Baloise had higher net income in 2016 than a year earlier. It has launched a three-year strategic business plan to boost earnings by expanding into new business adventures and increasing the number of clients by a third.

Baloise profit to shareholders in 2016 rose 4.4 percent to 534.8 million Swiss francs, the Basel-based insurer said in a statement today. «Although the climate of persistently low, or even negative, interest rates and the strong Swiss franc can now be considered normal, they are still an ongoing challenge,» the company commented.

The strengthening of the reserves in the German non-life business reduced profit by 37.9 million francs, which was offset by a positive accounting effect of an equal size, relating to provisions of pensions and other post-employment benefits (IAS 19). The volume of business generated was flat at 8.9 billion francs.

Higher Dividend

«I am very satisfied with our results for 2016,» said Baloise CEO Gert De Winter. «We generated growth in our target segments, further increased our profitability and improved our profit to shareholders.»

Baloise proposes to increase the dividend to 5.20 francs per share from 5 francs per share.

New Strategic Business Plan

The Swiss insurance company last year concluded a three-year strategic business plan. The new plan – «Simply Safe» – entails three goals:

  • A return of 2 billion francs to the holding company to invest in future profitable growth
  • An increase of its customer base by 30 percent, or 1 million clients
  • To become one of the most popular employers in the industry.

Growth in New Segments

Baloise is investing in expanding its business into segments outside the traditional insurance industry. As was reported earlier on, Baloise agreed to a cooperation with Anthemis, an investment and consulting firm. Baloise provides 50 million francs to be invested into European and U.S.-based startup companies with the potential to help further the digital development of Baloise.

De Winter expects initiatives such as the agreement with Anthemis to lead to further growth.