Helvetia Baloise merger to create Switzerland’s second largest insurer

Helvetia and Baloise plan to merge in a deal that will create Switzerland’s second largest insurance group and its biggest insurance employer.

The combined entity, to be named Helvetia Baloise Holding Ltd, will have a business volume of CHF 20bn and a market share of around 20% in Switzerland. It will employ more than 22,000 people across Europe and operate in eight countries.

The “merger of equals” will see Baloise absorbed into Helvetia, with shareholders receiving 1.0119 new Helvetia shares for each Baloise share.

The new company will be listed on the SIX Swiss Exchange under the ticker symbol HBAN and will be headquartered in Basel.

Helvetia’s current headquarters in St. Gallen will remain a key location.

Helvetia’s chief executive Fabian Rupprecht will lead the new group as CEO. Baloise CEO Michael Müller will serve as deputy CEO and head of integration.

Matthias Henny from Baloise will take on the role of chief financial officer, while André Keller from Helvetia will become chief investment officer.

The board of directors will include 14 members split evenly between the two companies, with Thomas von Planta, chairman of Baloise, as chair and Ivo Furrer of Helvetia as vice-chair.

Cost synergies and long-term strategy

The merger is expected to generate CHF 350m in annual pre-tax cost synergies by 2028, before policyholder participation, with total integration costs of CHF 500–600m.

Helvetia Baloise also projects a 20% increase in dividend capacity by 2029 compared to the companies’ standalone forecasts.

Von Planta described the deal as “a significant milestone in the history of the Swiss insurance industry,” adding: “It’s the next logical step for both companies in delivering against their respective strategies to become a leading European insurer and the second largest Swiss insurance group.”

Helvetia chairman Thomas Schmuckli said: “This merger is not just a strategic move; it is a commitment to our values and vision for a sustainable future. Together, we are stronger and better equipped to drive growth in the future.”

Rupprecht said the new company would benefit from “the combined expertise of two players that each have been successful for over 160 years,” adding: “Helvetia Baloise will become the largest employer in the Swiss insurance industry with the greatest possible proximity to customers.”

Müller added: “The complementary strengths of the two companies make Helvetia Baloise a relevant insurance and finance partner with Swiss roots and a strong market presence in Europe.”

The deal still requires shareholder approval at extraordinary general meetings scheduled for 23 May and is expected to close in the fourth quarter of 2025, pending regulatory clearance. Patria Genossenschaft, Helvetia’s largest shareholder, has already pledged its support, the firm’s management confirmed.