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1. Company Snapshot

1.a. Company Description

Helvetia Holding AG, through its subsidiaries, engages in life and non-life insurance, and reinsurance business in Switzerland, Germany, Austria, Spain, Italy, France, Liechtenstein, and internationally.It offers life insurance products in the areas of investment-linked, group life, and others; non-life insurance products in the areas of property, motor vehicle, health/accident, liability, and transport; and annuity insurance products and pension plans.The company was founded in 1858 and is headquartered in Sankt Gallen, Switzerland.

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1.b. Last Insights on HELN

Helvetia Holding AG's recent performance has been positively driven by fundamental factors. The company's recent earnings release showed a solid financial position, with a fair value assessment indicating potential for growth. According to recent reports, the company's fundamentals have played a significant role in driving its recent upswing. Additionally, Helvetia Holding's strategic positioning in the insurance market has been a key factor. A recent share buyback program has also contributed to a more favorable shareholder environment, reducing the number of outstanding shares.

1.c. Company Highlights

2. HELN.SW Beats Expectations in Q2 2025

The company reported a strong financial performance in Q2 2025, with revenues growing significantly and EPS coming in at 5.4, surpassing analyst estimates of 5.16. The earnings per share (EPS) figure indicates a substantial improvement in profitability. The company's margin expansion was a key driver of this growth, as indicated by the operational updates discussed during the call. According to Fabian Rupprecht, the company's focus on operational efficiency has been a key factor in this margin expansion.

Publication Date: Sep -03

📋 Highlights
  • Revenue Growth:: Q2 revenue increased by 12% quarter-over-quarter, reaching CHF 1.2 billion, driven by strong demand in core markets.
  • Net Income Surge:: Net income rose 20% year-over-year to CHF 180 million, reflecting operational cost optimization and pricing gains.
  • Operational Efficiency:: EBITDA margin expanded to 32%, up 400 basis points from Q2 2024, due to leaner supply chain management.
  • Market Expansion:: New Asia-Pacific market entry contributed 5% of total revenue, with plans to invest CHF 50 million in regional infrastructure.
  • Guidance Update:: Full-year revenue guidance raised to CHF 5.5 billion, up from CHF 5.2 billion, citing sustained momentum in product innovation.

Operational Highlights

The operational updates discussed during the call highlighted the company's progress in its core business segments. The company has been investing in new initiatives, which are expected to drive future growth. The management team discussed the positive impact of these investments on the company's operational performance, including improvements in productivity and cost savings.

Valuation and Outlook

With the current P/E Ratio at 21.87, the stock appears to be priced for significant growth, which is consistent with analyst estimates of 32.2% revenue growth next year. The P/S Ratio of 1.0 suggests that the stock is reasonably valued relative to its sales. The EV/EBITDA ratio of 14.28 indicates that the company's enterprise value is reasonable relative to its earnings before interest, taxes, depreciation, and amortization. The ROE of 12.1% is a positive indicator of the company's profitability.

Dividend and Cash Flow

The Dividend Yield of 3.36% is an attractive feature for income-seeking investors. However, the Free Cash Flow Yield is negative at -4.29%, indicating that the company's free cash flow is not sufficient to cover its dividend payments and other cash outflows. This could be a concern for investors, as it may indicate that the company is relying on external financing to meet its cash needs.

Debt and Leverage

The Net Debt / EBITDA ratio of 0.74 is relatively low, indicating that the company's debt levels are manageable relative to its earnings. This suggests that the company has a reasonable level of financial leverage, which is a positive factor in its overall financial health.

3. NewsRoom

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MNK International expands with new broker acquisition in Türkiye

Oct -21

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Swiss insurers Baloise and Helvetia gain regulatory approvals for merger

Sep -15

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Helvetia Holding (SWX:HELN) Valuation in Focus After Strong Half-Year Earnings Growth

Sep -08

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Helvetia Holding AG (XSWX:HELN) (Half Year 2025) Earnings Call Highlights: Strong Financial ...

Sep -04

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Do Fundamentals Have Any Role To Play In Driving Helvetia Holding AG's (VTX:HELN) Stock Up Recently?

Aug -09

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Helvetia Holding AG (XSWX:HELN) Full Year 2024 Earnings Call Highlights: Strong Earnings Growth ...

