Basel, 22 May 2024. Despite a changeable investment environment, Baloise has once again demonstrated its reliability as an occupational pension provider. Earnings of CHF 46.5 million are testimony to this, as is the sum of CHF 80 million allocated to the surplus fund. Comprehensive BVG insurance customers received an attractive interest rate of 1.50 per cent on their retirement savings above the income threshold in 2023. The number of signed-up companies increased once again. More than 19,400 contracts speak to the fact that Baloise’s broad product offering – ranging from comprehensive BVG insurance contracts to partially autonomous solutions – addresses the needs of customers extremely well. Pension provision continues to face significant challenges that are putting pressure on political decision-makers and the electorate to take action.

Trading in 2023 was upbeat following a turbulent 2022. Despite the persistent geopolitical tensions and economic uncertainty, the financial markets were extraordinarily resilient. Realised gains on equities and an increase in distributions from alternative financial assets had a positive effect on earnings. However, the strong Swiss franc necessitated more foreign currency hedging, meaning that net investment income was marginally down overall.

Comprehensive BVG insurance continues to meet customer needs
Baloise’s range of occupational pensions includes comprehensive BVG insurance contracts and partially autonomous solutions. Demand for comprehensive BVG insurance from Baloise increased compared with the prior year. A total of CHF 80 million was allocated to the surplus fund. In the area of retirement savings above the income threshold, a net interest income of 1.25% and thus a total interest rate of 1.5% was distributed to customers. The payout rate for business subject to the minimum quota was 92.5 per cent. Baloise’s comprehensive BVG insurance model is proving to be an attractive solution amid geopolitical volatility as it gives customers comprehensive peace of mind due to the investment risk being borne by Baloise Life. 

Healthy growth for Baloise’s partially autonomous pension solution
The partially autonomous foundation Perspectiva continued to grow well, adding more than 850 new customers. Counting just under 5,000 participating companies and total assets of around CHF 1.6 billion, the collective foundation has reached a considerable size. With a return of 6.00 per cent, the foundation outperformed the rest of the market in 2023. This further strengthens Baloise’s position in the market for partially autonomous solutions while providing an attractive pension solution for more than 20,000 policyholders. 

Forthcoming referendum on BVG reforms 
Challenges in the occupational pension business persist and policymakers adopted reforms for the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG) in 2023. These reforms, which are due to be put to a popular referendum on 22 September 2024, are necessary to ensure pensions are sustainable. Baloise is backing acceptance at the forthcoming referendum. The lowering of the statutory minimum conversion rate, in particular, is a crucial step towards strengthening occupational pensions. Together with the other measures, it will place the funding of pension benefits on a stable footing despite longer life expectancy. 
 

Contact
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About Baloise

The focus is firmly on the future at Baloise. We aim to make tomorrow more straightforward, safer and more carefree for our customers, and we are taking responsibility for this today. Baloise is more than just a traditional insurance company. Through our smart finance and insurance solutions, we offer a complete service package. Dependable support, reliable cooperation and trust-based relationships are key aspects of our stakeholder interaction. We take care of financial matters so that our customers can concentrate on the important things in their lives and can find inspiration in the everyday. Baloise, a European company founded more than 160 years ago, currently employs 8,000 people at its headquarters in Basel (Switzerland) and across its subsidiaries in Belgium, Germany and Luxembourg. Our services generated a business volume of around CHF 8.6 billion in 2023. Baloise Holding Ltd shares (BALN) are listed on the SIX Swiss Exchange.