Helvetia : Investor presentation November 2020

Solid basis. Successful acquisition. Resilient business.

ZKB Swiss Equity Conference

Philipp Gmür, CEO

Helvetia Group

5 November 2020

Disclaimer

Disclaimer: Analyst presentation

NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT NOR THE INFORMATION CONTAINED IN IT AND ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR TO ANY RESIDENT THEREOF

This document, w hich has been prepared by Helvetia Group, is private and confidential and may not be copied, altered, offered, sold or otherw ise distributed to anybody by the recipient w ithout the consent of Helvetia Group. Although all reasonable effort has been made to ensure that the facts stated herein are correct and the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to and an overview of the business of Helvetia Group. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed as accurate by Helvetia Group. Neither Helvetia Group nor any of its directors, officers, employees and advisors norany other person is liable in any w ay for any loss how soever arising directly or indirectly from the use of this information.

The facts and information contained in this document are as up to date as is reasonably possible and may be subject to revision in the future. Neither Helvetia Group nor any of its directors, officers, employees or advisors nor any other person makes any representation or w arranty, express or implied, as to the accuracy or completeness of the information contained in this document. This document may contain projections or other forw ard-looking statements related to Helvetia Group w hich, by their very nature, involve inherent risks and uncertainties, both general and specific, and there is a risk that predictions, forecasts, projections and other outcomes described or implied in forw ard-looking statements w ill not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forw ard-looking statements. These include (1) changes in general economic conditions, in particular in the markets in w hich w e operate; (2) the performance of financial markets; (3) changes in interest rates; (4) changes in currency exchange rates; (5) changes in law s and regulations, including accounting policies or practices; (6) risks associated w ith implementing our business strategies; (7) the frequency, magnitude and general development of insured events; (8) mortality and morbidity rates; (9) policy renew al and lapse rates; and (10) realization of synergies and scale benefits. We caution you that the foregoing list of important factors is not exhaustive; w hen evaluating forw ard-looking statements, you should carefully consider the foregoing factors and other uncertainties. All forw ard-looking statements are based on information available to Helvetia Group on the date of its publication and Helvetia Group assumes no obligation to update such statements unless otherw ise required by applicable law .

This document serves for information purposes only. This document does not constitute an offer or a solicitation to sell, exchange, buy or subscribe to securities, nor does it constitute an offering circular as defined by article 652a or article 1156 of the Sw iss Code of Obligations or a listing prospectus as defined by the listing rules of the SIX Sw iss Exchange Ltd. Investors should make their decision to sell, buy or subscribe to securities in Helvetia Holding AG solely on the basis of the relevant offer prospectus w hich w ill be published in due course.

This document is not an offer of securities for sale or purchase in the United States. The securities to w hich this documentrelates have not been and w ill not be registered under the United States Securities Act of 1933, as amended (the ʺSecurities Actʺ), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securi ties Act. There w ill not be a public offering of securities in the United States.

Please note:

Sums in this presentation are based on unrounded figures and may not add up due to rounding differences. Likew ise, year-on-year changes are calculated on the basis of unrounded figures.

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First half-year 2020: key figures and highlights

$

Growth

Profitability

Capital

helvetia

Business volume

CHF 5,657 million

(-3.2% in OC)

Net income after tax

CHF -17 million

Net combined ratio

95.9% (+3.4% pts)

New business margin

2.8% (-0.4% pts)

SST ratio (as of 30/06/2020)

180-240%

Caser acquisition

Non-life (+9.0% in OC): driven by substantial growth in all lines of business of the Specialty Markets segment (+33.0% in OC) due to both positive volume and price effects; solid growth in Switzerland (+1.3% in OC) and Europe (+1.8% in OC) - predominantly in property business - despite COVID-19 crisis

Life (-14.5% in OC): deliberate reduction of premium volume in Swiss group life business (-20.5%) due to the introduction of a new tariff; strong development of investment-linked products in Europe (+26.8% in OC)

Net income impacted by COVID-19 pandemic, both claims in non-life including the settlement solution in Swiss epidemic insurance and losses on investments, as well as a one-off effect

Helvetia is well-positioned for the future thanks to improved exposures in both non-life and life owing to the settlement solution in Swiss epidemic insurance and the new tariff in Swiss group life business

Net combined ratio remaining on a profitable level despite impact of losses related to the COVID-19 pandemic of 4.4%

New business margin still above target level notwithstanding lower interest rates

Solvency position remains strong and expected to be within target range including Caser and despite COVID-19 crisis

Very successful financing of the acquisition in a difficult capital market environment

20.20

successful

Caser with a solid business development despite COVID-19 crisis

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Recent developments confirm our solid position

Business developing as expected in third quarter of 2020

• Continuing good growth in non-life above market in most countries
• Ongoing shift to capital-light business in life
• Stable COVID-19claims burden in Q3 compared to half-year figure in most countries including Switzerland (based on current best estimate)

'A' rating and positive outlook affirmed by Standard & Poor's (30 October 2020)

