Helvetia: Spain gains share in the group's operating profit

Swiss insurer Helvetia has no doubts. Spain plays a key role in the increase in profits at the end of the first half of the year, thanks primarily to greater technical rigor. This market, along with the division comprising Germany, Italy, and Austria, is the "main driver" of overall results, according to the company's financial report.

From January to June, the St. Gallen, Switzerland-based insurer recorded an underlying profit (i.e., recurring operating profitability) of 91.7 million Swiss francs (around 97.8 million euros) in Spain, an increase of 55.7% compared to the 58.9 million Swiss francs obtained in the same period last year.

This figure contributes to Helvetia's total underlying profit of 300.8 million Swiss francs, 5.5% higher than a year earlier. It also increases the Spanish market share of the group's total to 30.5%, compared to 20.7% in June 2024.

Helvetia attributes the increase in operating profit in Spain to both the life and non-life business and, above all, to the technical excellence displayed in both areas, as premium income barely grew, reaching 1,091 million Swiss francs (+0.4%).

In general insurance , underlying profit in the country reached 54.2 million Swiss francs (+126.8%), supported by a strong improvement in operating profitability, with a combined ratio (a variable that calculates the impact of claims and expenses on premiums) that rose from 95.3% a year ago to 92.3% currently.

In the life insurance segment, underlying profit increased to CHF 32.6 million (+30.4% compared to June 2024), "due to the non-recurrence of various onerous contractual effects resulting from changes in the prior-year model," the company specifies in its first-half closing report.

Including items from financial activities, Helvetia's net profit in Spain stood at 78.6 million Swiss francs at the end of the first half of the year. This represents an increase of around 17%, compared to 67.2 million Swiss francs for the same period last year, and represents a 24.6% share of the group's total.

Net profit in the country has not accelerated as much as recurring operating income. The group attributes this effect to the restructuring costs arising from the significant integration process it is undertaking with its two Spanish companies: Helvetia Seguros and Caser.

The Swiss company announced this annexation transaction in December 2024, after having acquired a majority stake in Caser in 2020. This year, it has been taking steps forward with the aim of quickly realizing this project, which seeks, among other things, to increase operational efficiency.

"During the first half of the year, we have made significant progress in this area," emphasize Fabian Rupprecht , CEO, and Thomas Schmuckli , Chairman of the Board of Directors, in the latest financial report. Pending "the necessary formalities and authorizations," the insurer is confident of completing the process "by the end of 2025," they add.

In addition to the integration of Caser in Spain, the group is also considering another takeover: that of Baloise in Switzerland. With this merger, Helvetia gains influence in the European insurance market and does not rule out the possibility that it could lead to the announcement of new strategic and financial objectives next year.