of financial risks. The following notes specifically
address market risk, credit risk and liquidity risk. 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.
11.3.1 Market risks
Currency risk
Currency risk stems from potential financial loss generated by changes in exchange rates. The extent of the effective
currency risk depends on:
●the amount of the net foreign currency exposure, i. e. the net position between assets, receivables and liabilities
denominated in foreign currencies,
●the volatility of the currencies involved and
●the correlation of currencies with other risk parameters in a portfolio.
Currency risk largely derives from investments in foreign currency bonds for investment or diversification purposes and
alternative investments (particularly those denominated in euros and US dollars). 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. By contrast, alternative financial assets are
posted under the line item ‘Net investment in a foreign operation’ and their currency effects are only taken to income
when the investment is sold. As a result, hedge accounting is used to assign currency hedges to the alternative financial
assets, meaning that the currency effects are only taken to income when the underlying item is sold.
Currency risk management
In its management of currency risk, the foreign exchange management team first calculates adequate target hedge
ratios based on risk-bearing capacity and risk appetite. It then implements the necessary hedging strategies, taking
into account these target hedge ratios and the permitted discretionary ranges. It also takes advantage of phases when
exchange rates are overreacting by deliberately overweighting or underweighting the hedge ratios in relation to the
defined target hedge ratio. These hedging strategies are implemented using derivatives 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 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.
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The Baloise Group writes its insurance business almost exclusively in Swiss francs and euros, meaning that the 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).
Currency risk sensitivities
This sensitivity measures the impact of a relative change in the exchange rates of minus 10 per cent against the Swiss
franc at the end of the period. The stress scenario is applied only to monetary items and is consolidated taking account
of the effects of deferred taxes. The impact of translating the functional currencies of the individual companies into the
Group currency is disregarded.
Impact on
profit for the period
Impact on equity
(incl. profit for the period)
as at 31.12.
2024
2023
2024
2023
CHF million
Currency change against CHF –10 %
Financial instruments
25.7
– 18.1
32.7
– 9.4
Insurance contracts
– 59.8
– 13.3
– 59.1
– 14.6
Total
– 34.1
– 31.4
– 26.5
– 23.9
of which: underlying assets relating to insurance contracts
– 33.9
– 30.7
– 40.9
– 22.8
Interest rate risk
Interest rate risk stems from all unfavourable effects of fluctuations in money market and capital market interest rates.
Economic risk arises from the fact that a company’s profit can decrease as a result of a lower interest margin or that
the fair value of a portfolio of interest rate-sensitive products can decline. Furthermore, a movement in interest rates or
in the interest rate curve can result in a significant deterioration in terms and conditions if funding has to be rolled over.
The Baloise Group is exposed to different kinds of interest rate risk. Changes in interest rates can impact the meas-
urement of assets and liabilities to different extents. In particular, technical reserves, being based on discounted cash
flows, must be reported on the basis of continually updated financial and non-financial assumptions. This means that
changes in interest rates lead to adjustments to reserves, which are reported either in the income statement or through
other comprehensive income, depending on the type of contract involved. The same applies analogously to investments,
which are measured either at fair value through other comprehensive income (FVOCI) or at fair value through profit or
loss (FVPL). Interest rate risk does not affect the carrying amounts of investments measured using the amortised cost
(AC) model. In addition, all of the Baloise Group’s business is impacted by the effect of changes in interest rates where
assets and liabilities have a different duration or where differing accounting treatments have been chosen.
Interest rate risk management
Under Baloise’s Group-wide Risk Management Standards, 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.
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In the non-life units, benchmark-based maturity management is the primary method used. In the life units, maturity
management is driven by the structure of the obligations.
Baloise’s life insurance companies 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’ expectations 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 uses 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 Ltd is also actively managed through the use of appropriate interest rate derivatives.
Interest rate risk sensitivities
If all interest rates had risen or fallen by 50 basis points on the balance sheet date but all other variables had remained
constant, the following impact on profit for the period would have been observed, taking the effects of deferred taxes
into account:
Impact on
profit for the period
Impact on equity
(incl. profit for the period)
as at 31.12.
2024
2023 2
2024
2023 2
CHF million
Parallel shift +50 basis points 1
Financial instruments
– 850.5
– 884.4
– 980.2
– 1,010.4
Insurance contracts
840.4
899.3
955.0
1,012.6
Total
– 10.1
15.0
– 25.2
2.1
of which: underlying assets relating to insurance contracts
– 830.3
– 890.7
– 950.0
– 1,007.7
Parallel shift –50 basis points 1
Financial instruments
932.9
955.0
1,075.4
1,088.2
Insurance contracts
– 913.6
– 973.2
– 1,039.4
– 1,092.7
Total
19.3
– 18.3
36.0
– 4.5
of which: underlying assets relating to insurance contracts
904.4
961.4
1,030.8
1,085.1
1 This sensitivity measures the effect of a constant change of 50 basis points in the interest rates used to measure balance sheet line items across all maturities.
2 Financial instruments recognised at amortised cost were excluded from the calculation of interest rate sensitivities. The prior-year effects have been adjusted accordingly.
Certain items on the consolidated balance sheet for which the Baloise Group defines an interest rate sensitivity for the
purposes of this disclosure may be subject to other interest rate sensitivity calculations for other disclosures.
Equity price risk
Equity price risk describes the risk of the market price of financial instruments with characteristics of equity changing to
the detriment of the Baloise Group. Depending on the measurement option in use, changes in market prices can impact
the income statement and/or equity.
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Equity price risk management
Equity price risk is significantly reduced by means of diversification, i. e. by spreading risk across sectors, countries and
currencies. Active overlay management using derivatives also mitigates equity price risk.
Equity price risk exposure
The Baloise Group is exposed to equity price risk from directly held equity instruments and from collective investments
(or fund investments), which, in turn, invest in equity instruments. The Baloise Group is not exposed to any significant risk
of concentrated equity price risk.
Equity price risk sensitivities
If the market price of all financial instruments with characteristics of equity were to move by +/– 25 per cent on the
balance sheet date, the following impact would be observed:
Impact on
profit for the period
Impact on equity
(incl. profit for the period)
as at 31.12.
2024
2023
2024
2023
CHF million
Change in fair values +25 %
Financial instruments
1,259.1
1,230.6
1,333.2
1,303.0
Insurance contracts
– 1,135.8
– 1,101.0
– 1,081.4
– 1,053.4
Total
123.3
129.6
251.9
249.6
of which: underlying assets relating to insurance contracts
1,248.8
1,229.9
1,316.3
1,295.6
Change in fair values –25 %
Financial instruments
– 1,259.1
– 1,222.3
– 1,333.2
– 1,294.8
Insurance contracts
1,136.5
1,096.4
1,082.2
1,051.1
Total
– 122.6
– 126.0
– 251.0
– 243.7
of which: underlying assets relating to insurance contracts
– 1,249.0
– 1,221.7
– 1,316.5
– 1,287.4
The effects shown include the impact of deferred taxes and derivative hedges. The effect of life insurance policyholders
participating in the company’s profits, depending on their policy and local circumstances (see note 12.1), is also included
in the table above.
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Market risk sensitivities – effects on CSM
The described sensitivities in market parameters have the following impact on the CSM:
Impact on the CSM
as at 31.12.
2024
2023
CHF million
Interest rate change – parallel shift +50 basis points
Insurance contracts
7.3
– 71.4
Interest rate change – parallel shift –50 basis points
Insurance contracts
– 15.8
– 28.0
Change in fair values +25 %
Insurance contracts
330.0
302.4
Change in fair values –25 %
Insurance contracts
– 317.5
– 301.4
Currency change against CHF –10 %
Insurance contracts
20.1
7.0
11.3.2 Credit risk
Credit risk relating to assets held by insurance companies refers to the total potential downside risk arising from a dete-
rioration in the credit quality of a borrower or issuer, or from impairment in the value of collateral. Credit risk arises in
particular from financial instruments with characteristics of debt, mortgages and loans, as well as from receivables and
demand deposits held by banks. In addition, there are guarantees and collateral for the benefit of third parties, which
are described in note 10.3.1.
Credit risk rises with increasing concentration of counterparties in a single sector or geographic region. Changes
in the economic environment that affect entire sectors or geographic regions can jeopardise the solvency of an entire
group of otherwise unrelated counterparties.
Credit risk is managed by monitoring the credit quality of each individual counterparty and relying heavily on credit
ratings. When selecting securities and making changes to the credit portfolio, decisions draw on the regional expertise
of the business units.
Credit risk management
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 the Baloise Group is spread across sectors and geographic regions and among
a large number of counterparties and customers, the Baloise Group 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.
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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. Investments in the sub-investment-grade segment can also
be carried out but are subject to stricter investment guidelines. 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 debt in note 4.2.3 .
The management and control of credit risk arising from mortgage business are set out in instructions and written
procedures 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 receives 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 provi-
sions 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 manage-
ment 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.
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 receive a high credit risk (BB and lower) rating.
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Credit risk exposure
The table below shows the loan exposures to the largest counterparties:
Financial assets exceeding 10 % of consolidated equity
31.12.2024
CHF million
Swiss Confederation
2,882.2
Kingdom of Belgium
2,001.6
Pfandbriefbank schweizerischer Hypothekarinstitute AG
1,581.9
Pfandbriefzentrale der schweizerischen Kantonalbanken AG
1,080.5
Republic of France
1,059.8
Federal Republic of Germany
855.5
Kingdom of Spain
703.1
Republic of Ireland
474.6
Canton of Lucerne
450.2
City of Zurich
439.4
Kingdom of the Netherlands
410.0
Financial assets exceeding 10 % of consolidated equity
31.12.2023
CHF million
Swiss Confederation
3,121.7
Kingdom of Belgium
2,076.7
Pfandbriefbank schweizerischer Hypothekarinstitute AG
1,437.6
Republic of France
1,355.2
Pfandbriefzentrale der schweizerischen Kantonalbanken AG
1,068.4
Federal Republic of Germany
1,053.5
Kingdom of Spain
706.7
Canton of Zurich
610.4
Republic of Ireland
486.1
City of Zurich
460.4
Kingdom of the Netherlands
441.2
Canton of Lucerne
417.2
German federal state of North Rhine-Westphalia
341.0
Canton of Basel-Landschaft
330.2
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The tables below show the changes in expected credit losses for each measurement category. The losses are broken
down by stage in line with the expected credit loss model.
Please refer to note 12.2.3 under accounting policies for notes on this impairment model.
Credit risk by rating class (AC)
2024
Stage 1
Stage 2
Stage 3
Total
CHF million
Financial instruments with characteristics of debt (AC)
Very low credit risk (AAA)
45.9
–
–
45.9
Low credit risk (AA to A)
93.8
–
–
93.8
Moderate / medium credit risk (BBB)
–
–
–
–
High credit risk (BB and lower)
16.2
–
–
16.2
No rating
–
–
–
–
Gross amount (AC)
155.9
–
–
155.9
Impairment (ECL)
0.0
–
–
0.0
Carrying amount of financial instruments with characteristics of debt (AC)
155.9
–
–
155.9
Mortgages and loans (AC)
Very low credit risk (AAA)
330.8
–
–
330.8
Low credit risk (AA to A)
7,481.9
31.6
26.5
7,539.9
Moderate / medium credit risk (BBB)
795.8
2.0
10.1
807.9
High credit risk (BB and lower)
193.3
–
61.8
255.2
No rating
2,103.1
–
–
2,103.1
Gross amount (AC)
10,904.9
33.6
98.4
11,036.9
Impairment (ECL)
– 6.1
– 0.3
– 10.2
– 16.6
Carrying amount of mortgages and loans (AC)
10,898.9
33.3
88.1
11,020.3
Sub-total of financial assets with credit risk measured at amortised cost
11,054.7
33.3
88.1
11,176.2
Financial receivables (AC) 1
Gross amount (AC)
611.4
Impairment (ECL)
– 4.3
Carrying amount of financial receivables
607.1
Total financial assets with credit risk measured at amortised cost
11,783.3
1 Simplified approach
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2023
Stage 1
Stage 2
Stage 3
Total
CHF million
Financial instruments with characteristics of debt (AC)
Very low credit risk (AAA)
21.0
–
–
21.0
Low credit risk (AA to A)
102.1
–
–
102.1
Moderate / medium credit risk (BBB)
–
–
–
–
High credit risk (BB and lower)
–
–
–
–
No rating
2.0
–
–
2.0
Gross amount (AC)
125.0
–
–
125.0
Impairment (ECL)
–
–
–
–
Carrying amount of financial instruments with characteristics of debt (AC)
125.0
–
–
125.0
Mortgages and loans (AC)
Very low credit risk (AAA)
160.4
7.1
–
167.5
Low credit risk (AA to A)
6,967.7
35.0
33.6
7,036.3
Moderate / medium credit risk (BBB)
854.1
1.5
7.2
862.8
High credit risk (BB and lower)
155.9
0.9
53.7
210.5
No rating
1,878.2
–
–
1,878.2
Gross amount (AC)
10,016.4
44.5
94.5
10,155.3
Impairment (ECL)
– 6.1
– 0.3
– 10.5
– 16.9
Carrying amount of mortgages and loans (AC)
10,010.3
44.2
83.9
10,138.4
Sub-total of financial assets with credit risk measured at amortised cost
10,135.3
44.2
83.9
10,263.4
Financial receivables (AC) 1
Gross amount (AC)
731.3
Impairment (ECL)
– 4.0
Carrying amount of financial receivables
727.2
Total financial assets with credit risk measured at amortised cost
10,990.6
1 Simplified approach
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Credit risk by rating class (FVOCI)
2024
Stage 1
Stage 2
Stage 3
Total
CHF million
Financial instruments with characteristics of debt (FVOCI)
Very low credit risk (AAA)
1,699.8
–
–
1,699.8
Low credit risk (AA to A)
3,088.9
–
–
3,088.9
Moderate / medium credit risk (BBB)
1,081.6
–
–
1,081.6
High credit risk (BB and lower)
408.5
12.4
0.0
421.0
No rating
22.1
–
1.8
23.9
Carrying amount of financial instruments with characteristics of debt (FVOCI)
6,300.9
12.4
1.8
6,315.1
Impairment (ECL) recognised in other comprehensive income
– 2.4
– 3.9
– 3.9
– 10.2
Mortgages and loans (FVOCI)
Very low credit risk (AAA)
271.4
–
–
271.4
Low credit risk (AA to A)
232.7
–
–
232.7
Moderate / medium credit risk (BBB)
–
–
–
–
High credit risk (BB and lower)
–
–
–
–
No rating
–
–
–
–
Carrying amount of mortgages and loans (FVOCI)
504.1
–
–
504.1
Impairment (ECL) recognised in other comprehensive income
0.0
–
–
0.0
Total financial assets with credit risk measured at fair value
through other comprehensive income
6,805.0
12.4
1.8
6,819.2
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2023
Stage 1
Stage 2
Stage 3
Total
CHF million
Financial instruments with characteristics of debt (FVOCI)
Very low credit risk (AAA)
1,501.1
–
–
1,501.1
Low credit risk (AA to A)
2,780.8
–
–
2,780.8
Moderate / medium credit risk (BBB)
1,020.9
–
–
1,020.9
High credit risk (BB and lower)
313.0
25.5
1.2
339.6
No rating
12.3
–
–
12.3
Carrying amount of financial instruments with characteristics of debt (FVOCI)
5,628.0
25.5
1.2
5,654.7
Impairment (ECL) recognised in other comprehensive income
– 3.0
– 6.9
– 1.4
– 11.4
Mortgages and loans (FVOCI)
Very low credit risk (AAA)
332.0
–
–
332.0
Low credit risk (AA to A)
222.9
–
–
222.9
Moderate / medium credit risk (BBB)
–
–
–
–
High credit risk (BB and lower)
–
–
–
–
No rating
–
–
–
–
Carrying amount of mortgages and loans (FVOCI)
555.0
–
–
555.0
Impairment (ECL) recognised in other comprehensive income
0.0
–
–
0.0
Total financial assets with credit risk measured at fair value
through other comprehensive income
6,183.0
25.5
1.2
6,209.6
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Changes in expected credit losses (ECLs) – financial instruments with characteristics of debt at AC
The expected credit losses of the financial instruments with characteristics of liabilities that are measured at amortised
cost are immaterial.
