Strong business. Profitable growth. Shareholder value.

 
Strong business. Profitable growth. Shareholder value.
Strong business.
Profitable growth.
         Shareholder value.
Baader Helvea Swiss Equities Conference
Bad Ragaz, Switzerland

Helvetia Group

January 2019
Strong business. Profitable growth. Shareholder value.
Disclaimer

 Disclaimer:

 NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT NOR THE INFORMATION CONTAINED IN IT AND ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES,
 AUSTRALIA, CANADA OR JAPAN OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR TO ANY RESIDENT THEREOF
 This document, which has been prepared by Helvetia Group, is private and confidential and may not be copied, altered, offered, sold or otherwise distributed to anybody by the recipient without the consent of Helvetia Group.
 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, this document is selective in nature and is intended to provide an
 introduction to and an overview of the business of Helvetia Group. 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 is liable in any way for any loss howsoever arising directly or indirectly from the
 use of this information.
 The facts and information contained in this document are as up to date as is reasonably possible and 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 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; and (10) realization of synergies and scale benefits. 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.
 This document serves for information purposes only. This document does not constitute an offer or a solicitation to sell, exchange, buy or subscribe to securities, nor does it constitute an offering circular as defined by article
 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus as defined by the listing rules of the SIX Swiss Exchange Ltd. Investors should make their decision to sell, buy or subscribe to securities in Helvetia
 Holding AG solely on the basis of the relevant offer prospectus which will be published in due course.

 This document is not an offer of securities for sale or purchase in the United States. The securities to which this document relates have not been and will not be registered under the United States Securities
 Act of 1933, as amended (the ʺSecurities Actʺ), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There will not be a public
 offering of securities in the United States.

 Please note:
 Sums in this presentation are based on unrounded figures and may not add up due to rounding differences. Likewise, year-on-year changes are calculated on the basis of unrounded figures.

2 |
Strong business. Profitable growth. Shareholder value.
Kapiteltrenner
Helvetia at a glance.
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Strong business. Profitable growth. Shareholder value.
Who we are – Helvetia at a glance
                                        Our profile
                                             Leading Swiss all-lines insurer (Top 3) with business operations in four additional country markets in Europe and in selected
                                              niche markets worldwide (Specialty Markets)
                                             Active in non-life (property & casualty) and life insurance as well as in Specialty Markets (specialty insurance and reinsurance
                                              business)
                                             Over 5 million customers – focus on SME and private clients; 6,592 employees
                                             Market capitalisation of CHF 5,455 million as of 31 December 2017

                                        Our strengths
                                             Balanced portfolio mix1) of life (53%) and non-life (47%) business
                                             Geographic diversification (CH / Europe, through Specialty Markets also worldwide)
                                             Omni-channel approach, strong cooperation partners
                                             Solvent partner – strong capitalisation

                                        Our promise
                                             Top quality provider and solid Swiss insurance company
                                             Strong service mentality: tailor-made solutions, fair and reliable
                                             Sustainable and reliable dividend payments with attractive yields
                                             Continuing long-term growth through a well balanced combination of attractive markets and profitable insurance and pension
                                              solutions

      1) In   percentage of business volume 2017
4 |
Strong business. Profitable growth. Shareholder value.
Helvetia is well positioned and has an excellent
basis for the future
  Switzerland
  Business volume 2017: CHF 4,978 million
  Stable foundation of the Group
  Non-life:
   Private clients & SME, #5 market position
   Very good CR of 83.1% (2017)
                                                                                 Europe
   High quality service provider
  Life:                                                                           Business volume 2017: CHF 2,764 million
   #3 market position                                                            Profitable and expandable market positions
   Successful adaptation of product portfolio to current interest environment    Same customer segments (retail/SME)
                                                                                  Additional synergies within the Group
 Specialty Markets (worldwide)

   Business volume 2017: CHF 900 million
   Strong positioning in selected niche markets
    (top 1 CH, top 2 FR)
   Good international diversification
   Proven global risk diversification in active
    reinsurance

5 |
Our strength is a well developed sales network
with excellent partners…
(as of 30/06/2018)

                          Own sales force            Agents              Brokers                            Partners                        Direct sales/new media

      CH                                                                1,200 broker                       Swisscanto                          online@helvetia.ch
                            910 sales agents       1,760 agents                                                                                    smile.direct
                                                                        agreements                         Raiffeisen

        AT                  250 sales agents        380 agents         1,200 brokers                     3 partner banks                         Durchblicker.at

                                                                         6,300 active                                                             check24.com
      DE                                            250 agents                                                ARAG
                                                                       broker relations                                                        online@Helvetia.de

       IT                                          790 agencies                           11 worksite marketing partners with 25 branches
                                               (4,360 sales persons)    210 brokers            28 partner banks with 3,200 branches                 Easy Ski
                                                                                                      5'000 financial advisors

                                                                                                                                                online@Helvetia.es
       ES                                          1,840 agents         2,050 brokers                    12 bank partners                     200 intermediaries web
                                                                                                                                                   3 aggregators
                                                                                                     Yacht insurance with SGI
      FR1)                                                               2'950 active     Partnership with Caisse Régionale of Groupama
                                                                       broker relations     GAN agents network for transport insurance
        1)   as of 31/12/2017

6 |
…which we develop into a customer-centered omni-
channel network step by step
      Cross-channelling                                             Omni-channelling

                                                                                       Partners

                                                                                                  Own
                                                                            Mobile                sales-
                                                                                                  force

          Own        Agents   Brokers   Partners   Direct sales /
       sales force                                  new media

