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Solid basis. Pleasing tailwinds. Strong results. Conference presentation: Full-year results 2019 Helvetia Group Cover: Dave Bopp, "Mirage", 2018 (image section) May 2020 Disclaimer Disclaimer: Analyst presentation NEITHER THIS


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SLIDE 1

Solid basis. Pleasing tailwinds. Strong results.

Conference presentation: Full-year results 2019 Helvetia Group May 2020

Cover: Dave Bopp, "Mirage", 2018 (image section)

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SLIDE 2

A.1 |

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 O R TRANSMITTED INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA O R 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 he rein 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 e xternal 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 revisi

  • n 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 informat ion 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 practice s; (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) realiz ation 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 appli cable law . This document serves for information purposes only. This document does not constitute an offer or a solicitation to sell, exc hange, 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 is s 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 which this document relates have not been and will 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 Securities Act. There will not be a public

  • ffering 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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SLIDE 3

 Business volume »  Non-life »  Life »  Investments »  Balance sheet »  Net economic dividend capacity »  SST »  Duration gap »  Risk and solvency sensitivities »  Caser company overview »  Management structure »  Group structure »  Calendar and contact »

Content

 Key figures and highlights »  Net income »  Business volume »  Non-life »  Life »  Other activities »  Investments »  Dividend »  Operating cash production »  helvetia 20.20 – strategy update » Back to content page:

Appendix Main section

Click on » to navigate to the respective section

 Swiss Solvency Test 2019 »  Current developments »

Latest update: SST

A.2 |

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SLIDE 4

Kapiteltrenner

  • der Fazit auf

Farbfläche

Flexible Schriftgrösse Arial Black 0.9 ZA

08.05.2020 Optional Bereichsbezeichnung | Thema/Projekt | Referent 3

Latest update: Swiss Solvency Test 2019 and current developments.

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SLIDE 5

B.2 |

SST 2019: positive business and market performance further improves capital base

 Improved SST ratio driven by a relatively stronger increase of risk-bearing

capital compared to target capital

 Strong positive impact on risk-bearing capital from market developments,

reflected by positive equity market performance and narrowing credit spreads

 Good business performance reduced by expected dividend payment for

financial year 2019

 Positive RBC effects from the introduction of a new tariff in full insurance in

Swiss group life, parameter adjustments in life business and a regulatory- driven change in the valuation of multi-year contracts for non-life in the form

  • f first time consideration of an unexpired risk reserve (URR)

 Market developments and model adjustments lead to an increase in target

capital and thus partly offset the positive impacts on risk-bearing capital

(in CHF million, as of 1 January)

2019 2020 ∆ 20/19

Risk-bearing capital 8,067 9,477 +1,410 Target capital 4,067 4,598 +530 Risk margin 776 972 +196 Risk-bearing capital – risk margin 7,291 8,505 +1,213 Target capital – risk margin 3,292 3,626 +334 SST ratio 222% 235% +13% pts = positive effect on SST ratio = negative effect on SST ratio = neutral effect on SST ratio

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SLIDE 6

B.3 |

Current developments: resilient capitalisation in times of elevated market volatility

Increasing credit spreads

Overall: SST ratio decreasing to around 200% in mid-March, but slightly improving again afterwards and remaining comfortably within target range of 180-240%

Impact of market developments in the course of the COVID-19 crisis

(31/03/2020 vs. 01/01/2020)

Significantly reduced equity sensitivity due to lower exposure and additional hedging measures Dampening effect on credit spread sensitivity Increasing interest rate sensitivity as a consequence of reduced bond duration Rising credit spread and interest rate sensitivities in view of interest rate development

Falling equity prices Development of interest rates

Significant negative impact of higher credit spreads

  • n risk-bearing capital with compensating effects on

target capital Decreasing effect on risk-bearing capital, partly offset by reduction in target capital (lower exposure after losses and higher hedging position) Overall positive impact on RBC from interest rate develop- ment (higher rates in CHF, lower rates in EUR and USD) Substantial relief from increased volatility adjustment (Solvency II valuation basis for EU subsidiaries) Slightly higher target capital (interest rate risk)

SST ratio SST sensitivities

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SLIDE 7

Kapiteltrenner

  • der Fazit auf

Farbfläche

Flexible Schriftgrösse Arial Black 0.9 ZA

08.05.2020 Optional Bereichsbezeichnung | Thema/Projekt | Referent 6

Full-year results 2019.

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SLIDE 8

Strategy implementation

  • n the home

stretch

New business margin

2.9% (+1.2% pts)

Net combined ratio

92.3% (+1.3% pts)

Key figures and highlights at a glance

Non-life (+8.3% in OC) by segments: substantial growth in Europe and Specialty Markets; by line of business growth driven by property business, engineering and active reinsurance Life (+3.0% in OC): strong growth of investment-linked products in Switzerland (+10.4%), Germany (+14.9% in OC) and Italy (+34.6% in OC); Swiss group life developing well (+1.5%) with pleasing growth of capital-efficient new business Significantly stronger performance on investments and a one-off positive tax effect as main drivers of the increase in profit Continuing solid technical results in life and non-life Net combined ratio on a good level and in line with strategy target

Growth Profitability Business volume

CHF 9,454 million

(+5.6% in OC)

Net income after tax

CHF 538 million

(+24.9%) Very good new business margin driven by group life due to lower capital needs resulting from model changes and a more favourable new business mix $

helvetia 20.20

Successful implementation of measures to strengthen the core business – including acquisition of Caser to reinforce Europe as a strong second pillar –, explore new business models and make use of targeted innovations

3 |

Dividend Dividend per share

CHF 5.00

Strong operating cash production of CHF 279 million Payout ratio of 58%1) of IFRS net income, dividend yield of 3.7%

1) Excluding positive one-off effect from the revaluation of deferred tax provisionsas a result of the federal tax reform and associated cantonal tax reductionsin Switzerland
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SLIDE 9

Kapiteltrenner

  • der Fazit auf

Farbfläche

Flexible Schriftgrösse Arial Black 0.9 ZA

08.05.2020 Optional Bereichsbezeichnung | Thema/Projekt | Referent 8

Financial figures 2019.