Changes in expected credit losses (ECLs) – financial instruments with characteristics of debt at FVOCI
2024
Stage 1
Stage 2
Stage 3
Total
CHF million
Balance as at 1 January
– 3.0
– 6.9
– 1.4
– 11.4
Net remeasurement of ECL allowance
3.8
– 1.4
– 3.5
– 1.2
ECL of new financial assets acquired
– 2.1
–
–
– 2.1
Transfer to Stage 1
– 2.7
2.7
–
–
Transfer to Stage 2
0.6
– 0.6
–
–
Transfer to Stage 3
0.0
–
0.0
–
Financial assets derecognised
1.1
2.8
1.2
5.1
Exchange differences
– 0.2
– 0.5
– 0.1
– 0.7
Balance as at 31 December
– 2.4
– 3.9
– 3.9
– 10.2
2023
Stage 1
Stage 2
Stage 3
Total
CHF million
Balance as at 1 January
– 4.4
– 7.2
– 1.3
– 12.9
Net remeasurement of ECL allowance
2.5
– 3.0
– 0.9
– 1.5
ECL of new financial assets acquired
– 1.6
–
–
– 1.6
Transfer to Stage 1
– 1.6
1.6
–
–
Transfer to Stage 2
0.7
– 0.7
–
–
Transfer to Stage 3
0.4
0.3
– 0.7
–
Financial assets derecognised
0.8
1.4
1.4
3.6
Exchange differences
0.3
0.7
0.1
1.1
Balance as at 31 December
– 3.0
– 6.9
– 1.4
– 11.4
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Changes in expected credit losses (ECLs) – mortgages and loans at AC
2024
Stage 1
Stage 2
Stage 3
Total
CHF million
Balance as at 1 January
– 6.1
– 0.3
– 10.5
– 16.9
Net remeasurement of ECL allowance
0.9
0.0
– 2.9
– 2.0
ECL of new mortgages and loans
– 1.1
–
–
– 1.1
Transfer to Stage 1
– 0.5
0.1
0.4
–
Transfer to Stage 2
0.0
0.0
–
–
Transfer to Stage 3
0.4
0.0
– 0.4
–
Mortgages and loans derecognised
0.4
0.0
2.0
2.4
Write-off
–
–
1.2
1.2
Exchange differences
0.0
–
0.0
0.0
Balance as at 31 December
– 6.1
– 0.3
– 10.2
– 16.6
2023
Stage 1
Stage 2
Stage 3
Total
CHF million
Balance as at 1 January
– 4.9
– 0.3
– 14.1
– 19.3
Net remeasurement of ECL allowance
1.1
0.0
– 1.4
– 0.3
ECL of new mortgages and loans
– 2.5
–
–
– 2.5
Transfer to Stage 1
– 0.3
0.0
0.4
0.0
Transfer to Stage 2
0.0
0.0
–
–
Transfer to Stage 3
0.0
0.0
0.0
0.0
Mortgages and loans derecognised
0.5
0.0
4.0
4.6
Write-off
–
–
0.5
0.5
Exchange differences
0.0
–
0.0
0.0
Balance as at 31 December
– 6.1
– 0.3
– 10.5
– 16.9
Changes in expected credit losses (ECLs) – mortgages and loans at FVOCI
The expected credit losses of the mortgages and loans that are measured at fair value through other comprehensive
income are immaterial.
Expected credit losses (ECLs) – financial receivables at AC
The expected credit losses on receivables are calculated using the simplified approach under the impairment model:
31.12.2024
31.12.2023
CHF million
ECL of receivables from financial contracts
– 0.7
– 1.4
ECL of receivables from investments
– 1.2
– 1.5
ECL of other financial receivables
– 2.4
– 1.1
Total ECL of financial receivables (AC)
– 4.3
– 4.0
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Credit risk from the reinsurance contracts held by the Baloise Group is grouped by credit quality of the counterparty in
the table below and was measured in accordance with IFRS 17:
31.12.2024
31.12.2023
CHF million
.
Fulfilment cash flows after deposits and collaterals
Very low credit risk (AAA)
–
–
Low credit risk (AA to A)
257.2
362.3
Moderate / medium credit risk (BBB)
0.8
0.0
High credit risk (BB and lower)
–
–
No rating
49.0
13.7
Exposure credit risk
307.0
376.0
Reinsurance contracts may only be entered into with counterparties that have been authorised in advance by Corpo-
rate 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 with this rating would be used for short-dated business in the property insur-
ance segment only. This rule does not apply to captives and pools that are active reinsurance companies, because they
do not generally have ratings.
11.3.3 Liquidity risk
Liquidity risk 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 secured quickly enough. In extreme cases, a lack of liquidity can result in insolvency.
Liquidity risk arises in both the banking business and the insurance business.
Liquidity risk management
Statutory provisions and the following rules apply to the management of liquidity risk: 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.
There are also asset and liability management committees 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. Mainte-
nance 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 time as the reinsurer assumes the costs.
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If these precautions fail to meet the need for liquidity, the Baloise Group holds financial assets that can be sold at short
notice without significant price losses. They include all equities (excluding long-term equity investments). Given the
substantial volume of government bonds and quasi-government bonds held, it is likely to still be possible to sell large
volumes of 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. It is furthermore not
possible to sell investment property to generate immediate liquidity.
Baloise Bank Ltd’s liquidity risk is managed by its asset and liability management committee. The required data and key
figures are determined and calculated using a specialist IT application.
Liquidity risk exposure
The anticipated maturity profile of assets and liabilities under insurance contracts and reinsurance contracts, which is
monitored as part of liquidity management, is presented in the table below.
Maturities of undiscounted cash flows from liabilities under insurance and reinsurance contracts – non-life
31.12.2024
‹ 1 year
1 – 2 years
2 – 3 years
3 – 4 years
4 – 5 years
> 5 years or
no deter-
minable
residual
term
Total
Carrying
amount
CHF million
Insurance contract liabilities (PAA)
1,630.3
686.6
439.8
317.1
253.7
2,559.6
5,887.1
4,876.1
Reinsurance contract liabilities (PAA)
3.5
– 0.3
– 0.2
– 0.2
– 0.1
– 0.3
2.4
2.5
31.12.2023
‹ 1 year
1 – 2 years
2 – 3 years
3 – 4 years
4 – 5 years
> 5 years or
no deter-
minable
residual
term
Total
Carrying
amount
CHF million
Insurance contract liabilities (PAA)
1,793.4
762.6
525.3
359.6
271.6
2,098.0
5,810.5
5,009.0
Reinsurance contract liabilities (PAA)
2.1
– 1.6
– 1.0
– 0.8
– 0.6
– 1.2
– 3.0
– 2.5
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Maturities of the present values of future cash flows from liabilities under insurance and reinsurance contracts – life
31.12.2024
‹ 1 year
1 – 2 years
2 – 3 years
3 – 4 years
4 – 5 years
> 5 years or
no deter-
minable
residual
term
Total
CHF million
Insurance contract liabilities (VFA)
2,791.9
1,416.8
985.3
858.4
915.5
24,650.4
31,618.3
Insurance contract liabilities (GMM)
234.7
205.5
185.2
157.2
140.8
5,729.6
6,653.1
Reinsurance contract liabilities (GMM)
4.9
0.1
0.0
0.0
– 0.1
– 3.4
1.5
31.12.2023
‹ 1 year
1 – 2 years
2 – 3 years
3 – 4 years
4 – 5 years
> 5 years or
no deter-
minable
residual
term
Total
CHF million
Insurance contract liabilities (VFA)
1,586.9
939.1
963.3
836.8
863.2
26,556.5
31,745.8
Insurance contract liabilities (GMM)
307.8
193.2
205.1
212.9
194.8
5,725.7
6,839.6
Reinsurance contract liabilities (GMM)
0.9
– 0.1
– 0.1
– 0.1
– 0.1
0.0
0.5
31.12.2024
31.12.2023
CHF million
Amount payable on demand
34,022.0
34,397.8
Carrying amount
38,271.4
38,585.4
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Liquidity management must take account of the maturity structure of insurance contract liabilities and financial
liabilities:
Maturities of financial liabilities (undiscounted)
31.12.2024
‹ 1 year 1 – 2 years
2 – 3 years
3 – 4 years
4 – 5 years
> 5 years or
no deter-
minable
residual
term
Total
Carrying
amount
CHF million
Financial liabilities
Liabilities arising from financial
contracts 1
1,826.2
497.2
392.5
340.7
267.0
18,861.0
22,184.7
22,182.1
Recognised at amortised cost (AC)
1,261.4
410.9
275.0
305.9
245.1
6,394.5
8,892.8
8,890.3
Recognised at fair value through
profit or loss (FVPL)
564.8
86.3
117.5
34.8
21.9
12,466.5
13,291.8
13,291.8
Derivatives (liabilities)
93.7
–
0.2
–
1.3
66.3
161.5
161.5
Outstanding bonds
223.6
297.6
222.1
331.5
365.0
1,035.7
2,475.5
2,334.1
Lease liabilities
13.8
9.3
7.5
5.0
4.7
25.1
65.4
54.6
Other financial liabilities
571.1
52.8
–
–
–
–
623.9
643.7
Total financial liabilities
(undiscounted)
2,728.3
856.8
622.3
677.2
638.0
19,988.1
25,510.9
25,376.1
Guarantees and future liabilities
Guarantees
44.9
0.1
0.2
0.0
0.2
9.8
55.3
–
Future liabilities
169.4
1,448.8
23.9
10.0
10.7
178.9
1,841.8
–
Total guarantees and future liabilities
(undiscounted)
214.3
1,449.0
24.2
10.1
10.9
188.7
1,897.1
–
1 All demand deposits are included in the first maturity band.
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31.12.2023
‹ 1 year 1 – 2 years
2 – 3 years
3 – 4 years
4 – 5 years
> 5 years or
no deter-
minable
residual
term
Total
Carrying
amount
CHF million
Financial liabilities
Liabilities arising from financial
contracts 1
1,328.7
358.6
283.9
278.3
250.1
17,437.2
19,936.8
19,936.3
Recognised at amortised cost (AC)
822.4
311.1
213.9
235.7
215.7
6,324.9
8,123.8
8,123.3
Recognised at fair value through
profit or loss (FVPL)
506.3
47.5
69.9
42.6
34.4
11,112.3
11,813.1
11,813.1
Derivatives (liabilities)
56.4
–
–
4.1
1.8
21.0
83.4
83.4
Outstanding bonds
172.6
220.9
294.9
219.5
328.9
1,235.0
2,471.8
2,334.0
Lease liabilities
17.0
6.4
5.4
4.4
2.9
24.7
60.8
57.3
Other financial liabilities
823.3
110.3
11.5
–
–
6.4
951.5
962.1
Total financial liabilities
(undiscounted)
2,398.1
696.2
595.7
506.3
583.7
18,724.3
23,504.3
23,373.2
Guarantees and future liabilities
Guarantees
44.8
0.8
0.1
0.3
0.0
9.7
55.6
–
Future liabilities
389.7
1,594.0
8.3
7.2
2.9
987.9
2,990.0
–
Total guarantees and future liabilities
(undiscounted)
434.5
1,594.8
8.4
7.5
2.9
997.5
3,045.7
–
1 All demand deposits are included in the first maturity band.
11.4
Capital management and solvency
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 poli-
cies are largely derived from the risk-based management of operating activities.
11.4.1 Swiss Solvency Test
For the purposes of the Swiss Solvency Test (SST), the Baloise Group defines its risk-bearing capital and target capital
(capital requirement) 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 actu-
arial risk and is determined using an expected shortfall approach that takes account of diversification effects. The actu-
arial 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.
Analysis 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. The SST ratio (ratio of risk-bearing capital to target capital) is calculated for
the strategic business units and the Group.
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The results of the Swiss Solvency Test for the Baloise Group are disclosed annually in the financial condition report,
which is published at the end of April.
11.4.2 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 moni-
tored 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.
11.4.3 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.
11.5
Other regulatory requirements
In addition to the statutory rules on capital adequacy, the Group companies must comply with numerous other
regulatory and contractual requirements, which vary depending on the country or jurisdiction in which they operate.
The effects of these requirements on the classification and grouping of insurance contracts are described in note 12.1.
Examples of other regulatory requirements include investment guidelines and rules concerning cover assets,
technical reserves, a suitable system of corporate governance, and internal control systems.
In terms of contractual stipulations, the guaranteed rates of return in life insurance outlined above are of particular
importance.
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12. Principles of consolidation; accounting policies
This note explains the principles of consolidation and the accounting policies used in the Baloise Group’s consolidated
annual financial statements and provides information about the material accounting estimates and assumptions.
The Baloise Group’s consolidated annual financial statements contain accounting estimates and assumptions that
can impact on the presentation of financial position and financial performance. Estimates and judgements made by
senior 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 balance sheet date. The amounts that
actually arise may vary from the estimates.
Estimates and assumptions primarily relate to financial assets, impairment, deferred taxes, insurance contracts,
provisions and reserves, employee benefits and goodwill.
Assets and liabilities are classified as current when their realisation/repayment is expected within twelve months of
the balance sheet date. The maturity analysis of financial liabilities and of insurance contract liabilities and reinsurance
contract liabilities is set out in note 11.3.3.
12.1
Insurance contracts
12.1.1 Definition of an insurance contract
Irrespective of its treatment in accordance with regulatory requirements or tax law, an insurance contract is defined in
IFRS 17 Insurance Contracts 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, insurance risk is any directly insured or reinsured risk
that is not a financial risk.
The Baloise Group assesses the significance of insurance risk based on the volume of additional payments that will
have to be made by the insurer if the insured event occurs.
Contracts that include no significant insurance risk are generally investment contracts. If these investment contracts
contain a discretionary participation feature (DPF), the Baloise Group treats them as within the scope of IFRS 17 and its
recognition and measurement principles. They are referred to as insurance contracts below.
A financial instrument that provides a particular investor with the contractual right to receive, as a supplement to
an amount not subject to the discretion of the issuer, additional amounts,
●that are expected to be a significant portion of the total contractual benefits,
●the timing or amount of which are contractually at the discretion of the issuer, and that are contractually based on
•
the returns on a specified pool of contracts or a specified type of contract,
•
realised and/or unrealised investment returns on a specified pool of assets held by the issuer, or
•
the profit or loss of the entity or fund that issues the contract.
Some insurance contracts contain combined cover for multiple insurance risks. The Baloise Group treats this type of
multi-coverage in line with its internal management structures. In life insurance, main insurance policies and their
policy riders (supplementary insurance) are usually treated as one contract and are assigned to a group of insurance
contracts and measured as described below. In non-life insurance, policies offering individual cover are generally
treated as independent contracts and are assigned to the portfolios described later on.
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12.1.2 Separating components from an insurance contract
Under IFRS 17, certain components may need to be separated from the insurance contracts as defined above.
Embedded derivatives
The Baloise Group identifies any embedded derivatives that are included in insurance contracts in accordance with the
relevant guidance in IFRS 9 and, on the basis of those principles, determines whether an embedded derivative needs to
be separated. If this is the case, all cash flows related to the embedded derivative are separated from the host contract
and then measured and presented as a distinct financial instrument.
Embedded derivatives that do satisfy the definition of an insurance contract, such as certain guarantees for annuity
conversion rates, are not separated.
Distinct investment components
An investment component of an insurance contract comprises all payments that will have to be made to the policy-
holder in all circumstances, regardless of whether an insured event has occurred. An investment component is distinct
if it is not highly interrelated with the rest of the insurance contract and is – or could be – available as a stand-alone
product in the same market as the insurance contract. Investment components are deemed to be highly interrelated
with their host contract if they cannot be terminated independently of the host contract.
Distinct investment components must be separated and measured independently in the same way as embedded
derivatives but may be within the scope of IFRS 17, for example as an investment contract with DPFs.
Like any other payment, non-distinct investment components are measured as a component of the insurance
contract. However, they are treated separately for the purposes of recognising income and expense from insurance
contracts, as explained in more detail below in connection with recognition topics.
Guaranteed minimum cash surrender values in life insurance, which are not distinct and therefore part of the insur-
ance contract, are the most important example of investment components in insurance contracts in the Baloise Group.
Distinct non-insurance services
The Baloise Group identifies non-insurance services embedded in insurance contracts in accordance with IFRS 15
Revenue from Contracts with Customers. These non-insurance services are considered distinct if the policyholder can
benefit from the services directly.
Cash flows from distinct non-insurance services are separated and measured in accordance with IFRS 15.
12.1.3 Measurement unit for insurance contracts
All of the following references to insurance contracts relate to contracts identified as described above, after the removal
of any components that have to be separated.
The measurement unit for insurance contracts is the group of insurance contracts (GIC) that is formed in a multi-step
process. The process starts with portfolios of insurance contracts (PICs). These consist of contracts that have similar
risks and are managed together. When a contract is issued, it is assigned to a PIC and then allocated to one of the three
groups that make up every portfolio:
●Group containing all contracts that, upon initial recognition, Baloise assumes are onerous within the meaning
of IFRS 17 (see explanation below)
●Group containing all contracts that are not onerous and, upon initial recognition, have no significant probability
of becoming onerous subsequently
●Group containing all other contracts
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The Baloise Group applies various qualitative and quantitative factors to assess the risk that a contract will become
onerous subsequently.
One exception arises due to EU rules on unisex rates, which prohibits the charging of different premiums according to
gender. When forming groups of insurance contracts in accordance with IFRS 17, Baloise groups together any contracts
affected by this that otherwise have the same risk profile.
