Q2 2026 Helvetia Baloise Holding Ltd Earnings Call

September 17, 2026

Speaker #1: Ladies and gentlemen, welcome to the Helvetia Baloise half-year results 2026 conference call and live broadcast. I am Valentina de Coro, your call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded.

Operator: Ladies and gentlemen, welcome to the Helvetia Baloise Half Year Results 2026 conference call and live webcast. I am Valentina, the conference call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Peter Eliot, Head of Investor Relations. Please go ahead.

Speaker #1: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing "Start" and "1" on your telephone.

Speaker #1: For operator assistance, please press "Start" and "0." The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Peter Elliott, Head of Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Thank you very much. Good morning, everybody, and welcome to Helvetia Baloise's conference call on our 2026 half-year results. On today's call, we have our Group CEO, Fabian Vuklešt, and our Group CFO, Matthias Hennig.

Peter Eliot: Thank you very much. Good morning, everybody, and welcome to Helvetia Baloise's conference call on our 2026 H1 results. On today's call, we have our Group CEO, Fabian Rupprecht, and our Group CFO, Matthias Henny. Fabian will start by giving you an update on our strategy and progress since the Capital Markets Day. Matthias will then take you through the numbers of the H1 results in more detail. There will then be an opportunity for Q&A. With that, let me hand over to Fabian.

Speaker #2: Fabian will start by giving you an update on our strategy and progress since the Capital Markets Day, before Matthias then takes you through the numbers of the half-year results in more detail.

Speaker #2: There will then be an opportunity for Q&A. So with that, let me hand over to Fabian.

Speaker #3: Thank you, Peter, and good morning, ladies and gentlemen. Thank you for joining us today for our first half-year results presentation as Helvetia Baloise. Five months ago, at our Capital Markets Day, we presented our strategy, our financial ambitions, and our priorities for the integration period.

Fabian Rupprecht: Thank you, Peter, and good morning, ladies and gentlemen. Thank you for joining us today for our first H1 results presentation as Helvetia Baloise. Five months ago, at our Capital Markets Day, we presented our strategy, our financial ambitions, our priorities for the integration period. Today, I'm pleased to report that we have made a very strong start. The H1 results reflect high profitability, excellent margins, and continued strong capitalization. Our integration is progressing rapidly ahead of plan. Benefits are becoming visible, and we remain fully on track to achieve all strategic targets we announced in April. Let me begin with the key messages from the H1 of 2026 on slide 5. We achieved a high level of profitability, generating underlying earnings of CHF 632 million, which translates into underlying earnings of CHF 6.2 per share.

Speaker #3: Today, I'm pleased to report that we have made a very strong start. The half-year results reflect high profitability, excellent margins, and continued strong capitalization.

Speaker #3: Our integration is progressing rapidly, ahead of plan. Benefits are becoming visible, and we remain fully on track to achieve all strategic targets we announced in April.

Speaker #3: Let me begin with the key messages from the first half of 2026 on slide 5. We achieved a high level of profitability, generating underlying earnings of $632 million, which translates into underlying earnings of $6.20 per share.

Speaker #3: The annualized underlying return on adjusted equity is 18.7%, which is above the communicated range of 16% to 18%. We can show excellent technical margins across our businesses, with a combined ratio of 92% in non-life and a new business margin of 4.1% in life.

Fabian Rupprecht: The annualized underlying return on adjusted equity is 18.7%, which is above the communicated range of 16% to 18%. We can show excellent technical margins across our businesses, with a combined ratio of 92% in non-life and a new business margin of 4.1% in life. This demonstrates our disciplined underwriting approach and focus on technical excellence that we set as one of our strategic priorities. At the same time, our balance sheet remains exceptionally strong, as reflected in our indicative pro forma SST ratio estimate and our strong credit ratings. As you might be aware, there was a severe hailstorm event in Switzerland on 28 August, causing damages beyond CHF 1 billion for the industry. We expect claims of CHF 120 million to CHF 140 million, net of reinsurance.

Speaker #3: This demonstrates our disciplined underwriting approach and focus on technical excellence, which we set as one of our strategic priorities. At the same time, our balance sheet remains exceptionally strong, as reflected in our indicative pro forma SST ratio estimate and our strong credit ratings.

Speaker #3: As you might be aware, there was a severe hailstorm event in Switzerland on August 28, causing damages beyond $1 billion for the industry. We expect claims of $120 million to $140 million net of reinsurance.

Speaker #3: While this means that we will likely not be able to repeat such a strong result in the second half, nevertheless, technical excellence, fast progress on integration, and financial investment performance allow us to confirm our guidance set at the Capital Market Day in terms of underlying earnings growth and cash, in the absence of further significant net cat events.

Fabian Rupprecht: While this means that we will likely not be able to repeat such a strong result in the H2, nevertheless, technical excellence, fast progress on integration, and financial investment performance allows us to confirm our guidance set in the Capital Markets Day in terms of underlying earning growth and cash in the absence of further significant nat cat events. These results demonstrate the strength of our business model, and importantly, they were achieved at the same time as executing one of the largest insurance integrations in Europe. This gives us confidence that the combination of Helvetia and Baloise is delivering as we expected, not only today, but also in the future. Before discussing the integration in more detail, let me briefly remind you on slide seven of the priorities and targets we set out at the Capital Markets Day. Our strategy is built around three priorities.

Speaker #3: These results demonstrate the strength of our business model and, importantly, they were achieved at the same time as executing one of the largest insurance integrations in Europe.

Speaker #3: This gives us confidence that the combined Helvetia and Baloise is delivering as we expected, not only today but also in the future.

Speaker #3: Before discussing the integration in more detail, let me briefly remind you, on slide 6, of the priorities and targets we set out at the Capital Market Day.

Speaker #3: Our strategy is built around three priorities. First, delivering the merger synergies. Second, achieving efficiency gains, increasingly supported by AI. And third, continuing to strengthen technical excellence.

Fabian Rupprecht: First, delivering the merger synergies. Second, achieving efficiency gains, increasingly supported by AI. Third, continuing to strengthen technical excellence. Together, these priorities support our financial ambitions of double-digit underlying earnings CAGR, attractive returns on equity, and strong dividend growth. We will pay out more than CHF 2.8 billion in dividends in 2026 to 2028, and the 2029 dividend will be at least 50% higher than it was in 2025. Today, only five months after CMD, I am pleased to report that substantial progress has already been achieved.

Speaker #3: Together, these priorities support our financial ambitions of double-digit underlying earnings CAGR, attractive returns on equity, and strong dividend growth. We will pay out more than $2.8 billion in dividends from 2026 to 2028, and the 2029 dividend will be at least 50 percent higher than it was in 2025.

Speaker #3: Today, only five months after CMD, I'm pleased to report that substantial progress has already been achieved. On slide 7, you can see that since April, we have put the entire organization in place, completed the legal mergers of our Swiss insurance activities and our asset management entities, defined the operating model, harmonized employment contracts in Switzerland, launched our rebranding activities, and successfully started sales under the new organization in Switzerland and in Germany.

Fabian Rupprecht: On slide seven, you can see that since April, we have put the entire organization in place, completed the legal mergers of our Swiss insurance activities and our asset management entities, defined the operating model, harmonized employment contracts in Switzerland, launched our rebranding activities, and successfully started sales under the new organization in Switzerland and in Germany, to name just some of the achievements. This early decision-making is helping us move with speed while maintaining operational stability and keeping the integration fully under control. Customers continue to be served without disruption, employee engagement remains high, and the organization remains focused on execution. You can see in the slides that most of the transversal tasks of the integration have been accomplished. The next phase is about IT implementation and continuous value capturing. Responsibilities here need to be with the line managers. A separate integration office is not required anymore.

Speaker #3: To name just a few of the achievements, this early decision-making is helping us move with speed while maintaining operational stability and keeping the integration fully under control.

Speaker #3: Customers continue to be served without disruption, employee re-engagement remains high, and the organization remains focused on execution. You can see in these slides that most of the transversal tasks of the integration have been accomplished.

Speaker #3: The next phase is about IT implementation and continuous value capture. Responsibilities here need to be with the line managers; a separate integration office is not required anymore.

Speaker #3: Therefore, we will shift the integration responsibilities to the CFO and CTO. The role of Deputy CEO and Chief Integration Officer will be discontinued.

Fabian Rupprecht: Therefore, we will shift the integration responsibilities to the CFO and CTO. The role of the deputy CEO and chief integration officer will be discontinued. We continue to believe that AI is a great opportunity. However, it requires the right organizational setup to ensure a holistic view, and it requires a strong push for execution. This role, therefore, will be combined with the CTO role, creating a single Chief Technology and Transformation Officer role. This new role will have end-to-end responsibility for integration delivery, system migration, and transformation initiatives. Sandra Hürlimann, a proven leader who has already been instrumental in the integration and transformation, will take on this role. We believe this is the right setup for the next phase of the integration and that it is the right setup for advancing fast but in a controlled way on AI. Turning now to slide nine.

Speaker #3: And we continue to believe that AI is a great opportunity. However, it requires the right organizational setup to ensure a holistic view, and it requires a strong push for execution.

Speaker #3: This role, therefore, will be combined with the CTO role, creating a single Chief Technology and Transformation Officer role. This new role will have end-to-end responsibility for integration delivery, system migration, and transformation initiatives.

Speaker #3: Sandra Hurleyman, a proven leader who has already been instrumental in the integration and transformation, will take on this role. We believe this is the right setup for the next phase of the integration and that it is the right setup for advancing fast, but in a controlled way, on AI.

Speaker #3: Turning now to slide 9, I'm very pleased to report that the progress on synergies and efficiencies is ahead of plan, and that we have greater visibility and stronger evidence of these benefits.

Fabian Rupprecht: I am very pleased to report that the progress on synergies and efficiencies is ahead of plan, and that we have greater visibility and stronger evidence of these benefits. We previously reported that 21% of the targeted run rate benefit of CHF 650 million had already been secured by the end of 2025. By 30 June, that figure stood at 49%. Almost half of the total synergies and efficiency program had already been locked in. This is ahead of our original expectation, and we now expect to have locked in approximately 60% by the end of 2026, up from our previous estimate of 50%. We now also expect the 2026 P&L to benefit by an additional CHF 20 million, bringing the cumulative underlying earnings benefit from synergies and efficiency gains to CHF 170 million. This, of course, will help us deliver attractive dividends.

Speaker #3: We previously reported that 21% of the targeted run rate benefits of CHF 650 million had already been secured by the end of 2025.