                                                                                        Online

7 |
We have grown profitably on an organic basis and
through selected acquisitions over 160 years
      160 years of insurance expertise
         1858 start as transport insurer                                                1996 merger of Helvetia Insurance & Patria Mutual

         1870-1970 initially, expansion strategy with small portfolios worldwide        Creation of Helvetia Patria Holding AG, Listing at SIX Exchange

         From 1990 focusing on 6 European core markets                                  2006 change of name to Helvetia Holding AG

                                                                                                                                                            Defferrard & Lanz
      Transactions since 2008
                                                                                                                                   MoneyPark                (by MoneyPark)
                                                          Phenix                    SEV                                                                        finovo
            CH                                                                                                  Nationale Suisse
                                                                                                                                                               (by MoneyPark)
                                                           Alba
                                                                                      gan
                                            CEAT                                      Eurocourtage
            FR

                       2008          2009          2010            2011        2012           2013          2014         2015          2016          2017           2018

             IT                                      Chiara Vita
                                                                                                                          Chiara
                       Padana Assicurazioni                                                                            Assicurazioni

            AT
                                                                                                  Baloise AT

8 |
Our strategy helvetia 20.20 creates value

  helvetia 20.20 creates                                          ...through transformation               … and gets us fit for the                  Our financial targets
  value...                                                        and innovation                          future
                                                                                                                                                     Volume: CHF 10 billion (ambition)
      Value for customers                                         Transformation                           Fit for the future
       Simple, customised and personalised                        Strengthening of core business           Agile and efficient                     Non-life: Net CR < 93%
         insurance solutions and secure                             Growth                                 Innovative and digital                  Life: NBM > 1%
         pension solutions with a high level of                     Digital customer and partner           Customer-centric through
         convenience                                                  interaction                             combination of traditional strengths   Synergies (pre-tax): > CHF 130 million
                                                                    Greater automation                       and utilisation of new opportunities   Return on equity: 8–11%
      Value for employees                                         New business models                                                                Dividend (5 years) > CHF 1 billion
       Attractive and future-oriented                              Eco-system «Home», skill-based
                                                                                                           Still personal and reliable               SST ratio: 140 - 180%1)
         employer                                                    M&A
                                                                                                            Sustainable customer promises           S&P rating: A
                                                                  Targeted innovations / Prototyping        Healthy capital base
      Value for shareholders                                        Corporate venturing
       Continuous increase in profit and                           Corporate incubation
         dividend potential                                         Partnering

            1)   Range under review considering the introduction of new SST models as of 1 January 2019

9 |
Our key investment highlights are:

       Strong business set-up                    Profitable growth strategy                     Shareholder value

         Successful all-lines insurance since      Increasing underlying earnings            Increased dividend per share (in CHF)
          160 years                                  (in CHF million)

         Sound business mix (47% non-life,
          53% life)1)                                    422      439     492         502                            21.00     23.00
                                                                                                  18.00     19.00
         Favorable regional diversification:
          strong home market and profitable
                                                         2014    2015     2016    2017             2014     2015      2016     2017
          footprint in Europe
                                                    Driven by…                                Attractive dividend yield of 4.2%
         Focusing on private individuals and          strong technical results in NL
          SME in all country markets                    Ø CR 2014-2017: 92.3%                 Pay-out ratio of 47% (underlying
                                                       successful handling of low rates        earnings) and 59% (IFRS earnings)
         helvetia 20.20:                                in life
           Transforming the core business              interest margin 2014-2017: +18 bp     Switzerland, Europe and Specialty
           Targeted innovations                            yield 2014-2017: -39 bp             Markets all contributing to Group
                                                        Share of capital-light products on     dividend
                                                            new business in life >70%

                                                    …and supported by a conservative
                                                     investment portfolio

         1)   Based on 2017 business volume

10 |
Kapiteltrenner
Key financials.
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Solid development of volume, profit and combined
ratio
       After tax profit1)                                      Business volume                       Our focus
       (in CHF million)                                        (in CHF million)
                                                                                                        Profitable growth

                           492           502                     8,235     8,513   8,641
          439
                                                                                            5,833
                                                        224

         2015             2016          2017       HY 2018       2015       2016   2017    HY 2018

       Net combined ratio (non-life)                           Value of new business (life)          Our focus
       (in %)                                                  (in CHF million)
                                                                                                        Strong technical results
                                                                                                        Profitability and efficiency
                                                                                                         enhancement

                                                                                    49
          92.1            91.6          91.8            92.7
                                                                             33
                                                                   23                        23

         2015             2016          2017       HY 2018       2015       2016   2017    HY 2018

          1)   2015-2017 based on underlying earnings

12 |
Strong capitalisation and sustainable dividend
strategy
       Shareholders’ equity1)                                                          Solvency                                      Our focus
       (in CHF million)                                                                (as of 01/01/2018)
                                                                                                                                        Financial strength

                                                                                     SST ratio:                             212%

                                                                                                                 140-180%
         4,655         4,813         5,229          4,994
                                                                                     0%                   100%              200%
                                                                                              Target range4)

         2015          2016           2017        HY 2018

       Dividend per share                                                              Dividend yield / Pay-out ratio                Our focus
       (in CHF)                                                                        (in %)
                                                                                                                                        Sustainable dividend policy
                                                                                           3.8%        3.4%      3.8%        4.2%

                                     21.00          23.00
         18.00         19.00                                                              44%2)        45%2)     44%2)       47%2)
                                                                                          47%3)        66%3)     58%3)       59%3)

         2014          2015           2016          2017                                   2014        2015      2016        2017