In the final step, these profitability groups are divided up on the basis of calendar year to form the GICs. Each contract
remains in the GIC to which it was originally assigned until derecognition. New contracts recognised during a calendar
year are added to the GICs on an ongoing basis.
These criteria for grouping contracts apply both to contracts in which the Baloise Group takes on risk and to reinsur-
ance contracts held.
The Baloise Group recognises GICs for the first time at the earliest of the following three points in time:
●The beginning of the coverage period
●The date on which payment of the first premium becomes due or, in the case of contracts that do not have an explicit
premium due date, the date on which the premium is received
●The date on which the GIC becomes onerous
New contracts are assigned to a GIC on an ongoing basis as soon as they satisfy one of these conditions formulated for
the GICs. The Baloise Group has defined line of business-specific profitability criteria in order to determine the need for a
separate test for the third criterion for GICs before the first two criteria have been satisfied.
12.1.4 Measurement and recognition of insurance contracts in accordance with the general measurement model
(GMM)
The standard method for measuring liabilities or assets arising from insurance contracts is the general measurement
model (GMM), which is described in this note by referring to the individual components:
●Estimates of future cash flows, taking account of options and guarantees
●Adjustment to reflect the time value of money and financial risk (discounting)
●Risk adjustment for non-financial risk
●Contractual service margin (CSM) representing the unearned profit that will be recognised on the agreed services
The sum of the first three components is also referred to as fulfilment cash flows (FCFs). For these components, the
methods used for measurement on initial recognition and for subsequent measurement are identical.
Under IFRS 17, the GMM is modified in the case of contracts with certain characteristics and reinsurance contracts
held. This is optional in some cases and mandatory in others. The characteristics of these modifications and their appli-
cation in the Baloise Group are presented in the line of business-specific notes.
Regardless of the measurement method, IFRS 17 requires the part of the reserve recognised for claims already
incurred (liability for incurred claims, LIC) to be separated from the part of the reserve recognised for remaining coverage
(liability for remaining coverage, LRC).
The following note sets out the recognition rules for the statement of comprehensive income.
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Cash flows
The starting point for the measurement of insurance contracts is a current estimate of all future fulfilment cash flows
paid or received by the Baloise Group that arise within the contract boundary. The contract boundary is the earliest
date on which the policyholder is no longer obliged to pay premiums and the Baloise Group can, on the basis of a new
risk assessment, adjust the contract premiums or adjust the level of benefits without changing the level of premiums.
All cash flows relating to premiums or claims outside the contract boundary are deemed to relate to a future contract
under IFRS 17.
The expected value of all cash flows required to fulfil the insurance contract is estimated, taking account of options
and guarantees. The estimate is updated as at each balance sheet date. No adjustments (increases or decreases) to
compensate for uncertainties in the cash flows or their discounting are made as they are explicitly taken into account
as explained below. Insurance acquisition cash flows are included in projections if they can be directly allocated to indi-
vidual portfolios of contracts; administrative expenses are included if they can be directly allocated to individual GICs.
If the contracts in a GIC affect the cash flows of another GIC, these mutual effects are taken into account (known as
mutualisation). Furthermore, all payments relating to non-distinct investment components are included in the projec-
tions just like all other cash flows. Incoming payments and outgoing payments that occur before or after the contractu-
ally stipulated due date are deferred or accrued, as appropriate, within the insurance contract liability.
Discounting
All future cash flows generally have to be discounted at current discount rates. This ensures that the time value of
money and – where relevant – financial risks that affect the amount and timing of cash flows are taken into account in
the measurement.
The Baloise Group discounts the cash flows from insurance contracts using discount rates that match the nominal
currency and maturity of the cash flows and take account of the liquidity of the obligations. The calculation of the
liquidity premium was adjusted during the reporting period. This resulted in an increase in the liquidity premium as at
31 December 2024. Compared with 31 December 2023, the weighted average of the liquidity premium rose by 63.8 bps
for Swiss francs, by 75.0 bps for euros and by 64.3 bps for US dollars. The change in the liquidity premium accounted for
the bulk of the economic variances (CHF 267.7 million) in the CSM in 2024.
Where possible, the Baloise Group draws on discounting assumptions observable in liquid markets. If cash flows are
expected at times for which no such discount rates are observable, the Baloise Group interpolates or extrapolates the
observable discount rates using the Smith-Wilson method.
Financial risks predominantly affect cash flows in life insurance, in particular where benefits paid to the beneficiaries
are directly or indirectly derived from the value or performance of financial assets. The Baloise Group takes account of
these risks in discounting by taking a consistent, risk-neutral approach when selecting the expected returns that affect
the cash flows and when selecting the discount rates for the discounting of these cash flows.
All of the aforementioned discounting principles apply both to insurance contracts issued by the Baloise Group and
to reinsurance contracts held.
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Cash flows without financial risks are generally discounted without taking account of credit risk, as measurement of the
insurance contracts is based on the assumption that all obligations are fulfilled. The Baloise Group therefore uses the
following discount rates:
CHF
31.12.2024
30.06.2024
31.12.2023
30.06.2023
weighted average in %
1 year
1.03
1.82
1.67
2.15
5 years
1.10
1.68
1.34
2.02
10 years
1.30
1.79
1.45
1.97
15 years
1.49
1.95
1.62
2.02
20 years
1.72
2.12
1.78
2.10
EUR
31.12.2024
30.06.2024
31.12.2023
30.06.2023
weighted average in %
1 year
3.08
4.24
3.42
3.98
5 years
3.02
3.60
2.39
3.16
10 years
3.19
3.60
2.50
2.95
15 years
3.30
3.67
2.62
2.95
20 years
3.28
3.63
2.63
2.86
USD
31.12.2024
30.06.2024
31.12.2023
30.06.2023
weighted average in %
1 year
4.99
5.72
4.94
5.54
5 years
4.86
4.77
3.70
4.11
10 years
4.89
4.65
3.65
3.75
15 years
4.94
4.65
3.68
3.68
20 years
4.92
4.62
3.66
3.61
Risk adjustment for non-financial risk
Cash flows from insurance contracts are also subject to uncertainty about their amount and timing for non-financial
reasons. For example, claims settlement, mortality trends or policyholder behaviour may not be as expected. These risks
are taken into account using a risk adjustment for non-financial risk (risk adjustment), i. e. an explicit increase in the
present value of the expected cash flows.
The Baloise Group determines the consolidated risk adjustment using the value at risk with a confidence level of
75 per cent and at the level of the strategic business unit, taking all relevant diversification effects into account. Details
of the relevant calculation methods and the approaches taken to systematically allocate the risk adjustment to the
individual GICs are provided in the division-specific notes.
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Contractual service margin (CSM) and loss component (LC) – initial measurement
At initial recognition of a GIC, the Baloise Group assesses the expected cash flows over the entire term of all contracts
in the GIC on a risk-adjusted and discounted basis, taking account of the following:
●All estimated future cash flows
●All cash flows at the time of initial recognition
●Release of all deferrals for payments made before initial recognition, including any insurance acquisition cash flow
payments due
If the fulfilment cash flows give rise to a net inflow, an additional reserve component is recognised within the LRC, the
contractual service margin (CSM). The CSM is initially recognised as the expected sum of future discounted risk-adjusted
profits, calculated on the basis of IFRS 17, that the Baloise Group expects to earn as a result of providing cover and other
services under the contracts within the GIC.
However, if this gives rise to a net outflow, this amount is shown within the LRC and is updated separately as a loss
component (LC).
This generally means that contracts that are expected to have net inflows on the basis of IFRS 17 (also referred to
below as profitable contracts) are initially recognised with no impact on the income statement. For GICs containing
contracts that are expected to have net outflows (referred to below as onerous GICs), an expense arises upon initial
recognition in the amount of the expected net losses.
Contractual service margin – subsequent measurement
If further contracts are added to a GIC after initial recognition, the net inflow from these contracts expected at that time
– whether positive or negative – is taken into account in the GIC’s CSM. Furthermore, if a GIC contains contracts that are
denominated in a currency other than the functional currency of the strategic business unit, the GIC’s CSM is adjusted
for the effects of changes in exchange rates.
In addition, the expected net profits accrued in the CSM at the time of initial recognition are essentially adjusted in
three stages in each period:
●Accretion of interest on the opening balance for the period
●Netting of certain changes to the fulfilment cash flows expected for future periods
●Pro rata release to profit or loss of any remaining positive CSM amount
Interest is accreted at the rate that was used to discount cash flows without financial risk at the time of initial recogni-
tion of the contracts in the GIC. As the contracts may be recognised in the GIC at different times, this interest is calcu-
lated as a weighted average for all of the contracts in the GIC.
Any changes to the fulfilment cash flows for coverage to be provided after the end of the period and other services
are also measured on the basis of this average interest where such changes arise due to the updating of non-financial
assumptions (e. g. mortality assumptions).
In the event of a net reduction in this measurement of the fulfilment cash flows on the basis of the aforementioned
average interest, any existing CSM of the GIC is increased by the resulting additional margin in the contracts.
In the event of an increase in this measurement of the fulfilment cash flows, any existing CSM of the GIC is reduced
by the resulting loss of a margin in the contracts. This adjustment must not result in a negative CSM. Therefore, if the
adjustment to be made exceeds the existing CSM, the amount representing this excess increases the entire LRC and is
recognised in profit or loss immediately. This amount is disclosed separately as a loss component and is updated sepa-
rately going forward.
If a loss component was recognised for a GIC in prior periods, any change in the measurement of the fulfilment cash
flows on the basis of the average interest is offset against the loss component in profit or loss. As is also the case for the
CSM, a loss component cannot be negative. Any excess amount resulting from the changed measurement is recognised
in the CSM and is therefore not recognised in profit or loss. Every GIC therefore has either a CSM or a loss component.
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Furthermore, the CSM is adjusted to reflect the following experience deviations, i. e. differences between the amounts
expected for a particular period and the amounts of the actual payments:
●All experience adjustments for non-distinct investment components
●For premiums: the share of the experience adjustment that relates to future cover or other services
In the last step, the Baloise Group determines the proportion of any remaining positive CSM amount that relates to the
performance of services under the insurance contract in the current period. The number of coverage units – a measure
for all services to be provided – for each contract in a GIC is determined for the period and for all remaining periods
in which services are still to be provided. The release of the CSM for the period is then carried out on the basis of the
number of coverage units for all contracts in the GIC for the current period relative to the total coverage units at the end
of the period.
The coverage units are identified on a product-specific basis.
Loss component – subsequent measurement
A loss component is a component of the liability for remaining coverage (LRC), irrespective of whether it has to be recog-
nised at the time of initial recognition of a GIC or whether it arises while coverage is being provided owing to the afore-
mentioned adjustments. It is essentially changed by the same influences that, in the case of profitable GICs, adjust the
amount of the CSM; in particular, the Baloise Group releases a loss component amount in the same way as it does for
the CSM on the basis of coverage units until coverage is no longer provided. In contrast to the CSM, however, all changes
to the loss component are recognised in profit or loss:
●All changes within the loss component are part of the insurance service expenses.
●In addition, each amortisation of the loss component on the basis of coverage units is netted with the insurance
revenue for the period. In line with IFRS 15, the Baloise Group thus ensures that the insurance revenue does not exceed
the premiums collected over the term of the GIC.
Insurance acquisition cash flows for future renewals
If insurance acquisition cash flows are economically attributable not to the new contract but to the expected renewal of
this contract, Baloise allocates the share of the cash flows for such future renewals systematically and taking account
of the expected number of renewals within the LRC of the related PIC. The Baloise Group regularly reviews the recover-
ability of the insurance acquisition cash flows allocated in this way, taking account of the expected renewals and their
profitability. Impairment losses are recognised immediately in profit or loss for any unrecoverable amounts and, along
with any subsequent reversals of impairment losses, are shown under insurance service expenses.
This allocation is not dependent on the measurement model. However, insurance acquisition cash flows for future
renewals currently arise predominantly in connection with short-term contracts in the non-life business.
Derecognition and modification of insurance contracts
The Baloise Group derecognises an insurance contract when:
●all obligations under the contract are extinguished or discharged, or
●modification of the insurance contract would have resulted in it being classified differently, assigned to a different
GIC or given a materially different contract boundary, or would have resulted in other contract components being
separated. In this case, the Baloise Group recognises the modified contract as a new contract.
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This modification of a contract represents an amendment to the contract terms, either by way of agreement between
the parties or due to changes to the legal basis. The policyholder’s exercise of an option provided in the contract does not
constitute a modification.
For contracts derecognised from a GIC, the Baloise Group identifies all fulfilment cash flows and, where relevant,
the related coverage units. The measurement of the GIC is then adjusted by reducing the fulfilment cash flows and by
adjusting the CSM for those cash flows that – depending on the measurement method – would lead to an adjustment
of the CSM.
If the reason for derecognition was the sale of the contracts to a third party or one of the types of modification
mentioned above, the Baloise Group adjusts the CSM for the contracts being derecognised as follows:
●For contracts transferred to a third party, the CSM adjustment equates to the difference between the change in the
fulfilment cash flows that is offset against the CSM and the amount that the third party charges as the premium for
taking over the obligations from Baloise.
●For modified contracts, the CSM adjustment is calculated as the difference between the changes in the fulfilment
cash flows affecting the CSM and the premium that the Baloise Group would charge if it had entered into the
modified contract directly on the date of the modification. The premium determined in this way is also used to
determine the CSM of the modified contract.
Recognition of insurance contracts in accordance with the general measurement model (GMM) in comprehensive
income
Comprehensive income for insurance contracts is broken down into three disclosure groups:
●Insurance revenue
●Insurance service expenses, referred to in combination with insurance revenue as the insurance service result
●Insurance finance income or expenses (IFIE)
The presentation of all the components in comprehensive income is described below. All items recognised within the
insurance service result are recognised exclusively in profit or loss.
Insurance revenue
The insurance revenue for a period generally comprises the following items:
A.
The consideration expected at the beginning of the period for the provision of services for new claims incurred
in the period and expected payments for all other services under the contract (excluding insurance acquisition
cash flows that can be allocated), netted (where applicable) with the release of the loss component on the
basis of the coverage units
B.
Release of the CSM to profit or loss on the basis of the coverage units
C.
Release of the part of the risk adjustment that was recognised for uncertainty relating to the current period
D.
The share of experience adjustments for premiums relating to the coverage provided in the current period and
to other services
E.
A share for amortisation of the insurance acquisition cash flows that can be allocated directly
The Baloise Group systematically calculates shares of these amounts that are attributable to any loss component and
presents them as part of the insurance service expenses.
Furthermore, the amounts in bullet point A. are reduced by the amount of actual non-distinct investment components.
Baloise determines the recognition of revenue for insurance acquisition cash flows per period pursuant to bullet point
E. for a group of insurance contracts, starting with the actual cash flows on the basis of the coverage units.
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Insurance service expenses
The insurance service expenses for a period comprise the following items:
F.
The actual payments for new claims incurred in the period and actual payments for all other services under
the contract (including contract management costs, but excluding insurance acquisition cash flows that can
be allocated)
G.
A share for amortisation of the insurance acquisition cash flows that can be allocated directly (equates to
the value in bullet point E. for insurance revenue)
H.
Changes to the risk-adjusted present value of expected payments for claims that have already been incurred
(excluding effects attributable to market effects)
I.
Changes to any loss components, including financial effects
The amounts in bullet point F. are, where applicable, reduced by precisely the same expected value for non-distinct
investment components paid as the values pursuant to bullet point A. for insurance revenue. Differences between actual
and expected payments of non-distinct investment components are offset against the CSM or loss component, taking
account of the time value of money.
Insurance finance income or expenses
Insurance finance income or expenses constitute the total of all changes in the measurement of insurance and reinsur-
ance contracts that are due to financial effects. This comprises the reduction in the period of discounting (unwinding the
discount) and the effects of interest rate changes and other market effects that have a direct impact on the cash flows.
For contracts for which market parameters indirectly affect benefits that are at the discretion of the Baloise Group,
Baloise Group specifies at initial recognition and in a systematic way which changes in fulfilment cash flows relate to
financial risk.
For each PIC, there is an option in respect of the insurance finance income or expenses to either recognise the total
amount in profit or loss or to disaggregate it into a share recognised in profit or loss and a share recognised in other
comprehensive income. The option is used for the PICs measured using the GMM, for the liability for incurred claims,
and for the traditional life insurance business in Germany and Switzerland, which is measured using the variable fee
approach (VFA). Where applicable, the disaggregation method is discussed separately for the life insurance portfolios
and the non-life insurance portfolios.