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SLIDE 10

Net income after tax

(in CHF million)

5 |

Net income increased by 24.9% thanks to strong capital markets & tax effect, solid technical results

431 332 148

  • 49

538 398 224

  • 85

36% 64% Non-life1) Life1)

1) Share on total earnings excl. other activities

∆ 24.9% 20.0% 51.7% n.a. Total Non-life Life Other activities

  • 2019

2018

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SLIDE 11

Total:

 Earnings growth driven by strong investment results and a positive

  • ne-off tax effect; continuing solid technical results in life and non-

life.

 Positive one-off effect of CHF 93 million from the revaluation of

deferred tax provisions as a result of the federal tax reform and associated cantonal tax reductions in Switzerland. Non-life:

 Higher earnings benefiting from strong investment income and a

positive one-off tax effect of CHF 33 million.

 Declining technical result as an improved claims ratio from the

current year business was unable to fully compensate for higher acquisition and project costs and lower run-off profits from reserves for losses from previous years; good development of current year claims ratio underpinning a sound portfolio quality.

> Detailed split of profit by sources on slide 8

Life:

 Increase in earnings driven by higher gains on investments, an

increased margin after costs and a positive one-off tax effect of CHF 58 million.

 To a large part, these effects were offset by significantly higher

interest-related reserve strengthening and an increase in expenses for policyholder participation.

> Detailed split of profit by sources on slide 10

Other activities:

 Decreasing result compared to previous year mainly due to the

usual consolidation effects from funds allocated to this segment as well as a lower technical result of Group reinsurance in consequence of its participation in weather-related claims in the Europe segment as well as in large losses in Specialty Lines CH/International; small positive one-off effect of CHF 2 million from Swiss tax reforms.

> Detailed split of profit by sources on slide 13 > Treatment of own investment funds in other activities: slide 39

5.1 |

Net income increased by 24.9% thanks to strong capital markets & tax effect, solid technical results

Remarks

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SLIDE 12

Net income after tax

(in CHF million) 70% 21% 10% 431 321 117 35

  • 42

538 427 128 59

  • 76

SpM

1)

6 |

Strong earnings improvement in all main segments

Total Switzerland Europe Specialty Markets ∆ 24.9% 33.2% 9.0% 68.2% n.a. Corporate CH1) Europe1)

  • 2019

2018

  • 1) Share on total earnings excl. Corporate
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SLIDE 13

Switzerland:

 Increasing IFRS result of CHF 427 million benefits from favourable

equity market performance and a positive one-off tax effect of CHF 92 million.

 Non-life: > Strong investment result due to the favourable performance of

equity markets;

> Technical result below previous year as a lower current year

claims burden could not fully compensate for higher costs and lower run-off gains from reserves for losses from previous years.

 Life: > Higher margin after costs thanks to the favourable influence of

fluctuations in the valuation of options for investment-linked products and a positive development of the cost result;

> Significantly higher gains on investments thanks to strong equity

market performance;

> Offsetting effect of significantly higher interest-related reserve

strengthening and an increase in expenses for policyholder participation. Europe:

 Improving IFRS result of CHF 128 million driven by non-life.  Non-life: Higher investment result thanks to good equity market

performance, technical result above previous year driven by a higher premium volume.

 Life: Stable earnings as higher gains on investments were offset by

higher expenses for reserve strengthening – notably in Germany (ZZR) – and for the participation of policyholders. Specialty Markets:

 Significant increase in earnings driven by higher investment income

thanks to favourable equity market performance; slightly higher technical result attributable to increased premium volumes. Corporate:

 Decreasing result mainly due to the usual consolidation effects from

funds as well as a lower technical result of Group reinsurance and higher project costs.

6.1 |

Strong earnings improvement in all main segments

Remarks

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SLIDE 14

2018

7 |

Pleasing top-line growth driven by non-life in Europe and Specialty Markets

Business volume

(in CHF million) Total Non-life Life ∆ 4.2% 6.4% 2.2% ∆ OC 5.6% 8.3% 3.0% 2019 9,073 9,454 2018 2019 4,396 4,675 2018 2019 4,677 4,779

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SLIDE 15

7.1 |

Pleasing top-line growth driven by non-life in Europe and Specialty Markets

 Increase of total business volume of +5.6% in OC.  Non-life business (+8.3% in OC) as main growth driver, particularly

in Europe and Specialty Markets; by line of business, highest growth rates recorded in property, engineering and active reinsurance.

> details see slide 27  Life business growing by +3.0% in OC, driven by investment-linked

individual insurance in Switzerland (+10.4%), Germany (+14.9% in OC) and Italy (+34.6% in OC) as well as growth in Swiss group life (+1.5%).

> details see slide 33  Switzerland:

Non-life: +0.8% in OC, mainly driven by property business (+3.4%) as a result of the expansion of the B2B2C distribution channel. Life: +1.1%; investment-linked individual life business strongly increasing by +10.4%; group life (+1.5%) supporting growth through positive development of new business with capital-efficient products (Swisscanto and BVG Invest).

 Europe:

Non-life: +5.8% in OC, growth in all countries and lines of business, particularly strong increase in property (+7.1% in OC) and motor (+5.3% in OC). Life: +9.7% in OC, strong increase in investment-linked business (+9.3% in OC) in all countries except Austria (lower volumes with large single premiums as expected) as well as in traditional products (+9.8% in OC) driven by a high demand for hybrid products in Italy.

 Specialty Markets: +23.7% in OC, strong growth in all three market

units.

