Baloise managed to hold firm during the 2020 whirlwind, losing only 3.7% of its life business’s net investment result compared to 2019, falling to CHF 1.1bn ($1.2bn), according to its financial report.
The largest portion of the life unit’s loss came from investment property, which fell 19% to CHF 384m, from CHF 427m in 2019.
The group’s non-life net investment result suffered a 21.8% drop, but as it decreased by CHF 143m to CHF 154m, from CHF 197m in 2019, the impact in absolute terms was minimal. The fall was mainly due to impairments on equities, as the net investment return declined to a CHF 12m loss, compared with CHF 42m in 2019.
The Swiss insurer is not immune to further downward pressure. While current fixed income yields for the group are 1.6%, the reinvestment yield it faces stands at 1.3%, and 92% of Baloise new and reinvested assets are in fixed income.
Companies:Baloise