12.1.5 Non-life insurance contracts and the premium allocation approach
Generally, all standardised non-life products contain sufficient insurance risk to be classified as insurance contracts
under IFRS 17. The Baloise Group has created the following portfolios for this business:
●Motor – third-party liability
●Motor – comprehensive
●General liability – personal
●General liability – commercial
●Accident (compulsory accident insurance)
●Accident – other
●Health
●Property – personal
●Property – commercial
●Marine
●Other
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Premium allocation approach (PAA) - scope of the PAA
IFRS 17 gives entities the option to simplify the measurement of the liability for remaining coverage (LRC) for certain
contracts. This simplification, also known as the premium allocation approach (PAA), can generally be used for all GICs
in which all contracts – taking account of the contract boundary pursuant to IFRS 17 – have a coverage period of one
year or less. A contract’s coverage period is the period during which the contract guarantees insurance cover and other
services. This criterion is satisfied for most of the non-life business, either because the contracts have a one-year term or
because the contract boundary of the contracts that, in legal terms, are multi-year contracts, is one year. This is usually
the case when the Baloise Group has a right to adjust the premiums at the end of each year.
The PAA may also be used for all GICs where the PAA would produce a measurement of the LRC that would not be
materially different to the measurement under the general measurement model (GMM).
The Baloise Group uses the PAA for all non-life contracts that satisfy at least one of the aforementioned criteria.
If, as a result of a portfolio transfer or the acquisition of a company, the Baloise Group takes on obligations relating to
claims already incurred, the cover provided consists of settlement of the claims, which means that the coverage period
for these claims equates to the expected remaining settlement period.
Impact of the premium allocation approach
The PAA has no fundamental impact on the classification, initial recognition and derecognition of contracts or on the
separation of components and embedded derivatives. In the Baloise Group, the measurement of claims incurred is also
identical for PAA contracts.
However, the measurement of the liability for remaining coverage (LRC) does differ materially. Starting with the
premiums received and upon initial recognition of a GIC, the LRC is measured as
●any premiums received at the time of initial recognition, minus
●any insurance acquisition cash flows paid before the time of initial recognition, plus
●any adjustment of the liability based on the test, described below, for ascertaining whether contracts are onerous.
Under the PAA, the LRC is subsequently measured as:
●the amount of the LRC at the beginning of the period, plus
●any premiums received in the period, minus
●any insurance acquisition cash flows paid in the period, minus
●the share of the deferred premiums that were recognised in the period as insurance revenue, plus
●the share, recognised in insurance service expenses, of the period for insurance acquisition cash flows, plus
●the interest adjustment for any financing component in the LRC, plus or minus
●the change in any adjustment of the liability on the basis of the onerous contract test.
All changes to a loss component are recognised immediately, and exclusively, in insurance service expenses.
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Onerous contract test
The Baloise Group has defined certain indicators that determine when a GIC measured using the PAA must be checked
to test whether it is onerous. To this end, the Baloise Group compares the part of the LRC that is based only on deferrals
of premiums paid and insurance acquisition cash flows paid with the GIC’s fulfilment cash flows that are expected
for the coverage still to be provided. If the expected net payments calculated in this way are higher than the LRC, the
deferral of insurance acquisition cash flows is released to profit or loss and then, if necessary, the LRC is increased by a
loss component in the amount of any remaining difference, such increase being recognised in profit or loss. Contracts
in respect of which a loss component has to be recognised at the time of initial recognition are assigned to a GIC for
onerous contracts.
Measurement of the liability for incurred claims
The liability for incurred claims (LIC) is recognised for all claims that were incurred up to the measurement date, irrespec-
tive of whether they have been reported or not. The liability is calculated as the risk-adjusted present value of the best
estimate of the outstanding claim payments and claim settlement costs. A CSM is never recognised for the LIC because
expected profits are accrued only for the remaining coverage.
Payment estimates
To calculate the expected nominal values of the payments as realistically as possible, the Baloise Group uses the claims
history of recent years, generally accepted mathematical-statistical methods and all the information available to it at
the time, especially the knowledge of the experts entrusted with the handling of claims.
The expected claim payments consist of three components. The basis is formed by the reserves calculated using
actuarial methods. The second component comprises reserves for those complex special cases and events that are not
subject to purely statistical evaluation. These are generally rare claims that are fairly atypical of the sector concerned
and are usually large claims whose costs have to be estimated by experts on a case-by-case basis. The third component
consists of payments for annuities that are projected using actuarial principles, such as assumptions about mortality,
and are largely derived from claims in the motor, liability and accident insurance portfolios. To supplement the various
internal control mechanisms, the Baloise Group has the reserves – and the methods used to calculate them – reviewed
regularly by external specialists.
Discounting
The Baloise Group discounts the liability for incurred claims using discount rates that are consistent with the currency
and maturity of the expected claims, reflecting the fact that nominal values are estimated for the cash flows. The
Baloise Group uses the discount rates shown in the tables in note 12.1.4.
For the entire non-life business, the Baloise Group disaggregates the total change in the liability for incurred claims
resulting from discounting effects into a share recognised in profit or loss and a share recognised in other comprehen-
sive income. The share of the financial effects recognised in profit or loss is determined – as per recognition at amortised
cost – on the basis of the discount rates applicable at the time that the claim is incurred.
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Risk adjustment for the liability for incurred claims
The settlement of obligations relating to claims incurred is subject to uncertainty regarding the amount and timing
of the payments to be made. This uncertainty is of a non-financial nature, so the Baloise Group recognises a risk adjust-
ment as an additional component of the measurement of the LIC. It calculates the amount of the risk adjustment by
referring to the historical volatility of claim estimates in its portfolios and, where necessary due to the non-availability
of data, by referring to data for comparable portfolios. The amount of the risk adjustment for the liability for incurred
claims corresponds to the consolidated risk adjustment with a 75 per cent confidence level.
The risk adjustment is updated for each contract entered into. Changes to the risk adjustment for claims incurred
are generally recognised in profit or loss. For those GICs for which the Baloise Group disaggregates the entire change
resulting from interest effects between profit or loss and other comprehensive income, the effect of changes in interest
rates on the measurement of the risk adjustment is also shown in other comprehensive income.
Non-life contracts measured using the GMM
Contracts for non-life insurance are measured using the GMM if they do not satisfy the criteria for the PAA. For these
contracts, the Baloise Group uses the GMM rules (described above), including the definition of the coverage units.
Transition for non-life insurance contracts
For first-time adoption, the Baloise Group used the full retrospective approach to measure virtually all non-life insur-
ance contracts, i. e. measurement at the transition date was based entirely on historical application of IFRS 17 since
acquisition of the contracts. This affects not only business entered into by the Baloise Group itself but also all portfolios
acquired as a result of acquisitions (business combinations) or portfolio transfers from the date of transfer.
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12.1.6 Life insurance contracts
For its life insurance business, the Baloise Group forms the following portfolios as the basis for determining the groups of
insurance contracts (GICs):
●Endowment life insurance and pure whole-life insurance
●Annuities
●Disability insurance
●Unit-linked contracts
●Hybrid products, i. e. products that have both features of unit-linked insurance and features of traditional endowment
insurance
●Investment contracts with DPF
●General group insurance
●Swiss group insurance for semi-autonomous funds
●Swiss group insurance purely with risk coverage
●Other life business
For the measurement of all life insurance contracts, the following aspects are significant in addition to the GMM-based
standard approach described above.
Cash flows and underlying items
In many life insurance contracts, the level of the policyholder benefits depends on the performance of certain underlying
items, such as the surpluses of a particular portfolio or legal entity or the returns on clearly defined investments. A mate-
rial portion of these payments is often granted in the form of participation features, and the Baloise Group has some
degree of discretion in deciding when and in what amount payments are made. Depending on how the product is struc-
tured, such benefits may be combined with guaranteed benefits.
The projection of all cash flows for life insurance contracts takes all relevant influencing factors into account
including, but not limited to, mortality, invalidity rates, policyholder behaviour, changes in costs and the possible courses
of action open to senior management in certain scenarios. The Baloise Group determines these assumptions on the
basis of its own statistics, supplemented in some cases by industry-specific or other external information and trends
(e. g. mortality improvements, inflation). The Baloise Group uses stochastic models for assumptions without symmetrical
distribution around their expected value and for cash flows that do not respond to changes in variables in a non-linear
fashion.
Discounting of payments
The assumptions for projecting the performance of investments that affect insurance contract payments are consistent
with the discount rates that are used to discount these payments and that thus take account of the financial risk in
these payments. To this end, the Baloise Group uses a risk-neutral approach that also includes the measurement of
options and guarantees.
Risk adjustment
For all life insurance contracts, the risk adjustment is applied as an increase to the cash flows that have been discounted
on a risk-neutral basis. To do so, the Baloise Group determines – at the level of the strategic business unit – the most
probable combination of all simultaneous movements in all non-financial parameters, such as mortality, policyholder
behaviour and future costs, that correspond to a value at risk with a confidence level of 75 per cent. Using this combina-
tion of parameter movements, the risk adjustment is determined for each GIC as the difference between the discounted
cash flows with the expected assumptions and the discounted cash flows with the adjusted assumptions.
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Coverage units
The Baloise Group determines the coverage units for all life insurance contracts using a consistent approach: For
each GIC, the future benefits for the granting of insurance cover, guaranteed investment returns and other investment
services are measured and weighted using suitable metrics. In this process, the Baloise Group takes account of both
guaranteed benefits and benefits arising from expected participation features. The present value of these benefits forms
the coverage unit at each measurement date. To calculate the present value, the same assumptions as for determina-
tion of the fulfilment cash flows are used. However, for GICs measured using the GMM, the discount rates applicable at
the time of initial recognition of the GIC are used to ensure consistency in the measurement of the CSM.
Recognition of insurance finance income or expenses
For life insurance contracts measured using the general measurement model, there is also an option for each portfolio
to disaggregate the total change in the liability for insurance contracts resulting from financial effects into a share
recognised in profit or loss and a share recognised in other comprehensive income.
For those PICs in life insurance that the Baloise Group measures using the general measurement model and for
which it exercises the option, the share of the insurance finance income or expenses to be recognised in profit or loss is
dependent on how the payments to policyholders are determined. Typically, the payments to policyholders are deter-
mined on the basis of expected crediting rates and, in these cases, the Baloise Group applies the actual amounts cred-
ited and the amounts expected to be credited in future. The share recognised in profit or loss is based on the internal
interest rate method only in exceptional cases.
Contracts with direct participation features and the variable fee approach (VFA)
Contracts with direct participation features
The Baloise Group classifies insurance contracts that satisfy each of the following three criteria as contracts with direct
participation features:
●The contractual terms specify that the policyholders participate in a clearly identified pool of underlying items.
For the purposes of this definition, participation does not prevent the entity from exercising discretion regarding
the payment of certain amounts, but the policyholders must be able to enforce their right.
●Based on best estimates at the time of initial recognition of the contracts, the Baloise Group expects to pay to the
policyholders an amount equal to a substantial share of the fair value returns on the underlying items.
●At the time of initial recognition of the contracts, the Baloise Group expects – based on its best estimates – that a
substantial proportion of the total amounts to be paid to the policyholders will vary in line with the change in the
fair value.
Generally, investment contracts with DPF satisfy the definition of a contract with direct participation features. Nonethe-
less, these are different concepts for different aspects of contract classification.
In the Baloise Group, the following contracts within the scope of IFRS 17 are classified as contracts with direct participa-
tion features:
●Unit-linked, index-linked and investment-linked contracts
●Swiss group life business
●Other individual life insurance with participation features in Switzerland
●Traditional German life insurance with participation features
Variable fee approach
For contracts with direct participation features, a modified version of the general measurement method must be used
that is also known as the variable fee approach (VFA). In contrast to the premium allocation approach, use of the VFA is
mandatory.
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Measurement of the risk-adjusted present value of all future payments (fulfilment cash flows) is unaffected and is thus
carried out in the same way as for the general measurement model. The modifications to the measurement method
therefore only affect the measurement of the contractual service margin:
●The share of changes to the expected payments for future coverage that are attributable to changes in the fair value
of the underlying items is not recognised as an adjustment of the CSM but rather is recognised in the same way as
the change in the fair value of the underlying items.
●However, all other changes in the fulfilment cash flows for remaining coverage – particularly benefits based on
options and guarantees – are generally offset against the CSM, although the CSM is – contrary to the GMM – adjusted
on the basis of current market interest rates. The explicit accretion of interest on the CSM is thus not carried out for
the variable fee approach.
There are no further differences to the measurement approach under the GMM. For VFA contracts, this particularly
includes the following. In the event of an increase in the fulfilment cash flows that are offset against the CSM and exceed
the amount of the CSM, a loss component has to be recognised for the GIC. Any subsequent changes to the cash flows
are initially offset against this loss component before a CSM can be recognised for the GIC again. A positive CSM amount
is released per GIC at the end of the period using suitable coverage units, as described above.
Book yield approach
For contracts with direct participation features, there is also the option to disaggregate the entire change in insurance
contract measurement resulting from market effects, recognising a share in profit or loss and a share in other compre-
hensive income.
Where this option is exercised for contracts that have direct participation features and for which the Baloise Group
holds the underlying items that affect their performance, the Baloise Group uses the book yield approach, in which it
determines the share recognised in profit or loss of the total change in the insurance contract liability resulting from
market influences as precisely the opposite amount of the share recognised in profit or loss of the changes in the
fair value of the underlying items resulting from market influences. All other shares of insurance finance income and
expenses are recognised in other comprehensive income.
The Baloise Group uses the OCI option only for contracts with direct participation features in Germany and
Switzerland.
Transition for life insurance contracts
For the first measurement of life insurance contracts in accordance with IFRS 17, the Baloise Group first identified – sepa-
rately for each unit that operates life insurance business – the earliest point in time in the past from when all the infor-
mation was available for all contracts to be able to apply the full retrospective approach from this point in time. For
contracts that were initially recognised before this time, the Baloise Group determined the necessary data for periods
lying further back in the past on the basis of the modified retrospective approach or the fair value approach.
For the modified retrospective approach, Baloise uses any available assumptions and information that would be
applicable to the full retrospective approach. This applies, in particular, to the updating of the CSM and loss component.
For parts of portfolios that are measured using the fair value approach, the Baloise Group applies the principles of IFRS
13 Fair Value Measurement to the insurance contracts.
12.1.7 Reinsurance
Reinsurance contracts are insurance contracts between insurance companies and/or reinsurance companies. There
must be a transfer of significant insurance risk for a transaction to be recognised as reinsurance; otherwise, the trans-
action is treated as a financial contract.
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Inward reinsurance is any transaction in which the Baloise Group is the risk-taker. It is recognised, measured and
presented on the basis of exactly the same rules as for any other risks taken on directly.
Outward reinsurance is the business ceded to insurance companies outside of the Baloise Group and includes trans-
actions ceded from direct life and non-life business and from inward reinsurance. The general recognition and measure-
ment rules in IFRS 17 vary for this type of risk cession in a number of aspects. All references to reinsurance in the rest of
this note therefore relate solely to outward reinsurance held.
Initial recognition and formation of groups
The timing of the initial recognition of a reinsurance contract varies depending on the type of reinsurance:
Generally, the reinsurance contract is recognised on the date on which its coverage begins, but no later than the date
on which an onerous GIC is recognised if the reinsurance contract was not entered into after this date. Furthermore,
Baloise recognises reinsurance contracts that provide proportionate coverage no earlier than when the reinsured busi-
ness is recognised.
In the same way as for gross business, outward reinsurance contracts are divided into groups of insurance contracts
(GICs). These are formed independently of the GICs used in business underwritten by the Baloise Group itself.
The netting of gross business and reinsurance business is prohibited.
For measurement purposes, a distinction is made between two types of outward reinsurance. Retroactive reinsurance
refers to the subsequent signing of a reinsurance contract for claims already incurred in gross business. The purpose of
such cover is, for example, to protect against uncertainty about the remaining settlement of a portfolio of claims already
incurred. Prospective reinsurance is when claims not yet incurred in gross business are reinsured.
Measurement of outward reinsurance
Outward reinsurance is generally measured using the same approaches as for gross business.
The Baloise Group uses the PAA for all GICs of reinsurance contracts that satisfy the criteria for the PAA. Reinsurance
contracts cannot be classified as contracts with direct participation features, which is why the variable fee approach
cannot be used.
Cash flows and discounting
The expected cash flows for reinsurance – including reinsurance premiums ceded and the expected reimbursements
from the reinsurer – are updated at each measurement date. The Baloise Group determines these expected payments
consistently based on expectations for the reinsured business, taking account of the specific contract boundaries for
ceded business. In this context, the Baloise Group distinguishes between payments that depend directly on claims in the
reinsured business and all other payments.
In addition, the expected payments are adjusted directly for the risk of non-performance by the reinsurer in order to
take account of the risk that the Baloise Group does not receive the reimbursement expected from the reinsurer. When
recognising the risk of non-performance, the Baloise Group takes account of any collateral provided by the reinsurer.
Changes in the measurement of the claims against the reinsurer resulting from changes in the estimate of non-perfor-
mance risk are not offset against any CSM. Instead, they are recognised directly in profit or loss, under insurance finance
income or expenses.