          1) Excl. preferred securities
          2) Basis underlying earnings
13 |      3) Basis IFRS
          4) Range under review considering the introduction of new SST models as of 1 January 2019
Kapiteltrenner
Current examples
implementation.
                 of strategy
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Strengthening of core business: tailor-made
customer journey along all touchpoints
                     360° customer view

                Strengthening of core business

15 |
New business models: ʺHomeʺ ecosystem –
everything from a single source

              Establishing new business models

16 |
Kapiteltrenner
Investments.
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Investments: well diversified portfolio with good
ALM and low duration gap
               Portfolio by asset class                                                                                                                        Bonds
                                                                                                                                                            
CHF 49.6 bn

                                                                                                                                                                Investment property
                                                     60%                                                      14%    9%     6%   5%    2%2%2%   31/12/2016
                                                                                                                                                       6%   
                                                                                                                                                           5%   Mortgages
                                                                                                                                                               Market risk PH
                                                                                                                                                               Equities 1)
CHF 52.3 bn

                                                    58%                                                   14%       10%     7%   5%    2%2%2%   31/12/2017
                                                                                                                                                               Loans
                                                                                                                                                               Alternative investments /
                                                                                                                                                                investment funds / derivatives

              Performance by asset class 2017                                                                         Duration gap3)
                                                                                                                                                               Other 2)

              16.2%
                                                                                                                     Efficient asset-liability
                                                                                                                     matching with a duration
                                                                                                                     gap of

                                                                                                                                 0.0
                                               4.0%
                                                                                2.8%
                              1.9%                             1.8%

              Equities       Bonds         Investment       Mortgages            Total
                                             property                            yield

                   1) Equity exposure delta-adjusted as of 31/12/2017: 5.6%
                   2) Money market instruments and investments in associates
18 |               3) The duration gap represents the exposure of risk-bearing capital to interest rate changes
Kapiteltrenner
Solvency and risk sensitivities.
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Well-capitalised: good SST ratio

                                                                                        Greatly improved SST ratio driven by the increase of risk-bearing capital
 (in CHF million)                   2017                 2018    ∆ 18/17
                                                                                        Stable target capital (compensating effects)
 Risk-bearing capital                6,317               7,863        1,546
                                                                                        Favorable developments on the capital markets which were characterised
 Target capital                      4,178               4,174            -4
                                                                                         by rising stock prices, higher risk-free interest rates and lower credit spreads
 Risk margin                           871                876             5             New hybrid bond (EUR 500 million) issued in spring 2017 contributed to a
 Risk-bearing capital                                                                    strongly improved capitalisation
                                     5,446               6,987        1,541
 – risk margin
                                                                                        Successful business performance moderated by expected dividend
 Target capital
                                     3,307               3,298            -9
 – risk margin                                                                           distribution for financial year 2017

 SST ratio                            165%               212%    +47% pts               Positive impact from FINMA-driven model and parameter adjustments

                        = positive effect on SST ratio           = neutral effect on SST ratio                = negative effect on SST ratio

20 |
Solvency and risk sensitivities

Group solvency                       (as of 31/12/2017)

                Sensitivities of solvency                                                           Equities                                         Interest rates                                           Credit spreads1)
                                                                                                       -10%                                                  -50 bp                                                    +50 bp
                                                 SST                                                    -6% pts                                                    -5% pts                                             -19% pts

Risk sensitivities2)                        (as of 30/06/2018; in CHF million)

   Interest rate risk sensitivities                                                                             Interest rate level                                                                         Interest rate level
                                                                                                                            +10 bp                                                                                      -10 bp
                              Income statement                                                                                              1.3                                                                            -2.7
                                               Equity                                                                                    -80.7                                                                             81.8

       Equity price risk sensitivities                                                                                     Equity price                                                                           Equity price
                                                                                                                                 +10%                                                                                    -10%
                              Income statement                                                                                            97.4                                                                            -86.2

                  Foreign exchange risk                                                          EUR / CHF                                                  USD / CHF                                               GBP / CHF
                            sensitivities                                     +2%                           -2%                          +2%                            -2%                         +2%                    -2%
                              Income statement                                  -2.5                          2.6                          -2.4                           2.4                         -1.3                  1.3

           1) The spread-sensitive investments are defined as interest-bearing investments with the exception of "AAA"-rated government bonds, bonds issued by multilateral development banks, mortgages,
              policy loans and mortgage backed bonds. For more information on Solvency and related sensitivities please refer to the financial condition report of Helvetia Group.
21 |       2) Net of PHP and tax
Kapiteltrenner
Shareholder structure.
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Shareholder structure with long-term focus

Shareholder structure
(as of 30/06/2018)                            Free float by geography

                                                                                Swiss investors
                                                              37.8%
                                               Investors
                                               based abroad
                                 Free float
                 34.1%                                                  62.2%

       Patria
       Mutual
                         65.9%
                                              Free float by investor type

                                              Private                           Other institutional
                                              individuals      30.0%                    investors

                                                                         45.8%
                                                  Banks and
                                                  insurers      24.2%

23 |
Kapiteltrenner
Appendix  I.
Half-year results 2018.
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Key figures and highlights at a glance
                            Business volume           Non-life +5.5% (in OC) growing in all lines of business and segments
           Growth           CHF 5,833 million         Life +0.8% (in OC) driven by investment-linked products in
                                                      Switzerland (+19.7%) and Germany (+17.3% in OC)

       $                    Net income after tax      Resilient result despite
           Profitability    CHF 224 million            weak equity markets impacting investment result in non-life
                                                         and life
                                                       higher NatCat claims compared to the prior-year period
                                                      Specialty Markets +12.7%
                                                       strong technical results in France and ARI