Speaker #3: By June 30, that figure stood at 49%. So, almost half—almost half of the total synergies and efficiency program had already been locked in.

Speaker #3: This is ahead of our original expectation, and we now expect to have locked in approximately 60% by the end of 2026, up from our previous estimate of 50%.

Speaker #3: We now also expect the 2026 P&L to benefit by an additional CHF 20 million, bringing the cumulative underlying earnings benefit from synergies and efficiency gains to CHF 170 million.

Speaker #3: This, of course, will help us deliver attractive dividends. You should not expect, though, that it will affect the 2026 dividend, where we will still be financing the integration costs. However, it will be helpful when it comes to determining a potential first merger-related dividend uplift for 2027.

Fabian Rupprecht: You should not expect, though, it to affect the 2026 dividend, where we will still be financing the integration cost. It will be helpful when it comes to determining a potential first merger-related dividend uplift for 2027. This progress is broad-based and reflects execution across all business units and group functions. However, especially fast progress in Switzerland is the biggest contributor. Our overall ambition remains unchanged. We continue to target CHF 650 million of gross run rate benefits and CHF 350 million net contribution to underlying earnings. Execution discipline is not limited to synergy delivery. We are also carefully managing integration costs as we show on slide 10. We confirm that total integration costs are developing as expected and are currently projected to remain in the lower half of the previously announced range. To date, most of these are due to social plan provisions.

Speaker #3: This progress is broad-based and reflects execution across all business units and group functions. However, especially fast progress in Switzerland is the biggest contributor. Our overall ambition remains unchanged: we continue to target CHF 650 million of gross run-rate benefits and CHF 350 million net contribution to underlying earnings.

Speaker #3: Execution discipline is not limited to synergy delivery. We are also carefully managing integration costs, as we show on slide 10. We confirm that total integration costs are developing as expected and are currently projected to remain in the lower half of the previously announced range.

Speaker #3: Today, most of these are due to social plan provisions. Integration costs in 2026 are weighted more towards the second half of the year. Even those which we incurred in the first half have been partly offset by a curtailment of pension plans.

Fabian Rupprecht: Integration costs in 2026 are weighted more towards the H2 of the year. Even those which we incurred in the H1 have been partly offset by a curtailment of pension plans. That is a non-cash item that results from FTE reductions. Our second strategic priority relates to efficiencies. These are supported by artificial intelligence, and we provide an update on some of our initiatives on slide 11. As a reminder, we do not invest in isolated pilots. Instead, we are building reusable, scalable capabilities. Let me give you a practical example of how AI is already creating tangible value for both our customers and shareholders. Clara, our AI-powered voice and chatbot, handles more than 250,000 customers interactions each year and achieves a self-service automation rate of 95%. Its scalability was put to the test during the severe hailstorms that hit Switzerland in August.

Speaker #3: That is a non-cash item that results from FTE reductions. Our second strategic priority relates to efficiencies. These are supported by artificial intelligence, and we provide an update on some of our initiatives on slide 11.

Speaker #3: As a reminder, we do not invest in isolated pilots; instead, we're building reusable, scalable capabilities. Let me give you a practical example of how AI is already creating tangible value for both our customers and shareholders.

Speaker #3: Clara, our AI-powered voice and chatbot, handles more than 250,000 customer interactions each year and achieves a self-service automation rate of 95%. Its scalability was put to the test during the severe hailstorms that hit Switzerland in August.

Speaker #3: Within just three days, more than 4,000 claims were reported, with Clara processing up to three messages per second at the peak. This enabled us to support customers quickly and reliably during a period of exceptionally high demand.

Fabian Rupprecht: Within just three days, more than 4,000 claims were reported, with Clara processing up to three messages per second at the peak. This enabled us to support customers quickly and reliably during a period of exceptionally high demand. We estimate that claims handled through Clara are processed around nine times faster than through traditional manual processes. Claims can be submitted and processed around the clock, including weekends, eliminating unnecessary waiting times. Even during this extreme event, around 80% of claims were registered correctly without human intervention. Importantly, this rate remained stable despite the surge in claims volumes, demonstrating the robustness and scalability of our AI capabilities. This is a great example of technology helping us improve efficiency, manage peak volumes, and deliver an improved customer experience. On slide 12, we turn to our third strategic priority of technical excellence.

Speaker #3: We estimate that claims handled through Clara are processed around nine times faster than through traditional manual processes. Claims can also be submitted and processed around the clock, including weekends, eliminating unnecessary waiting times.

Speaker #3: Even during this extreme event, around 80% of claims were registered correctly without human intervention. Importantly, this rate remained stable despite the surge in claims volumes, demonstrating the robustness and scalability of our AI capabilities.

Speaker #3: This is a great example of technology helping us improve efficiency, manage peak volumes, and deliver an improved customer experience. On slide 12, we turn to our third strategic priority of technical excellence.

Speaker #3: The first half-year results clearly demonstrate our underwriting discipline and successful cycle management. Across all business areas, profitability remains excellent. The development of business volumes reflects our targeted and selective approach.

Fabian Rupprecht: The H1 results clearly demonstrate our underwriting discipline and successful cycle management. Across all business areas, profitability remains excellent. The development of business volumes reflects our targeted and selective approach. In non-life, we have been cautious, in particular in Germany and Belgium, and continued our efforts on portfolio optimization. In specialty markets, we continue to manage the insurance cycle with discipline and clear focus on returns. In active reinsurance in particular, part of the volume trend can be explained by us not accepting declined prices. More broadly, we are very happy that the merger has not resulted in any noticeable pick-up in churn. As a larger group, we also look forward to further leveraging our scale, data, and expertise to strengthen underwriting discipline, pricing capabilities, and portfolio steering. Technical excellence will therefore remain a key driver of shareholder value creation for us. Let me now conclude on slide 13.

Speaker #3: In online, we have been cautious, in particular in Germany and Belgium, and have continued our efforts on portfolio optimization. In specialty markets, we continue to manage the insurance cycle with discipline and a clear focus on returns.

Speaker #3: In active reinsurance in particular, part of the volume trend can be explained by us not accepting declined prices. More broadly, we're very happy that the merger has not resulted in any noticeable pickup in churn.

Speaker #3: As a larger group, we also look forward to further leveraging our scale, data, and expertise to strengthen underwriting discipline, pricing capabilities, and portfolio steering.

Speaker #3: Technical excellence will therefore remain a key driver of shareholder value creation for us. Let me now conclude on slide 13. Five months after our Capital Market Day, we can report that Helvetia Baloise has made a very strong start as a combined company, as demonstrated by our first half-year results.

Fabian Rupprecht: Five months after our Capital Markets Day, we can report that Helvetia Baloise has made a very strong start as a combined company, as demonstrated by our H1 results. Our integration is progressing faster than planned. We have already secured almost half of the targeted run rate synergies and efficiencies and have increased our expectations for 2026 accordingly. The synergies and efficiencies are fully in our hands and continue to support our ambitious financial objectives. Helvetia Baloise is thus fully operational and we remain fully on track to achieve all our strategic and financial targets. Our employees are the reason why we have been able to move so quickly while continuing to serve our customers and partners successfully. I would like to thank them for their dedication, their professionalism, and their commitment. Many thanks for your interest.

Speaker #3: Our integration is processing faster than planned. We have already secured almost half of the targeted run-rate synergies and efficiencies, and have increased our expectations for 2026 accordingly.

Speaker #3: The synergies and efficiencies are fully in our hands and continue to support our ambitious financial objectives. Helvetia Baloise is thus fully operational, and we remain fully on track to achieve all our strategic and financial targets.

Speaker #3: Our employees are the reason why we have been able to move so quickly while continuing to serve our customers and partners successfully. I would like to thank them for their dedication, professionalism, and commitment.

Fabian Rupprecht: Our employees are the reason why we have been able to move so quickly while continuing to serve our customers and partners successfully. I would like to thank them for their dedication, their professionalism, and their commitment. Many thanks for your interest. I will now hand over to Matthias Henny, who will walk you through the financial results in more detail.

Speaker #3: Many thanks for your interest. I will now hand over to Matthias Henny, who will walk you through the financial results in more detail.

Fabian Rupprecht: I will now hand over to Matthias Henny, who will walk you through the financial results in more detail.

Speaker #1: Thank you, Fabian, and good morning, everybody, from me. As Fabian mentioned, we are extremely pleased with the progress we have made. We are reporting a very strong result for the first combined half-year as a new company, as we show on slide 15.

Matthias Henny: Thank you, Fabian, and good morning, everybody, from me. As Fabian mentioned, we are extremely pleased with the progress we have made. We are reporting a very strong result for the first combined H1 as a new company, as we show on slide 15. You will be aware that true prior year P&L numbers for the combined group do not exist. This makes it difficult for us to provide you with comparative figures. We have tried to be as helpful as possible in this presentation, and we will add further disclosure as soon as we are able to do so. Thus, we provide some illustrative H1 2025 numbers in this presentation where we think these may be helpful. However, these should be treated with appropriate caution.

Speaker #1: You will be aware that true prior-year P&L numbers for the combined group do not exist. This makes it difficult for us to provide you with comparative figures.

Speaker #1: We have tried to be as helpful as possible in this presentation, and we will add further disclosure as soon as we are able to do so.

Speaker #1: Thus, we provide some illustrative half-year '25 numbers in this presentation, where we think these may be helpful. However, these should be treated with appropriate caution.

Speaker #1: We have calculated them by taking the Helvetia half-year '25 results and adding half of the full-year '25 illustrative results for Baloise. This means that no seasonality is reflected for Baloise.

Matthias Henny: We have calculated them by taking the Helvetia H1 2025 results and adding half of the full year 2025 illustrative results for Baloise. This means that no seasonality is reflected for Baloise. I also remind you that the full year 2025 illustrative results were calculated at a high level of materiality. In addition, 2025 represented a very good year, which we warned you should not expect to repeat. Nevertheless, the result for the H1 2026 has again been very good. We have benefited from strong progress on technical excellence and from very speedy efficiency and synergy realization. However, we do not consider the results fully sustainable. Without some small positive one-off elements and some timing effects, underlying earnings would likely have been close to CHF 600 million, maybe a touch under.

Speaker #1: I also remind you that the full-year 2025 illustrative results were calculated at a high level of materiality. In addition, 2025 represented a very good year, which we warned you should not expect to repeat.

