Helvetia Holding AG is contemplating a sale of its loss-making German insurance coverage operations, in line with folks conversant in the matter.
The Swiss insurer has employed JPMorgan Chase & Co. and plans to gather non-binding provides for the unit within the coming weeks, the folks stated, asking to not be recognized discussing personal data. Helvetia might fetch between 500 million Swiss francs and 600 million Swiss francs ($663 million) from the deal, they stated.
The potential sale is at an early stage and deliberations are ongoing, the folks stated. Spokespeople for Helvetia and JPMorgan declined to remark.
Helvetia’s German operations generated 988 million Swiss francs in written premiums and deposits in 2023, in line with a recent investor presentation. That amounted to roughly 8.7% of the agency’s total enterprise quantity.
The German unit, which is a part of an working division that additionally consists of operations throughout Italy and Austria, has posted a loss for 2 consecutive years, in line with a separate earnings report. Helvetia has blamed the poor outcomes on a cooling German financial system and restricted development exercise.
The Swiss insurance coverage trade has been the topic of elevated takeover hypothesis ever since an activist investor constructed up a large stake in considered one of Helvetia’s principal rivals: Baloise Holding AG. Since then, gamers together with Zurich Insurance coverage Group AG, Axa SA and Allianz SE have studied whether or not they would wish to bid for Baloise or elements of its enterprise if they arrive up on the market, Bloomberg beforehand reported.
Helvetia, for its half, is without doubt one of the few listed Swiss insurers. The corporate’s shares have risen 31% within the final yr, giving it a valuation of about 8.16 billion Swiss francs.
The insurer introduced in December a slate of recent monetary targets for 2025 by 2027 and in addition pledged increased dividend funds.
Copyright 2025 Bloomberg.
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