 Overview of business volume:

Switzerland Europe Specialty Markets Group (in CHF million) 2018 2019 2018 2019 2018 2019 2018 2019 Non-life 1,472 1,483 1,905 1,945 1,020 1,247 4,396 4,675 Individual life 949 947 983 1,040

  • 1,932

1,987 Group life 2,654 2,694 91 98

  • 2,745

2,792 Total business volume 5,075 5,124 2,979 3,083 1,020 1,247 9,073 9,454

Remarks

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SLIDE 16

8 |

Non-life profit by sources (in CHF million)

2018 2019 ∆ 19/18 Technical result (net) 349 311

  • 10.8%

Investment income (net)1) 109 208 91.4% Other non-technical expenses and income1)

  • 37
  • 48
  • 29.3%

Profit or loss from operating activities 421 471 12.0% Financing costs

  • 3
  • 4
  • 25.7%

Tax

  • 85
  • 69

19.4% Net income after tax 332 398 20.0%

1) Adjusted for FX gains and losses that match those on technical provisions

Non-life: strong investment income and solid technical results supported by a positive tax effect

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SLIDE 17

8.1 |

Non-life: strong investment income and solid technical results supported by a positive tax effect

Definitions:

 Technical result (net) = Earned premiums – insurance benefits –

technical costs – reinsurance share.

 Investment income (net) = current income on investments (net) +/-

gains and losses on investments (net) +/- FX gains and losses.

 Other non technical expenses and income = – management fees

– tax items other than income tax +/- gains and losses on sale of property and equipment +/- FX gains and losses not recognised in investment income.

 Financing costs: interest expenses for bonds booked as debt1) and

interest expense on leases. Earnings performance:

 Net income after tax increasing by +20.0%.  Significantly stronger investment income due to the favourable

performance of equity markets.

 Decline of technical result as a lower current year claims burden

was unable to fully compensate for higher acquisition and project costs and lower run-off profits from reserves for losses from previous years.

 One-time positive effect from the revaluation of deferred tax

provisions as a result of the federal tax reform and associated cantonal tax reductions in Switzerland.

1) See financial report 2019 chapter 8.1

Remarks

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SLIDE 18

NatCat ratio 1.6% 0.7%

  • 2.8%

1.7% 8.6% 8.8%

Non-life: net combined ratio on an ongoing good level

Administration cost ratio 91.0% 92.3% 2018 2019

Net CR 2019 by segment

9 |

∆ 1.2% pts 61.7% 21.8% 21.3% 61.1% Acquisition cost ratio Claims ratio 64.3% 24.7% 7.2% 7.3% 86.2% 94.8% 96.4% Switzerland Europe Specialty Markets 17.4% 57.2% 11.7% 63.9% 23.7%

Net claims ratio development

Current year claims ratio (excl. NatCats) 61.1% 61.7% 62.2% 59.3% 0.6% pts

Group net combined ratio

Prior year development 2018 2019

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SLIDE 19

9.1 |

Non-life: net combined ratio on an ongoing good level

Group net combined ratio:

 Higher combined ratio due to an increased claims ratio and a higher

cost ratio, both driven by Switzerland; despite the increase, combined ratio again meets target of the helvetia 20.20 strategy.

 Claims ratio higher than in the previous year (+0.6% pts) as a

positive development of the current year claims ratio was unable to fully compensate for a decline in run-off profits; prior year development additionally impacted by growth in active reinsurance due to its underwriting year accounting logic leading to a gradual shift of claims burden from current year ratio to prior year development (see slide 31).

 Increase in cost ratio (+0.6% pts) attributable to higher acquisition

costs due to shifts in the sales channel and product mix and higher project costs. Switzerland:

 Higher claims ratio (+1.2% pts) despite a lower current year claims

burden as run-off gains from reserves for claims from previous years declined due to the expected gradual run-off of whiplash loss reserves and of the reserves for the portfolios acquired from Alba and Phenix in 2010.

 Increased cost ratio (+2.3% pts) resulting from higher acquisition

costs due to the expansion of the partner business and an increase

  • f administration costs in consequence of additional project costs.

Europe:

 Claims ratio at the level of the previous year (-0.1% pts).  Better cost ratio (-0.3% pts) mainly due to higher premium volume.

Specialty Markets:

 Increase in the claims ratio (+0.7% pts) due to a less favourable

development of a few major losses from previous years in France and Specialty Lines CH/International and a one-off effect from the commutation of a retrocession agreement in active reinsurance.

 Improved cost ratio (-0.6% pts) due to growth-related economies of

scale and an adjustment of the reinsurance structure at Specialty Lines CH/International.

Remarks

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SLIDE 20

Life profit by sources (in CHF million)

2018 2019 ∆ 19/18 Savings result 255 247

  • 3.1%

Fee result 20 23 13.3% Risk result 237 218

  • 8.1%

Other result

  • 26

13 n.a. Cost result

  • 73
  • 46

37.0% Margin after costs 413 454 10.1% Extraordinary result 37

  • 325

n.a. Gains and losses on investments

  • 102

347 n.a. Policyholder participation (PHP)

  • 150
  • 262
  • 75.0%

Profit or loss from operating activities 198 214 8.1% Financing costs

  • 14
  • 14
  • 2.8%

Tax

  • 36

24 n.a. Net income after tax 148 224 51.7%

Life: higher gains on investments, good technical development and a one-off positive tax effect

10 |

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SLIDE 21

10.1 |

Life: higher gains on investments, good technical development and a one-off positive tax effect

 Savings result:

Definition: Balance of current income and interest expense. Earnings performance: Slightly lower savings result predominantly attributable to Swiss group life as investment yields declined while interest expenses on retirement assets remained unchanged.

 Fee result:

Definition: Balance of revenue and expenses from investment- linked products such as management fees.

 Risk result:

Definition: Balance of risk premiums and risk benefits. Earnings performance: Decreasing due to a weaker disability result in Swiss group life business.