                            Net combined ratio        Net CR on good level although impacted by higher claims related to
                            92.7%                     storms and other weather events
                                                      Good underlying claims development reflects strong portfolio quality

                            New business margin       Focused sale of capital-light products and revision of traditional
                                                      products resulting in higher NBM
                            1.4%

                            Strategy implementation   Expansion of B2B2C business
           helvetia 20.20
                            on track                  Launch of mortgage exchange Mex; new partner for "home" ecosystem

25 |
Solid net income

 Net income after tax
 (in CHF million)

                                                                             -13.4%                                                                                                35%   Life2)

                                          -8                        -28                                                      9                          Non-life2)      65%
                                                                                                -8

              258                        250             1,349                                                                             224

                                                                                                                                                                SpM3)         7%

           Underlying          Underlying-IFRS                 ∆ Non-life                    ∆ Life                      ∆ Other      IFRS net income                   25%              CH3)
            earnings             accounting                                                                              activities      HY 2018             Europe3)
            HY 2017             adjustment1)
                                                                                                                                                                                   68%

          HY 2017               HY 2018

             1) Amortisation of bonds acquired at market value with the acquisition of Nationale Suisse in 2014 to par
             2) Share on total earnings excl. other activities
             3) Share on total earnings excl. Corporate
26 |
Resilient results in non-life and life impacted by
weak capital markets
(in CHF million)

Non-life                                                                                                                      Life                                                          HY 2017
                                                         -16.8%
                                                                                                                                                                                            HY 2018
                                                                                                                                                                 -15.4%

                                           -2                            -28

             177                                                                                                                                        -6                  -8
                                       1,349                                                           147                           92                                                    78

 Underlying earnings Underlying-IFRS                                  ∆ Profit               IFRS net income                 Underlying earnings Underlying-IFRS          ∆ Profit   IFRS net income
     HY 2017         acc. adjustment1)                                                          HY 2018                          HY 2017         acc. adjustment1)                      HY 2018

                                                              Other activities

                                                                                                                      n.a.

                                                                               -10                                     9                     -1

                                                                    Underlying earnings                          ∆ Profit            IFRS net income
                                                                        HY 2017                                                         HY 2018
        1)   Amortisation of bonds acquired at market value with the acquisition of Nationale Suisse in 2014 to par

27 |
Solid results in Switzerland and Europe – Specialty
Markets with pleasing improvement
(in CHF million)

Switzerland                                                                                                              Europe
                                                        -22.3%
                                                                                                                                                           -7.2%
                                            -7
                                                                        -36                                                                        -1                   -3
               194                                                                                                               59
                                                                                                    151                                                                                     55
                                       1,349

 Underlying earnings Underlying-IFRS                                 ∆ Profit              IFRS net income              Underlying earnings Underlying-IFRS           ∆ Profit      IFRS net income
     HY 2017         acc. adjustment1)                                                        HY 2018                       HY 2017         acc. adjustment1)                          HY 2018

Specialty Markets                                                                                                       Corporate

                                                                                                                                                            n.a.
                                                       +12.7%

                                       1,349                                                                                                                    11
                    14                                     2                                     16                                   -9                        11                      2

       Underlying earnings                              ∆ Profit                       IFRS net income                      Underlying earnings            ∆ Profit              IFRS net income
           HY 2017                                                                        HY 2018                               HY 2017                                             HY 2018

          1)   Amortisation of bonds acquired at market value with the acquisition of Nationale Suisse in 2014 to par

28 |
Non-life: business volume in HY 2018
       (in CHF million; currency-adjusted   Property       thereof     Motor    Liability   Accident /   Transport /     ARI   Total NL
       growth against HY 2017)                         Engineering    vehicle                  Health           Art
                                                 322              -       478        112          144             2        -      1,057
       Switzerland
                                               -3.5%              -     1.3%        3.6%         4.3%          3.3%        -       0.4%
                                                 393            18        426        109          113            57        -      1,099
       Europe
                                                6.7%         19.0%     10.4%        6.4%         3.3%          3.7%        -       7.5%
                                                 193            10        143         44           19            39        -        439
             Germany
                                                7.4%         24.4%     18.0%        3.1%         2.9%          5.6%        -       9.8%
                                                  55             5        135         31           59             5        -        285
             Italy
                                                9.3%         21.2%      4.3%        9.9%         1.4%          -4.0%       -       5.1%
                                                  77             1         77         12           13             9        -        187
             Spain
                                                4.3%        -17.3%     12.5%       17.5%         8.7%          -0.4%       -       8.3%
                                                  68             2         71         23           22             4        -        187
             Austria
                                                5.5%         12.6%      6.1%        3.5%         5.7%          4.0%        -       5.5%
                                                 128           118         16          1             -          184      255        585
       Specialty Markets
                                               24.3%         25.9%     -15.4%     -17.6%             -         6.9%    12.7%      12.1%
                                                 111           111          -           -            -           51        -        162
             Specialty Lines CH / Int.
                                               19.6%         19.6%          -           -            -        29.7%        -      22.6%
                                                  17             6         16          1             -          133        -        167
             France
                                               69.3%           n.a.    -15.4%     -17.6%             -         -0.3%       -       2.2%
                                                   -              -         -           -            -             -     255        255
             ARI
                                                   -              -         -           -            -             -   12.7%      12.7%
                                                844           136        919        222           257           243      255     2,740
       Total
                                               4.6%         25.0%       4.8%       4.8%          3.8%          6.1%    12.7%      5.5%

29 |
Non-life: overview of net combined ratios

       (in %)                         CH                   Europe                         Specialty Markets          Group

       Claims ratio (net)             61.6                  65.6                                64.1                  63.9

