Switzerland‘s oldest private insurance company has significantly increased its half-year profit. It has collected more premiums and benefited from the good performance of the stock markets – and also from the soaring price of gold.
The Mobiliar Group can look back on a positive first half of the year, with both premium volume and profit increasing significantly. Gross premiums increased by 5.8 percent to 3.5 billion francs, and profits increased by 28.6 percent to 293 million francs.
In the non-life business, the insurer earned 2.9 billion francs in gross premiums, an increase of 5.7 percent. This further strengthened the company’s position in the market, according to the Message from WednesdayThe direct business also grew faster than the market (although Mobiliar uses figures from the Swiss Insurance Association as a comparison).
Severe storms impact non-life business
However, severe weather events left their mark in the first half of the year. “In June, severe storms led to major natural damage in Valais (floods), in the southern Graubünden valley of Misox (landslide), in the Jura (hail) and in Ticino (floods).” Mobiliar is expecting natural damage of more than 75 million francs for the first half of the year. This has an impact on the technical result (technical income minus expenses). It fell from 146 million to 84 million francs compared to the previous year, a decrease of 42 percent.
The fact that profits in this division were nevertheless able to increase by 22 percent to 261 million francs is thanks to investment income, which more than doubled to 217 million francs.
Attractive investment results
In the life business, the growth rate in gross premiums (CHF 611 million) was 6 percent. Both occupational and private pensions contributed to this growth, with a good 8 and 4 percent respectively. However, in this sector, investments contributed significantly less than in the previous year (CHF 66 million) than in the previous year (-30 percent). Profit doubled to CHF 30 million.
Mobiliar benefited from the positive market development in terms of its investment and financial result, which totaled CHF 283 million, CHF 87 million higher than in the previous period. Fixed assets increased by almost 5 percent (CHF 21 billion) compared to the end of 2023. The investment return on average invested capital investments at book value was 1.4 percent, and the performance at market value was 5 percent.
A gold content of almost 6 percent
“In particular, equities, which benefited from new highs in the first half of the year, as well as the strong demand for gold were the main drivers here,” writes the insurance company, which has invested gold worth 1,143 million francs in their balance sheet With its gold share of almost 6 percent, the cooperative is likely to have participated more in the sustained bull market of the yellow metal than most other institutional investors in this country.
Founded in 1826, Mobiliar is the oldest private insurance company in Switzerland, counts one in three households and one in three companies among its customers and employs around 6,400 people (including the Principality of Liechtenstein).
What factors contributed to Die Mobiliar’s significant profit increase in the first half of 2024?
Table of Contents
Switzerland’s Oldest Private Insurance Company, Die Mobiliar, Sees Significant Profit Increase in First Half of 2024
Die Mobiliar, Switzerland’s oldest private insurance company, has announced a significant increase in its half-year profit, driven by increased premiums and a strong performance in the stock markets, as well as the soaring price of gold.
Premium Volume and Profit on the Rise
The Mobiliar Group reported a 5.8% increase in gross premiums to 3.5 billion francs, with profits increasing by 28.6% to 293 million francs. The non-life business saw a 5.7% increase in gross premiums to 2.9 billion francs, strengthening the company’s position in the market. The direct business also grew faster than the market, with Mobiliar using figures from the Swiss Insurance Association as a comparison.
Severe Storms Impact Non-Life Business
However, severe weather events in June left their mark on the non-life business, with natural damage expected to exceed 75 million francs for the first half of the year. This had a significant impact on the technical result, which fell by 42% to 84 million francs compared to the previous year. Despite this, profits in this division were able to increase by 22% to 261 million francs, thanks to investment income more than doubling to 217 million francs.
Attractive Investment Results
The life business saw a 6% growth rate in gross premiums, with both occupational and private pensions contributing to this growth. Investments contributed significantly less than in the previous year, with a 30% decrease. However, profit doubled to 30 million francs.
Gold Content a Significant Contributor
Mobiliar benefited from the positive market development, with its investment and financial result totaling 283 million francs, an increase of 87 million francs compared to the previous period. Fixed assets increased by almost 5% to 21 billion francs compared to the end of 2023. The investment return on average invested capital investments at book value was 1.4%, and the performance at market value was 5%. Gold, in particular, was a significant contributor, with a gold content of almost 6%, driving the strong demand.
According to Die Mobiliar’s financial reports, the company recorded a consolidated profit of CHF 311.0 million in 2022 [[1]]. Additionally, the company’s post-money valuation and revenue are available on CB Insights [[2]]. RocketReach also reports that Die Mobiliar’s annual revenue was $496.6 million in 2024 [[3]].
Die Mobiliar’s strong profit increase in the first half of 2024 is a testament to the company’s resilience and ability to adapt to changing market conditions. The company’s investment results, particularly in gold, have been a significant contributor to this success. As Switzerland’s oldest private insurance company, Die Mobiliar continues to demonstrate its strength and stability in the market.
References:
<a href="https://report.mobiliar.ch/2022/app/uploads/mobiliarar22mediareleaseannual-result.pdf”>[1]
What factors contributed to Die Mobiliar’s significant profit increase in the first half of 2024?
Switzerland’s Oldest Private Insurance Company, Die Mobiliar, Sees Significant Profit Increase in First Half of 2024
Die Mobiliar, Switzerland’s oldest private insurance company, has announced a significant increase in its half-year profit, driven by increased premiums and a strong performance in the stock markets, as well as the soaring price of gold.
Premium Volume and Profit on the Rise
The Mobiliar Group reported a 5.8% increase in gross premiums to 3.5 billion francs, with profits increasing by 28.