 Other result:

Definition: Balance of other revenues and expenses, in particular the results from lapse and reinsurance. Earnings performance: Positively impacted by fluctuations in the valuation of options for investment-linked products.

 Cost result:

Definition: Balance of cost premiums and acquisition and administration expenses. Earnings performance: Increase due to reduced costs and higher income from cost premiums.

 Gains and losses on investments:

Earnings performance: Significantly higher gains on investments mainly due to good equity market performance.

 Extraordinary result:

Definition: Balance of extraordinary revenues and extraordinary expenses, in particular reserves strengthening. Earnings performance: Significantly lower as higher interest-related reserve strengthening in Switzerland and Europe and the absence of a positive one-off effect in the prior year in Switzerland [release of cost of living adjustment fund ("Teuerungsfonds")] were partially offset by lower future conversion rate losses due to the new tariff in Swiss group life business (one-off effect).

 Policyholder participation:

Earnings performance: The better margin after costs, higher capital gains and the contribution to earnings from tax reductions in Switzerland led to a material increase in expenses for policyholder participation.

 Tax: One-time positive effect from the revaluation of deferred tax provisions as a

result of the federal tax reform and associated cantonal tax reductions in Switzerland.

Remarks

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SLIDE 22

1.7% 2.9% 2018 2019

11 |

Life: higher NBM driven by lower capital needs for group life (model changes) and better business mix

∆19/18 New business volume (in PVNBP) 2,634 2,878 9.3% 1.2% pts Value of new business (VNB) 44 83 87.8%

New business margin

(in % PVNBP)

  • 2019

2018

  • (in CHF million)
slide-23
SLIDE 23

11.1 |

Life: higher NBM driven by lower capital needs for group life (model changes) and better business mix

 Improvement of NBM driven by the Swiss group life business: > Positive effect from model changes that led to lower capital

requirements

> Additional benefits from a more advantageous business mix in

Swiss group life due to higher growth in new business with more profitable capital-efficient insurance solutions.

 Increase in new business volume especially in Swiss group life

driven by capital-efficient business (Swisscanto and BVG Invest).

 New business value increases due to higher profitability and higher

new business volume in products with high profitability.

 NBM above helvetia 20.20 strategy target.

Switzerland Europe Group (in CHF million) 2018 2019 2018 2019 2018 2019 New business value 25 62 20 21 44 83 New business volume (PVNBP) 1,717 1,898 917 980 2,634 2,878 New business margin (in % PVNBP) 1.4% 3.3% 2.1% 2.2% 1.7% 2.9%

Remarks

slide-24
SLIDE 24

1.32% 1.26% 1.09% 0.85% 0.84% 0.90%

12 |

Life: increasing interest margin despite ongoing low interest rate environment

2.02% 1.86% 1.69% 0.42% 0.53% 0.52%

  • Gross margin1)
  • Average interest rate Helvetia has to generate in order to meet its obligations

2.44% 2.39%

Europe (EUR)

2017 2018 2019 2.22% 1.17% 1.13% 0.97% 0.96% 0.90% 0.98% 2.12% 1.95% 2017 2019 2018 2.04%

Switzerland (CHF)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2018 2019

  • ≤ 1.0%

1.0% < x ≤ 1.5% > 1.5% 2.17% 2.10%

Group (CHF)

2017 2018 2019 2.00%

Guarantee buckets Group Direct yields and guarantees in life business

1) Before legal quota

Direct yield

slide-25
SLIDE 25

12.1 |

Life: increasing interest margin despite ongoing low interest rate environment

 Direct yields decreasing in Switzerland and the Europe segment

mainly due to lower income on bonds in consequence of the low interest rate environment.

 A

verage interest rate Helvetia has to generate in order to meet its

  • bligations (technical rate) lower, both in Switzerland and Europe:

> Switzerland: Decline due to focused sales of modern, capital-

light products replacing maturing insurance contracts with high guaranteed rates and additional reserve strengthening.

> EU: Decrease due to additional reserve strengthening and new

contracts with lower guarantees replacing old contracts with higher guarantees.

 Interest margin recovering: > Switzerland: Significantly higher interest margin compared to

2018 due to a stronger decline of the average technical rate compared to the decline of the direct yield.

> Europe: Stable compared to 2018 since decline of direct yield in

line with drop of average technical rate.

Remarks

slide-26
SLIDE 26

13 |

Other activities: net income lower due to consolidation effect on own investment funds

Other activities earnings by sources (in CHF million)

2018 2019 ∆ 19/18 Net technical result (group reinsurance) 15

  • 16

Investment / FX result1) 22

  • 4
  • 26

Costs / Other1)

  • 55
  • 65
  • 10

Financing costs

  • 35
  • 33

2 Tax 4 18 14 Net income after tax

  • 49
  • 85
  • 36
1) Adjusted for FX gains and losses that match those on technical provisions
slide-27
SLIDE 27

13.1 |

Other activities: net income lower due to consolidation effect on own investment funds

Definitions:

 Technical result (group reinsurance) = premiums – insurance

benefits – technical costs – share external reinsurance.

 Investment / FX result = investment result of own investment funds

including consolidation effect eliminating trading gains/losses shown in other segments (major part of the investment result), investment result of group reinsurance, corporate center and MoneyPark Group, share of minority interests in own investment funds1), FX movements.

 Costs / Other = corporate center costs, non-technical and non-

financial expenses GRI, result MoneyPark.

 Financing costs: interest expenses for bonds booked as debt.2)

Earnings performance:

 Lower technical result in Group reinsurance mainly resulting from its

participation in weather-related claims in the Europe segment and large losses in Specialty Lines CH/International.

 Lower investment/FX result due to usual consolidation effect on own

investment funds: positive impact of capital market development on entities is balanced out in the other activities business area.

> Treatment of own investment funds in other activities:

see slide 39

 Costs/Other result declining mainly in consequence of higher project

costs.