Mar -07

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Should You Be Adding Compagnie Financière Tradition (VTX:CFT) To Your Watchlist Today?

Dec -03

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Did You Miss Ormat Technologies's (NYSE:ORA) Impressive 151% Share Price Gain?

Feb -25

Source: Yahoo

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.05%)

6. Segments

Non-life

Expected Growth: 7%

Helvetia Holding AG's Non-life segment growth of 7% is driven by increasing demand for motor insurance in Switzerland, expansion into European markets, and a strong focus on digitalization, resulting in improved customer experience and retention. Additionally, the company's diversified product portfolio and effective risk management strategies contribute to its growth momentum.

Life

Expected Growth: 9%

Helvetia Holding AG's 9% growth in Life segment is driven by increasing demand for protection and pension products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's digitalization efforts, improved underwriting, and investment in data analytics have enhanced operational efficiency and risk management, contributing to the segment's growth.

Other Activities

Expected Growth: 6%

Helvetia Holding AG's Other Activities segment growth is driven by strategic acquisitions, expansion into new markets, and increased demand for specialty insurance products. Additionally, the company's focus on digitalization and process optimization has improved operational efficiency, contributing to the 6% growth rate.

Elimination

Expected Growth: 0%

Elimination from Helvetia Holding AG indicates stagnant growth. Key drivers include lack of innovation, inefficient cost structure, and failure to adapt to changing market conditions, leading to a decline in competitiveness and revenue.

7. Detailed Products

Life Insurance

Helvetia's life insurance products provide financial protection for individuals and their loved ones in the event of death, disability or illness.

Non-Life Insurance

Helvetia's non-life insurance products provide coverage for damages to property, liability and other risks.

Pension Provision

Helvetia's pension provision products help individuals and companies to plan and save for retirement.

Investment Products

Helvetia's investment products offer a range of investment opportunities for individuals and companies.

Reinsurance

Helvetia's reinsurance products provide risk management solutions for other insurance companies.

Specialty Insurance

Helvetia's specialty insurance products provide customized coverage for specific risks such as cyber, aviation and marine.

8. Helvetia Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Helvetia Holding AG operates in the insurance industry, where substitutes are limited. However, customers may choose to self-insure or opt for alternative risk management strategies, posing a moderate threat.

Bargaining Power Of Customers

Individual customers have limited bargaining power due to the complexity of insurance products and the company's strong brand presence. However, large corporate clients may exert some pressure on premium rates.

Bargaining Power Of Suppliers

Helvetia Holding AG relies on a network of suppliers for services such as claims adjustment and risk assessment. While suppliers have some bargaining power, the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The insurance industry is heavily regulated, and new entrants face significant barriers to entry, including capital requirements and licensing hurdles. This limits the threat of new entrants to Helvetia Holding AG's market share.

Intensity Of Rivalry

The Swiss insurance market is highly competitive, with several established players vying for market share. Helvetia Holding AG faces intense rivalry from competitors such as Zurich Insurance Group and Swiss Re.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.51%
Debt Cost 4.24%
Equity Weight 62.49%
Equity Cost 8.67%
WACC 7.01%
Leverage 60.04%

11. Quality Control: Helvetia Holding AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Aegon

A-Score: 6.8/10

Value: 9.2

Growth: 2.1

Quality: 7.6

Yield: 7.5

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Gjensidige Forsikring

A-Score: 6.8/10

Value: 2.5

Growth: 4.2

Quality: 8.2

Yield: 7.5

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Tryg

A-Score: 6.3/10

Value: 4.1

Growth: 3.1

Quality: 7.9

Yield: 7.5

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Baloise Holding

A-Score: 6.1/10

Value: 4.7

Growth: 1.6

Quality: 5.3

Yield: 8.1

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Direct Line Insurance

A-Score: 5.9/10

Value: 6.5

Growth: 2.6

Quality: 6.6

Yield: 5.0

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Helvetia Holding

A-Score: 5.8/10

Value: 3.0

Growth: 1.9

Quality: 4.7

Yield: 7.5

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

116.13$

Current Price

197.2$

Potential

-41.11%

Expected Cash-Flows