Speaker #1: Nevertheless, the result for the first half of 2026 has again been very good. We have benefited from strong progress on technical excellence, and from very speedy efficiency and synergy realization.

Speaker #1: However, we do not consider the results fully sustainable. With that, some small positive one-off elements and some timing effects, underlying earnings would likely have been close to CHF 600 million, maybe a touch under.

Speaker #1: We expect the second half of the year to be below this normalized half-year run rate. We should see more benefit from synergies and efficiencies, but the recent hailstorm that Fabian mentioned will cost us between 120 and 140 million Swiss francs, pre-tax, net of reinsurance. We also expect to incur the delayed project costs.

Matthias Henny: We expect the H2 of the year to be below this normalized half year run rate. We should see more benefit from synergies and efficiencies, but the recent hailstorm that Fabian mentioned will cost us between CHF 120 million and CHF 140 million pre-tax net of reinsurance, and we also expect to incur the delayed project costs. Thus, when we look at the full year, assuming no further heavy nat cat losses, we expect to be within our UEPS growth target range in the first year of the plan. This is despite the very high full year 2025 starting point. On an underlying earnings per share basis, we have reported CHF 6.2 for the half year. Here, I would like to point out that we have adjusted the definition slightly.

Speaker #1: Thus, when we look at the full year, assuming no further heavy net cash losses, we expect to be within our UEPS gross target range in the first year of the plan.

Speaker #1: This is despite the very high full-year '25 starting point. On an underlying earnings per share basis, we have reported CHF 6.20 for the half-year.

Speaker #1: Here, I would like to point out that we have adjusted the definition slightly. At the Capital Markets Day, we opted for a simple definition of this metric, which did not exclude the impact of minorities and interest on preferred securities.

Matthias Henny: At the Capital Markets Day, we opted for a simple definition of this metric, which did not exclude the impact of minorities and interest on preferred securities. We have now taken on board feedback and adapted this slightly to more accurately reflect the earnings attributable to shareholders. This results in the 10.4 in respect of full year 2025 becoming 10.2. There is no change in our ambition to grow this at 10% to 12% over the plan. We remain confident of achieving this target. Looking at the individual business areas and segments, these have all performed well. Each reports underlying earnings above the illustrative figures of the previous half year. IFRS profit after tax is, of course, impacted by the significant amortization of intangibles this year. This amortization amounted to CHF 672 million, which is fully in line with the schedule we previously gave you.

Speaker #1: We have now taken on board feedback and adapted this slightly to more accurately reflect the earnings attributable to shareholders. This results in the 10.4 in respect of full-year '25 becoming 10.2.

Speaker #1: There is no change in our ambition to grow this at 10 to 12 percent over the plan. We remain confident of achieving this target.

Speaker #1: Looking at the individual business areas and segments, these have all performed well. Each reports underlying earnings above the illustrative figures of the previous half year.

Speaker #1: Our profit after tax is, of course, impacted by the significant amortization of intangibles this year. This amortization amounted to CHF 672 million, which is fully in line with the schedule we previously gave you.

Speaker #1: It is, of course, a non-cash item. Turning to slide 17, we look at business volume. Fabian has already described our selective approach and our focus on underwriting discipline and cycle management, so I will not spend long on this slide.

Matthias Henny: It is, of course, a non-cash item. Turning to slide 17, we look at business volume. Fabian has already described our selective approach and our focus on underwriting discipline and cycle management, so I will not spend long on this slide. Overall, we report 0.4% higher volumes in non-life, adjusted for scope changes and FX. Despite the headwinds you are aware of in the reinsurance markets in particular. In active reinsurance, we also do not fully adjust for the currency exposure. In life insurance, the Swiss background trends are unchanged. This is the ongoing shift of demand for full insurance solutions towards semi-autonomous solutions. We also saw lower demand for index linked products. We continue to remain disciplined, focusing on capital-light products.

Speaker #1: Overall, we report 0.4 percent higher volumes in non-life, adjusted for scope changes and effects, despite the headwinds you are aware of in the reinsurance markets in particular.

Speaker #1: In active reinsurance, we also do not fully adjust for the currency exposure. In life insurance, the Swiss background trends are unchanged. This is the ongoing shift of demand for full insurance solutions towards semi-autonomous solutions.

Speaker #1: We also saw lower demand for index-linked products. We continue to remain disciplined, focusing on capital-light products. The earnings detail of non-life on slide 19 shows a strong operating insurance service result, driven by the look at on the next slide.

Matthias Henny: The earnings detail of non-life on slide 19 shows a strong operating insurance service result driven by the combined ratio, which we will look at on the next slide. It is not significantly impacted by CSM movements this period. It does benefit from a release of the non-life CSM, as you will have expected. However, this effect is broadly offset by some profit buffering in the CSM, without which the operating insurance service result would have been higher. The finance result benefits from strong current investment income. However, the combination of the finance result and the operating other result is a single-digit million CHF amount higher than we consider a sustainable run rate. This positive one-off stems from many small items. Let's look in more detail at the combined ratio on slide 21. Here we strip out all merger-related accounting impacts.

Speaker #1: It is not significantly impacted by CSM movements this period. It does benefit from a release of the non-life CSM, as you will have expected.

Speaker #1: However, this effect is broadly offset by some profit buffering in the CSM, without which the operating insurance service result would have been higher. The finance result benefits from strong current investment income.

Speaker #1: However, the combination of the finance result and the operating other result is a single-digit million Swiss franc amount higher than we consider a sustainable run rate.

Speaker #1: This positive one-off stems from many small items. So let's look in more detail at the combined ratio on slide 21. Here, we strip out all merger-related accounting impacts.

Speaker #1: In particular, this means adjusting for the non-life CSM movements, including the CSM release. This is a good example of where we would like to be more helpful in terms of comparative numbers, but where we think the prior-year illustrative numbers add little value.

Matthias Henny: In particular, this means adjusting for the non-life CSM movements, including the CSM release. This is a good example of where we would like to be more helpful in terms of comparative numbers, but where we think the prior year illustrative numbers add little value. Nevertheless, we can say that we can see underlying improvements in the first 6 months of the year, and we aim to continue improving over the coming years. The expense ratio benefits from the synergy and efficiency gains we have recorded. These translate into a 0.4 percentage point benefit compared to the prior year. The improvement in the overall combined ratio comes despite us being careful in reserving this year, as you can see from the lower PYD number. Turning now to life on slide 23. The CSM release ratio was 7.8% annualized, being a mixture of the ex Helvetia business and ex Baloise.

Speaker #1: Nevertheless, we can say that we see underlying improvements in the first six months of the year, and we aim to continue improving over the coming years.

Speaker #1: The expense ratio benefits from the synergy and efficiency gains we have recorded. These translate into a 0.4 percentage point benefit compared to the prior year.

Speaker #1: The improvement in the overall combined ratio comes despite us being careful in reserving this year, as you can see from the lower PYD number.

Speaker #1: Turning now to Life on slide 23, the CSM release ratio was 7.8% annualized, being a mixture of the ex-Helvetia business and ex-Baloise. The ex-Baloise release ratio is higher than it was following the accounting alignments, but still below the ex-Helvetia business.

Matthias Henny: The ex Baloise release ratio is higher than it was following the accounting alignments, but still below the ex Helvetia business. Overall, life underlying earnings were a bit more positive than we expect on a recurring basis due to several smaller one-off effects across different line items. Looking at the stock of CSM on slide 24, the starting value has been restated due to some liabilities being shifted from IFRS 17 to IFRS 9 as part of accounting alignments. The normalized growth is close to stable. We aim to grow the new business contribution in future so that together with expected in-force return, we aim to offset the CSM release. However, we continue to see value creation opportunity outside the CSM, particularly in fee-generating businesses. As one example of this, you can see the strong growth in our semi-autonomous business of +16% on slide 34 in the appendix.

Speaker #1: Overall, life underlying earnings were a bit more positive than we expected on a recurring basis due to several smaller one-off effects across different line items.

Speaker #1: Looking at the stock of CSM on slide 24, the starting value has been restated due to some liabilities being shifted from IFRS 17 to IFRS 9 as part of accounting alignments.

Speaker #1: The normalized growth is close to stable. We aim to grow the new business contribution in the future so that, together with the expected in-force return, we aim to offset the CSM release.

Speaker #1: However, we continue to see value creation opportunities outside the CSM, particularly in fee-generating businesses. As one example of this, you can see the strong growth in our semi-autonomous business of plus 16% on slide 34 in the appendix.

Speaker #1: Overall, the CSM has slightly increased, thanks to small positive economic variances driven by higher-than-expected investment returns from direct income, equity funds, and real estate.

Matthias Henny: Overall, the CSM has slightly increased thanks to small positive economic variances driven by higher than expected investment returns from direct income, equity funds, and real estate. Our life new business value on slide 25 has been broadly maintained with higher margin offsetting lower volumes. This was supported by improvements in Spain, Belgium, LIAM, and specialty markets. Volume growth was lower than expected, but we are working on this. You will be aware of the successful joint sales start in Switzerland and Germany a couple of months ago, and we expect new product launches to result in stronger growth in future. On slide 26, we cover the non-insurance business. This includes the asset manager, bank, and various other fee-based revenues, as well as external finance costs and corporate costs. Our external financing costs are now also included in underlying earnings here.

Speaker #1: Our life new business value on slide 25 has been broadly maintained, with higher margin offsetting lower volumes. This was supported by improvements in Spain, Belgium, Liechtenstein, and specialty markets.

Speaker #1: Volume growth was lower than expected, but we are working on this. You will be aware of the successful joint sales start in Switzerland and Germany a couple of months ago, and we expect new product launches to result in stronger growth in the future.

Speaker #1: On slide 26, we covered the non-insurance business. This includes the asset manager, bank, and various other fee-based revenues, as well as external finance costs and corporate costs.

Speaker #1: Our external financing costs are now also included in underlying earnings here. The asset manager and bank, as well as the overall segment, have performed very well, even if this is not immediately obvious due to the change in scope, accounting, and earnings definition.

Matthias Henny: The asset manager and bank, as well as the overall segment, have performed very well even if this is not immediately obvious due to the change in scope, accounting, and earnings definition. For example, the strong asset management result does not yet include the insurance-related activities currently managed within Helvetia Insurance, which will only be transferred to Baloise Asset Management in late 2026. The bank reports higher net fee and commission income at the same time as a roughly one percentage point reduction in the cost-income ratio. However, we have a mid-single digit headwind from acquisition accounting effects. The bridge from underlying earnings to IFRS net income on slide 27 is unsurprisingly dominated by the accelerated amortization of merger-related intangibles. This accounting-only headwind will be much smaller after 2026, when we expect an amortization of about CHF 200 million per year post-tax in the years to 2030.