1) Minority interests in own investment funds include the investments of the Helvetia pension and supplementary funds in Helvetia I Funds 2) See financial report 2019 chapter 8.1

Remarks

slide-28
SLIDE 28

14 |

Investments: strong performance of equity markets drives investment result

Current income Net G/L incl. derivatives and FX movements Group result ∆ unreal. G/L Overall Group result Investments with market risk for the policyholder Total 5.9% 3.0% 2.9% 0.9% 1.9%

Investment result

(in CHF million) 947 469 2,835 1,432 1,403 456 3,304 Yield

slide-29
SLIDE 29

14.1 |

Investments: strong performance of equity markets drives investment result

 Current income (CHF 947 million) almost at prior year's level (CHF

987 million) despite persistently low interest rates.

 Realised and book gains amounted to CHF 456 million – a

substantial increase compared to 2018 (CHF -193 million) mainly reflecting the strong performance of equity markets.

 Unrealised gains and losses recorded in equity increased by CHF

1,432 million due to the good performance of equity markets and decreasing interest rates.

 As a result of the development of the capital markets investments

with market risk for the policyholder increased by CHF 469 million.

Remarks

slide-30
SLIDE 30

Investment performance: total portfolio

(in CHF million)

Equities Bonds Investment property Mortgages Other (incl. funds) Total

Current income 75 2.9% 498 1.7% 252 3.4% 82 1.6% 41 947 1.9% G/L 308 1 151

  • 1
  • 4

456 Investment result 383 16.9% 499 1.7% 403 5.4% 81 1.6% 37 1,403 2.9% Unrealised G/L 281 1,104

  • 1

48 1,432 Total 664 29.3% 1,603 5.5% 402 5.4% 81 1.6% 84 2,835 5.9%

Investments: strong performance of portfolio and stable new and re-investment yield

15 |

New and re-investment of maturing funds in 2019

Equities Bonds Investment property Mortgages Total 2019 Total 2018

Direct yield 3.2% 1.1% 3.7% 1.1% 1.5% 1.5% Weighted by asset class 9.5% 76.9% 7.1% 6.5% CHF 2.7 billion

slide-31
SLIDE 31

Dividend per share increased to CHF 5.00 – attractive dividend yield of 3.7%

16 |

2016 2017 2018 2019 4.2% 4.2% 3.7% 3.8% 44% 47% 58% 59% 58% 58%2) Dividend yield Pay-out ratio based on: underlying earnings IFRS earnings

Dividend yield / Pay-out ratio

(in %)

Dividend per share1)

(in CHF) 4.20 4.60 4.80 5.00 2016 2017 2018 2019

1) 2016-2018 figures adjusted for the new number of shares resulting from the share split (1:5) of 13 May 2019 2) Excluding positive one-off effect from the revaluation of deferred tax provisionsas a result of the federal tax reform and associated cantonal tax reductionsin Switzerland
slide-32
SLIDE 32

17 |

Strong operating cash production ensuring dividend payment

Cash production and payout

(in CHF million; payout in % of operating cash production)

Shareholders

2018 2019

Operating cash production1) Remittance ratio Operating cash production1) Remittance ratio2)

Group 290 67% 279 63% Switzerland 199 62% 208 62% Europe 59 50% 54 42% Specialty Markets3) 32 64% 17 29% Non-life3) 190 55% 192 53% Life 100 67% 87 52%

239 290

Operating cash production1)

1) Dividends and interest and fees on financial instruments 2) Excluding positive one-off effect from the revaluation of deferred tax provisionsas a result of the federal tax reform and associated cantonal tax reductionsin Switzerland 3) Including Group reinsurance 4) Helvetia Holding is a "pass through" entity; to a large part, its shareholder reserves are not free to be paid out as dividen ds

2018 2019

82% 249 279

Helvetia Holding4)

89%

Operating cash production by segment and business area

(in CHF million; remittance in % of IFRS earnings)

slide-33
SLIDE 33

18 |

Strong operating cash production ensuring dividend payment

 Strong operating cash production across all segments and business

activities.

 Shareholder dividends ensured by current year cash production

highlighting sustainability of dividend payment.

 Continued commitment of high external dividend payout.  Profit retention within Europe and Specialty Markets to bolster

solvency and fund growth strategy.

 Lower remittance ratio in Specialty Markets additionally driven by a

lower dividend contribution of Group reinsurance.1)

> NB: Remittance ratio for 2019 adjusted for positive tax one-off to

ensure comparability with prior year figures.

Remarks

1) Group reinsurance mandated to provide Group-internal reinsurance coverage and as such subject to profit volatility
slide-34
SLIDE 34

Kapiteltrenner

  • der Fazit auf

Farbfläche

Flexible Schriftgrösse Arial Black 0.9 ZA

08.05.2020 Optional Bereichsbezeichnung | Thema/Projekt | Referent 33

Update on strategy implementation.

slide-35
SLIDE 35

"Home" ecosystem Health ecosystem (Caser) Own real estate funds

20 |

On the home stretch on implementing our strategy

Strengthening the core business New business models Innovation

Access: Products: Claims: Online business VIVA (DE, ES) B2B2C business (CH, DE, ES) Bank partners (IT) Cyber coverages (CH, DE, AT) Own fund products (CH) Revision of non-life retail product including new services (CH) Easy claims handling with JAROWA (CH) and NEXA (AT) platforms Higher level of automation (EU) Video motor claims assessment with Insoore (IT) Smile mobile app (CH) SMART online insurance (AT) Claim notification (CH) and virtual insurance assistance (ES) via chatbot Investments of the Helvetia Venture Fund:  MyPass (IT)  Mobile Garantie (DE)  Chargery (DE)  Immoledo (CH)  Theftex (DE)  Campai (DE)  Flatfox (CH)  PriceHubble (CH)  Inzmo (DE)  Volocopter (DE)  Homebell (DE)  BlueID (DE) Aviation

slide-36
SLIDE 36

Benefits from the acquisition

21 |

Strengthening the core business by the acquisition

  • f Caser, reinforcing the European business

 Helvetia acquiring 70% of Caser  Financed by 2/3 hybrid capital and 1/3 share

issuance

 Bancassurance partners as minority

shareholders (30%) Strengthening the core business:

 Helvetia and Caser combined are now no. 7

in the non-life business in Spain

 Europe becomes a strong second foothold  Higher percentage of non-life business on

Group level

 Extended distribution channels with three

new partner banks New business models:

 Access to health ecosystem

Well-performing foundation in Europe A promising transaction

Helvetia Europe 2015 2019

Net income (in CHF million) 981) 128 Net combined ratio 97.1% 94.8% GWP non-life (in CHF million) 1,666 1,945 NBM (in % PNVBP) 1.3% 2.2%

 Continuous improvement of combined ratio  Strong growth driven by profitable non-life

business

 Strong no. 8 market position in Austria

through the acquisition of Baloise AT in 2014

1) Underlying earnings
slide-37
SLIDE 37

22 |

Improving profitability of life business by introducing a new tariff in Swiss group life

New tariff in full insurance

(adopted as from 01/01/2020) Positive impact on SST ratio (single digit % pts increase) Decrease of expected future conversion rate losses Strengthening the core business in Swiss group life by:  improving profitability and stability of the full insurance business  strengthening the capital-light semi- autonomous solutions (Swisscanto and BVG Invest) Improved business mix with a higher share

  • f risk premiums

Swiss group life premiums decreasing by low double digit percentage rate (mainly savings premiums)  Gradual lowering of conversion rate by introducing the so-called crediting principle  Selective premium increases

Purpose Implications

Premiums in semi-autonomous business growing by ~50% in 2019 Expected shortening of balance sheet

slide-38
SLIDE 38

23 |

On track to reach our financial targets

Business volume

Non-life Life Return on equity Dividend (5 years) SST ratio S&P rating

Targets Realised as of 31/12/2019

On track (incl. acquisition of Caser)

Net CR: 92.3% NBM: 2.9% RoE: 9.3% CHF 925 million (2016-2019 cumulative) 215% (as of 30/06/2019) A

CHF 10 billion (ambition)

Net CR < 93% NBM > 1% 8 – 11% > CHF 1 billion 180 – 240% A

      

slide-39
SLIDE 39

Kapiteltrenner

  • der Fazit auf

Farbfläche

Flexible Schriftgrösse Arial Black 0.9 ZA

08.05.2020 Optional Bereichsbezeichnung | Thema/Projekt | Referent 38

Appendix.

slide-40
SLIDE 40

Non-life Life1) Total (in CHF million) 2018 2019 ∆ 19/18 (OC) 2018 2019 ∆ 19/18 (OC) 2018 2019 ∆ 19/18 (OC) Switzerland 1,472 1,483 0.8% 3,603 3,641 1.1% 5,075 5,124 1.0% Europe 1,905 1,945 5.8% 1,074 1,138 9.7% 2,979 3,083 7.2% Germany 658 668 5.1% 295 312 9.4% 954 980 6.5% Italy 548 564 6.5% 426 507 23.3% 974 1,071 13.8% Spain 344 350 5.5% 141 149 9.8% 485 500 6.8% Austria 354 363 6.1% 212 169

  • 17.4%

567 532

  • 2.7%

Specialty Markets 1,020 1,247 23.7% 1,020 1,247 23.7% SpL CH/Int. 263 343 31.7% 263 343 31.7% France 235 297 30.9% 235 297 30.9% ARI 522 608 16.5% 522 608 16.5% Total 4,396 4,675 8.3% 4,677 4,779 3.0% 9,073 9,454 5.6%

Business volume by business area in 2019

1) Including deposit volumes (not reported as premiums under IFRS)

25 |

slide-41
SLIDE 41

Business volume

(in CHF million)

26 |

Switzerland: business volume in 2019

Regular premiums 949 947 1,472 1,483 Individual life Life Non-life 3,603 3,641 2,654 2,694 Individual life Group life Group life 2,654 2,694 1,349 1,355 Single premiums 1,305 1,339 949 947 367 405 Traditional 542 0.8% 1.1% 1.5%

  • 0.2%

582 Investment- linked ∆ OC

  • 2019

2018

slide-42
SLIDE 42

27 |

Non-life: business volume in 2019

(in CHF million; currency-adjusted growth against 2018)

Property thereof Engineering Motor vehicle Liability Accident / Health Transport / Art ARI Total NL Switzerland 544 3.4%

  • 599
  • 1.3%

161 0.7% 174 0.1% 3

  • 10.7%
  • 1,483

0.8% Europe 714 7.1% 38 13.7% 746 5.3% 200 4.6% 195 4.9% 91 3.5%

  • 1,945

5.8% Germany 301 6.2% 17 13.0% 208 7.1% 69 1.3% 32

  • 1.6%

58 1.4%

  • 668

5.1% Italy 131 10.3% 14 17.0% 259 4.2% 65 8.1% 99 6.6% 10 6.6%

  • 564

6.5% Spain 149 6.3% 2 3.6% 143 4.7% 21 4.1% 20 5.5% 18 8.2%

  • 350

5.5% Austria 132 7.1% 4 10.1% 136 5.4% 44 5.2% 44 5.9% 6 6.0%

  • 363

6.1% Specialty Markets 301 39.0% 276 35.9% 35 5.0%

  • 69.4%
  • 303

28.6% 608 16.5% 1,247 23.7% Specialty Lines CH / Int. 262 37.1% 262 37.1%

  • 82

17.0%

  • 343

31.7% France 40 52.4% 15 19.0% 35 5.0%

  • 69.4%
  • 222

33.3%

  • 297

30.9% ARI

  • 608

16.5% 608 16.5% Total 1,560 10.6% 314 32.8% 1,380 2.4% 362 2.6% 369 2.6% 398 21.4% 608 16.5% 4,675 8.3%

slide-43
SLIDE 43

28 |

Non-life: technical account

2018 2019

(in CHF million)