Discount rates are chosen using the same approaches as for gross business, without any adjustment.
Risk adjustment
The Baloise Group determines the risk adjustment for outward reinsurance as a reduction of the risk in gross business
resulting from reinsurance. The risk adjustment thus increases the measurement of the claims against the reinsurer.
The reduction is determined pro rata on the basis of the risk adjustment for the ceded business in proportion to the
reinsurance’s share of the risk transfer.
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Contractual service margin
Upon initial recognition of groups of reinsurance contracts, the Baloise Group always recognises a CSM in an amount
that means that initial measurement results in neither an asset nor a liability. In contrast to gross business, this may
result in a CSM both for positive and for negative expected fulfilment cash flows, and a loss component is never
recognised.
Subsequent measurement of the CSM of a group of reinsurance contracts is based on the balance brought forward,
essentially in the same way as for contracts in gross business that are measured using the GMM. In particular, the
Baloise Group also identifies coverage units for groups of reinsurance contracts. These coverage units are used to deter-
mine the release of the CSM to profit or loss.
Contrary to the process described above, the Baloise Group recognises expected losses immediately upon initial
recognition of retroactive reinsurance contracts. Profits expected at the time of initial recognition must also be accrued
in a CSM; for subsequent measurement, the general rules for updating the CSM for reinsurance apply.
The measurement of reinsurance contracts is also adjusted if a loss component has to be recognised for the rein-
sured business. In this case, the Baloise Group calculates the percentage of the losses in gross business that are covered
by reinsurance and, for the reinsurance contracts, recognises a loss recovery component (LORECO) in the amount of the
reinsured share of the loss component.
The LORECO increases the measurement of the claim against the reinsurer, and each change to the LORECO is shown
as part of the insurance service result for reinsurance.
Reinsurance transition
The measurement of reinsurance claims on the IFRS 17 balance sheet is subject to the same general principles as for
gross business.
Interim financial reporting
The Baloise Group reverses previous accounting estimates set out in the interim financial reporting in relation to the
measurement of contracts in the scope of IFRS 17 for subsequent reporting in the same financial year.
12.2
Investments and financial liabilities
The term “investments” is used in the financial report for the sake of clarity. Investments encompass both investment
property and financial assets. Financial assets consist of financial instruments with characteristics of equity, financial ins-
truments with characteristics of debt, mortgages, loans, derivatives (assets), cash and cash equivalents, and receivables.
Financial liabilities consist of liabilities arising from financial contracts, derivatives (liabilities) and other financial
liabilities.
12.2.1 Investment property
Investment property comprises land and/or buildings held to earn rental income or for capital appreciation (or both).
If mixed-use properties cannot be divided 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 prop-
erty, 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 reclassifi-
cation, 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.
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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.
12.2.2 Financial assets
A distinction is made between investments for own account and at own risk on the one hand and investments for the
account and at the risk of customers and third parties on the other. Investments for the account and at the risk of
customers and third parties are assets from premiums for unit-linked or investment-linked life insurance contracts in
which policyholders themselves bear the investment risk in accordance with the investment objectives. Accordingly,
and in contrast to investments for own account and at own risk, the Baloise Group has no rights in respect of these
investments. The associated liabilities resulting from investments for the account and at the risk of customers and third
parties are recognised under “Liabilities arising from financial contracts” on the equity and liabilities side of the
balance sheet.
The following asset classes are reported as financial instruments with characteristics of equity: shares, units in equity
funds, mixed funds, real estate funds, bond funds, money market funds 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 debt.
Financial instruments with characteristics of debt predominantly encompass securities such as bonds and other
fixedincome securities. They are usually interest-bearing and are issued for a fixed or determinable amount.
Mortgages and loans are financial instruments with fixed or determinable payments and are generally not traded in
an active market, with the exception of registered bonds and promissory notes that are actively traded in the market.
Derivatives are swaps, futures, forward contracts, options, etc. 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.
Cash and cash equivalents essentially comprise cash on hand, demand deposits and cash equivalents. Cash equiva-
lents are predominantly short-term liquid investments with residual terms of no more than three months.
Recognition and measurement
IFRS 9 Financial Instruments uses two criteria to classify financial assets and their measurement:
●Business model
●Characteristics of the contractual cash flows
The business model indicates how the entity manages its financial assets in order to generate cash flows:
●By collecting contractual cash flows (the cash flows are predominantly from interest payments and capital
repayments – ‘held to collect’)
●By selling financial assets (the cash flows are predominantly from the purchase and sale of assets – ‘trading
and other’)
●A combination of the two models described above (‘held to collect and sell’)
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Another criterion to be applied in the classification of financial assets is whether the contractual cash flows are solely
payments of principal and interest (SPPI). In this model, interest primarily means consideration for the time value of
money, consideration for credit risk and a profit margin. Interest is recognised using the effective interest method.
Based on an analysis of the business model and the nature of the contractual cash flows, a financial asset is allo-
cated to one of the three categories upon initial recognition and subsequently measured accordingly:
●At amortised cost (AC)
●At fair value through other comprehensive income (FVOCI)
●At fair value through profit or loss (FVPL)
All regular purchases of financial assets are recognised on the trade date.
Upon initial recognition, all financial assets are measured at fair value irrespective of the category. With the exception
of financial assets measured at fair value through profit or loss (FVPL), the transaction costs are part of the acquisition
costs.
Amortised cost (AC)
A financial asset is measured at AC if it satisfies both of the following criteria:
●It is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows
(‘held to collect’)
●It satisfies the SPPI criterion
The Baloise Group acquires fixed-income bonds (financial instruments with characteristics of debt) and issues
held-to-maturity mortgages and loans in order to collect contractual interest payments. These instruments also satisfy
the SPPI criterion.
Receivables, cash and cash equivalents held by the Baloise Group are also recognised at AC and are generally carried
at their nominal amount.
These financial assets are measured by applying the effective interest method to the amortised cost (gross carrying
amount) and by recognising a loss allowance in profit or loss in the amount of the expected credit loss (ECL). The note
12.2.3 “Expected credit losses” below provides information about the basis of measurement for determining the amount
of the expected credit loss.
Currency translation effects on these items are also recognised in profit or loss.
Fair value through other comprehensive income (FVOCI)
A financial asset is measured at FVOCI if it satisfies both of the following criteria:
●It is held within a business model whose objective is both to collect contractual cash flows and to sell financial assets
(‘held to collect and sell’)
●It satisfies the SPPI criterion
The Baloise Group acquires debt instruments (primarily bonds), registered bonds and promissory notes for the purpose
of asset/liability management, i. e. to collect the contractual cash flows and/or to sell the financial assets. The financial
assets in this portfolio are therefore measured at FVOCI, provided that they also satisfy the SPPI criterion.
Currency translation effects of financial instruments measured at fair value through other comprehensive income
and the interest element calculated using the effective interest method are recognised in profit or loss. Any other
changes in fair value, however, are recognised in other comprehensive income. The expected credit loss is also recog-
nised in other comprehensive income and does not reduce the carrying amount of the financial instrument. When such
financial instruments are sold, the cumulative gains and losses recognised in other comprehensive income are trans-
ferred to the income statement.
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Fair value through profit or loss (FVPL)
●Mandatorily measured at FVPL: All financial instruments that do not satisfy the SPPI criterion and/or are not held in a
‘held to collect’ business model or in a ‘held to collect and sell’ business model are measured at FVPL. Changes in fair
value are recognised in profit or loss as realised gains and losses on investments.
The Baloise Group uses this measurement model for its trading portfolios and for financial instruments with
characteristics of equity, provided that the option to measure them at FVOCI has not been exercised. Derivatives
are included in this measurement category if they do not qualify as a hedge under IFRS. This is also the case even
if they have a hedging function under the Baloise Group’s hedging rules. Both positive and negative replacement
costs for derivatives are recognised at fair value on the balance sheet.
●Designated as measured at FVPL: An entity may, upon initial recognition, irrevocably designate financial instruments
as measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognising the gains
and losses on them on different bases. The Baloise Group primarily exercises this option in respect of financial
assets used to satisfy obligations under life insurance contracts.
Mortgages and loans held as part of a fair value hedge are designated as at FVPL. These portfolios are
measured using a present value method (yield curve).
FVOCI option (fair value through other comprehensive income)
Financial instruments with characteristics of equity are generally measured at fair value through profit or loss. At the
level of the individual instrument, however, an entity may irrevocably elect, upon initial recognition, to recognise subse-
quent changes in the equity instrument’s fair value in other comprehensive income, provided that the financial asset is
not held for trading (FVOCI option).
The Baloise Group exercises this option for equities in the non-life business. All other financial instruments with char-
acteristics of equity – including those held for trading – are measured at fair value through profit or loss.
Where financial instruments with characteristics of equity are measured at fair value through other comprehensive
income, the gains and losses on changes in the fair value of these instruments are recognised in other comprehensive
income. When these financial instruments are sold, the cumulative gains and losses recognised in other comprehensive
income remain in equity and are transferred directly to retained earnings. Dividend income from these financial instru-
ments is recognised in profit or loss.
Hedge accounting
At the time the contract is entered into, a derivative is classified either as a hedging instrument for the fair value of an
asset or liability (fair value hedge), as a hedge for future transactions (cash flow hedge), as a hedge of a net investment
in a foreign operation or – if it does not satisfy the criteria to qualify as a hedge – as a trading instrument (FVPL).
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 when the contract is entered
into. Derivatives that no longer qualify as a hedge are reclassified as trading instruments.
●Fair value hedges: When the effective portion of a hedge is being accounted for, changes in the fair value of deriva-
tives classified as fair value hedges are reported in the income statement together with the hedged portion of the fair
value of the asset or liability concerned. The ineffective portion of the hedge is recognised separately in the income
statement.
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●Cash flow hedges: When the effective portion of a hedge is being accounted for, changes in the fair value of
derivatives classified as cash flow hedges are recognised directly in equity. The amounts reported in equity under
other comprehensive income are taken to the income statement at a later date in line with the hedged cash flows.
The ineffective portion of the hedge is recognised in the income statement.
If a hedging instrument is sold, terminated or exercised or if it no longer qualifies as a hedge, the cumulative
gains and losses continue to be recognised directly in equity until the forecast transaction occurs. If the forecast
transaction is no longer expected to occur, the cumulative gains and losses recognised in equity are transferred
to the income statement.
●Hedges of a net investment in a foreign operation: Hedges of a net investment in a foreign operation are accounted
for in the same way as cash flow hedges. The portion of the gain or loss on the hedging instrument that is determined
to be an effective hedge is recognised directly in equity; the ineffective portion is recognised in profit or loss.
The gain or loss recognised in equity is reclassified to the income statement upon the partial or full disposal of
the foreign operation.
Structured products
Structured products are financial instruments (assets or liabilities) that contain embedded derivatives in addition to
the host contract. 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
separated from the host contract and is recognised, measured and disclosed separately. If the derivative and the host
contract are not separated, the structured product is designated as a host contract recognised at fair value through
profit or loss.
Quoted market prices
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, the 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 and the prevailing
market situation. Derivatives are measured using publicly quoted prices or on the basis of models. 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, 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, they are measured using
prices quoted by independent third-party providers.
A detailed description of fair value measurement and the related disclosures can be found in the note 4.5 “Fair value
measurement of investments and financial liabilities“.
Securities financing transactions
Cash outflows from reverse repurchase (repo) transactions are offset by corresponding receivables. The financial assets
received as collateral from the transaction are not recognised. The relevant transaction is recognised on the balance
sheet on the settlement date.
Financial assets transferred as collateral under repurchase agreements continue to be recognised as financial assets.
The cash inflows are offset by corresponding liabilities. The securities provided as cover for repos and reverse repos are
measured on a daily basis at their current fair values.
The Baloise Group engages in securities lending only. Securities lending transactions may give rise to credit risk.
Collateral is requested in order to hedge this credit risk by more than covering the underlying value of the securities that
are being lent (mainly bonds). The value of the counterparty’s collateral is regularly measured in order to minimise the
credit risk involved. Additional collateral is immediately requested if this value falls below the value of required cover. The
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Baloise Group retains control over the securities throughout the term of its lending transactions, so it continues to recog-
nise these financial instruments as financial assets on its balance sheet. The income received from securities lending is
recognised in profit or loss.
12.2.3 Expected credit losses
The impairment principles in IFRS 9 are applied to financial instruments measured at amortised cost (AC) or at fair
value through other comprehensive income (FVOCI), receivables (including rent receivables), lease receivables and off-
balance-sheet loan commitments and financial guarantee contracts.
Under IFRS 9, expected credit losses (ECL) must be measured in a way that reflects the time value of money and an
unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes. The method
of measurement must also take appropriate account of all available information about past events, current conditions
and forecasts of future conditions.
Information about past events is used to analyse changes in credit quality between the start of the contract term
and the current assessment date. Forward-looking information examines credit quality in the subsequent year and up
to the end of the contract term. This expected change in credit quality is determined using macroeconomic factors. In
particular, the analysis looks at macroeconomic and financial market indicators to determine whether the expected
probability of default in the subsequent year has increased significantly compared with the initial estimate at the time
of initial recognition.
Segmentation based on product type and collateral type is carried out for the ECL calculation. In addition to
reducing complexity, this segmentation helps to ensure that the specific risks of the financial instruments in question are
classified in homogeneous groups and that the relevant parameters for the ECL calculation are defined accordingly and
are available in the system. From a conceptual perspective, the same criteria and parameters are always used across a
homogeneous segment.
The expected credit losses are a probability-weighted estimate of credit losses within twelve months of the balance
sheet date or over the expected life of the financial instrument, i. e. the weighted average of credit losses, with the
weighting based on the respective credit risks. To estimate expected credit losses, the Baloise Group evaluates a range
of possible outcomes in order to obtain an unbiased and probability-weighted amount. Although there is no need to
identify each individual possible scenario, the probability that a credit loss will occur must always be taken into account,
irrespective of its probability of occurrence. A probability-weighted estimate is not the same as a single estimate of the
worst-case scenario, the best-case scenario or the most probable outcome.
A Group-wide approach is used to model the ECL.
Expected credit losses are generally measured on the basis of four components:
●Probability of default (PD)
●Exposure at default (EaD)
●Loss given default (LGD)
●Discount rate (based on the effective interest rate of the relevant position)
To calculate the ECL, the four components are multiplied:
ECL = PD x EaD x LGD x discount rate
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Examples of the factors used by the risk management function to model the probabilities of default for the mortgage
portfolio:
●Change in gross domestic product
●Movement in interest rates
●Change in the unemployment rate
●Change in the house price index
The modelling of the probabilities of default for the bond portfolio draws on credit spread forecasts; in the case of
receivables, the historical probability of default is adjusted on the basis of an expert evaluation.
The (average) expected loss is recognised in the income statement when the transaction is entered into. At the
balance sheet date, all affected positions are assigned to one of the following three stages on the basis of the change
in the counterparty’s credit quality:
●Stage 1 (performing)
●Stage 2 (underperforming)
●Stage 3 (non-performing)
Stage 1 (performing)
As a rule, all positions are assigned to stage 1 (performing) upon initial recognition unless the counterparty is already in
default. For these assets, the twelve-month ECL must be calculated and recognised. This is the portion of the expected
credit losses that result from default events that are expected within the twelve months after the balance sheet date,
provided that the credit risk has not increased significantly since initial recognition.
Determination of a significant increase in credit risk
If credit risk increases significantly, the position must be classified as underperforming. The assessment of whether credit
risk has increased significantly is carried out on the basis of the following factors:
● Quantitative criteria: The starting point is a comparison of credit risk over the residual life at the time of initial recog-
nition and at each balance sheet date. On this basis, criteria are defined that are indicative of a significant increase
in credit risk.
●Qualitative criteria: Determination of the quantitative criteria must also take qualitative criteria into account. These
criteria are used in-house to identify insolvency or a higher probability that a counterparty will become insolvent or
that the credit risk will remain elevated for the foreseeable future.
●Backstop indicators: A safety threshold (backstop) is applied in which contractual payments that are more than 30
days past due in stage 2 (90 days in stage 3) constitute a significant increase in credit risk.
Stage 2 (underperforming)
The Baloise Group recognises a loss allowance in the amount of the lifetime expected credit losses for financial assets
whose credit risk is assumed to have increased significantly since initial recognition. This requires the ECL to be calcu-
lated on the basis of the lifetime probability of default, the lifetime loss given default and the lifetime exposure at
default, which represents the probability of default for the residual term of the financial asset. The loss allowance for
credit risk is higher in this stage because the credit risk increases and the effects of a longer horizon than the twelve
months used in stage 1 are taken into account.
Stage 3 (non-performing)
Assignment to stage 3 is carried out only where a loss event has effectively occurred. For financial assets that are classi-
fied as in default, a loss allowance is recognised in the amount of the expected credit losses, taking account of a proba-
bility of default of 100 per cent based on the cash flows expected to be achieved from the asset. Financial assets that are
already impaired upon initial recognition on the balance sheet are categorised within stage 3 with a carrying amount
that reflects the lifetime expected credit losses (purchased or originated credit-impaired financial assets (POCI assets)).