Speaker #1: For example, the strong asset management result does not yet include the insurance-related activities currently managed within Helvetia Insurance, which will only be transferred to Baloise Asset Management in late 2026.

Speaker #1: The bank reports higher net fee and commission income, at the same time as roughly a one-percentage-point reduction in the cost-income ratio. However, we have a mid-single-digit headwind from acquisition accounting effects.

Speaker #1: The bridge from underlying earnings to IFRS net income on slide 27 is unsurprisingly dominated by the accelerated amortization of merger-related intangibles. This accounting-only headwind will be much smaller after 2026, when we expect an amortization of about CHF 200 million per year post-tax in the years to 2030.

Speaker #1: Otherwise, the main points to note on this slide are supportive capital markets, leading to some positive market fluctuations; the positive impact of some pension plan amendments, which are included in the other one-offs; and an impairment in relation to our office spaces.

Matthias Henny: Otherwise, the main points to note on this slide are supportive capital markets, leading to some positive market fluctuations, the positive impact of some pension plan amendments, which are included in the other one-offs, and an impairment in relation to our office spaces. Integration costs were relatively low this period, as Fabian explained. The last slide, 29, covers the balance sheet, and this remains very strong. The pro forma SST ratio is estimated to be broadly in line with or slightly above our previous full year 2025 estimate. S&P Global Ratings has confirmed a rating of A+ with a stable outlook. The small increase in reported leverage you see is mainly a timing effect. In the H1 of the year, we pre-financed CHF 275 million, which matures later in the year. Adjusted for this, the leverage would be 27%, similar to the year-end 2025 level.

Speaker #1: Integration costs were relatively low this period, as Fabian explained. The last slide, 29, covers the balance sheet, which remains very strong. The pro forma SST ratio is estimated to be broadly in line with, or slightly above, our previous full-year 2025 estimate.

Speaker #1: S&P has confirmed our rating of A+ with a stable outlook. The small increase in reported leverage you see is mainly a timing effect. In the first half of the year, we pre-financed CHF 275 million, which matures later in the year.

Speaker #1: Adjusted for this, the leverage would be 27 percent, similar to the year-end 2025 level. We restated this year-end figure due to the CSM restatement I mentioned earlier, and because we observed merger-related tax rate distortions in the full-year 2025 net CSM calculation.

Matthias Henny: We restated this year-end figure due to the CSM restatement I mentioned earlier, and because we observed merger-related tax rate distortions in the full year 2025 net CSM calculation. We have now corrected this using undistorted tax rates. Finally, we note that the combined company enjoys a regular profile of maturing debt over the coming years. In conclusion, we are pleased to have reported a strong first set of results as a combined company. While it is early days, we are fully on track to achieve our ambitious targets, and we remain committed to these. The results are supported by strong performance from all areas of the business, but they are anchored on excellent technical profitability. Our balance sheet also remains rock solid. With that, we are happy to take your questions.

Speaker #1: We have now corrected this using undistorted tax rates. Finally, we note that the combined company enjoys a regular profile of maturing debt over the coming years.

Speaker #1: In conclusion, we are pleased to have reported a strong first set of results as a combined company. While it is early days, we are fully on track to achieve our ambitious targets, and we remain committed to these.

Speaker #1: The results are supported by strong performance from all areas of the business, but they are anchored on excellent technical profitability. Our balance sheet also remains rock solid.

Speaker #1: With that, we are happy to take your questions.

Speaker #2: We will now begin the question and answer session. You can register for questions at any time by clicking on the Q&A button in the webcast and then pressing star one on the virtual keypad.

Operator: We will now begin the question and answer session. You can register for questions at any time by clicking on the Q&A button in the webcast, and then pressing star one on the virtual keypad. If you are joining by phone, just press star one. Anyone who wishes to ask a question may press star and one on the telephone. You will hear a tone to confirm that you've entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast while asking a question. Anyone who has a question may press star and one at this time. The first question comes from Farooq Hanif from J.P. Morgan. Please go ahead.

Speaker #2: If you are joining by phone, just press star one. Anyone who wishes to ask a question may press star and one on the telephone.

Speaker #2: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two.

Speaker #2: Questioners on the phone are requested to disable loudspeaker mode and, if possible, turn off the volume from the webcast while asking a question. Anyone who has a question may press star and one at this time.

Speaker #2: The first question comes from Farooq Hanif at JP Morgan. Please go ahead.

Farooq Hanif: Hi. Thank you so much, and congratulations on your first set of consolidated proper results. Firstly, on just understanding what you were saying about the combined ratio. My understanding from what you said is that the CSM release and movement is not in the combined ratio, but some of the negative variances that offset that release are. I am just wondering if you could quantify the benefit you would get if those variances disappeared, going forward. The benefit from the CSM release that would therefore come through. My second question, also on the combined ratio, is I have noted that you have had slightly higher nat cat in the H1 than maybe guidance. PYD and reserve releases are lower. I am wondering to what extent you will use PYD as a tool going forward to manage volatility. For example, with the hailstorm that you have experienced in August.

Speaker #3: Hi, thank you so much and congratulations on your first set of consolidated, proper results. Firstly, just to make sure I understand what you were saying about the combined ratio: so, my understanding from what you said is that the CSM release and movement is not in the combined ratio.

Speaker #3: But some of the negative variances that offset that release are—so I'm just wondering if you could quantify the benefit you would get if those variances disappeared.

Speaker #3: Going forward, and the benefit from the CSM release that would therefore come through. My second question, also on the combined ratio: I've noted that you've had slightly higher NACCAT in the first half than maybe guidance, but PYD and reserve releases are lower.

Farooq Hanif: My second question, also on the combined ratio, is I have noted that you have had slightly higher nat cat in the H1 than maybe guidance. PYD and reserve releases are lower. I am wondering to what extent you will use PYD as a tool going forward to manage volatility. For example, with the hailstorm that you have experienced in August. My last question actually is around your intentions on debt leverage. If you could just clarify again what you said towards the end of your speech on upcoming maturities. Are you saying that you will use your very strong solvency position to maybe control leverage going forward? Thank you.

Speaker #3: And I'm wondering to what extent you will use PYD as a tool going forward to manage volatility—for example, with the hailstorm that you experienced in August.

Farooq Hanif: My last question actually is around your intentions on debt leverage. If you could just clarify again what you said towards the end of your speech on upcoming maturities. Are you saying that you will use your very strong solvency position to maybe control leverage going forward? Thank you.

Speaker #3: And my last question actually is around your intentions on debt leverage. So, if you could just clarify again what you said towards the end of your speech on upcoming maturities—are you saying that you will use your very strong solvency position to maybe control leverage going forward?

Speaker #3: Thank you.

Speaker #1: Thanks very much, Farooq. So I think those are probably all for Matthias. The first two were basically on the combined ratio. So, first of all, to what extent is it affected by CSM movements and how should we think about the combined ratio going forward?

Peter Eliot: Thanks very much, Farooq. I think those are probably all for Matthias. The first two were basically on the combined ratio. First of all, to what extent is it affected by CSM movements, and how should we think about the combined ratio going forward? The second one was that nat cats look high, PYD a bit lower. Do we use PYD to manage that ratio, especially in regard to the hailstorm recently? Matthias, do you want to take those first?

Speaker #1: And the second one was the NACCATs look high, PYD a bit lower. Do we use PYD to manage that ratio, especially in regards to the hailstorm recently?

Speaker #1: Matthias, do you want to take those first?

Speaker #4: Yes, sure. So, the CSM that you mentioned—I mean, we excluded the CSM in non-life from the calculations of all the ratios. So, there is no impact of CSM.

Matthias Henny: Yes, sure. The CSM that you mentioned, we excluded the CSM in non-life from the calculations of all the ratios. There is no impact of CSM in these ratios. Simply because they are quite unnatural to have this non-life CSM out of the acquisition accounting. On the second question, the nat cat loading that we had in the H1 is broadly normal for a H1. We had some winter storms in Spain. We had some hailstorms in Belgium. That is broadly in line. Regarding the PYD development, this is a case-by-case assessment, and currently we are at the lower range of the 2% to 3% guidance that we gave. Everything handled in the normal way.

Speaker #4: In these ratios, simply because they are quite unnatural to have these non-life CSM out of the acquisition accountings. On the second question, the NACCAT loading that we had in the first half is broadly normal for a first half-year.

Speaker #4: I mean, we had some winter storms in Spain. We had some hailstorms in Belgium. So that's broadly in line. And regarding the PYD development, I mean, this is a case-by-case assessment.

Speaker #4: And currently, we're at the lower range of the 2 to 3 percent guidance that we gave. So everything is being handled in the normal way.

Speaker #1: Thank you very much. And then, the last question was on debt leverage, and should we expect that to change with upcoming maturities?

Peter Eliot: Thank you very much. The last question was on debt leverage, should we expect that to change with upcoming maturities?

Matthias Henny: No. Our strategy is to remain roughly at the leverage ratio where we currently are. We are happy with our capitalization level as we see it today. The group SST ratio of 270% that we report is not really the binding constraint. It is more the SST ratio that we have on an opco level.

Speaker #4: No, our strategy is to remain roughly at the leverage ratio where we currently are. We are happy with our capitalization level as we see it today.

Speaker #4: And also, the Group SST ratio of 270% that we report is not really the binding constraint. It's more the SST ratio that we have at the OpCo level.

Speaker #1: Thank you. And Farooq, I appreciate that. Yeah, sorry, I was just going to say.

Peter Eliot: Thank you. Farooq, I appreciate the-

Farooq Hanif: May I-

Peter Eliot: Yeah. Sorry, I was just going to say, Farooq.

Speaker #3: I was wondering if I could follow up on the CSM point.

Farooq Hanif: I was wondering if I could follow up on the CSM point.

Speaker #1: Yeah, sorry to go ahead.

Peter Eliot: Yeah, sorry, Tiu, go ahead.

Speaker #3: Yeah, so of course, the CSM is not included in the combined ratio, but you mentioned some negative variances that offset the CSM release in the P&L.

Farooq Hanif: Yeah. So, of course, the CSM is not included in the combined ratio, but you mentioned some negative variances that offset the CSM release in the P&L. How much were they, and will that be a benefit to the combined ratio? That was really my question.

