Helvetia insurance company achieved only moderate profit growth last year, but nevertheless will award its shareholders with a more-than-decent increase of their dividends.

Helvetia, based in St. Gallen, for the first time had a profit in excess of half a billion Swiss francs in 2017: net income rose 2.2 percent to 502.4 billion, Helvetia reported on Monday.

The insurance group, which also sells its products in some of Europe’s biggest mainland markets, proposes to increase the dividend to 23 francs per share, 10 percent more than a year ago. The company said the higher dividend was also a result of the synergies achieved through the acquisitions of Nationale Suisse and Basler Austria.

Non-Life With Faster Growth

Life and non-life products contributed to the increase in profit, the company said. The non-life business reached a better portfolio quality, which helped lower the combined ratio to 91.8 percent. The division as a whole grew 4.3 percent.

The life insurance business also had a good year, with capital-protection products adding 14 percent. The overall business volume added only slightly to 8.64 billion francs.

The company also earned 1.35 billion francs on financial investments and real estate, 200 million francs more than in 2016.

Digital Program

Helvetia implemented a series of measures along the guidelines of its strategy 20.20, which primarily aims to boost client access through digital channels and the opening of new sources of revenue.

The insurer last bought Moneypark, an online mortgage broker. The company has also integrated a series of services from partner firms, including a machine-learning-tool for an online valuation of property.

Vincenz Turmoil

Pierin Vincenz, the former boss of Raiffeisen bank, on December 18, 2017 informed Helvetia that he was resigning with immediate effect. Helvetia and Raiffeisen have worked closely together for years. Vincenz had been a member of the board for 17 years. Helvetia nominated Doris Russi Schurter as his replacement, due for election on April 20, 2018.

Vincenz was taken into custody in Zurich last week pending an investigation into investments in companies that his employer Raiffeisen had taken stakes at later stages.