Baloise Proves Reliability in Occupational Pensions for 2023

Basel, 22 May 2024. Despite a volatile investment landscape, Baloise has demonstrated its steadfastness as an occupational pension provider. The company reported earnings of CHF 46.5 million and allocated CHF 80 million to the surplus fund. Comprehensive BVG insurance customers enjoyed an interest rate of 1.50% on their retirement savings above the income threshold. The number of contracts rose to over 19,400, underscoring the appeal of Baloise's diverse product range from full BVG insurance to partially autonomous solutions. However, the pension sector faces ongoing challenges, urging political action.

Despite geopolitical and economic uncertainties, 2023 saw resilient financial markets, benefiting Baloise's earnings through gains on equities and alternative assets. Yet, foreign currency hedging due to the strong Swiss franc led to a slight dip in net investment income.

Baloise’s comprehensive BVG insurance remains popular, with an increase in demand compared to the previous year. CHF 80 million was allocated to the surplus fund, and a total interest rate of 1.5% was provided to customers. The payout rate for business meeting the minimum quota reached 92.5%, showcasing the robustness of Baloise’s comprehensive BVG model in volatile times.

The partially autonomous foundation Perspectiva expanded, adding over 850 new customers and bringing the total to nearly 5,000 participating companies with assets of approximately CHF 1.6 billion. The foundation yielded a return of 6.00% in 2023, reinforcing Baloise’s competitive standing in partially autonomous pension solutions.

Upcoming reforms to the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG) are set for a referendum on 22 September 2024. Baloise supports these reforms, which include lowering the statutory minimum conversion rate to ensure pension sustainability amid increasing life expectancy.