Swiss insurer Helvetia continues to scan markets for acquisition opportunities, Group CFO Annelis Lüscher Hämmerli said.

The company, which has a market capitalization of around CHF 10bn (EUR 10.7bn), has a long-term focus on potential acquisitions in markets where it is already present, including in Switzerland, Germany, Austria, Italy and Spain, Lüscher Hämmerli said.

Helvetia is interested in sizable bolt-ons within retail insurance with a cultural and strategic fit to its operations that would add scale to its market positions in these markets, Lüscher Hämmerli said, declining to discuss target sizes in more detail.

The company can also consider smaller “skill-based” acquisitions in cases where it would like to add some technology or a “piece in a value chain”, the CFO added.

Helvetia can use a variety of acquisition financing sources, depending on a deal size and type, Lüscher Hämmerli said, declining to discuss an amount it could consider spending moving forward. Any deals would have to be financially beneficial to its shareholders, she added.

Moreover, the company, which is focused on its profitable organic growth, can use excess cash it generates to finance smaller acquisitions, pay dividends or finance its organic development, Lüscher Hämmerli said.

Helvetia reported net income of CHF 502.4m in 2024, with cash and cash equivalents at CHF 1.4bn, according to its latest annual report.

Helvetia’s management team is expected to primarily focus on synergies from the merger with the domestic peer Baloise in the coming two to three years, assuming the deal closes in 4Q25, Lüscher Hämmerli said, but further acquisitions can be considered in jurisdictions that are not affected by the upcoming merger.

Helvetia to date was present in the DACH region, Italy, Spain, France and specialty markets, while Baloise was present in Switzerland, Germany, Belgium and Luxembourg, according to a company presentation.

The M&A strategy of the merged company will be discussed when the deal is completed, Lüscher Hämmerli said, adding that the company expects to communicate it in 1Q26.

Last month, Helvetia (total business volume of CHF 11.55bn FY24) and Baloise (CHF 8.6bn) announced a merger into Helvetia Baloise Holding, creating the second largest Swiss insurance group with a combined market share of around 20%, as reported. The merger of two listed companies, which will continue on the SIX Swiss Exchange under the new name, was estimated at a consideration of CHF 8.8bn consideration, according to a previous report and this news service deals database.

Helvetia’s exclusive financial advisor was J.P. Morgan Securities and Walder Wyss acted as its legal advisor, as reported. Baloise’s lead financial advisor was Morgan Stanley and Lenz & Staehelin served as its legal advisor, while UBS also acted as a financial advisor to Baloise. Helvetia was also advised by law firm Clifford Chance and Baloise was advised by law firm Freshfields, according to this news service deals database.

The merger will create an insurance group with more than 22,000 employees and a combined CHF 8.6bn in gross premiums in the life insurance business and CHF 11.5bn in the non-life insurance business, also as reported.

Helvetia has undertaken transformative acquisitions in previous years, and it has experience in successfully integrating large companies while continuing profitable growth, Lüscher Hämmerli said.

In 2020, Helvetia acquired a 70% stake in Spain’s insurer Caser for EUR 844.2m, according to this news service database. In 2014, the company acquired a domestic peer Nationale Suisse for GBP 936.77 m (EUR 1.1bn), also according to the database.