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In the event of assignment to stage 3, a loss allowance is recognised manually in the amount of the expected default,
based on information about the loss event. A model is used to calculate the ECL for mortgage loans in stage 3. For finan-
cial instruments with characteristics of debt in stage 3, the ECL is not calculated using a model. Instead, suitable experts
estimate the lifetime ECL.
Criteria for reversals of impairment losses
A financial instrument is reassigned from stage 2 to stage 1 if the above-mentioned qualitative and quantitative criteria
are no longer met and the position has been regularly serviced again for at least 180 days. A financial instrument is
reassigned from stage 3 to stage 1 if all of the necessary criteria for this transfer are satisfied and the position has been
regularly serviced again for at least 360 days and no loss allowances have been recognised. There are no circumstances
in which instruments are reassigned from stage 3 to stage 2. If an impairment loss is reversed, the position is transferred
directly to stage 1 once the necessary conditions have been met.
Option for financial instruments with low credit risk
For bonds (including accrued interest), promissory notes and time deposits, the low credit risk exemption provided as an
option under IFRS 9 is applied. Under this exemption, all investment-grade financial instruments are assigned to stage
1. These include non-speculative investments where there is a high probability that the outstanding receivable can be
repaid and the credit risk is therefore low.
Simplified approach under the impairment model
The simplified approach is generally used for all rent receivables. These are usually of a short-term nature and therefore
do not contain a significant financing component. The short-term nature of the receivables means that the expected
twelve-month credit loss equals its lifetime expected credit loss, making a transfer from stage 1 to stage 2 irrelevant.
Consequently, the expected credit loss for the residual life of the receivable is calculated for all rent receivables that are
not past due.
Recognition of loss allowances on the balance sheet
On the balance sheet, the loss allowance for financial instruments measured at AC is deducted from the asset. For finan-
cial instruments measured at FVOCI, the loss allowance is recognised in other comprehensive income (equity) and there-
fore does not reduce the carrying amount of the asset on the balance sheet. This ensures that the carrying amounts
of these assets are always equal to their fair value. The gross carrying amount of a financial asset is reduced if it is no
longer reasonable to assume that it will recover, i. e. the outstanding receivable is no longer considered collectible or is
cancelled. The timing of the write-off is determined individually on a case-by-case basis as soon as there is no longer any
reasonable prospect of recovery. Where receivables are backed by collateral, the write-off is recognised only after the
forced sale of the pledged assets, whereby the amount written off represents the remaining amount not covered by the
collateral.
12.2.4 Revenue recognition
Interest income
Interest income from financial instruments that are not measured at fair value through profit or loss is recognised using
the effective interest method. The calculation of interest income depends on the stage of the impairment model to
which the financial instrument has been assigned.
In stages 1 and 2, there is no link between recognition of interest and impairment. The interest income is therefore
calculated on the gross carrying amount (without deduction of the loss allowance). If a financial asset is assigned to
stage 3, the interest income is calculated on the amortised cost of the financial asset (i. e. the gross carrying amount
less the loss allowance) and not on the gross carrying amount.
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Dividend income
Dividend income from financial assets is recognised in profit or loss as soon as a legal entitlement to receive payment
arises.
12.2.5 The Baloise Group as a lessor
Investment property let on operating leases is reported as investment property on the consolidated balance sheet.
12.2.6 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.
12.2.7 Liabilities arising from financial contracts
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.
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 liabili-
ties that are designated as “at fair value through profit or loss” as part of the Baloise Group’s strategy of using natural
hedges.
12.3
Financial liabilities
Financial liabilities include not only bonds issued in the capital markets but also lease liabilities.
12.3.1 Outstanding bonds
Outstanding bonds are measured at their acquisition cost (fair value) at initial recognition. 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 effective interest method.
12.3.2 Lease liabilities
The Baloise Group as a lessee
The Baloise Group leases real estate for office space and warehousing. It recognises right-of-use assets for these leases
on its balance sheet. The related lease liability is initially measured at the present value of the lease payments that will
be paid over the lease term, discounted at the lessee’s weighted average incremental borrowing rate. The lease liability
is subsequently measured at amortised cost using the effective interest method, including both an interest component
and a principal component.
The lease liability and the right-of-use asset are recognised at the commencement date. The right-of-use asset
is initially measured in the amount of the initial lease liability, adjusted for any initial direct costs and any incentives
granted by the lessor. The right-of-use asset is depreciated over the shorter of the lease term and the useful life of the
underlying asset. Both the formation of new leases and the termination of existing leases generate non-cash transac-
tions in right-of-use assets and lease liabilities. On the balance sheet, right-of-use assets are recognised under the “Prop-
erty, plant and equipment” line item.
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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 on the balance sheet because Baloise has elected to apply the exemption provided in IFRS 16.
Payments for such leases are expensed in the income statement on a straight-line basis over the lease term. The assets
under short-term leases and low-value assets consist of operating equipment, parking spaces and other property, plant
and equipment.
12.4
Employee benefits
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 calculation of defined benefit obligations towards employees requires assumptions to be made about the
economic benefit of assets, future increases in salaries and pension benefits, the discount rate to be applied and other
parameters. The most important assumptions are derived from past experience of making estimates.
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.
12.4.1 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 perti-
nent pension liabilities. The Baloise Group’s pension plan agreements are tailored to local conditions in terms of enrol-
ment and the range of benefits offered.
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 comprehensive income.
12.4.2 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 Performance Share Units (PSU) Plan. The PSU Plan and the Employee Incentive Plan are equi-
ty-settled share-based payment plans. By contrast, the Share Subscription Plan is a share-based payment plan with a
choice of settlement (cash or equity-settled).
In addition, FRIDAY Insurance S. A. offers its employees an Employee Stock Option Programme (ESOP), which is an
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 Baloise 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 recog-
nised under equity.
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12.5
Taxes
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, assumptions are made about the recoverability of these tax assets; these assumptions are based
on the financial track record and future income of the taxable entity concerned.
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 differ-
ences 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 taxa-
tion are identical.
12.6
Other income statement line items
12.6.1 Revenue recognition
Revenue and income are recognised at the fair value of the consideration received or receivable. Intercompany transac-
tions and the resultant gains and losses are eliminated.
12.6.2 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.
12.7
Other balance sheet line items
12.7.1
Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses. An exception to this are owner-occupied buildings that are designated as underlying items for the
measurement of life insurance contracts (VFA) and thus measured at fair value through profit or loss.
The acquisition cost of property, plant and equipment includes all directly attributable costs. Subsequent 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
The recoverability and useful life of an item of property, plant and equipment is reviewed at each balance sheet date.
An impairment loss is immediately recognised on the carrying amount of an item of property, plant and equipment if
its recoverable amount falls below its carrying amount.
The gain or loss on the sale of an item of property, plant and equipment is recognised under “Other operating income”
or “Other operating expenses” in the income statement upon derecognition.
Information on initial recognition and subsequent measurement of right-of-use assets can be found in note 12.3.2.
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12.7.2 Intangible assets
Goodwill
Goodwill represents the excess of an acquiree’s acquisition cost over the fair value of its assets and liabilities plus the
acquisition-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 if there are objective indi-
cations that goodwill may be permanently impaired. 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 9.2. 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.
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 indefi-
nite 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.
12.7.3 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. 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 speci-
fied capital adequacy limits. The long-term financial planning approved by management forms the basis for this calcu-
lation 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 esti-
mates 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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12.7.4 Other assets
Other assets encompass various line items, primarily development projects earmarked for subsequent sale (such as
apartments in blocks of apartments with multiple ownership). They 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).
12.7.5 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 measured 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 note 10.2.5.
12.7.6 Equity
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.
Share capital
The share capital shown on the balance sheet represents the subscribed share capital of Baloise Holding Ltd, Basel. This
share capital consists solely of registered shares. No shares carry preferential voting rights.
Capital reserves
Capital reserves include the paid-up share capital in excess of par value (share premium), Baloise Holding Ltd share
options and gains and losses on the sale of treasury shares.
Treasury shares
Treasury shares held either by Baloise Holding Ltd or by subsidiaries are shown in the consolidated financial state-
ments 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 Baloise Holding Ltd shares are classified as
treasury shares.
Other reserves
This line item includes unrealised gains and losses on changes in the fair value of financial instruments classified as
FVOCI, the effects of cash flow hedges, the effects of hedges of a net investment in a foreign operation, exchange differ-
ences and gains on the reclassification of owner-occupied property as investment property. Cumulative actuarial gains
and losses under defined benefit pension plans are also included in this line item. For portfolios of insurance contracts
for which the Baloise Group recognises measurement effects in other comprehensive income owing to changes in finan-
cial assumptions, this line item contains the cumulative effects of these adjustments.
The related deferred taxes are deducted from the unrealised gains and losses. Any non-controlling interests are also
deducted from these line items.
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Retained earnings
Retained earnings include the Baloise Group’s undistributed earnings and its profit for the period. This line item also
contains the gains and losses on financial instruments with characteristics of equity measured at FVOCI that were sold
in the reporting year. When a property, associate or joint venture is sold, the related reserves recognised in other compre-
hensive income that cannot be reclassified to the income statement are also reclassified to retained earnings. Divi-
dends paid to the shareholders of Baloise Holding Ltd are only recognised once they have been approved by the Annual
General Meeting.
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.
12.7.7
Non-technical provisions
Non-technical provisions for restructuring, for unavoidable costs relating to investment contracts without significant
insurance risk and for 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 measurement of non-technical provisions requires assumptions
to be made about the probability, timing and amount of any outflow of resources. A provision is recognised if such an
outflow is probable and can be reliably estimated. If the amount of the obligation cannot be estimated with sufficient
reliability, it is reported as a contingent liability.
12.8
Long-term equity investments and structure of the Baloise Group
12.8.1 Subsidiaries
The consolidated annual financial statements comprise the financial statements of Baloise Holding Ltd and its subsidi-
aries, including any structured entities. A subsidiary is consolidated if the Baloise Group controls it either directly or indi-
rectly. 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 activi-
ties 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 considera-
tion 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 recog-
nised 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.
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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
operating 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.
12.8.2 Associates and joint ventures
Associates and joint ventures are initially carried at cost (fair value on the date of acquisition) and thereafter are meas-
ured under the equity method (the Baloise Group’s share of the entity’s profit or loss for the period and other compre-
hensive 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 and joint ventures 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 or the joint
venture, no further losses are recognised. Goodwill paid for associates and joint ventures is included in the carrying
amount of the investment.
12.8.3 Structured entities
Structured entities are consolidated provided the criteria for control pursuant to IFRS 10 Consolidated Financial State-
ments 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. Invest-
ment 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
Financial Instruments: Presentation. 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.
12.8.4 Joint arrangements
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, but 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 on 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.
399
Baloise Group Annual Report 2024
Financial report
12.9
Currency translation
12.9.1 Functional currency and reporting currency
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 millions of Swiss francs, which is the Baloise
Group’s reporting currency.
12.9.2 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. 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. Non-monetary items measured at historical cost are measured using
historical rates. Insurance contracts are monetary balance sheet line items.
Exchange differences are generally recognised in profit or loss. The exceptions are exchange differences relating to
fair value through OCI financial instruments, cash flow hedges and hedges of net investments in foreign operations,
which are recognised in other comprehensive income. If effects of insurance finance expenses relating to insurance
contracts are recognised in other comprehensive income, the resulting currency effects are also recognised in other
comprehensive income.
12.9.3 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.
12.9.4 Key exchange rates
Balance sheet
Income statement
31.12.2024
31.12.2023
Ø 2024
Ø 2023
CHF
1 EUR (euro)
0.94
0.93
0.95
0.97
1 USD (US dollar)
0.91
0.84
0.88
0.90
400
Baloise Group Annual Report 2024
Financial report
Report of the statutory auditor to the Annual
General Meeting of Baloise Holding Ltd, Basel
Please refer to the German version of the Baloise Annual Report 2024, page 400, for the report of the statutory auditor,
Report on the audit of the consolidated financial statements of Baloise Holding Ltd and its subsidiaries (the “Group”).
The auditor’s opinion dated 20 March 2025 is unqualified and confirms that the financial statements give a true and
fair view of the consolidated financial position of the group as at 31 December 2024 in accordance with IFRS
accounting standards and comply with Swiss law.
EY recommends that the consolidated financial statements submitted to the Annual General Meeting of
Baloise Holding Ltd, Basel, be approved.
Please also refer to the disclosure on page 439 “Information on the Baloise Group” referencing the fact that only
the German text of the annual report is legally binding.
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407
Baloise Group Annual Report 2024
Income statement of Baloise Holding Ltd
408
Balance sheet of Baloise Holding Ltd
409
Notes to the financial statements of Baloise
Holding Ltd
410
Appropriation of distributable profit/
accumulated loss as proposed by the
Board of Directors
419
Report of the statutory auditor to the Annual
General Meeting of Baloise Holding Ltd, Basel
420
Baloise Holding Ltd
408
Baloise Group Annual Report 2024
Baloise Holding Ltd
Note
2024
2023
CHF million
Income from long-term equity investments
542.7
454.3
Income from interest and securities
2
25.5
41.3
Financial income
3
28.5
36.4
Total income
596.7
532.0
Administrative expenses
4
– 52.7
– 39.4
Financial expenses
5
– 3.2
– 20.1
Interest expenses
6
– 39.5
– 26.1
Impairments
7
– 648.2
–
Other expenses
– 3.0
– 2.8
Total expenses
– 746.6
– 88.4
Tax expense
– 0.1
– 0.4
Tax expense relating to other periods
– 0.2
–
Tax income relating to other periods
0.0
0.7
Annual result
– 150.2
443.9
Income statement of Baloise Holding Ltd
409
Baloise Group Annual Report 2024
Baloise Holding Ltd
Note
31.12.2024
31.12.2023
CHF million
Assets
Cash and cash equivalents
220.9
138.3
Receivables from group companies
8
395.0
377.1
Receivables from third parties
1.7
0.9
Current assets
617.6
516.3
Loans to group companies
9
587.3
1,199.1
Long-term equity investments
10
2,361.3
1,993.3
Non-current assets
2,948.6
3,192.4
Total assets
3,566.2
3,708.7
Equity and liabilities
Current liabilities
Liabilities to group companies
5.2
5.4
Liabilities to third parties
2.3
2.2
Current interest-bearing liabilities to third parties
11
200.0
150.0
Deferred income
21.5
10.9
Non-current liabilities
Long-term interest-bearing liabilities to group companies
12
798.8
451.0
Long-term interest-bearing liabilities to third parties
13
1,935.0
1,985.0
Provisions
1.7
0.1
Liabilities
2,964.5
2,604.6
Share capital
4.6
4.6
Statutory retained earnings
General reserve
11.7
11.7
Reserve for treasury shares
10.3
5.4
Voluntary retained earnings
Free reserves
730.8
644.4
Result shown in the balance sheet
– Profit carried forward
0.1
0.1
– Annual result
– 150.2
443.9
Treasury shares
14
– 5.5
– 6.0
Equity
15
601.8
1,104.1
Total equity and liabilities
3,566.2
3,708.7
Balance sheet of Baloise Holding Ltd
410
Baloise Group Annual Report 2024
Baloise Holding Ltd
1. Accounting Policies
General
These annual financial statements of Baloise 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 Baloise 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 balance sheet line item contains dividends approved by the annual general meetings of the subsidiaries of Baloise
Holding Ltd as at the balance sheet date. Baloise Holding Ltd recognises them as dividends receivable. They are recog-
nised 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. The effect of the derivative is offset against the
inverse effect of the underlying instrument if certain conditions are met.
Long-term equity investments
Long-term equity investments are recognised individually at cost less any impairment losses.
Notes to the financial statements of Baloise Holding Ltd
411
Baloise Group Annual Report 2024
Baloise 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 recog-
nised 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 inter-
est-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 subse-
quently 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.
412
Baloise Group Annual Report 2024
Baloise Holding Ltd
Notes to the income statement
2. Income from interest and securities
2024
2023
CHF million
Income from treasury shares
0.4
0.4
Interest on loans to group companies
22.3
38.3
Realized income treasury shares
–
0.2
Other income from interest and securities
2.8
2.4
Total income from interest and securities
25.5
41.3
3. Financial income
2024
2023
CHF million
Income from the sale of business
–
24.1
Foreign currency effects
20.7
4.3
Others
7.8
8.0
Total financial income
28.5
36.4
4. Administrative expenses
2024
2023
CHF million
Proportional personnel expenses 1
– 33.7
– 22.6
Other administrative expenses
– 19.0
– 16.8
Total administrative expenses
– 52.7
– 39.4
1 Baloise Holding Ltd has no direct employees. All staff members are employed by Baloise Insurance Ltd, Basel.
5. Financial expenses
2024
2023
CHF million
Foreign currency effects
– 1.4
– 19.2
Others
– 1.8
– 0.9
Total Financial expenses
– 3.2
– 20.1
6. Interest expenses
2024
2023
CHF million
Interest on bonds
– 19.6
– 18.4
Other interest expenses
– 19.9
– 7.7
Total interest expenses
– 39.5
– 26.1
413
Baloise Group Annual Report 2024
Baloise Holding Ltd
7. Impairments
2024
2023
CHF million
Impaiments on Long-term equity investments
– 648.2
–
Total Impairments
– 648.2
–
Each long-term equity investment is tested annually when it is remeasured. In 2024, impairment losses were recognised on Baloise (Luxembourg) Holding S.A. in an amount of
CHF 587.0 million and on Baloise Participation Holding AG in an amount of CHF 61.2 million.