Speaker #3: How much were they, and will that be a benefit to the combined ratio? That was really my question.

Speaker #1: Yeah. I think, I mean, the non-life CSM movements are quite technical, and we'd obviously always be delighted to follow up with Investor Relations on the detail.

Peter Eliot: Yeah. I think the non-life CSM movements are quite technical, and we would be obviously always delighted to follow up with investor relations on the detail. I do not know if, Matthias, you want to add a little bit on that?

Speaker #1: But I don't know if, Matthias, you want to add a little bit on that.

Speaker #4: No, I think we take them offline.

Fabian Rupprecht: No. I think we take them offline. Yeah.

Speaker #1: Yeah, yeah. We'll follow up, Farooq. But, I mean, essentially, you can see the CSM release and the buffering that Matthias mentioned was roughly equal in magnitude.

Peter Eliot: Okay. We will follow up, Farooq.

Fabian Rupprecht: Yeah.

Peter Eliot: Essentially, you can see the CSM release and the buffering that Matthias mentioned was roughly equal in magnitude. We can talk through the detail offline.

Speaker #1: But we can talk through the details offline.

Speaker #3: Thank you.

Farooq Hanif: Thank you.

Speaker #2: The next question comes from Jane Pierce from BNP Paribas. Please go ahead.

Operator: The next question comes from Iain Pearce from BNP Paribas. Please go ahead.

Speaker #5: Hi, good morning. Thanks for taking my questions. The first one is just on the business volume growth in non-life. It sort of looks like ex-price, there's been some declines in volume. I'm just wondering what's happened in pricing in Switzerland and Germany.

Iain Pearce: Hi. Morning. Thanks for taking my questions. The first one is just on the business volume growth in non-life. It looks like ex-price there has been some declines in volume. I am just thinking what has happened in pricing in Switzerland and Germany. You said you have not seen an increase in churn rates. I am just wondering, is this part of a re-underwriting strategy, evaluating the different books in a new context? Or are you seeing any impact on NPS scores or decreased customer satisfaction leading to some customer losses? The second one was just on the normalized CSM growth. Just trying to clarify the guidance really here. Is the expectation that the normalized CSM growth is basically flat and that the life business growth is going to come from fee earnings going forward?

Speaker #5: You sort of said you haven't seen an increase in churn rate, so I'm just wondering: is this part of a re-underwriting strategy, sort of evaluating the different books in a new context, or are you seeing any impact on, sort of, NPS scores or increased—well, sorry—decreased customer satisfaction leading to some customer losses?

Speaker #5: The second one was just on the normalized CSM growth. Just trying to sort of clarify the guidance really here. Is the expectation that the normalized CSM growth is basically flat, and that the life business growth is going to come from fee earnings going forward?

Speaker #5: Any further comments you could provide around normalized CSM growth expectations would be great. Thank you.

Iain Pearce: Just any further comments you could give around normalized CSM growth expectations would be great. Thank you.

Speaker #1: Thanks very much, Ian. So the first one was on portfolio pruning and whether that's had any impact on satisfaction or NPS scores. Do you want to take that one, Fabian?

Peter Eliot: Thanks very much, Iain. The first one was on portfolio pruning and whether that has had any impact on satisfaction or NPS scores, et cetera.

Fabian Rupprecht: Yeah.

Peter Eliot: Do you want to take that one, Fabian?

Speaker #6: No, I can give a straight answer. So, of course, we observe our NPS during the period of a merger because it's, for us, a very critical indicator.

Fabian Rupprecht: No, I can give a straight answer. Of course, we observe our NPS during the period of a merger because it is, for us, a very critical indicator. We have the positive news that NPS remains at the same level as we knew it from before the merger. There is really no impact. You should consider that indeed, some of the growth is impacted by a review of some of the portfolios. That is part of the exercise we do in a merger. You have new management looking over the portfolio and making their judgment about where we need to prune or where we need to adjust. That is happening, but you should see that as a temporary effect. Then over time, growth rates should further increase beyond the level where they are today. That is what I can tell.

Speaker #6: And we have the positive news that NPS remains at the same level as we knew it from before the merger. So, there is really no impact.

Speaker #6: You should consider that, indeed, some of the growth is impacted by a review of some of the portfolios. That is also part of the exercise we do in a merger.

Speaker #6: So, you have new management looking over the portfolio and making their judgment about where we need to prune or where we need to adjust.

Speaker #6: So that's happening. But you should see that as a temporary effect. And then, over time, growth rates should further increase beyond the level where they are today.

Speaker #6: So that is what I can tell. Then, on churn, I can confirm that we don't see increased churn, so I think that question was as well asked in connection with the NPS.

Fabian Rupprecht: Then on churn, I can confirm that we do not see increased churn. I think that question was asked in connection with the NPS. We are very happy, because that was one of our focus point that we do not lose customers in that merger. There is nothing which goes beyond the normal fluctuation which you have. With that, I think I answered your question. Then the normalized CSM growth trajectory, Matthias, do you want to do it? Happy to do it.

Speaker #6: So we're very happy, because that was one of our focus points—that we don't lose customers in that merger. And there is nothing which goes beyond the normal fluctuation which you have.

Speaker #6: So with that, I think I answered all of your questions. And then, regarding the normalized CSM growth trajectory—Matthias, do you want to take that? Happy to do it.

Speaker #4: Yeah, okay. Okay, so thanks for the question. I mean, the CSM growth that you can expect is flat, slightly positive. I think that's a fair assumption going forward.

Peter Eliot: Yeah. Okay. So thanks for the question. The CSM growth that you can expect is flat, slightly positive. I think that's a fair assumption going forward. I just have to remind you that some of the business that we write is outside CSM. Whatever goes into semi-autonomous solutions or whatever goes into wealth management of the bank is obviously outside the CSM.

Speaker #4: I mean, you just have to remind yourself that some of the business that we write is outside CSM. So whatever goes into semi-autonomous solutions, or whatever goes into wealth management of the bank, is obviously outside the CSM.

Speaker #5: Thank you.

Iain Pearce: Thank you.

Speaker #2: The next question comes from Murray Farkuhar from Autonomous Research. Please go ahead.

Operator: The next question comes from Murvay Farquhar from Autonomous Research. Please go ahead.

Murvay Farquhar: Morning, all. Just two questions if I may. Firstly, just coming back a little bit to Farooq's question on the PYD. Could we just get to the bottom of whether there was a particular reason why it was kind of the lower half and perhaps below the long-term average? I am just wondering whether there might be some seasonality there or maybe a particular book movement that was a bit more material in some other parts. Secondly, on the SST ratio, could you possibly decompose the improvement over the H1? In particular, how significant was the model harmonization component there? Thanks.

Speaker #7: Hi all. Just two questions, if I may. Firstly, just coming back a little bit to Farooq's question on the PYD, can we just get to the bottom of whether there was a particular reason why it was kind of in the lower half and perhaps below the long-term average?

Speaker #7: I'm just wondering whether there might be some seasonality there, or maybe a particular book movement that was a bit more material than some other parts.

Speaker #7: And then secondly, on the SST ratio, could you possibly decompose the improvement over the first half, and in particular, how significant was the model harmonization component there?

Speaker #7: Thanks.

Speaker #1: Yeah. So on the PYD, as I mentioned, it's on a case-by-case basis. We do this assessment. There is no structural change to how we do it.

Fabian Rupprecht: Yeah. On the PYD, as I mentioned, it is on a case-by-case basis, we do this assessment. There is no structural change to how we do it, and it is just in the lower end of our 2% to 3% bandwidth. So, I would say this is in the normal volatility that you can expect in a half year. On the SST, there has been a slight improvement from 260% to 270%.

Matthias Henny: Yeah. On the PYD, as I mentioned, it is on a case-by-case basis, we do this assessment. There is no structural change to how we do it, and it is just in the lower end of our 2% to 3% bandwidth. So, I would say this is in the normal volatility that you can expect in a half year. On the SST, there has been a slight improvement from 260% to 270%. These are small effects from financial markets investment performance, also from model harmonization. I would just like to remind you that the model that we use, that is not a harmonized joint SST model. That is also not been approved by FINMA yet, so we are still working with two separate models. Therefore, the improvement from 260 to 270 is just a smaller deviation, which I would not put too much weight on it.

Speaker #1: And it's just in the lower end of our Q2, Q3 percent bandwidth. So I would say this is in the normal volatility that you can expect in a half year.

Speaker #1: On the SST, I mean, there has been a slight improvement from 260% to 270%. These are small effects from financial markets investment performance.

Matthias Henny: These are small effects from financial markets investment performance, also from model harmonization. I would just like to remind you that the model that we use, that is not a harmonized joint SST model. That is also not been approved by FINMA yet, so we are still working with two separate models. Therefore, the improvement from 260 to 270 is just a smaller deviation, which I would not put too much weight on it.

Speaker #1: Also, regarding model harmonization, I would just like to remind you that the model we use is not a harmonized joint SST model. That's also not been approved by FINMA yet.

Speaker #1: So we're still working with two separate models. Therefore, the improvement from 260 to 270 is just a smaller deviation, which I wouldn't put too much weight on.

Speaker #7: Thanks, Bob.

Peter Eliot: Thanks, Mark.

Speaker #1: Okay, if you have a follow-up, could we have the next question, operator?

Peter Eliot: Okay for you, Hansjörg. Could we have the next question, operator?

Speaker #2: The next question comes from Michael Hutner from Berenberg. Please go ahead.

Operator: The next question comes from Michael Huttner from Berenberg. Please go ahead.

Michael Huttner: Yeah. Apologies. I am on holiday. It is a bit noisy, sorry about that. I have three questions. The first one is on bank. The second is on the solvency. The third is on DPS, because you said something and I completely missed it, and I am sorry for that. On the bank, I spoke to Peter, who was really helpful and said, "Well, we have not made a decision yet." I imagine the market would love it if you sold the bank. I am sure it is a fantastic asset, et cetera. It is just how markets behave. I just wondered if you could maybe give us a few hints of your thinking, either how the bank is now relative to its hurdle rate or how far it is or how much time it will have, et cetera. That is the first question, really, an essay. The second on solvency.

Speaker #7: Yeah, apologies. I'm on holiday and it's a bit noisy—sorry about that. So, I have three questions: the first one is on the bank, the second one is on reinsurance, and the third is on DPS.

Speaker #7: Because you said something and I completely missed it. I'm sorry about that. So, on the bank, I spoke to Peter. It was really helpful, and he said, well, you haven't made a decision yet.