       Cost ratio (net)               24.6                  30.1                                32.1                  28.7

       Combined ratio HY 2018 (net)   86.3                  95.7                                96.2                  92.7

       Combined ratio HY 2017 (net)   84.5                  94.4                                96.8                  91.3

       Change from HY 2017            1.8                   1.3                                  -0.6                 1.4

                                             DE     IT              ES     AT      SpL           FR           ARI
       (in %)
                                                                                  CH/Int.
       Claims ratio (net)                    70.0   57.6            73.1   60.1    56.6         63.0          67.4

       Cost ratio (net)                      29.9   34.5            24.5   29.6    38.7         32.3          29.6

       Combined ratio HY 2018 (net)          99.8   92.1            97.6   89.7    95.3         95.3          97.0

       Combined ratio HY 2017 (net)          95.7   92.0            96.7   92.8    94.4         98.0          97.2

       Change from HY 2017                   4.1    0.0             0.8    -3.1     1.0          -2.7         -0.2

30 |
Life: business volume in HY 2018
       (in CHF million; currency-                Investment-             Deposits1)          Total   Traditional             Total         Total    Total
       adjusted growth against                         linked                         investment-           life2)   individual life   group life     life
       HY 2017)
                                                                                            linked

                                                                128             27            156             275               431         2,113    2,543
       Switzerland
                                                              6.2%             n.a.         19.7%           -6.9%              1.2%         1.1%     1.1%

                                                                207             59            265             235               500           49      549
       Europe
                                                             -5.6%            -9.1%          -6.4%           3.9%             -1.8%        10.8%     -0.8%

                                                                    92            -            92              50               142             -     142
                 Germany
                                                            17.3%                 -         17.3%           -4.7%              8.5%             -    8.5%

                                                                     -          59             59             140               199           13      213
                 Italy
                                                                     -        -9.1%          -8.7%         11.3%               4.5%        18.4%     5.3%

                                                                    11            -            11              14                26           36       61
                 Spain
                                                           -10.5%                 -         -10.5%          -4.6%             -7.3%         8.2%     1.1%

                                                                104               -           104              30               134             -     134
                 Austria
                                                           -19.3%                 -         -19.3%          -6.6%            -16.8%             -   -16.8%

                                                               335              86            421            510               931         2,162    3,093
       Total
                                                            -1.2%           18.4%            2.2%          -2.4%             -0.4%         1.3%     0.8%

            1)   Not reported as premiums under IFRS
            2)   Incl. modern traditional and protection products
31 |
Life: new business margin

                                                                             Higher VNB despite increased risk discount rate
 (in CHF million)                        HY 2017    HY 2018     ∆ 18/17
                                                                              thanks to better profitability and higher new
 Value of new business (VNB)                  20         23       16.5%       business volume
 New business volume (in PVNBP)             1,643      1,715       4.4%      Higher PVNBP in all life units (excl. large contracts
 New business margin (NBM; in % PVNBP)     1.2%        1.4%    0.1% pts       in Europe); consistent improvement of new
                                                                              business mix in individual life and group life

                                                                             NBM increasing following the focused sale of
                                                                              capital-light products and successful revision of
                                                                              traditional products

32 |
Life: interest margin and guarantee buckets

Direct yields and guarantees in life business

Group (CHF)                                                   Switzerland (CHF)                                               Europe (EUR)                          Guarantee buckets Group

                                                                                                                                                                     100%
                                                                                                                               2.45%4)          2.52%4)
   2.34%2)           2.23%2)                                                                                                                              2.37%4)     90%
                                         2.18%2)                 2.32%3)            2.18%3)             2.15%3)                 0.35%           0.49%                 80%
                                                                                                                                                          0.47%
                                                                                                                                                                      70%
       0.98%          0.91%              0.89%                    1.11%                                                                                               60%
                                                                                     1.01 %             0.98%
                                                                                                                                                                      50%

                                                                                                                                2.10%
                                                                                                                                                                      40%
                                                                                                                                                2.03%     1.90%
                                                                                                                                                                      30%
       1.36%          1.32%              1.29%                    1.21%              1.17%              1.16%                                                         20%
                                                                                                                                                                      10%
                                                                                                                                                                      0%
  HY 2017            FY 2017            HY 2018                 HY 2017             FY 2017           HY 2018                 HY 2017           FY 2017   HY 2018               HY 2017           HY 2018

                                                                                                                                                                               ≤1.0%
                 Gross    margin1)             Average interest rate Helvetia has to generate in order to meet its obligations                                               1.0% < x ≤ 1.5%
                                                                                                                                                                               >1.5%

           1) Before legal quota; direct yield annualised
           2) Not taking into account the effect of the revaluation of bonds at market value (HY 2017: -6 bp; FY 2017: -6 bp; HY 2018: -5 bp)
33 |       3) Not taking into account the effect of the revaluation of bonds at market value (HY 2017: -6 bp; FY 2017: -6 bp; HY 2018: -4 bp)
           4) Not taking into account the effect of the revaluation of bonds at market value (HY 2017: -7 bp; FY 2017: -7 bp; HY 2018: -6 bp)
Life: reserves

(as of 30/06/2018; in CHF billion)

                                                                  0.25% interest guarantee     21% of Swiss life reserves are subject to the BVG
              EU
                                                                                                 minimum interest rate
              7.7                                                 1.00% interest guarantee

                                     Individual
                                        life
                                        11.4

              CH                                    Other
              29.1                                   6.3

                                      Group
                                       life                        5.3       extra-mandatory
                                       17.7       Retirement
                                                    assets
                                                     11.4                    mandatory
                                                                   6.1