Gross Share R/I Net Gross Share R/I Net Premiums earned 4,342

  • 444

3,898 4,518

  • 496

4,022 Insurance benefits

  • 2,583

203

  • 2,380
  • 2,734

254

  • 2,480

Technical costs

  • 1,268

99

  • 1,168
  • 1,349

119

  • 1,230

Technical result 491

  • 142

349 434

  • 123

311 Investment income (net)1) 109 208 Other non-technical expenses and income1)

  • 37
  • 48

Profit or loss from operating activities 421 471 Financing Costs

  • 3
  • 4

Tax

  • 85
  • 69

Net income after tax 332 398 Claims ratio (incl. policyholder participation) 59.5% 61.1% 60.5% 61.7% Cost ratio 29.2% 30.0% 29.9% 30.6% Combined ratio 88.7% 91.0% 90.4% 92.3%

1) Adjusted for FX gains and losses that match those on technical provisions
slide-44
SLIDE 44

29 |

Non-life: overview of net combined ratios

(in %)

CH Europe Specialty Markets Group Claims ratio (net) 57.2 63.9 64.3 61.7 Cost ratio (net) 29.1 30.9 32.1 30.6 Combined ratio 2019 (net) 86.2 94.8 96.4 92.3 Combined ratio 2018 (net) 82.7 95.1 96.2 91.0 Change from 2018 3.5

  • 0.3

0.1 1.2 (in % ) DE IT ES AT SpL CH/Int. FR ARI Claims ratio (net) 66.2 58.5 70.2 60.1 58.1 61.1 67.8 Cost ratio (net) 31.8 34.5 25.2 29.8 38.3 31.9 30.1 Combined ratio 2019 (net) 98.0 93.0 95.5 89.9 96.4 93.0 97.9 Combined ratio 2018 (net) 97.9 94.3 96.0 89.2 96.7 94.4 96.8 Change from 2018 0.1

  • 1.3
  • 0.5

0.6

  • 0.4
  • 1.4

1.0

slide-45
SLIDE 45

30 |

Non-life: net combined ratio walk

1) Also includesULAE and policyholder dividendsand bonuses

Current year claims ratio excl. NatCats 62.2% 59.3% 30.0% 30.6%

  • 2.8%

1.7% 91.0% CR 2018 ∆ Current year claims ratio

  • excl. NatCats1)

∆ NatCat ratio ∆ Prior year claims development ∆ Cost ratio CR 2019 92.3% 0.7%

  • 2.9% pts

0.1% pts 3.5% pts 0.6% pts 1.3% pts 1.6% NatCat ratio Cost ratio Prior year claims development

slide-46
SLIDE 46

Current year claims ratio

Non-life: impact of Active Reinsurance's underwriting year accounting on PYD

31 |

Usual accounting logic: Underwriting year accounting logic (ARI):

Year:

1 2 3

Contract conclusion Contract renewal Claim Building reserves for current year (year 3) Building reserves for underwriting year(year 2!) Year:

1 2 3

Contract conclusion Contract renewal Claim

Prior year development

slide-47
SLIDE 47

32 |

Cost ratio 2018 (net) ∆ Commission cost ratio Business volume effect Other effects 30.0%

  • 0.5% pts

0.4% pts 0.7% pts 30.6% 28.6% Cost ratio 2019 (net) 0.6% pts

Non-life: cost ratio walk

Reinsurance effect

  • 0.1% pts
slide-48
SLIDE 48

33 |

Life: business volume in 2019

1) Not reported as premiums under IFRS 2) Incl. modern traditional and protection products

(in CHF million; currency- adjusted growth against 2018)

Investment

  • linked

Deposits1) Total investment- linked Traditional life2) Total individual life Total group life Total life Switzerland 339 11.9% 66 3.0% 405 10.4% 542

  • 6.9%

947

  • 0.2%

2,694 1.5% 3,641 1.1% Europe 376 0.5% 173 35.0% 549 9.3% 491 9.8% 1,040 9.5% 98 10.9% 1,138 9.7% Germany 213 14.9%

  • 213

14.9% 99

  • 0.8%

312 9.4%

  • 312

9.4% Italy

  • 94.9%

173 35.0% 173 34.6% 307 18.0% 480 23.5% 27 19.2% 507 23.3% Spain 45 16.0%

  • 45

16.0% 34 6.1% 79 11.5% 71 8.0% 149 9.8% Austria 118

  • 21.1%
  • 118
  • 21.1%

52

  • 7.5%

169

  • 17.4%
  • 169
  • 17.4%

Total 715 5.5% 239 24.6% 954 9.8% 1,033 0.5% 1,987 4.7% 2,792 1.8% 4,779 3.0%

slide-49
SLIDE 49

34 |

Life: traditional embedded value (TEV)

3,647 3,925 246 83 272

  • 229
  • 75
  • 19

31/12/2018 Expected added value Value of new business Operating variances Economic variances Capital movements FX translation 31/12/2019 31/12/2018 TEV yield 9.7% 31/12/2019 2,719 Adjusted equity 2,384 2,285 + Value of insurance portfolio 2,269

  • 1,357
  • Solvency costs
  • 728

3,647 Traditional embedded value 3,925 (in CHF million)

slide-50
SLIDE 50

35 |

Life: assumptions for TEV calculation

Switzerland Europe Assumptions for calculation 2018 2019 2018 2019 Risk discount rate 6.5% 6.5% 7.0% – 8.5% 7.0% – 8.75% Yield on bonds 0.4% – 1.5%

