Helvetia-Baloise merger job cuts to be implemented by end of 2028

By Scott Vincent

April 23 - (The Insurer) - Any job reductions arising from the Helvetia-Baloise combination will be completed by the end of 2028, a Helvetia spokesperson told The Insurer on Wednesday.

Following commentary from Berenberg analyst Michael Huttner that targeted cost synergies implied a reduction in staff of around 1,600 people, the Helvetia spokesperson said it was too early to give a specific number for the reduction in headcount.

“We are currently focusing on getting the necessary approvals and will then also discuss this with the employee representatives,” the spokesperson said.

The two companies announced plans to merge on Tuesday morning, projecting 350 million Swiss Francs in run-rate pre-tax cost savings as a result of the deal.

Synergies are set to come from overlapping businesses in Switzerland and Germany, with the companies targeting increased geographic diversification in countries such as Spain, Belgium, Italy, Austria and Luxembourg.

“Any merger-related job reductions in countries where there is duplication will be implemented by the end of 2028 and shall be achieved by natural attrition whenever possible,” the Helvetia spokesperson said.

“We are committed to managing this process transparently with the utmost fairness, respect and support for the people affected.”

In a shareholder brochure published alongside the deal announcement on Tuesday, the two companies said the merger will create one of the largest Continental European insurers with attractive positions in eight European markets alongside a global specialty business.

In its domestic Swiss market, the companies said the merged entity would hold a market share of approximately 20%.

The combined business will have a pro forma business volume of 20.2 billion Swiss francs, of which 11.5 billion will be non-life business.

This will rank it within the 15 largest European insurance groups, analysis by The Insurer shows.

While the two companies said they consider themselves equal, for practical purposes the transaction has been structured as a merger by absorption, with Baloise being dissolved and all of its assets merged into Helvetia.

The merged company will then be renamed Helvetia Baloise Holding Ltd and listed on the SIX Swiss Exchange under the new ticker HBAN.

The deal is expected to close during the fourth quarter.