Helvetia with a strong SST ratio of 222% and increase in dividend capacity Dienstag, 30. April 2019 - 07:00

Media release

St.Gallen, 30 April 2019

Helvetia with a strong SST ratio of 222% and increase in dividend capacity

Helvetia has reported a very good SST ratio of 222% for the 2018 financial year. The Swiss Solvency Test (SST) was based for the first time on the new standard models of the financial supervisory authority. Helvetia also provided additional information on its dividend capacity. The Group has increased this to CHF 0.6 billion.

Helvetia today published its Financial Condition Report (FCR) for the 2018 financial year. As at 1 January 2019, the Group reported a strong SST ratio of 222%. Relative to the previous year, this represents an increase of 10 percentage points (1 January 2018: 212%). Despite the weak equity markets, lower interest rates and higher credit spreads in the past financial year, the good business result in 2018 had a positive impact on the SST ratio. The introduction of the new standard models and the associated recalibrations as at 1 January 2019 played a significant role in the increase in the SST ratio. Irrespective of the methodology, Helvetia continues to have a strong capital base.

Consistently solid capital position

The regulatory solvency ratio lies within the range of 180% to 240% targeted by Helvetia. The Group adjusted this range as at 1 January 2019 in order to take account of the new SST models (up to the end of 2018: 140% to 180%). The capital base of Helvetia remains very good and will not be negatively affected by the changes. As a consequence of the new standard models, however, Helvetia expects increased volatility as regards the SST ratio and thus slightly widened its target range.

Dividend capacity supports sustainable distribution

Helvetia has further improved its dividend capacity. As at 31 December 2018, the Group had net economic dividend capacity of CHF 0.6 billion, representing an increase of CHF 0.1 billion relative to the end of the previous year. In particular, higher statutory results contributed to the increase. With a strengthened dividend capacity, Helvetia is able to ensure a sustainable distribution to the shareholders in accordance with the helvetia 20.20 strategy.

The Financial Condition Report and the supporting slides can be accessed on the Helvetia website at www.helvetia.com/annual-results. Further information on the dividend capacity can be found in the analyst presentation on the 2018 annual financial statements under the same link.

This media release is also available on our website www.helvetia.com/media.

For further information please contact:

Analysts

Susanne Tengler

Head of Investor Relations

Phone: +41 58 280 57 79

investor.relations@helvetia.ch

Media

Jonas Grossniklaus

Senior Manager
Corporate Communications & PR

Phone: +41 58 280 50 33

media.relations@helvetia.ch

About the Helvetia Group

In 160 years, the Helvetia Group has grown from a number of Swiss and foreign insurance companies into a successful international insurance group. Today, Helvetia has subsidiaries in its home market Switzerland as well as in the countries that make up the Europe market area: Germany, Italy, Austria and Spain. With its Specialty Markets market area, Helvetia is also present in France and in selected regions worldwide. Some of its investment and financing activities are managed through subsidiaries and fund companies in Luxembourg. The Group is headquartered in St.Gallen, Switzerland.

Helvetia is active in the life and non-life business, and also offers customised specialty lines and reinsurance cover. Its business activities focus on retail customers as well as small and medium-sized companies and larger corporates. With some 6,600 employees, the company provides services to more than 5 million customers. With a business volume of CHF 9.07 billion, Helvetia generated an IFRS result after tax of CHF 431.0 million in financial year 2018. The registered shares of Helvetia Holding are traded on the SIX Swiss Exchange under the symbol HELN.

Cautionary note

This document was prepared by Helvetia Group and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Helvetia Group. The German version of this document is decisive and binding. Versions of the document in other languages are made available purely for information purposes. 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, 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 shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this information. The facts and information contained in this document are as up to date as is reasonably possible but 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 factors 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 as well as (10), the realisation of economies of scale as well as synergies. 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.