Speaker #7: I imagine the market would love it if sold the bank. I'm sure it's a fantastic asset, etc. It's just how markets behave. I just wondered if you could kind of maybe give us a few hints of your thinking, either how the bank is now relative to its hurdle rate or how far it is or how much time it will be it will have, etc.

Michael Huttner: I am sure it is a fantastic asset, et cetera. It is just how markets behave. I just wondered if you could maybe give us a few hints of your thinking, either how the bank is now relative to its hurdle rate or how far it is or how much time it will have, et cetera. That is the first question, really, an essay. The second on solvency.

Speaker #7: That's the first question, really—essay, I suppose. The second on solvency: I wondered, A, if you could give us a rough idea of what the numbers behind the ratio are.

Michael Huttner: I wondered, A, if you could give us a rough idea of what the numbers behind the ratio are. I am assuming the earned funds is CHF 18 billion, but I am not sure. On solvency, it is a bit of a cheeky question, but do you remember Zurich when their solvency was about this level, 270? They decided that they should make a large acquisition, which they have. I just wondered whether you are already ready to think about an extra acquisition because your growth was kind of weak and maybe bolstering would be nice. The third one is on dividend. You said something about 50% higher, and I completely missed it. Sorry.

Speaker #7: I'm assuming the own fund is 18 billion, but I'm not sure. And then on solvency, it's a bit of a cheeky question, but do you remember Zurich, when their solvency was about this level—270—they decided that they should make a large acquisition, which they have.

Speaker #7: And I just wondered whether you're already ready to think about an extra acquisition, because your growth is kind of weak, and maybe bolstering would be nice.

Speaker #7: And then the third one is on dividend. You said something about 50% higher, and I completely missed it. Sorry.

Speaker #1: Cool. Thanks very much, Michael. I think there's possibly also a question for Fabian, in terms of what's our view on the—well, should we start with the first one?

Peter Eliot: Cool. Thanks very much, Michael. I think those are possibly all for Fabian in terms of what is our view on the. Well, should we start with the first one?

Fabian Rupprecht: Yeah.

Speaker #1: What's the view on the bank?

Peter Eliot: What is the view on the bank?

Speaker #7: Okay. So, look, we're now a few months into the integration, and we understand as well, better, what the bank can offer us. And I must say that the wealth management product, which we get from the bank into our distribution, is an asset.

Fabian Rupprecht: Okay. Look, we are now a few months into the integration, and we understand as well better what the bank can offer us. I must say that the wealth management product, which we get from the bank into our distribution, is an asset. We consider it as an asset because you know that we have a 50-plus strategy, so focused on our customers who have maturing life policies. The wealth management offer is a perfect way to give them an offer after their life insurance contracts matured. When we talked about volumes purely in life, wealth management is one of the examples where we build something for our customers, which is not any more part of the pure life numbers, but creates significant value for us. That is what I can say to the bank, and I think that gives you a direction.

Speaker #7: And we consider it as an asset because, you know, we have a 50-plus strategy. So, focusing on our customers who have maturing life policies, the wealth management offer is a perfect way to provide them with an option after their life insurance contracts mature.

Speaker #7: And when we talked about volume securely in life, wealth management is one of the examples where we built something for our customers, which is no longer part of the pure life numbers but creates significant value for us.

Speaker #7: So that is what I can say to the bank, and I think that gives you a direction.

Speaker #1: Yeah. And then the next—thanks, Fabian. The second question was on solvency. So, in theory, from Matthias, but the acquisition was mentioned. We are already for another one.

Peter Eliot: Yeah. Thanks, Fabian. The second question was on solvency, so in theory for Matthias, but the acquisition was mentioned. We already for another one. I do not know if you want to take that same time.

Speaker #1: I don't know if you want to take that. Same time.

Fabian Rupprecht: No. You can just start with that.

Speaker #7: No, just start the thing.

Speaker #1: Okay, Matthias, in that case, the second one for you on the solvency. Can we give any more details on the numerator and denominator? I mean, I think, given what you said on it being an estimate, etc.

Peter Eliot: Okay. Matthias, in that case, the second one for you on the solvency. Can we give any more details on the numerator and denominator? I think given what you said on it being an estimate, et cetera, at this stage, we do not give further information at this stage.

Speaker #1: At this stage, yeah, we don't give further information. But yes, we can discuss.

Fabian Rupprecht: Yeah.

Peter Eliot: We can discuss it.

Speaker #7: But I can, sorry. Now I get your point on acquisition. So if you want, I can just say, overall, look, our focus now is on getting the merger done.

Fabian Rupprecht: Sorry. Now I get your point on acquisition, so if you want, I can just say. Overall, look, our focus now is on getting the merger done, getting the integration, not just the merger, the integration done. We are very disciplined in the way we execute the integration, and we allow ourselves little time for distraction on that one, and that is how you should look at us. This is our focus. Our focus is on our growth with our existing footprint and the execution of the merger. Of course, that will not hold forever, but this is what is now our priority, and you should consider it this way.

Speaker #7: Getting the integration done, not at the merger—the integration done. We are very disciplined in the way we execute the integration, and we allow ourselves little time for distraction on that one.

Speaker #7: And that's how you should look at us. This is our focus. Our focus is on our growth with our existing footprint, and the execution of the merger.

Speaker #7: Of course, that will not hold forever, but this is what is now our priority. And you should consider it this way.

Speaker #1: Then on the third question regarding the dividend expectations, I will basically repeat what we communicated at the Capital Markets Day. We have said that for 2029, we expect to have a dividend which is 50% higher than the last dividend.

Matthias Henny: On the third question regarding the dividend expectations. I basically repeat what we communicated at the Capital Markets Day. We have said for 2029, we expect to have a dividend which is 50% higher than the last dividend. This is a 20% uplift compared to a normal 6% growth trajectory that we usually had. Given the good progress we are making in the integration and the good development in the business, we are very confident to reach that goal.

Speaker #1: And so, this is a 20% uplift compared to a normal 6% growth trajectory that we usually had. Given the good progress we are making in the integration and the positive development in the business, we are very confident to reach that goal.

Fabian Rupprecht: Given the good progress we are making in the integration and the good development in the business, we are very confident to reach that goal.

Matthias Henny: Good. Thank you very much.

Michael Huttner: Good. Thank you very much.

Speaker #7: Good. Thank you very much.

Speaker #2: The next question comes from Nazib Ahmed from UBS. Please go ahead.

Operator: The next question comes from Naveed Ahmed from UBS. Please go ahead.

Speaker #7: Thanks. Firstly, just a follow-up to what Ian was asking around the retail, sort of non-specialty business, on slide 12. It feels like pricing in most of these markets is much higher than what you've shown in business growth.

Naveed Ahmed: Thanks. Firstly, just to follow up to what Iain was asking around the retail, non-specialty business and Slide 12. It feels like pricing in most of these markets is much higher than what you have shown in business growth. I get the pruning in Germany and Belgium, but what about Spain, which is not an integration market, the LIAM market as well? So what is going on there? Just related to that, is the pruning done? Should we kind of expect growth at least in line with pricing trends from here? I guess second question is sticking with non-life. Is the one-point technical excellence benefit on the attritional combined ratio, how much of that have you achieved already in the H1? Then kind of moving to non-life, you talk about new products to improve the new business CSM.

Nasib Ahmed: Thanks. Firstly, just to follow up to what Iain was asking around the retail, non-specialty business and Slide 12. It feels like pricing in most of these markets is much higher than what you have shown in business growth. I get the pruning in Germany and Belgium, but what about Spain, which is not an integration market, the LIAM market as well? So what is going on there? Just related to that, is the pruning done? Should we kind of expect growth at least in line with pricing trends from here? I guess second question is sticking with non-life. Is the one-point technical excellence benefit on the attritional combined ratio, how much of that have you achieved already in the H1? Then kind of moving to non-life, you talk about new products to improve the new business CSM.

Speaker #7: I get the pruning in Germany and Belgium, but what about Spain, which isn't an integrated integration market? The LIAM market as well. So what's going on there?

Speaker #7: And just related to that, is the pruning done? Should we kind of expect growth at least in line with pricing trends from here? I guess the second question is taking the non-life risk.

Speaker #7: The 1.0 technical excellence benefit on the attritional combined ratio—how much of that have you achieved already in the first half? And then, moving to non-life, you talk about new products to improve the new business CSM.

Speaker #7: Can you talk to us a little bit about which life insurance products are going to add to the CSM? And finally, if I can ask a quick one as well—it feels like the second half underlying earnings guidance is about $500 million.

Naveed Ahmed: Can you talk us a little bit about what are the life insurance products that are going to add to the CSM? Finally, if I can ask a quick one as well, it feels like the H2 underlying earnings guidance is about CHF 500 million. The way I get to that is, Matthias, you were saying CHF 600 million is the underlying for the H1. Take off maybe CHF 120 million for the nat cat and then add CHF 20 million for integration so you get to CHF 500 million. Is my math correct? Thank you.

Nasib Ahmed: Can you talk us a little bit about what are the life insurance products that are going to add to the CSM? Finally, if I can ask a quick one as well, it feels like the H2 underlying earnings guidance is about CHF 500 million. The way I get to that is, Matthias, you were saying CHF 600 million is the underlying for the H1. Take off maybe CHF 120 million for the nat cat and then add CHF 20 million for integration so you get to CHF 500 million. Is my math correct? Thank you.

Speaker #7: The way I get to that is, Matthias, you were saying 600 is the underlying for the first half. Take off maybe 120 for the NAT cap, and then add 20 for integration.

Speaker #7: To 500. Is that kind of is my math correct? Thank you.

Speaker #1: Okay, thank you very much. If we start with the first one, on how do we reconcile basically the pricing developments we've seen with volume growth—Fabian, do you want to comment on that one?

Matthias Henny: Okay. Thank you very much. We start with the first one, on how do we reconcile basically the pricing developments we've seen with volume growth. Fabian, do you want to comment on that one?

Speaker #7: Yeah. I think the first one is, so you see in the integrating markets, you see positive growth. Part of that growth, of course, comes from price increases.

Fabian Rupprecht: Yeah. I think the first one is, you see in the integrating markets, you see a positive growth. Part of that growth, of course, comes from price increases. That is part of our way to manage the business. So we always ensure that rate increases or effective rate changes outweigh inflation. That is how we improve technical excellence. You ask as well, what is our expected growth in the markets where we do pruning or where we have done pruning? By the way, we have as well done some pruning in Spain, just didn't mention it because it was not as important as in the other markets.

