Zurich (awp) – Baloise boss Michael Müller opposes the demands of shareholder Cevian, believing that the insurer is not going far enough in its restructuring. The activist fund is demanding in particular the sale of activities in Germany. Diversification is important, counters the boss in an interview.
Selling business across the Rhine would amount to “further concentrating risks within the group”, explains Mr. Müller in an interview with CH-Media newspapers published on Thursday. Diversification is included in the calculation of the solvency ratio of insurers and implies a lower need for capital.
Baloise generates half of its premium income from the property and casualty insurance sector in Switzerland. In addition to Germany, the Rhine group is also active in Belgium and Luxembourg.
Germany is not only a competitive market, but also a very large one, says Müller. “It is large enough to concentrate on very specific sectors and still achieve interesting volumes.” In these areas, Baloise benefited from above-market sales growth. “Our growth is profitable”, specifies the manager.
Responding to criticism from certain shareholders on the disappointing evolution of the share price, the group’s boss recalls that the dividend has been increased continuously for 20 years.
Baloise announced in September a vast restructuring including the loss of 250 jobs. The insurer wants to refocus its activities with the revaluation of its holdings in fintech and has set new financial objectives with more generous payouts to shareholders and cost compression.
The Swedish activist fund Cevian Capital holds almost 10% of the share capital of Baloise.
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