Baloise has announced the sale of Friday’s insurance portfolio to Allianz Direct Versicherungs-AG, as revealed in a press release on Tuesday. This divestment marks the first step in Baloise's new strategic direction. At the investor update on September 12, the insurer disclosed its intention to concentrate on high-return business segments where it holds a competitive market presence.

The Friday portfolios in Germany and France do not align with these criteria and will therefore be sold to Allianz. «Baloise has carefully evaluated various options and concluded that a transaction with a strong digital insurer is the best path forward,» the release states.

High Brand Recognition, Low Profitability

«We no longer see ourselves as the ideal owners for the continued development of this digital insurer. Economic conditions have shifted, and both the German and French digital insurance markets are highly competitive. Although Friday has achieved significant brand recognition, the current environment limits our prospects for profitable growth,» said Baloise CEO Michael Müller.

Allianz Direct Versicherungs-AG will acquire the portfolios, which amount to approximately 50 million francs in premium volume.

Negative Earnings Impact of 75 Million francs

Friday’s business operations will be gradually phased out, with Baloise anticipating the transaction to be completed by mid-2025. The majority of Friday’s employees will remain onboard until the transaction is finalized, with some retained beyond this to ensure a smooth portfolio transition.

The Friday brand name will be discontinued.

While the purchase price remains confidential, Baloise expects a one-time negative impact on earnings of approximately 75 million francs, primarily affecting fiscal year 2024.

The transaction is subject to regulatory review and approval.