Speaker #7: That is part of our way to manage the business. So, we always ensure that rate increases as effective rate changes outweigh inflation, and that is how we improve technical excellence.

Speaker #7: And you asked as well, what is our expected growth in the markets where we do pruning, or where we have done pruning?

Speaker #7: And by the way, we have also done some pruning in Spain. I just didn't mention it because it was markets. What I can tell you is that I'm happy to confirm what we said on the Capital Markets Day.

Fabian Rupprecht: What I can tell you is that I'm happy to confirm what we said in the Capital Markets Day, and that is that in our retail market, over time, we expect to grow at least at the level of the market, with our strategy around customer champion and best broker partner. So, this is the outlook going forward. Just accept as well, we are half year into an integration, so it's very early days. You will see some fluctuation. That's part of the biggest merger in Switzerland, that you have some of those fluctuations, and you hear me, and you hear me not at all concerned. Then your question was on the loss ratio target of 1%, to which point, I hand that over to Matthias.

Speaker #7: And that is that in our retail market, over time, we expect to grow at least at the level of the market with our strategy around customer champion and best broker partner.

Speaker #7: So this is the outlook going forward. And just to add as well, we are halfway through the 2020 integration. So, it's still very early days.

Speaker #7: You will see some fluctuation. That's part of the biggest merger in Switzerland, that you have some of those fluctuations. And you hear me— and you hear me— not at all concerned.

Speaker #7: And then your question was on the loss ratio target of 1%. To that point, I hand that over to Matthias.

Speaker #1: Yes. So you refer to this 1% improvement of the loss ratio—current year, net, ex not cut, ex discounting. So for the first half year 2026, this shows clear improvement in underwriting.

Matthias Henny: Yes. You refer to this 1% improvement of the loss ratio current year net, ex nat cat, ex discounting. For the H1 2026, this shows clear improvement in underwriting. However, we are still in a transition phase, so we should not over-interpret the direct comparison of full year 2025 pro forma with H1 2026 actuals. in the pro forma baseline, we have some approximations. We have some simplified Baloise figures, and we have, for instance, cost allocations, which still need to be harmonized, and that will affect the split between expense and loss ratio. Therefore, the attritional loss ratio is to be seen as a directional indicator, not an exact number. But it is clear we made a clear progress in the underwriting in the H1.

Speaker #1: However, we are still in a transition phase, so we should not overinterpret the direct comparison of full-year '25 pro forma with half-year '26 actuals.

Speaker #1: In the pro forma baseline, we have some approximations. We have some simplified Baloise figures, and we have, for instance, cost allocations which still need to be harmonized.

Speaker #1: And that will affect the split between expense and loss ratio. So, therefore, the attritional loss ratio is to be seen as a directional indicator, not an exact number. But it's clear we made clearer progress in the underwriting in the first half of the year.

Speaker #1: Great, thank you very much. And then the third question was on life insurance products.

Peter Eliot: Great. Thank you very much. The third question was on life insurance products.

Speaker #7: Yes, I understood this was more like a definition question. So, what is not covered in CSM? It's basically the fee business. It's also the IFRS 9 business.

Fabian Rupprecht: Yes. I understood this was more like a definition question, so what is not covered in CSM? It is basically the fee business. It is also the IFRS 9 business. For instance, in Luxembourg, we got the freedom of service business. Then everything around semi-autonomous business, the bank wealth management and asset management activities as such. So typical fee business, which is not covered.

Speaker #7: So, for instance, in Luxembourg, we have the freedom of service business. And then everything around semi-autonomous business—the bank, wealth management, and asset management activities as such.

Speaker #7: So, typical fee business, which is not covered.

Speaker #1: Thank you very much. And then the last question was on the guidance. His maths got it to around about 500. Is that the right answer?

Naveed Ahmed: Thank you very much. The last question was on the guidance. His math has gotten to around that 500. Is that the right answer?

Peter Eliot: Thank you very much. The last question was on the guidance. His math has gotten to around that 500. Is that the right answer?

Speaker #7: Yeah. Well, we don't give guidance for the full year, but you have the earnings per share growth target that we have. And if we're not seeing another severe event like the hailstorm that we had in August, then you can assume that we will reach this 10% to 12% growth rate this year, which translates into a bit more than €500 million in the second half.

Fabian Rupprecht: Well, we don't give a guidance for the full year, but you can assume the 10% to 12% underlying earnings per share growth target that we have. If we're not seeing another severe event like the hailstorm that we had in August, then you can assume that we will reach this 10% to 12% growth rate this year, which translates in a bit more than the CHF 500 million in the H2.

Naveed Ahmed: Sorry, just on the question on the 1 point combined ratio, are you able to give the improvement in the H1? On the CSM growth, it wasn't a definition question, it was more about what are you doing to improve the new business CSM contribution? I think you said you're launching some new products. Just what is the strategy there?

Nasib Ahmed: Sorry, just on the question on the 1 point combined ratio, are you able to give the improvement in the H1? On the CSM growth, it wasn't a definition question, it was more about what are you doing to improve the new business CSM contribution? I think you said you're launching some new products. Just what is the strategy there?

Speaker #5: On the 1-point combined ratio, are you able to give the improvement in the first half? And then, on the CSM growth, it wasn't a definition question.

Speaker #5: It was more about, what are you doing to improve the new business CSM contribution? I think you said you're launching some new products. So, just what is the strategy there?

Speaker #7: Yeah. Perhaps I’ll take the one on the CSM. And just on the new business contribution—what do we do there? That goes in line with our ambition as well, on the value of new business, where we said that over time we want to increase it by 8%.

Fabian Rupprecht: If I take the one on the CSM.

Naveed Ahmed: Yeah.

Nasib Ahmed: Yeah.

Fabian Rupprecht: Just what do we do on the new business contribution? That goes in line with our ambition as well on the value of new business, where we said that over time we want to increase it by 8%. There are a few immediate product launches in some of those markets together with the sales start. The most important is the one in Switzerland, but we have as well some product launches as well in the other markets like Germany. This is where we expect to see improvements over the time. Value of new business is as well a new way of steering. To be very clear, our teams are as well getting used to that steering and typically what you measure, you can improve. There will be as well a dynamic that will unfold itself over the months and years to come.

Speaker #7: There are a few immediate product launches in some of those markets together with the sales start; the most important is the one in Switzerland.

Speaker #7: But we as well have one in—we have as well some product launches as well in the other markets, like Germany. So this is where we expect to see improvements over time.

Speaker #7: Yeah. So, value of new businesses as well as a new way of steering. So, to be very clear, our teams are also getting used to that steering, and typically what you measure, you can improve, so there will also be a dynamic that will unfold itself over the months and years to come.

Speaker #1: Yeah. And on the question of the attritional loss ratio, we see an improvement, but we are careful with prior-year comparison. We do not quantify at this stage, but I would say it's less than 1%.

Matthias Henny: Yeah. On the question on the attritional loss ratio, we see an improvement, but we are careful with prior year comparison. We do not quantify at this stage, but I would say it's less than 1%, so there's more to come.

Speaker #1: So there's more to come.

Speaker #5: Perfect. Thank you, guys. Really helpful.

Naveed Ahmed: Perfect. Thank you, guys.

Nasib Ahmed: Perfect. Thank you, guys.

Matthias Henny: You're welcome.

Speaker #3: The next question comes from Kaya Batikan from Kepler Cheuvreux. Please go ahead.

Operator: The next question comes from Kaya Batikan from Credit Suisse. Please go ahead.

Speaker #7: Thank you for the opportunity, and congratulations on the strong results. I have two questions. The first one is related to the dividend. In the initial merger assumptions, the first dividend uplift was expected in 2028, but looking at your cumulative dividend target, it seems there needs to be some additional uplift already in 2027.

Kaya Batikan: Thank you for the opportunity and congrats on the strong results. I have two questions. First one is related to dividend. In the initial merger assumptions, the first dividend uplift was expected in 2028, but looking at your cumulative dividend target, it seems there needs to be some additional uplift already in 2027, and earlier synergy delivery from today should also support this. Can you give us some indication of how much additional dividend growth we might see in 2027 on top of the 6%? Second, as a follow-up on CSM, can we use the H1 CSM release ratio as a reasonable run rate? Thank you.

Batikan Kaya: Thank you for the opportunity and congrats on the strong results. I have two questions. First one is related to dividend. In the initial merger assumptions, the first dividend uplift was expected in 2028, but looking at your cumulative dividend target, it seems there needs to be some additional uplift already in 2027, and earlier synergy delivery from today should also support this. Can you give us some indication of how much additional dividend growth we might see in 2027 on top of the 6%? Second, as a follow-up on CSM, can we use the H1 CSM release ratio as a reasonable run rate? Thank you.

Speaker #7: And earlier synergy delivery from today should also support this. Can you give us some indication of how much additional dividend growth we might see in '27 on top of the 6%?

Speaker #7: And second, as a follow-up on CSM, can we use the H1 CSM release ratio as a reasonable run rate? Thank you.

Speaker #1: Thanks a lot, Batikan. So I think both of those are probably for Matthias. So the first one: can we be more specific on the 2027 likely dividend uplift?

Peter Eliot: Thanks a lot, Kaya Batikan. The first one, can we be more specific on the 2027 likely dividend uplift?

Speaker #7: Yeah. So we communicated at the Capital Markets Day that the fact we're progressing faster in the integration, and today's results confirm this, together with some capital synergies from Spain, that this would open the door for a dividend uplift already in '27.

Matthias Henny: Yes. We communicated at the Capital Markets Day that the fact that we are progressing faster in the integration, and today's results confirmed this, together with some capital synergies from Spain, that this would open the door for dividend uplift already 2027. I think that door got more open today for an earlier dividend uplift already in 2027. But I think it is too early to say something very concretely because we will discuss dividends once the full year 2026 is complete. Then I take your second question, CSM release ratio. Currently, we have 7.8%, and this can be considered as a run rate for the future, yes.

Speaker #7: I think that door got more open today for an earlier dividend uplift already in '27, but I think it's too early to say something very concrete, because we will discuss dividends once the full year '26 is complete.

Speaker #7: And then I’ll take your second question. The CSM release ratio is currently at 7.8%, and this can be considered as a run rate for the future.

Speaker #7: Yes. Perfect. Thank you.

Kaya Batikan: Perfect. Thank you.

Batikan Kaya: Perfect. Thank you.

