Two leading Swiss insurers, Helvetia Holding Ltd and Baloise Holding Ltd, have announced plans to merge in a transaction that will create Switzerland's second-largest insurance group with a combined market share of about 20 per cent.

The merger of equals will form "Helvetia Baloise Holding Ltd" with a business volume of CHF 20 billion across eight countries and a global specialty business. The combined entity will also become the largest insurance employer in Switzerland.

Under the terms of the merger, Baloise will merge into Helvetia, with Baloise shareholders receiving 1.0119 new Helvetia shares for each Baloise share. The new group will trade on the SIX Swiss Exchange under the ticker symbol "HBAN".

Thomas von Planta, chairman of Baloise Holding Ltd, said: "The merger to form Helvetia Baloise is a significant milestone in the history of the Swiss insurance industry. It's the next logical step for both companies in delivering against their respective strategies to become a leading European insurer and the second largest Swiss insurance group."

The combined entity will be led by Fabian Rupprecht, current chief executive officer of Helvetia, while Michael Müller, chief executive officer of Baloise, will become deputy chief executive officer and head of integration. The board of directors will comprise 14 members, with equal representation from both companies.

The merger is expected to generate approximately CHF 350 million in pre-tax cost synergies, with about 80 per cent projected to be realised by 2028. Integration costs are estimated at CHF 500-600 million over the coming years.

"We are very excited about this amazing opportunity to build a European insurance leader with strong Swiss roots," said Rupprecht. "This, coupled with the combined expertise of two players that each have been successful for over 160 years, are key factors for future success."

Any job reductions related to the merger will be implemented before 2029 and achieved through natural attrition and early retirement whenever possible, according to the companies.

The transaction, which requires shareholder and regulatory approvals, is expected to close in Q4 2025. The headquarters will be located in Basel, while Helvetia's current headquarters in St. Gallen will remain an important location.

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