Helvetia Considers Selling German Operations: Reports
Swiss insurer Helvetia is reportedly exploring the idea of selling its struggling insurance operations in Germany. The company has recruited JPMorgan Chase & Co. to help facilitate the potential sale. Industry insiders suggest that the German unit could fetch between 500 million to 600 million Swiss francs from the deal. Though it’s early days and decisions are still being made, this move reflects a broader strategy within the company.
Over the course of 2023, Helvetia’s German insurance operations accounted for 988 million Swiss francs in written premiums and deposits. Despite making up a significant portion of the firm’s business volume, the German division has experienced losses for two consecutive years. Helvetia attributes this downturn to a slowing German economy and decreased construction activity.
Amidst escalated takeover rumors within the Swiss insurance industry, thanks to an activist investor’s significant stake in Helvetia’s competitor Baloise Holding AG, key players such as Zurich Insurance Group AG, Axa SA, and Allianz SE have been contemplating their positions should opportunities arise. Helvetia, as one of the few publicly traded Swiss insurers, has seen its shares climb by 31% over the past year.
Just recently, Helvetia released a fresh set of financial goals extending to 2027, alongside a commitment to increased dividend payouts. The insurer is charting new paths in the market, signifying its adaptability to challenges and commitment to growth. As the story develops, it’ll be interesting to see how these strategic movements play out.
