Swiss Insurer Helvetia Considering Sale of German Unit

Sources close to the situation report that Helvetia Holding AG is looking into selling its underperforming German insurance operations. The Swiss insurer has partnered with JPMorgan Chase & Co for this initiative, and they expect to gather initial offers for the unit in the coming weeks. It is speculated that Helvetia could receive between 500 million Swiss francs and 600 million Swiss francs ($663 million) from the sale. Although it is still early in the process, Helvetia’s consideration of this sale is ongoing.

In 2023, the German operations of Helvetia contributed 988 million Swiss francs in written premiums and deposits, representing approximately 8.7% of the company’s overall business. Unfortunately, this division reported a loss for the year, with the poor results being attributed to a slowdown in the German economy and decreased construction activity.

For those unfamiliar with Helvetia, it is one of the few Swiss insurance companies that are publicly listed. Their shares have seen a 31% increase over the past year, resulting in a valuation of roughly 8.16 billion Swiss francs. In an effort to maintain growth, Helvetia outlined new financial targets for the years 2025 through 2027 and committed to increased dividend payments.

This potential sale comes at a time of increased speculation within the Swiss insurance industry, following an activist investor’s involvement with one of Helvetia’s main competitors, Baloise Holding AG. Players like Zurich Insurance Group AG, Axa SA, and Allianz SE are reportedly considering bidding for Baloise or its assets if they become available for purchase.

While Helvetia has not provided official comments on the matter, their exploration of a sale is a notable development within the industry. It remains to be seen how this decision will unfold and what impact it will have on the Swiss insurance landscape.