34 |
Investments: stable new and re-investment yield

                                                                             Investment performance: total portfolio                                               (yields not annualised)

                                                                                                                            Investment
 (in CHF million)                                Equities                                  Bonds                                                                Mortgages            Other           Total1)
                                                                                                                              property

 Current income                                 50                1.9%                273                 0.9%             121             1.7%                   43       0.8%          20        506         1.0%

 G/L                                             -3                                     77                                    -1                                    0                    -73          0

 Investment result                              47                1.8%                350                 1.2%              119            1.7%                   44       0.8%          -54       506         1.0%

 Unrealised G/L                                -59                                  --486                                      0                                    0                     -4       -549

 Total                                        -12              -0.5%                -136               -0.4%              119             1.7%                   44        0.8%         -58        -43       -0.1%

                                                                            New and re-investment of maturing funds in HY 2018                                                       (yields annualised)
                                                                                                                                            Investment
                                                                     Equities                               Bonds                                                           Mortgages               Average
                                                                                                                                              property

 Direct yield                                                           1.7%                                 1.2%                                 4.6%                        1.2%                    1.3%

 Weighted by asset class in 2017                                        5.1%                                86.1%                                 2.3%                        6.4%                   100%

         1)   In HY 2018 the revaluation of bonds due to the 2014 acquisitions had an impact on the yield of -3 bp (not annualised) and –5 bp (annualised), respectively

35 |
Investment portfolio by IFRS category
                                                                                                                            4%
                                                                                                         15%
                                                                                                                                             50%

                                                                                                                             CHF                                   Available for sale (AFS)
                                                                                            14%
                                                                                                                            52.2 bn                                Loans and receivables (LAR)
                                                                                                                                                                   Investment property
                                                                                                                                                                   Trading / Derivatives
                                                                                                          17%
                                                                                                                                                                   Held to maturity (HTM)
                                       31/12/2017                                                                                          30/06/2018
                                          Hedge Acc.1)

                                                                                                                                              Hedge Acc.1)
                                                                                                               Investment

                                                                                                                                                                                                                Investment
                                                                                            Associates

                                                                                                                                                                                                  Associates
                                                                                                                                               Trading /
                                           Trading /

                                                                                                                 property

                                                                                                                                                                                                                  property
                                                                             HTM

                                                                                                                                                                          HTM
                                                                                      LAR

                                                                                                                                                                                     LAR
                                                                AFS

                                                                                                                                                                AFS
(in CHF million)                                                                                                                 Total                                                                                       Total

Shares                                          1,432        1,184                                                                2,616      1,403             1,144                                                           2,547
Investment funds                                     858       291                                                                1,149         885             312                                                            1,196
Alternative investments                              143          2                                                                145          304               2                                                              306
Derivative financial
                                                     103                                                                           103          122                                                                              122
instruments
Interest-bearing securities                     1,185       24,762        2,437    2,061                                         30,445      1,230            24,495     2,326     1,935                                      29,986
Loans                                                                              1,151                                          1,151                                            1,117                                       1,117
Mortgages                                                                          5,159                                          5,159                                            5,230                                       5,230
Money market instruments                                                             789                                           789                                               849                                         849
Investment property                                                                                            7,074              7,074                                                                        7,157           7,157
Associates                                                                                  26                                        26                                                          25                                 25
Total                                        3,721         26,239         2,437    9,159    26             7,074              48,655        3,942            25,953     2,326     9,131           25           7,157         48,535

           1)   Excl. investments with market risk for the policyholder

36 |
Sustainable investments: MSCI ESG risk profile

Investment portfolio                                                                                                                ESG risk profile: A rating
CHF 52.2 bn as of 30/06/2018
                                                                                                                                                             3%
                                                                                     Equities
       Main asset classes in
       scope for the analysis1)
                                                                                                                                     30%

                     57%                               14%            10%        7% 5%

                    Bonds

                                                            Alternative investments /
                                                            investment funds / derivatives
         Bonds
         Investment property                                                                                                                                                    67%
         Mortgages
                            6
         Market risk PH
         Equities
         Loans (2%)                                                                                                                               Low / minor ESG risk = AAA – A
         Alternative investments / investment funds / derivatives (3%)                                                                            Moderate ESG risk = BBB – BB
         Other2) (2%)                                                                                                                             High ESG risk = B – CCC

          1)   The analysis covered a multi-dimensional sustainability risk assessment on security level for all financial holdings for which an ESG rating from MSCI is provided (57% of total assets)
          2)   Money market instruments and investments in associates
37 |
Equity walk: SST to IFRS to statutory equity

Reconciliation SST to IFRS to statutory equity
                                                                                                                                             Local GAAP equity amounts to 50% of IFRS equity
(as of 01/01/2018; in CHF billion)
                                                                                                                                             Investment valuation differences – i.e. unrealised

       7.9                           -2.7                                                                                                     gains and losses, which are not payable as
                                                                 5.2                         -3.5           0.9                               dividends – reflect around 67% of IFRS equity
                                                                                                                             2.6
                                                                                                                                             ʺTechnical provisions and otherʺ includes
SST risk-bearing Valuation & other Consolidated IFRS                                  Investments     Technical      Consolidated local       consolidation effects and valuation differences in
    capital         differences         equity                                                      provisions and     GAAP equity
                                                                                                         other                                technical reserves and non-technical items such as
                                                                                                                                              deferred taxes; hybrids, which are accounted as
Reconciliation opening to closing statutory equity
                                                                                                                                              equity under IFRS and booked as debt under local
(in CHF billion)
                                                                                                                                              GAAP, have not flown into calculation
                                               0.4
                                                                               -0.2                  0.0                    2.6              Local GAAP equity is net of participations (NB:
              2.3
                                                                                                                                              basis is a simplified, unaudited consolidation!)