Speaker #3: The next question comes from Anna Rizos from Octavian. Please go ahead.

Operator: The next question comes from Anna Rizzo from Octavian. Please go ahead.

Speaker #8: Yeah. Good morning, everyone. Thank you for taking my question. I have some questions more on Switzerland. One, so, yeah, you mentioned there's a coming heavy NAT cut in H2 due to this hailstorm.

Anna Rizzo: Yeah. Good morning, everyone. Thank you for taking my question. I have some questions more on Switzerland. One, you mentioned there is coming heavy nat cat to this hailstorm. Do you expect to be able to recover, partly recover these at the next motor renewal? One on the group life business in Switzerland. You mentioned you had lower demand for the full year insurance in Switzerland, while we recently have a large competitor who actually reported strong demand in this space. Could you help us understand what was the difference, where you see the key difference between your two experience? Maybe a last one on the integration in Switzerland. Integration in the front office, can you tell us how this is proceeding?

Anna Risold: Yeah. Good morning, everyone. Thank you for taking my question. I have some questions more on Switzerland. One, you mentioned there is coming heavy nat cat to this hailstorm. Do you expect to be able to recover, partly recover these at the next motor renewal? One on the group life business in Switzerland. You mentioned you had lower demand for the full year insurance in Switzerland, while we recently have a large competitor who actually reported strong demand in this space. Could you help us understand what was the difference, where you see the key difference between your two experience? Maybe a last one on the integration in Switzerland. Integration in the front office, can you tell us how this is proceeding?

Speaker #8: So do you expect to be able to recover partly recover these next at the next motor renewal? One, on the group life business in Switzerland, so you mentioned you had lower demand for the full year insurance in Switzerland.

Speaker #8: While we recently had a large competitor who actually reported strong demand in this space, could you help us understand what was the difference—where you see the key difference between your two experiences?

Speaker #8: And maybe a last one on the integration in Switzerland. Integration in the front office—can you tell us how this is proceeding?

Peter Eliot: Thank you very much, Anna. I am not sure we quite got the first question on the nat cat being recovered.

Speaker #7: So, thank you very much. I'm Chantal. I'm not sure we quite got the first question. On the NAT cap being recovered, I think through premium increase.

Fabian Rupprecht: Yeah, I think through premium increase.

Anna Rizzo: Well, not recovered, but do you expect premium? Do you have already some flavor?

Anna Risold: Well, not recovered, but do you expect premium? Do you have already some flavor?

Speaker #8: Well, not recovered, but how do you expect—yeah, premium? Do you already have some flavor?

Speaker #7: Yeah. I want to put the NAT CAT event into the right context. So, overall, we give you a guidance of NAT CAT budget, which is around 4% of our overall premium volume.

Fabian Rupprecht: Yeah, I want to put the nat cat event into the right context. We all overall give you a guidance of nat cat budget, which is around 4% of our overall premium volume in the group. When you refer that nat cat event to that larger budget, you see that it is part of that budget. By itself, these are events for which we have the budget. Let's not overestimate as well the impact of that nat cat event. This is as well the reason why Matthias said that we stick to our guidance to year-end unless many other nat cats now happen in a severe way. The way we do our premiums is not that there is one nat cat event and then we increase the premiums.

Speaker #7: In the group. And so when you refer that NAT cut event to that larger budget, you see that it is part of that budget.

Speaker #7: In and of itself, these are events for which we have the budget. So let's not overestimate the impact of that NatCat event either.

Speaker #7: This is also the reason why Matthias said that we stick to our guidance until year-end unless many other NAT cuts now happen in a severe way.

Speaker #7: So, the way we do our premiums is not that there's one Nat Cat event and then we increase the premiums. Rather, we look at Nat Cat events over time and we make sure that the premiums reflect that average. The rest is the volatility we as an insurer have and want to have in our P&L, because it's part of our business.

Fabian Rupprecht: We rather look at nat cat events over time, and we make sure that the premiums reflect that average, and the rest is the volatility we as an insurer have and want to have in our P&L because it is part of our business. There is not a direct connection. Having said that, in Switzerland, and that is why we are very happy to be so strong in the Swiss market. In Switzerland, there is still a hard market, and we know that if we need to increase premiums because of increased nat cats or because of inflation, the market allows us to do it. We are very bullish and very comfortable around the level of premiums in Switzerland. I think with that, I have answered really your question from different angles.

Speaker #7: So, there is not a direct—there's not a direct connection. Having said that, in Switzerland—and really, that is why I'm very happy to be so strong in the Swiss market.

Speaker #7: In Switzerland, there is still a hard market, and we know that if we need to increase premiums because of increased nat cat losses or because of inflation, the market allows us to do it.

Speaker #7: So, we are very bullish and very comfortable around the level of premiums in Switzerland. And I think with that, I have really answered your question from different angles.

Anna Rizzo: Yeah.

Anna Risold: Yeah.

Speaker #7: I think, yeah. So, what I—I'm sure—so the question on the integration update for the front office. I'm not sure what you mean here with 'front office.'

Fabian Rupprecht: Yeah. The question on the integration update for the front office. I am not sure what you mean here with front office, but if you mean how did the sales start go?

Speaker #7: What I meant is, how did the sales start go?

Anna Rizzo: More agents. You know you.

Anna Risold: More agents. You know you.

Speaker #8: Our agency, you know—you. Yeah, you also have one in Switzerland. It's a lot of redundancy.

Fabian Rupprecht: Yeah.

Anna Rizzo: Yeah. You also have them in Switzerland. It is a lot of redundancy.

Anna Risold: Yeah. You also have them in Switzerland. It is a lot of redundancy.

Speaker #7: Yeah. That went really smoothly. So we are prepared as well for different scenarios, of course, but overall, there was no hiccup. This is always the risk.

Fabian Rupprecht: Yeah. That went really smooth. We prepared as well for different scenarios, of course, but overall there is no hiccup, which is always a risk. Sales have started well. We have done the trainings of the agents, so there is really nothing extraordinary to say. It is really a little bit of a normal course of business that is happening here, and that is good. That is the best news you can have for an integration and a joint sales start. By the way, not only for Switzerland, as well for Germany. We have in Germany the exact same situation. Yeah. I think there was a question on individual life in Switzerland.

Speaker #7: Sales have started well, and we have done the trainings of the agents. So there's really nothing extraordinary to say. It's really a little bit of a normal course of business that is happening here.

Speaker #7: And that's good. That's the best news you can have for an integration and a joint sales start. By the way, not only for Switzerland, but also for Germany.

Speaker #7: So, we have in Germany the exact same situation, yeah. And then, I think there was a question on individual life. In Switzerland, not.

Anna Rizzo: No, group life. I think it was more the group life.

Anna Risold: No, group life. I think it was more the group life.

Speaker #8: Not our group life. Nothing was not the group life.

Speaker #7: It was more on group life.

Fabian Rupprecht: It was more on group life.

Speaker #8: Because, so yeah, you mentioned here you have mostly, I mean, the traditional move to semi-autonomous—load them in or decrease them in—for full life.

Anna Rizzo: You mentioned here you have mostly the traditional move to semi-autonomous, low demand for or decreasing demand for full life. We just had some other experience from the large competitors. Maybe if you could just comment a bit on how is your group life business.

Anna Risold: You mentioned here you have mostly the traditional move to semi-autonomous, low demand for or decreasing demand for full life. We just had some other experience from the large competitors. Maybe if you could just comment a bit on how is your group life business.

Speaker #8: We just had some other experience from the large competitors, so maybe if you could just comment a bit on how your group is doing?

Speaker #7: Yes, for us, it's important. We are one of the very few providers of a full product range in the pension and in the group life business in Switzerland.

Fabian Rupprecht: For us, it's important. We are one of the very few providers of a full product range in the pension and in the group life business in Switzerland. You can really choose with us between full insurance, semi-autonomous, and other solutions. We allow our customers to decide what is the right solution for them. Our business is a consequence of that. We're not now pushing full insurance, or we are pushing semi-autonomous. It's really following our customers. I think you should always consider that the reason why semi-autonomous is attractive is because the capital return of semi-autonomous is much higher than the one on full insurance. That is the reason why that shift overall we consider as capital efficient. I think there's not more to say. There's of course, always fluctuations.

Speaker #7: So it can really choose with us between full insurance, semi-autonomous, and other solutions. And we allow our customers to decide what is the right solution for them.

Speaker #7: And our business is a consequence of that. So we're not now pushing full insurance, nor are we pushing semi-autonomous. It's really, really following our customers.

Speaker #7: I think you should always consider that the reason why semi-autonomous is attractive is because the capital return of semi-autonomous is much higher than that of full assurance.

Speaker #7: So that is a reason why that shift, overall, we consider as capital efficient. So I think there's not more to say. There are, of course, always fluctuations.

Speaker #7: So take the half year, but also keep in mind that these things can fluctuate a bit, especially when you come together as a new company, because there have been different growth rates from the previous companies and they're now merged.

Fabian Rupprecht: Take the H1, but as well respect that those things can move up and down a little bit, in particular when you come together as a new company because there have been different growth rates from the previous companies and they are now merged. Depending on which aspect you see, there might be more growth compared to one of the previous companies or less growth compared to the previous companies. But overall, when we look at the trend, and that's what we did, the trend, taking both together, is very stable. This is how we look as well at the volumes.

Speaker #7: So, depending on which aspect you see, there might be more growth compared to one of the previous companies, or less growth compared to the previous companies.

Speaker #7: But overall, when we look at the trend—and that's what we did—the trend, taking both together, is very stable. So this is how we look as well at the volumes.

Speaker #7: Thank you very much, Fabian. I think, looking at the time, we are unfortunately hitting the time limit. I'm aware there are a few more questions in the queue.

Peter Eliot: Thank you very much, Fabian. Looking at the time, we are unfortunately hitting the time limit. I am aware there are a few more questions in the queue. I think they are all follow-up questions at least, but we will be very happy to take those offline with IR afterwards or in meetings over the coming days. I think we probably need to wrap up the call there. But thank you very much, everybody, for your interest and questions. As I say, the IR team is always available. Thanks a lot.

Speaker #7: I think they're all follow-up questions at least, but we'll be very happy to take those offline with IR afterwards, or in meetings over the coming days.

Speaker #7: So I think we probably need to wrap up the call there. But thank you very much, everybody, for your interest and questions. And as I say, the IR team is always available.

Speaker #7: Thanks a lot. Thank you very much.

Fabian Rupprecht: Thank you very much.

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