Baloise ditches Simply Safe strategy

Swiss insurer Baloise has outlined a new strategy that includes boosting return on equity, cutting jobs and considering share buybacks after Swedish activist investor Cevian Capital revealed it had become its biggest stakeholder.

“Following careful analysis of our business activities, we have identified substantial potential for raising efficiency along with related cost savings and opportunities for growth in all our business units. To unlock as much of this potential as possible, we are launching our refocusing strategy in which the emphasis is on the performance of our core business and its ability to generate value. This will strengthen the long-term reliability that we offer to our customers, sales partners and employees. It will also lead to an increased return on equity and consistently strong cash remittance. All this, combined with the higher cash payout rate of 80 per cent or more, means we can confirm Baloise as an attractive long-term investment for our shareholders.” – Baloise CEO Michael Müller.

As a result, the Simply Safe strategic program and the related targets and ambitions are immediately replaced by the refocusing strategy.

The Simply Safe strategy was introduced in 2016 to help the company “face the challenges of the future.” One aspect of the strategy was going beyond insurance with new products and services with a focus on connected cars/mobility. In 2021, Baloise launched its own mobility accelerator with the aim of promoting early-stage innovative ideas, and it has invested in several mobility startups over the years.