                                                                                                                                             Local GAAP pay-out ratio: 58%1)
  Consolidated local                     Net income                         Dividends               Other            Consolidated local
  GAAP equity as of                                                                                                  GAAP equity as of
     31/12/2016                                                                                                         31/12/2017

         1)   Approximate as fully consolidated net income is available on IFRS level only

38 |
Helvetia capital management approach (1/2)

Managing capital generation
                                                                                                                                                                          To pay out dividends, we need the following
                                                                                                                                                                             conditions:
                                              Do the legal entities
                                              have free statutory                                                                                                                   Free statutory shareholder reserves that can
                                                  shareholder
                                                   reserves?                                                                                                                           be dividended out

                                                                                                                                                                                    Surplus above our minimum solvency ratio
                Pay out from free
                     statutory                                                    Solvency ratios                                                                                      targets including buffers
                   shareholder                                                    above minimum
                reserves down to                                                      buffer?                                                                                       Surplus above minimum tied asset ratio
                  level of buffer
                                                                                                                                                                                    Tax and regulatory hurdles also have to be
                                                                                                                                                                                       cleared

                                                                                                                                                                          NB dividends are payable by legal entities, not by
                                                                                                                                                                             individual market units or segments1)
                         Is the market unit                             Surplus above
                           RoE below our                              minimum tied asset
                              targets?                                      ratio?

       1)   Market unit = e.g. Switzerland or Germany; legal entity = company (or branch, where regulated) such as Helvetia Swiss Insurance Company; a market unit may be made up of several legal entities

39 |
Helvetia capital management approach (2/2)

What determines dividend payments
                                                                                                                         Capital distributable to shareholders is determined
                                                                          This is the maximum distributable capital
                                                                                                                          predominantly by the free shareholders' reserves
                                                                          we can pay. It is lower than the excess
       Free distributable
                                                                          solvency margin, because the limiting           within statutory equity, calculated on a legal entity
          shareholder
           reserves                                                       factor is free distributable shareholder
                                                                          reserves                                        by legal entity basis. This depends on local
                                                                                                                          accounting rules, laws, regulations and regulatory

                        Free distrib-                                                                                     practice
                        utable resvs
                                                                                                                         Another limiting factor is the minimum required
                                                                                                                          solvency margin both at legal entity and group
       IFRS                 Stat equity
       equity                                                                                                             level
                         Valuation                                                   Excess above
                                                                                                                         Helvetia includes additional buffers to address
                        differences                                                 minimum required
                         stat/IFRS        Minimum solvency                          solvency margin
                                          margin we require
                                                                                                                          volatility and uncertainty
                        Additional
                         capital

            Available capital                  Solvency margin   Solvency capital
              (own funds)                       (free surplus)    requirements

40 |
Kapiteltrenner
Appendix  II.
Additional information.
oder Fazit auf
Farbfläche
Flexible Schriftgrösse
Arial Black 0.9 ZA

41   Optional Bereichsbezeichnung | Thema/Projekt | Referent   11.01.2019
Executive Management structure

                                                   Corporate Secretary1)                            CEO                                      Internal Audit1)

                                                   Christophe Niquille                              Philipp Gmür                             Simon Schneider

 Support                                                                           Human Resources                                                                 1)Reports to the Chairwoman
 functions                                                                                                                                                         of the Board of Directors
                                                                                   Roland Bentele                   Corporate Centre
                                                                                                                                                                        Members of the Executive
                                                                                   Corporate                                                                            Management
                                                                                                                    Kaspar Hartmann
                                                                                   Development
                                                                                   Martin Tschopp

                                     Investments                         Finance                                              Actuarial                       IT

                                     Ralph-Thomas Honegger               Paul Norton                                          Beat Müller                 Achim Baumstark

 Market areas /                                     Individual-Life                 Group-Life                     Distribution
 segments         Non-Life Switzerland                                                                                                      Europe                           Specialty Markets
                                                    Switzerland                     Switzerland                    Switzerland
                  Adrian Kollegger                 Reto Keller                     Donald Desax                    Ralph Jeitziner          Markus Gemperle                  David Ribeaud

                                                                         Switzerland

42 |
Product portfolio (1/2)

       Non-life                                                       Premiums by business line (2017)
                                                                                                     Property (incl. engineering)
                            CH   DE   IT     ES        AT   FR   LI
                                                                           8%
                                                                                 10%
                                                                                                     Motor vehicle
                            •    •    •      •         •    •    •
                                                                                                  
       Property                                                                             34%
                                                                          9%                          Liability
       Motor vehicle        •    •    •      •         •    •              8%                        Accident / Health
       Liability            •    •    •      •         •    •                         31%            Transport (incl. art)
       Accident / Health    •    •    •      •         •                                             Active reinsurance
       Travel               •
                                                                      Premiums by segment (2017)
       Transport            •    •    •      •         •    •    •
                                                                                                     Europe
       Engineering          •    •    •      •         •         •              22%
                                                                                            42%
                                                                                                     Switzerland
       Art                  •    •    •      •                   •                                   Specialty Markets
                                                                                 36%
       Active reinsurance                  worldwide

                                                                      Net combined ratio                91.8%
                                                                      (2017)

