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Across the business portfolio as a whole, we anticipate broad-based cash remittance amounting to a cumulative amount of over CHF 2 billion in the period 2024–2027. Of the cash remitted, at least 80 per cent is to be distributed in the form of dividends and complementary share buy-backs. This shareholder-oriented dividend policy reflects the focus on the earnings power of the core business and the discontinuation of the ecosystem strategy.
The difference between the dividend payments and the cash payout rate of 80 per cent or more will be accumulated annually. As soon as a minimum of CHF 100 million is reached, this capital will be returned to shareholders in the form of share buy-backs.
Portfolio optimisation in the Belgian life business will result in a one-off cash remittance of CHF 62 million. This amount, combined with cash remittance from operations, means that Baloise anticipates a high level of cash remittance of more than CHF 500 million in 2024. Depending on the effective amount of cash remittance at the end of the year and subject to the dividend decision to be made at the next Annual General Meeting, Baloise will consider a share buy-back of at least CHF 100 million next year. This shareholder-oriented dividend policy – under which we have paid an attractive dividend every year for more than 20 years – and the new framework introduced for share buy-backs make Baloise one of the most reliable stocks in the European insurance industry.
“The past few years have been dominated not only by exceptional developments in the macro environment but also by change within Baloise, particularly at management level. During Michael Müller’s first year as Group CEO, the board of directors initiated a review of the strategy and, together with the group management, conducted an in-depth analysis of the business lines. We are convinced that the refocusing strategy will put Baloise on a successful course,” adds the Chairman of the Board of Directors Thomas von Planta.
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