Summary of Bâloise Holding Conference Call Company Overview - **Company**: Bâloise Holding AG - **Event**: Conference Call and Live Webcast on December 08, 2025 - **Key Focus**: Discussion on the merger with Helvetia and its accounting impacts Core Points and Arguments 1. **Merger Completion**: The merger between Bâloise and Helvetia was successfully closed on December 5, 2025, with operational integration preparations well underway [4][5][6] 2. **Management Structure**: The top three management layers below the Group Executive Committee have been fully appointed and are collaborating effectively [5] 3. **Financial Guidance**: Pro forma financial information (PFFI) for full year 2024 and half year 2025 was published, but should not be treated as guidance due to varying assumptions and materiality levels [6][7] 4. **Goodwill and Intangible Assets**: Significant goodwill and intangible assets will be created as a result of the merger, impacting the balance sheet and P&L, but not affecting cash flow or dividend capacity [8][12][23] 5. **Market Position**: The combined entity is now the second largest insurance group in Switzerland with approximately 20% market share and operates in eight markets across Europe [9] 6. **Synergies and Cost Savings**: Expected run rate pre-tax cost synergies of CHF 350 million, leading to an additional CHF 220 million in cash generation and a 20% uplift in dividends by 2029 [9][23] 7. **Integration Costs**: Anticipated integration costs of CHF 500 million to CHF 600 million, primarily incurred by the end of 2028 [24] Important but Overlooked Content 1. **Accounting Impacts**: The merger will result in a shift from liabilities for incurred claims (LIC) to liabilities for remaining coverage (LRC), inflating both revenues and expenses [32] 2. **CSM Release**: The non-life CSM of CHF 0.4 billion is expected to be released quickly, with about a quarter released in the first year, but this is purely an accounting effect with no economic value [20][34] 3. **Investment Income**: Changes in investment income due to lower interest rates will impact non-life investment income, but this will decrease over time as new assets are acquired [22] 4. **Statutory Earnings**: The accounting impacts presented do not affect statutory earnings, cash, or dividends, which is crucial for understanding the financial health of the company [26][27] 5. **Cultural Integration**: Early findings from the operational integration indicate a smooth transition due to similar corporate cultures and high motivation among teams [35] Conclusion The conference call provided a comprehensive overview of the merger's implications for Bâloise Holding AG, highlighting the expected synergies, financial impacts, and the strategic direction of the newly formed entity. The focus on accounting impacts and integration processes underscores the importance of understanding both the financial and operational aspects of the merger.