43 |
Product portfolio (2/2)
       Life                                                                                            Group life
                                                                                                       Occupational pension plans (BVG) (Switzerland only)
       Individual life
                                                                                                       Management pension scheme solutions via Helvetia Collective Foundation
                                                             CH      DE    IT    ES           AT       All risks and benefits in occupational pension plans are assured and guaranteed by Helvetia Insurance.
                                                                                                       Assumption of complete administration. Package for companies and independent charitable
       Traditional                                                                                     organisations.
       Risk insurance and savings, financial and
                                                             •       •     •     •            •
       pension solutions with interest rate guarantees                                                 Kadervorsorge
       from Helvetia                                                                                   Additional and separate pension solutions which go beyond the mandatory requirements.
       Investment-linked                                                                               Helvetia BVG Invest
       Insurance policies with investment risk either                                                  Needs-oriented occupational pension plans with earnings prospects. Covers the risks of death and
       with the policyholder, at Helvetia with               •       •     •     •            •        disability by means of insurance contracts with Helvetia. Assumes the complete administration.
       appropriate risk hedging or with an external                                                    Investments are managed by Helvetia Investment Foundation..
       partner
                                                                                                       Risk insurance
       Deposits                                                                                        Risk insurance and blanket risk contracts for semi-autonomous occupational pension foundations.
       Investment contracts (contracts without a                                                       Assumption of complete administration.
       significant insurance technical risk)
                                                             •       •     •
                                                                                                       Swisscanto Foundations
                                                                                                       As a joint venture of Helvetia Insurance and the Association of Swiss Cantonal Banks, the Swisscanto
                                                                                                       Collective Foundations offer products and services for occupational pension plans and supplemental
                                                                                                       provision. Savings investment via the cantonal banks; insuring against the risks of death and invalidity
                                                                                                       with Helvetia. Sales via cantonal banks and brokers. The Swisscanto Vested Benefits Foundation
       Business volume (2017)                                     Premiums by segment                  manages vested benefits accounts for customers of the cantonal banks who do not operate their own
                                                                                                       vested benefits foundation. Helvetia manages the branch offices of all three foundations.

                          57%
                                                                  (2017)                               Helvetia Investment Foundation
                    9%
                                                                                                       Joint investment and administration of the pension funds investment. Specialising in indexed and core
                                      Individual life                                  Switzerland
                                                                                                       satellite investment products as well as real estate investments.
                    35%
                                                                     23%
                                        Traditional                                    Europe
              41%                                                                                      Helvetia Consulta AG
                                        Investment-linked                                             Draws up analyses and expert opinions, IAS19 calculations. Assumes the technical administration.
                                                                                                       Comprehensive consultation and services for occupational pension funds foundations.
                                        Deposits                          77%
       59%
                                      Group life

44 |
Switzerland: market positions
                                                     (as of 2017)

       Life            Non-life      Total
       1. Swiss Life   1. Axa        1. Axa
       2. Axa          2. Mobiliar   2. Swiss Life
       3.              3. Zurich     3.
       4. Baloise      4. Allianz    4. Baloise
       5. Allianz      5.            5. Zurich

45 |
Europe: market positions
                                                                                            (as of 2017)
 Germany:      CHF 866 million
 Non-life      No. 27*
 Life          No. 36*
 Transport     No. 10*

                                                                          No. 29*
                                               Austria: CHF 551 million
                                               Non-life   No. 8
                                               Life       No. 7
                                               Household No. 6*                     No. 8
 Spain: CHF 453 million
 Non-life (incl. health) No. 20
                                                                          No. 25
 Life                    No. 31
 Burial insurance        No. 11

                                                                No. 27

                      Italy: CHF 894 million
                      Non-life   No. 15
                      Life       No. 26
                      Accident No. 11

       * As of 2016

46 |
How does non-life insurance work?
                                                                                                                        (greatly simplified)

             Customer                          Helvetia

               Policy                          Premium

        Insurance process
                                                                                                              Claims and costs

       Current claim payments          Current claim payments

                                                                                                                 Premium

                                     Provisions and future claims                             Investments

                                                                                                              Combined ratio

                                Acquisition costs / administration costs                        Return

        Insurance benefits                 Technical result                         Result from investments

                                                          Total gross earnings for non-life

                                                                     Reinsurance
                                                           Total net earnings for non-life

47 |
How does life insurance work?
                                                                                                                                                       (greatly simplified)

                  Customer                                                                           Helvetia

                    Policy                                                                           Premium

            Insurance process                                   Risk process                     Savings process                        Cost process

                                                                Risk premium               Savings premium (investments)                Cost premium

       Risk benefits (death, disability)               Risk benefits (death, disability)       Return on investments       Acquisition costs / administration costs

       Guarantee granted to customer                                                       Guarantee granted to customer

            Insurance benefits                                   Risk result                      Savings result                         Cost result

                                           Policyholders’ profit participation                      Gross profit           Net profit                   shareholders

48 |
Calendar and contact
Important dates

  06/03/2019                         Publication of financial results 2018
  03/05/2019                         Ordinary Shareholders’ Meeting 2019
  29/08/2019                         Publication of half-year results 2019

Contact details

 Investor Relations                                                            Corporate Communications & PR

 Susanne Tengler                       Philipp Schüpbach                       Claudia Sauter
 Head of Investor Relations            Investor Relations Manager              Head of Corporate Communications & PR
 Helvetia Group                        Helvetia Group                          Helvetia Group
 Dufourstrasse 40                      Dufourstrasse 40                        Dufourstrasse 40
 9001 St Gall (Switzerland)            9001 St Gall (Switzerland)              9001 St Gall (Switzerland)
 Phone: +41 (0)58 280 57 79            Phone: +41 (0)58 280 59 23              Phone: +41 (0)58 280 50 33
 Email: susanne.tengler@helvetia.ch    Email: philipp.schuepbach@helvetia.ch   Email: media.relations@helvetia.ch

49 |
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