Notes to the balance sheet
8. Receivables from group companies
31.12.2024
31.12.2023
CHF million
Dividends
380.7
366.4
Other receivables
14.3
10.7
Total receivables from group companies
395.0
377.1
The annual general meeting of the following AGMs voted to recognise the dividends receivable for the 2024 financial
year as accrued income:
●27 February 2025: Baloise Bank AG, Solothurn
●27 February 2025: Baloise Asset Management AG, Basel and Baloise Asset Management International AG, Basel
●20 March 2025: Baloise Versicherung AG, Basel and Baloise Leben AG, Basel
●20 March 2025: Baloise (Luxembourg) Holding S.A., Leudelange (Luxembourg)
●17 April 2025: Baloise Delta Holding S. à.r.l., Leudelange (Luxembourg)
9. Loans to group companies
31.12.2024
31.12.2023
CHF million
Subordinated loans to Baloise Bank AG
90.0
90.0
Subordinated loans to Baloise (Luxembourg) Holding S. A.
–
284.6
Subordinated loans to Baloise Belgium NV
357.0
352.8
Subordinated loans to Baloise Vie Luxembourg S. A.
65.8
65.0
Loans to Baloise (Luxembourg) Holding S. A.
–
327.4
Loans to Baloise Beteiligungen B. V. & Co. KG
31.5
36.3
Loans to Baloise Sach Holding AG
43.0
43.0
Total loans to group companies
587.3
1,199.1
414
Baloise Group Annual Report 2024
Baloise Holding Ltd
10. Long-term equity investments
Total
shareholding
as at
31.12.2024
(with
voting rights)
Total
shareholding
as at
31.12.2023
(with
voting rights)
Share capital
as at
31.12.2024 Capital share
(per cent) 1
(per cent) 1
Currency
(million)
(million)
Company
Baloise Versicherung AG, Basel
100.00
100.00
CHF
75.0
75.0
Baloise Leben AG, Basel
100.00
100.00
CHF
50.0
50.0
Baloise Bank AG, Solothurn
100.00
100.00
CHF
50.0
50.0
Baloise Asset Management AG, Basel
100.00
100.00
CHF
1.0
1.0
Baloise Asset Management International AG, Basel
100.00
100.00
CHF
1.5
1.5
Baloise Life (Liechtenstein) AG, Balzers (Liechtenstein)
100.00
100.00
CHF
7.5
7.5
Basler Saturn Management B. V., Hamburg (Deutschland)
100.00
100.00
EUR
<0.1
<0.1
Baloise (Luxembourg) Holding S. A., Leudelange (Luxembourg)
100.00
100.00
CHF
50.0
50.0
Baloise Delta Holding S.à.r.l., Leudelange (Luxembourg)
100.00
100.00
EUR
224.3
224.3
Baloise Fund Invest Advico, Leudelange (Luxembourg)
100.00
100.00
EUR
0.1
0.1
Baloise Alternative Investments Partner S.à r. l., Leudelange
(Luxembourg)
100.00
100.00
EUR
<0.1
<0.1
Baloise Private Equity Partner S.à. r. l., Leudelange (Luxembourg)
100.00
100.00
EUR
<0.1
<0.1
Baloise Participation Holding AG, Basel
100.00
100.00
CHF
0.1
0.1
Baloise Belgium NV, Antwerpen
100.00
–
EUR
355.3
355.3
1 Investments stated as a percentage are rounded down.
11. Current interest-bearing liabilities to third parties
31.12.2024
Interest rate
Issued
Maturity date
Amount
CHF million
Securities with security number
Bond 45 809 797
0.500 %
28.01.2019
28.11.2025
200.0
Total current interest-bearing liabilities
200.0
31.12.2023
Interest rate
Issued
Maturity date
Amount
CHF million
Securities with security number
Bond 26 139 906
1.125 %
19.12.2014
19.12.2024
150.0
Total current interest-bearing liabilities
150.0
415
Baloise Group Annual Report 2024
Baloise Holding Ltd
12. Long-term interest-bearing liabilities to group companies
31.12.2024
31.12.2023
CHF million
Loans from Baloise Versicherung AG
300.0
300.0
Loans from Baloise Leben AG
141.8
151.0
Loans from Baloise (Luxembourg) Holding S. A.
357.0
–
Total Lont term ,interest-bearing liabilities from Group Companies
798.8
451.0
13. Long-term interest-bearing liabilities to third parties
31.12.2024
Interest rate
Issued
Maturity date
Amount
CHF million
Securities with security number
Bond 49 669 297
0.000 %
25.09.2019
25.09.2026
100.0
Bond 49 669 298
0.000 %
25.09.2019
25.09.2029
125.0
Bond 55 333 181
0.250 %
16.07.2020
16.12.2026
175.0
Bond 55 333 182
0.500 %
16.07.2020
16.12.2030
125.0
Bond 59 364 106
0.150 %
15.02.2021
17.02.2031
250.0
Bond 113 081 883
0.125 %
27.09.2021
27.06.2030
200.0
Bond 114 872 821
0.300 %
16.02.2022
16.02.2027
200.0
Bond 119 932 235
1.900 %
19.07.2022
19.07.2028
110.0
Bond 120 636 766
2.200 %
30.11.2022
30.05.2029
225.0
Bond 123 210 718
2.200 %
30.01.2023
30.01.2032
175.0
Bond 125 636 719
2.350 %
02.05.2023
02.05.2033
100.0
Bond 134 861 414
1.750 %
07.06.2024
07.06.2034
150.0
Total long-term interest-bearing liabilities
1,935.0
31.12.2023
Interest rate
Issued
Maturity date
Amount
CHF million
Securities with security number
Bond 45 809 797
0.500 %
28.01.2019
28.11.2025
200.0
Bond 49 669 297
0.000 %
25.09.2019
25.09.2026
100.0
Bond 49 669 298
0.000 %
25.09.2019
25.09.2029
125.0
Bond 55 333 181
0.250 %
16.07.2020
16.12.2026
175.0
Bond 55 333 182
0.500 %
16.07.2020
16.12.2030
125.0
Bond 59 364 106
0.150 %
15.02.2021
17.02.2031
250.0
Bond 113 081 883
0.125 %
27.09.2021
27.06.2030
200.0
Bond 114 872 821
0.300 %
16.02.2022
16.02.2027
200.0
Bond 119 932 235
1.900 %
19.07.2022
19.07.2028
110.0
Bond 120 636 766
2.200 %
30.11.2022
30.05.2029
225.0
Bond 123 210 718
2.200 %
30.01.2023
30.01.2032
175.0
Bond 125 636 719
2.350 %
02.05.2023
02.05.2033
100.0
Total long-term interest-bearing liabilities
1,985.0
416
Baloise Group Annual Report 2024
Baloise Holding Ltd
14. Treasury shares
2024
Low
in CHF
High
in CHF
Average
share price
in CHF
Number of
registered
shares
Balance as at 1 January
54,827
Purchases
–
–
–
–
Disposals in connection with share participation programmes
– 3,022
Balance as at 31 December
51,805
2023
Low
in CHF
High
in CHF
Average
share price
in CHF
Number of
registered
shares
Balance as at 1 January
68,991
Purchases
130.50
135.20
133.64
7,000
Disposals in connection with share participation programmes
– 21,164
Balance as at 31 December
54,827
15. Changes in equity
Share capital
Statutory retained
earnings
Voluntary retained
earnings
Treasury
shares
Total
equity
2024
General
reserve
Reserve for
treasury
shares
Free
reserves
Distributable
profit
CHF million
Balance as at 1 January
4.6
11.7
5.4
644.4
444.0
– 6.0
1,104.1
Allocation 2024
–
–
–
91.2
– 91.2
–
–
Dividend
–
–
–
–
– 352.7
–
– 352.7
Additions
–
–
–
–
–
–
–
Reduction of share capital
–
–
–
–
–
–
–
Change in treasury shares
–
–
4.9
– 4.9
–
0.5
0.5
Recognition / reversal
–
–
–
–
–
Annual result
–
–
–
–
– 150.2
–
– 150.2
Balance as at 31 December
4.6
11.7
10.3
730.8
– 150.1
– 5.5
601.8
417
Baloise Group Annual Report 2024
Baloise Holding Ltd
Share
capital
Statutory retained
earnings
Voluntary retained
earnings
Treasury
shares
Total
equity
2023
General
reserve
Reserve for
treasury
shares
Free
reserves
Distributable
profit
CHF million
Balance as at 1 January
4.6
11.7
7.8
573.6
407.4
– 8.1
997.0
Allocation 2023
–
–
–
68.4
– 68.4
–
–
Dividend
–
–
–
–
– 338.8
–
– 338.8
Additions
–
–
–
–
–
–
–
Reduction of share capital
–
–
–
–
–
–
–
Change in treasury shares
–
–
–
–
–
2.1
2.1
Recognition / reversal
–
–
– 2.4
2.4
–
–
–
Annual result
–
–
–
–
443.9
–
443.9
Balance as at 31 December
4.6
11.7
5.4
644.4
444.0
– 6.0
1,104.1
16. Significant shareholders
Based on the information available to the company from the disclosure notifications pursuant to Art. 120 FMIA (see SIX
website) and from the company’s share register, the following significant shareholders hold an interest in the company:
Last disclosure
date 1
Quota
according
to last
disclosure 1
Shareholding
according to
share register
as at
31.12.2024
Shareholding
according to
share register
as at
31.12.2023
(per cent)
(per cent)
(per cent)
Shareholders
Black Rock Inc.
05.09.2017
7.17
<1.0
<1.0
Cevian Capital Partners Ltd.
21.06.2024
5.11
9.4
n/a
LSV Asset Management
06.07.2013
3.73
0.0
0.0
Nortrust Nominees Ltd. 2
n/a
n/a
2.2
2.9
The Bank of New York Mellon 2
n/a
n/a
1.3
2.1
UBS Fund Management (Switzerland) AG
08.05.2024
9.32
>5.0
>3.0
1 According to SIX Swiss Exchange (https: / / www.ser-ag.com / de / resources / notifications-market-participants / significant-shareholders.html)
2 Financial intermediaries holding shares at 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 financial
intermediaries requires a nominee conract with the company and the disclosure of the beneficial owners.
418
Baloise Group Annual Report 2024
Baloise Holding Ltd
17. Contingent liabilities
31.12.2024
31.12.2023
CHF million
Collateral, guarantee commitments
200.0
200.0
Baloise Holding Ltd has issued the following letter of comfort:
As the owner of Baloise Life (Liechtenstein) AG, Baloise 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.
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, reinsur-
ance contracts and additional reserves.
Baloise Holding Ltd has declared to France Assureurs that it will back the financial obligations of the French subsidiary
of FRIDAY Insurance S. A. that result from exposures that arise for the subsidiary due to its participation in claim settlement
agreements; Baloise Holding Ltd will continue to back these obligations for as long as it has control over the subsidiary.
Baloise Holding Ltd is making cash and cash equivalents of EUR 58.0 million (CHF 54.5 million)[previous year: EUR 58.0
million or CHF 53.9 million] available to Baloise Sachversicherungs-Aktiengesellschaft until at least 23 March 2031. Baloise
Sachversicherungs-Aktiengesellschaft can obtain this money in the form of a loan.
Baloise Holding Ltd is making cash and cash equivalents of EUR 40.0 million (CHF37.6million) available to Baloise Vie
Luxembourg S.A. until at least 31 October 2029. Baloise Vie Luxembourg S.A can obtain this money in the form of a loan.
Baloise 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 200 million as at the balance sheet date.
Baloise 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.
18. Remuneration paid to the Board of Directors and the Corporate Executive Committee
The information is contained in the remuneration report on pages 83 to 103. 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.
19. Net reversal of hidden reserves
In 2024 no hidden reserves were reversed. In 2023 hidden reserves of CHF 6.1 million were reversed.
20. Events after the balance sheet date
By the time that these annual financial statements had been completed on 20 March 2025, we had not become aware
of any events that would have a material impact on the annual financial statements as a whole.
419
Baloise Group Annual Report 2024
Baloise Holding Ltd
Appropriation of distributable profit/accumulated loss as proposed
by the Board of Directors
Appropriation of the accumulated loss, distribution from free reserves
Proposals
The Board of Directors proposes that
●the accumulated loss of CHF 150,124,165.24 (loss for the year of CHF 150,214,295.47 and profit carried forward from
the previous year of CHF 90,130.23) be carried forward to the next accounting period and
●a cash dividend of CHF 370,980,000.00 (CHF 8.10 per share) be distributed to the shareholders by withdrawing
CHF 730,762,429.51 from free reserves.
420
Baloise Group Annual Report 2024
Baloise Holding Ltd
Report of the statutory auditor to the Annual General Meeting of
Baloise Holding Ltd, Basel
Please refer to the German version of the Baloise Annual Report 2024, page 420, for the report of the statutory auditor,
Report on the audit of the financial statements of Baloise Holding Ltd (the “Company”). The auditor’s opinion dated
20 March 2025 confirms compliance with Swiss law and the Company’s articles of incorporation. EY recommends that
the financial statements submitted to the Annual General Meeting of Baloise Holding Ltd, Basel, be approved.
Please also refer to the disclosure on page 439 “Information on the Baloise Group” referencing the fact that only the
German text of the annual report is legally binding.
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Baloise Holding Ltd
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Baloise Holding Ltd
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Baloise Holding Ltd
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Baloise Group Annual Report 2024
Further information
Alternative
performance measures
426
Glossary
430
Memberships and ratings
434
UNEP FI Principles for Sustainable
Insurance (UNEP FI PSI)
436
Addresses
438
Information on the Baloise Group 439
Financial calendar and contacts 440
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Baloise Group Annual Report 2024
Further information
In its financial publications, Baloise uses not only the
figures produced in accordance with the International
Financial Reporting Standards (IFRS) but also alternative
performance measures (APMs). These APMs are designed
to aid understanding of our results. Moreover, APMs help
to measure performance, growth, profitability and capital
efficiency. However, they should be viewed as supplemen-
tary information and not as a substitute for the figures
calculated in accordance with IFRS.
Baloise uses the following APMs:
•
Business volume
•
Return on equity (ROE)
•
Comprehensive equity
•
Combined ratio (CR)
•
Present value of new business premium (PVNBP)
•
Value of new business (VNB)
•
New business margin (NBM)
•
Cash remittance
•
Total assets under management (AUM)
It should be noted that similarly named APMs published
by other companies may be calculated in a different way.
The comparability of APMs between companies may
therefore be limited.
Baloise-specific definitions and information about the
use and limitations of the aforementioned alternative
performance measures can be found below.
Definitions, usage and limitations
Business volume
Definition and use
Business volume is a measure of the amount of business
generated in the reporting period. It comprises the gross
premium income from non-life and life insurance recog-
nised during the reporting period and the payments from
policyholders in business involving financial contracts and
investment-linked life insurance policies.
Limitations
The business volume does not give any indication of the
profitability of business. Comparability with other compa-
nies is also limited because they use different definitions.
The business volume represents supplementary infor-
mation that complements the disclosure of insurance
revenue pursuant to IFRS 17. Unlike insurance revenue, it
includes savings premium components and is thus gener-
ally higher for life insurance.
Return on equity (ROE)
Definition and use
Return on equity is the ratio of profit for the period attrib-
utable to shareholders to average equity attributable to
shareholders. Average equity is calculated from the level
of equity at the start and end of the reporting period.
If significant non-recurring income and expenses arise
during the reporting period that are unrelated to Baloise’s
regular business activities, these influencing factors are
eliminated from the basis of calculation.
One of the reasons why the Baloise Group uses ROE
as a performance measure is that it looks at both the
Company’s profitability and its capital efficiency.
Limitations
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.
ROE is not available at division or product level.
Comprehensive equity
Definition and use
Baloise defines comprehensive equity as the sum of share-
holders’ equity (equity before non-controlling interests)
and the contractual service margin (CSM) after taxes. One
of the reasons why the Baloise Group uses comprehensive
equity as a performance measure is that, unlike group
equity, it includes expected future profits from the life
insurance business and thus provides a more complete
picture of the carrying amount of an insurance company.
