Helvetia expects exceptionally high claims expenses from severe weather and major events in the third quarter of 2023

Ah hoc announcement
St.Gallen, 22 November 2023
 

An unusual accumulation of intense weather events has caused considerable damage in several market units since July 2023. Helvetia estimates the net claims burden from natural catastrophes and major loss events in the third quarter of 2023 at around CHF 200 million. The Group's capital position remains strong.  

Helvetia registered an above-average number of intense severe weather events in the second half of 2023. Storms, hailstorms and heavy rainfall led to considerable damage, mainly in the market units of Switzerland, Italy and Germany. As the leading insurer, Helvetia was also affected by a major fire in Switzerland at the beginning of July 2023 and recorded other smaller natural and major loss events in several market units. As part of its half-year 2023 reporting, Helvetia estimated and communicated the net claims amount of the severe weather events in Switzerland and Italy in July to be in the mid double-digit million range. Helvetia estimated the net claims expenses for the major fire in the low double-digit millions. Due to the above-average number of intensive claims events in recent months, Helvetia currently expects a total net claims burden from natural catastrophes and major loss events of around CHF 200 million in the third quarter of 2023. This means that the claims amount from natural and major loss events in the third quarter alone was around one and a half times higher than in 2022 as a whole. 

Continued strong capitalisation  
Covering the financial risks arising from natural catastrophes and major loss events is part of an insurance company's core business. Helvetia remains a reliable partner for customers and shareholders, even in the current challenging market environment. The Group's capitalisation remains strong, with an estimated SST ratio of around 300 percent at the end of September 2023. Helvetia's diversified business setup also contributes to its high level of resilience. Helvetia is sticking to its proven dividend policy and confirms its ambition to pay out more than CHF1.65 billion in dividends for the financial years 2021 to 2025. 

About Helvetia Group
Helvetia Group, with its headquarters in St. Gallen, has grown since 1858 to become a successful insurance group with over 12,000 employees and more than 7 million customers. It has been enabling its customers to seize opportunities and minimise risks for all that time – Helvetia is there for them when it matters. Helvetia is the best partner and is present everywhere that protection needs arise, with insurance, pension and investment solutions from a single source as well as simple products and processes. The insurance group knows the business, from mobile phone insurance and insurance cover for the Gotthard Base Tunnel to the long-term investment of customer assets. Helvetia develops and opens up new business models with enthusiasm and drives forward its own business in a powerful and future-oriented manner. It acts with foresight and responsibility in everything it does: for the benefit of its shareholders, customers and employees as well as its partners, society and the environment.
Helvetia is the leading all-lines insurer in Switzerland. In the Europe segment comprising Germany, Italy, Austria and Spain, the company has firmly rooted market positions for generating above-average growth. In the Specialty Markets segment, Helvetia offers tailored special insurance and reinsurance cover worldwide. With a business volume of CHF 10.7 billion, Helvetia generated IFRS net income after tax of CHF 480.2 million in the 2022 financial year under IFRS 17/9. The shares of Helvetia Holding AG are traded on SIX Swiss Exchange.

Cautionary note
This document was prepared by Helvetia Group and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Helvetia Group. The German version of this document is decisive and binding. Versions of the document in other languages are made available purely for information purposes. Although all reasonable effort has been made to ensure that the facts stated herein are correct and the opinions contained herein are fair and reasonable, where any information and statistics are quoted from any external source such information or statistics should not be interpreted as having been adopted or endorsed as accurate by Helvetia Group. Neither Helvetia Group nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this information. The facts and information contained in this document are as up to date as is reasonably possible but may be subject to revision in the future. Neither Helvetia Group nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document.
This document may contain projections or other forward-looking statements related to Helvetia Group which by their very nature involve inherent risks and uncertainties, both general and specific, and there is a risk that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include: (1) changes in general economic conditions, in particular in the markets in which we operate; (2) the performance of financial markets; (3) changes in interest rates; (4) changes in currency exchange rates; (5) changes in laws and regulations, including accounting policies or practices; (6) risks associated with implementing our business strategies; (7) the frequency, magnitude and general development of insured events; (8) mortality and morbidity rates; (9) policy renewal and lapse rates as well as (10), the realisation of economies of scale as well as synergies. We caution you that the foregoing list of important factors is not exhaustive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties. All forward-looking statements are based on information available to Helvetia Group on the date of its publication and Helvetia Group assumes no obligation to update such statements unless otherwise required by applicable law.