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Helvetia records higher H1 profit YOY, boosted by tax one-off

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Helvetia records higher H1 profit YOY, boosted by tax one-off

Switzerland's Helvetia Holding AG notched net income after tax of CHF289.7 million in the first half, up from CHF223.9 million a year ago.

The result was driven by strong investment results following the favorable development of the stock markets. The technical development, especially in the life business, also contributed to the profit increase. Finally, Helvetia benefited from a one-off positive tax effect of CHF63.3 million, which resulted mainly from the reduction of deferred tax provisions arising from federal tax reform and the associated cantonal tax reductions in Switzerland, the company said.

Net income after tax in the nonlife segment amounted to CHF198.6 million, up from CHF146.8 million in the first half of 2018. The improved result was mainly attributed to the marked improvement in the investment results caused by good stock market performance, as well as the effects of the tax reform in Switzerland.

Profit after tax in the life segment jumped year over year to CHF108.9 million from CHF78.0 million, attributable to an increase in the margin after costs resulting from the improvement in all profit sources and significantly higher gains on investments stemming from the strong equity market performance.

Business volume reached CHF5.97 billion, versus CHF5.83 billion a year earlier. The investment result amounted to CHF655.8 million, compared to CHF506.0 million in the prior-year period.

The net combined ratio at group level improved slightly to 92.5% from 92.7% in the first half of 2018.