Alternative performance measures
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Further information
Limitations
The usefulness of this performance measure is limited
because, for example, the contractual service margin (CSM)
is calculated on the basis of assumptions. The calculation
rules for the CSM depend on the measurement approach
(VFA or GMM) used for the underlying business. There is no
CSM for the premium allocation approach (PAA).
Comprehensive equity is not available at division or
product level.
Combined ratio (CR)
Definition and use
The Baloise Group uses the combined ratio to gauge
the profitability of underwriting in the non-life insurance
business. The combined ratio is the sum of insurance
service expenses, net reinsurance income/expense and
the pro rata share of other operating expenses (operating
non-attributable expenses) divided by insurance revenue.
The combined ratio thus expresses the purely operational
profitability of the non-life insurance business.
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 perspec-
tive, while a ratio of more than 100 per cent indicates an
underwriting loss.
The combined ratio can be broken down into the loss
ratio and the expense ratio.
The loss ratio represents claims and insurance benefits
(including net reinsurance income/expense) divided by
insurance revenue. It therefore expresses the percentage
of insurance revenue that is used for the settlement of
claims.
The expense ratio represents the insurance acquisition
cash flows and administrative expenses included in insur-
ance service expenses as well as a share of other oper-
ating expenses (operating non-attributable expenses)
relative to insurance revenue. It thus expresses the propor-
tion of insurance revenue that is needed to cover the
insurance service expenses for the acquisition of new and
renewal business and to cover administrative expenses.
Limitations
The combined ratio is used to measure underwriting
profitability. However, it does not provide an indication
of profitability in terms of investment performance and
only partly reflects 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.
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. In addition, comparability with other companies is
limited, because they use different definitions.
Present value of new business premiums (PVNBP)
Definition and use
The present value of new business premiums is a perfor-
mance measure used in the life segment that shows the
present value of all premium payments expected to be
received from new business over the likely term of the
contracts. Baloise calculates the PVNBP from the sum of
the present values of future premiums in the reporting
period from new business involving IFRS 17 contracts, from
new follow-on contracts in the Swiss group life business,
and from new financial contracts business. Discounting
is based on the IFRS 17 discount rates (risk-free discount
rates including an adjustment for illiquidity).
Limitations
There are further restrictions resulting from the assump-
tions (e. g. lapse rates, biometric assumptions) that are
necessary for the projection of future premium payments.
In addition, comparability with other companies is limited,
partly because they define new business differently.
Value of new business (VNB)
Definition and use
The value of new business is a performance measure
used in the life segment and indicates the increase in
value generated by underwriting new business in the
current period. It is derived from IFRS-based performance
measures and is calculated from the contractual service
margin (CSM) for new business. This figure is adjusted for
any loss component and the value of IFRS 9 new business.
It is thus a measure of expected future profit from new
business. The calculation involves forecasting lapses,
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Baloise Group Annual Report 2024
Further information
mortality, disability and expenses up to the end date of
insurance contracts, using the latest capital market data
and best estimates.
Limitations
Future profits are estimates based on assumptions and
may therefore differ from the profits actually generated
in the future. They are calculated using IFRS 17 discount
rates (risk-free discount rates including an adjustment for
illiquidity) 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 assump-
tions 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. Comparability with other companies
is limited because they use different definitions and
assumptions.
New business margin (NBM)
Definition and use
The new business margin is used to measure the profita-
bility of new business in the life segment. It is the value of
new business (VNB) in the reporting period divided by the
present value of new business premiums (PVNBP).
Limitations
As the new business margin is calculated from the value
of new business and the present value of new business
premiums, its usefulness is subject to the same limitations
as those measures.
Cash remittance
Definition and use
Cash remittance is a performance measure for cash
generation. It includes all dividends paid by subsidiaries
to the holding company, including contributions from
interest payments on loans. Cash remittance is the main
basis for the income that is used for dividends paid by
Baloise Holding. The dividend payments are recognised
and disclosed in the financial statements prepared in
accordance with local accounting standards. In addition,
cash remittance is used to cover expenses at the level
of the holding company. Such expenses include interest
expense for the outstanding bonds of Baloise Holding Ltd.
Limitations
Cash remittance may be higher or lower than the IFRS
profit for the period reported by an entity. The compo-
sition and definition of cash remittance may vary from
company to company. Further differences may arise in the
comparison due to the timing of the recognition of cash
remittance.
Total assets under management (AUM)
Definition and use
The assets under management are all assets or security
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 the Baloise’s 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, exchange rate
effects, and the effects of consolidation and deconsolida-
tion.
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 in
the reporting period.
Limitations
The level of assets under management is subject to vola-
tility 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 negative. This limits the usefulness of this
performance measure.
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Further information
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Further information
Actuarial reserves
Actuarial reserves are the reserves set aside to cover
current life insurance policies.
Baloise
“Baloise” stands for “the Baloise Group”, and “Baloise
Holding” means “Baloise Holding Ltd”. Baloise shares are
the shares of Baloise 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 a 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.
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.
Claims ratio
The ratio of net claims incurred to insurance revenue,
expressed as a percentage.
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 net claims
incurred (loss ratio) and costs (expense ratio) expressed
as a percentage of insurance revenue. This ratio is used to
gauge the profitability of non-life insurance business.
Contractual service margin (CSM)
Represents the unearned profit of a group of insurance
contracts that an entity will recognise as it provides insur-
ance contract services in the future.
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 finan-
cial statements and the corresponding amounts reported
for tax purposes. The pertinent calculations are based on
country-specific tax rates.
Expected credit loss (ECL)
The credit losses expected according to the principles of
IFRS 9 for financial instruments measured at amortised
cost (AC) or at fair value through other comprehensive
income (FVOCI).
Expense ratio
Ratio of the costs of non-life insurance business to insur-
ance revenue, expressed as a percentage.
Fixed-income securities
Securities (primarily bonds) that yield a fixed rate of
interest throughout their term to maturity.
Gross
The gross figures shown on the balance sheet or income
statement in an insurance company’s annual report are
stated before the deduction of reinsurance.
Group life business
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 recoverable
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
The benefits provided by the insurer in connection with the
occurrence of an insured event.
Insurance revenue
Amount that reflects the consideration to which an insur-
ance company expects to be entitled in exchange for the
provision of services under insurance contracts.
Glossary
431
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Further information
International Financial Reporting Standards
Since 2000, the Baloise Group has been preparing its
consolidated financial statements in compliance with
the International Financial Reporting Standards (IFRS),
which were previously called the International
Accounting Standards (IAS).
Investments
Investments comprise investment property, equities and
alternative financial assets (financial instruments with
characteristics of equity), fixed-income securities (finan-
cial instruments with characteristics of debt), mortgage
assets, policy loans and other loans, derivative financial
instruments, and cash and cash equivalents.
Investment-linked life insurance
Life insurance policies under which policyholders invest
their savings for their own account and at their own risk.
Legal quota
A legally or contractually binding percentage requiring life
insurance companies to pass on a certain share of their
profits to their policyholders.
Minimum interest rate
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.
New business margin
The value of new business divided by the volume of new
business.
Operating segments
Similar or related business activities are grouped together
in operating segments. The Baloise Group’s operating
segments are Non-Life, Life, Asset Management & Banking,
and Other Activities. The Other Activities operating
segment includes equity investment companies, real
estate firms and financing companies.
Performance of investments
Performance in this context is defined as the rates of re-
turn that Baloise generates from its investments. It consti-
tutes 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.
Periodic premium
Periodically recurring premium income (see definition
of “premium”).
Policyholder’s dividend
An annual, non-guaranteed benefit paid to life insurance
policyholders if the revenue generated by their policies
is higher and/or the risks and costs associated with their
policies are lower than the assumptions on which the
calculation of their premiums was based.
Premium
The amount paid by the policyholder to cover the cost
of insurance.
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 the share of profit attributable to non-controlling
interests. The profit attributable to shareholders is the
profit after taxes, excluding the share of profit attributable
to non-controlling interests.
Reinsurance
If an insurance company itself does not wish to bear the
full risk arising from an insurance policy or an entire port-
folio of policies, it passes on part of the risk to a reinsur-
ance company or to another direct insurer. However, the
primary insurer still has to indemnify the policyholder for
the full risk in all cases.
Reserves
A measurement of future insurance benefit obligations
arising from known and unknown claims that are reported
as liabilities on the balance sheet.
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Further information
Return on equity (ROE)
A calculation of the percentage return earned on a
company’s equity capital during the reporting period; it
represents the profit generated in a given reporting period
divided by the company’s average equity during that
period.
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 the International Financial Reporting
Standards (IFRS), 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 busi-
ness line.
Share buy-back programme
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.
Shares issued
The total number of shares that a company has issued.
Multiplying the total number of shares in issue by their
par value gives the company’s share capital.
Single premium
Single premiums are used to finance life insurance policies
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 author-
ities impose on insurance companies to cover their busi-
ness risks (investments and claims). These requirements
are usually specified at 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 tech-
nical result does not include income and expenses unre-
lated to its insurance business or the net gains or losses on
its investments.
Unearned premium reserves
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 following the deduction of deferred taxes.
Value of new business
The value added by new business transacted during the
reporting period.
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Further information
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Baloise Group Annual Report 2024
Further information
Memberships and ratings
ESG ratings
We believe that explaining our current ESG ratings and
indices is an important part of transparent sustainability
communication.
MSCI
MSCI confirmed Baloise’s ESG rating of AA in 2024. The
rating recognises our ESG-related diligence through
screening, ESG integration and active ownership in the
area of responsible investment, as well as our leading
corporate governance practices.
Sustainalytics
Our current Sustainalytics rating stands at 22.4
(2023: 20.8). Baloise is not involved in any controversies in
the environmental (E), social (S) or corporate governance
(G) spheres. We will continue to use the information from
our ESG ratings to improve our sustainability activities.
S&P Global Corporate Sustainability Assessment
The Baloise Group improved its S&P Global ESG Score
by three points, from 33 to 36. This increase highlights
its commitment to sustainable practices and to acting
responsibly. Of particular note is that S&P Global rated
Baloise as “high” in respect of data availability.
ISS-ESG Corporate Rating
The Baloise Group also raised its ISS-ESG Corporate
Rating, from D+ to C-. This improvement is reflected in the
rise in the performance score to 45.92 points. It is particu-
larly noteworthy that, in the ISS-ESG rating too, Baloise
was rated as “high” in respect of data quality.
CDP
The ESG rating of C that we had received from the Carbon
Disclosure Project (CDP) in the previous year was reaffirmed
in the reporting year. We were particularly pleased with our
good results in relation to the disclosure of CO2 emissions
and energy data and to the management of environmental
impacts, risks and opportunities. The CDP is a non-profit
organisation that encourages companies and cities world-
wide to disclose and manage their impact on the environ-
ment. It focuses on the collection and evaluation of data
on greenhouse gas emissions, water consumption, risk
management and other environmental factors.
These good ratings for data availability underline the
reliability and accuracy of the data provided by Baloise,
which is very important to investors and other stake-
holders. The continuous improvement in these areas
emphasises the effort Baloise has made in terms of
sustainability and transparency, thereby further strength-
ening trust in the Company.
1994
Member of the Swiss
Business Council for
Sustainable
Development (oebu)
2018
Signed
the Principles for
Responsible
Investment (PRI)
2019
Member of the local
network of the State
Secretariat for Inter-
national Finance (SIF)
and Swiss Sustainable
Finance (SSF)
2020
Signed the UNEP FI Principles
for Sustainable Insurance (PSI),
supporter of TCFD,
included in FTSE4Good
Index series
2021
Joined the Swiss Climate
Foundation and awarded
accolade of “Most
Innovative Sustainability
Insurer – Switzerland 2021”
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Baloise Group Annual Report 2024
Further information
Memberships
Collaboration with other companies, institutions and
organisations is essential to drive sustainable develop-
ment forward. This is why we support sustainable develop-
ment goal (SDG) no. 17 of the United Nations (partnerships
for achieving the goals). We regard partnerships as a
fundamental requirement for the achievement of sustain-
ability objectives.
As a member of the Swiss Insurance Association (SIA), we
work on standards relating to sustainability for the entire
Swiss insurance sector, act jointly in matters relating to
regulation and share expertise relating to the integration
of ESG criteria into business processes. In 2023, we actively
participated in the preparation of the SIA’s industry
reporting on sustainability topics, as we had done in
previous years.
www.svv.ch/en/sustainability-2023
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Further information
UNEP FI Principles for Sustainable
Insurance (UNEP FI PSI)
The Principles for Sustainable Insurance (PSI) of the United
Nations Environment Programme Finance Initiative (UNEP
FI) serve as a global framework for the insurance industry
to integrate environmental, social and governance
aspects into business processes and identify the associ-
ated risks and opportunities. We signed up to these princi-
ples in 2020.
Overview and references to relevant information
Principle 1
We will embed environmental, social and governance
issues that are relevant to our insurance business in our
decision-making.
•
Strategy
from page 14
•
Baloise Brand
from page 16
•
How Baloise creates value
from page 20
•
Environment
from page 22
•
Employees
from page 24
•
Customers
from page 28
•
Responsible underwriting
from page 32
•
Society
from page 34
•
Risk management
from page 52
•
Responsible investment
from page 56
•
Data governance & security
from page 60
•
Report on non-financial matters
from page 109
Principle 2
We will work together with our customers and business
partners to raise awareness of environmental, social and
governance issues, manage risk and develop solutions.
•
Customers
from page 28
•
Responsible underwriting
from page 32
•
Responsible investment
from page 56
•
Report on non-financial matters
from page 109
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Baloise Group Annual Report 2024
Further information
Principle 3
We will work together with governments, regulators and
other key stakeholders to promote widespread action
across society on environmental, social and governance
issues.
•
Memberships and ratings
from page 434
•
Responsible investment
from page 56
•
Responsible underwriting
from page 32
•
Report on non-financial matters
from page 109
Principle 4
We will demonstrate accountability and transparency
by regularly and publicly disclosing our progress in imple-
menting the Principles.
•
Annual reports:
www.baloise.com/annual-report
•
Website:
www.baloise.com/sustainability
•
Blog posts and press releases:
www.baloise.com/en/home/news-stories
•
PRI transparency report for Baloise Asset Management
www.baloise.com/pri-report
438
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Further information
Switzerland
Baloise Holding Ltd
Aeschengraben 21
Postfach
CH-4002 Basel
www.baloise.com
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
Germany
Baloise
Basler Strasse 4
D-61345 Bad Homburg
Tel. + 49 6172 130
info@baloise.de
www.baloise.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
Addresses
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Further information
This publication was produced by the Baloise Group and
may not be copied, amended, offered, sold or made avail-
able to third parties without the express authorisation of the
Baloise Group. This publications is also available in German.
Only the German text is legally binding. The financial report
contains the audited 2024 annual financial statements
together with detailed information. The annual report con-
tains all of the elements that, in accordance with Art. 961c
of the Swiss Code of Obligations, make up the management
report. The reporting on non-financial matters is prepared in
accordance with the requirements of the Swiss Code of Obli-
gations (Art. 964a–964c OR). 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 constitutes 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 publica-
tion may contain forward-looking statements that include
forecasts or predictions of future events, plans, goals, busi-
ness developments and results, and these statements 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 substan-
tially from those presented explicitly or implicitly in these
forward-looking statements. Factors that could influence
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 policies; (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 information, future events, etc.
Past performance is not indicative of future results.
Availability and ordering
The 2024 Annual Report will be available from
25 March 2025 online at:
www.baloise.com/annual-report
Corporate publications can be ordered either online
or by post from the Baloise Group, Corporate Communi-
cations, Aeschengraben 21, 4002 Basel, Switzerland:
www.baloise.com/order
Information for shareholders and 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 online at:
www.baloise.com/investors
This information is available in German and English.
Information for members of the media
The latest media releases, presentations, reports, images
and podcasts of various Baloise events as well as media
contact details can be found at:
www.baloise.com/media
© 2025 Baloise Holding Ltd, CH-4002 Basel
Publisher: Baloise Holding Ltd, Corporate Communications
Concept, design: NeidhartSchön Ltd, Zurich
Publishing system: mms solutions ltd, Zurich
English translation: LingServe Ltd (UK)
Information on the Baloise Group
440
Baloise Group Annual Report 2024
Further information
25 April 2025
Annual General Meeting
Baloise Holding Ltd
10 September 2025
Half-year financial results
Publication of 2025 Half-Year Report
Conference call for analysts and media
www.baloise.com/calendar
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
Sustainability & Regulatory Affairs
Gaby Lurie
Aeschengraben 21
CH-4002 Basel
Tel. +41 58 285 77 61
gaby.lurie@baloise.com
Financial calendar and contacts
441
Baloise Group Annual Report 2024
Further information
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Baloise Holding Ltd
Aeschengraben 21
CH-4002 Basel
www.baloise.com
XYZ 1234 01.24