In the first half of the year, the Vaudoise Group earned 81.2 million francs, a 15.9 percent increase compared to the previous year. Revenue also saw a significant rise, up 8.1 percent to 1,053.1 million francs, as noted in the company's media release on Tuesday. This report includes figures from Prevanto, the pension fund advisor acquired in April.

In the non-life sector, premium volume increases by 5.3 percent to 955.1 million francs, exceeding the Swiss market average according to the company. However, claims costs increased by 11%, reaching CHF 407 million. CEO Jean-Daniel Laffely attributed the higher claims burden to weather-related damages in the Ticino, Upper Valais, and Seeland regions, which were significantly more severe compared to the first half of the previous year.

Growth in Health and Accident Insurance Premiums

The most significant growth, at 8.4 percent was observed in non-life personal insurance (health and accident insurance). Vaudoise attributes this growth to premium adjustments, an increase in insured wages in the Swiss market, and the acquisition of new business. The number of companies providing such insurance for their employees has risen by 3.2 percent.

However, gross claims costs have also risen markedly, from 365.3 million francs to 414.4 million francs. Despite this increase, the Combined Ratio (loss and expense ratio) in the non-life business remains marginally profitable at 98.3 percent, compared to 96.6 percent at the end of 2023. Management has expressed concern over this development, stating that they are «closely monitoring there aspects»

TrendValor Special Factor

In the life insurance sector, premiums increased by 46.4 percent to 77.4 million francs. This growth is mainly due to the marketing of a new tranche of the TrendValor product at the end of the first half of the year (a tranche was launched in the second half of 2023). However, results in the pension sector were lower.

The investment strategy, which primarily focuses on fixed-income investments and additionally on real estate and securities with variable returns, remains unchanged. In the first half of the year, the allocation was adjusted in favor of variable returns but remains defensive. The non-annualized investment return is 1.9 percent (compared to 1.7 percent in the previous year).

«Solid Foundation»

Both banks and insurance companies are required to meet regulatory metrics. The Swiss Solvency Test (SST) ratio fell by 2.6 percentage points to 331.4 percent compared to the end of the year.

Looking ahead, Vaudoise remains cautious. The strong half-year results provide a «solid foundation to approach the second half of the year.» In the non-life sector, the group, which is among the ten largest private insurers in Switzerland and employs over 1,900 staff, anticipates further growth in 2024.