• Rating considers the successful acquisition of Caser, Helvetia's strong business setup and its solid capitalisation
• Unchanged rating and positive outlook confirm that Helvetia is well positioned for the future despite the challenging first half of 2020

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On the home stretch on implementing our helvetia 20.20 strategy

Access:

Strengthening the core business

New business models

Innovation

Products:

Claims:

Online business

VIVA (DE, ES)

Bank partners (IT)

Cyber coverages (CH, DE, AT)

Own fund products (CH)

Easy claims handling with JAROWA (CH) and NEXA (AT) platforms

Video motor claims assessment with Insoore (IT)

B2B2C business (CH, DE, ES)

Caser bank partners (ES)

Revision of non-life retail product including new services (CH)

Aviation

Higher level of automation (EU)

Smile mobile app, mobile bancassurance solution with neon (CH)

SMART online insurance (AT)

Own real estate fund: Helvetia (CH) Swiss Property Fund

"Home" ecosystem (CH)

Health ecosystem (Caser, ES)

Claim notification (CH) and virtual insurance assistance (ES) via chatbot

Investments of the Helvetia Venture Fund:

• neon (CH)
• Skribble (CH)
• MyPass (IT)
• Mobile Garantie (DE)
• Chargery (DE)
• Immoledo (CH)
• Theftex (DE)
• Campai (DE)
• Flatfox (CH)
• PriceHubble (CH)
• Inzmo (DE)
• Volocopter (DE)
• BlueID (DE)

4 |

We have met strategic milestones with the Caser acquisition and the launch of a real estate fund

Strengthening the core business

Acquisition of Caser

Successful financingdespite challenging environment

− Issuance of hybrid bond of EUR 600 million
>	Financing around two thirds of purchase price
− Placement of new shares in the amount of CHF 300 million
>	Financing around one third of purchase price
>	Issue price of CHF 91.00 per new share



New business models

Helvetia Asset Management

Successful launch of Swiss real estate fund

• First issuance met with broad interest
• Proceeds of around CHF 450 million

Broadening of product range

> Patria Mutual supporting acquisition and purchasing new shares

in proportion to its previous shareholding

Resilient business developmentin HY 2020

• Stable volume of risk premiums
• Resilient technical development

$	New source of income with stable fee returns

5 |

Caser: indicative HY 2020 numbers based on local GAAP show solid results despite COVID-19 crisis1)

Risk premiums (non-life & life)

(Caser standalone; gross written premiums; in EUR million)

655

660

Net income after tax

(Caser standalone, HY 2020)

EUR 62 million

Please note:

2)

HY 2019	HY 2020
∆	0.8%

Due to the fact that Caser only reports based on local GAAP, its figures are only comparable to Helvetia's numbers to a limited extent. However, they can give a broad indication of the results under Helvetia IFRS accounting policies. These figures should not be tak en as guidance for future performance. IFRS acquisition accounting will reduce profits in the following years.

Net combined ratio				3,096
			Beneficial ROE expected
(Caser standalone; in %)
92.2	90.3					> Return on equity from acquisition expected to be within Helvetia's
28.8	30.0		 Cost ratio	ROE target range of 8-11%
63.4	60.3
		Claims ratio
	HY 2019	HY 2020
	1) Caser HY 2020 results have no impact on Helvetia Group results; all numbers in Spanish GAAP

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2) Includesnet positive one-off effects

On track to reach our financial targets in spite of headwinds from the COVID-19 crisis

Targets	Realised as of 30/06/2020	FY 2020 outlook

Business volume	CHF 10 billion (ambition)	On track (incl. acquisition of Caser)		On track
Non-life	Net CR < 93%	Net CR: 95.9%	~	Depending on claims
				development in second half-year
Life	NBM > 1%	NBM: 2.8%	 On track
Return on equity	8 - 11%	RoE (annualised): -1.0%	~	Depending on capital markets
				development in second half-year

Dividend (5 years)	> CHF 1 billion	CHF 925 million (2016-2019 cumulative)
SST ratio	180 - 240%	180 - 240% (estimate)
S&P rating	A	A







On track

On track

On track

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Q&A.

Calendar and contact

Important dates

−	25/03/2021	Publication of financial results 2020
−	30/04/2021	Ordinary Shareholders' Meeting 2021
−	01/09/2021	Publication of half-year results 2021

Contact details

Investor Relations		Media Relations
Susanne Tengler	Philipp Schüpbach	Jonas Grossniklaus
Head of Investor Relations	Investor Relations Manager	Media Relations Senior Manager
Helvetia Group	Helvetia Group	Helvetia Group
Dufourstrasse 40	Dufourstrasse 40	Dufourstrasse 40
9001 St.Gallen (Switzerland)	9001 St.Gallen (Switzerland)	9001 St.Gallen (Switzerland)
Phone: [phone]	Phone: [phone]	Phone: [phone]
Email: [e-mail]	Email: [e-mail]	Email: [e-mail]

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