  • 0.1% – 1.0%

2.1% – 3.2% 0.9% – 2.0% Yield on equities 6.5% 6.5% 7.0% 7.0% Yield on real estate 4.2% 3.4% 4.3% 4.3%

slide-51
SLIDE 51

36 |

Life: reserves

CH 29.9 Group life 18.4 Retirement assets 11.6 6.2 EU 7.8 Individual life 11.5 Other 6.8 5.4 21% of Swiss life reserves are subject to the BVG minimum interest rate 1.00% interest guarantee

  • 0.25% interest guarantee

extra-mandatory mandatory (as of 31/12/2019; in CHF billion; incl. investment-linked, excl. PHP, UPR and deposits)

slide-52
SLIDE 52

Individual life regular premiums

(New business; in CHF million)

25

14 11

13

10 10

22

23 24 2019 89% 87% 78% 2017 2018 62 51

Individual life single premiums

(New business; in CHF million) 88 70 93 2017 2018 2019 74% 73% 73% 243 519 835 565 598 245

37 |

Share of capital- light business1)

Individual life: new business mix

4 Traditional savings

  • Protection
  • Modern traditional
  • Investment-linked
  • 945

885 7 9 111

110

108 224

1) Includesinvestment-linked, protection and modern traditional business

65

slide-53
SLIDE 53

38 |

The Swiss pension system

Pillar 1 Pillar 2 Pillar 3 General state insurance AHV (1948) Occupational pension plan for employees BVG (1985) Private coverage Purpose Basic level of provision Ensure living standard Coverage of individual requirements Responsibility Government Employer Individual Financing Employer (50%) Employee (50%) Employer (min. 50%) Employee (max. 50%) 100% self-financing Parameters 2020

  • Legal quota:

90%

  • Min. interest rate (mandatory): 1.00%
  • Min. interest rate (extra-mand.): 0.25%
  • Conversion rate:

6.80% At the discretion of the insurer

  • Max. technical rate for new guarantees:

Single premiums: 0.05% Regular premiums: 0.25% Helvetia CH business volume 2019

  • Group life: CHF 2,694 million

Individual life: CHF 947 million Helvetia CH 2018 market position

  • Number 3 provider

Number 4 provider

3 pillars concept

slide-54
SLIDE 54

39 |

Treatment of own investment funds in other activities segment

Trad Trading ing

Group consolidated

AFS AFS P&L P&L Equity Equity 20 20 20 20

Trading 10 10

Non-Life Switzerland

AFS P&L Equity Trading

  • 20
  • 20

Other activities

AFS P&L Equity 20 20 Trading 10 10

Life Switzerland

AFS P&L Equity

(illustrative figures)

1 2 1 2

Trading "gains" in market units are offset by "loss" in other activities. Market valuation gains are then booked in other activities through equity.

slide-55
SLIDE 55

40 |

Investment portfolio by asset class

14%

Bonds Investment property Mortgages Investments with market risk for the policyholder Equities Loans Alternative investments / investment funds / derivatives Other 10% 7% 4% 2% 2% 4% CHF 52.0 bn 31/12/2018 14% 57% CHF 54.5 bn 31/12/2019 9% 8% 2% 4% 5% 4% 14% 54%

1) Equity exposure delta-adjusted: 5.2% 2) Money market instruments and investments in associates

2) 1)

slide-56
SLIDE 56

31/12/2018 31/12/2019

(in CHF million) Trading / Hedge Acc.1) AFS HTM LAR Associates Investment property Total Trading / Hedge Acc.1) AFS HTM LAR Associates Investment property Total

Shares 1,191 1,065 2,256 1,475 1,387 2,862 Investment funds 932 266 1,198 934 333 1,266 Alternative investments 534 3 537 669 39 707 Derivative financial instruments 182 182 122 122 Interest-bearing securities 1,191 24,323 2,309 1,762 29,585 1,206 24,576 2,135 1,482 29,399 Loans 1,080 1,080 1,012 1,012 Mortgages 5,256 5,256 5,138 5,138 Money marketinstruments 1,082 1,082 2,173 2,173 Investment property 7,406 7,406 7,548 7,548 Associates 27 27 31 31 Total 4,031 25,658 2,309 9,181 27 7,406 48,610 4,405 26,335 2,135 9,805 31 7,548 50,259

1) Excl. investmentswith market risk for the policyholder

Investment portfolio by IFRS category

  • Available for sale (AFS)

Investment property Loans and receivables (LAR) Trading / Derivatives Held to maturity (HTM) 48% 4% 18% 14% 16% CHF 54.5 bn

41 |

slide-57
SLIDE 57

42 |

Investment result by business area

Non-life Life Other activities1) Total

(in CHF million)

2018 2019 2018 2019 2018 2019 2018 2019 ∆19/18 Current income (net) 138 140 851 826

  • 2
  • 19

987 947

  • 40
  • Thereof current income on Group investments
  • Thereof rental income

110 28 113 27 637 214 601 224

  • 2

1

  • 19

1 745 243 695 252

  • 49

9 Direct yield 1.9% 1.9% 2.1% 2.0% 2.0% 1.9% Gains and losses on Group investments (net)

  • 37

49

  • 105

360

  • 51

47

  • 193

456 648 Yield

  • 0.5%

0.7%

  • 0.3%

0.9%

  • 0.4%

0.9% Income from Group financial assets and investment property 101 189 746 1,186

  • 53

28 794 1,403 608 Yield 1.3% 2.6% 1.8% 2.9% 1.6% 2.9% Change in unrealised gains and losses

  • 121

245

  • 507

1,167

  • 12

20

  • 639

1,432 2,071 Yield

  • 1.6%

3.3%

  • 1.2%

2.9%

  • 1.3%

3.0% Overall group result

  • 20

434 240 2,353

  • 65

48 155 2,835 2,680 Performance

  • 0.3%

5.9% 0.6% 5.8% 0.3% 5.9% Investments with market risk for the policyholder

  • 221

470 5

  • 216

469 685 Total investment result

  • 20

434 19 2,822

  • 60

47

  • 61

3,304 3,365

1) Incl. elimination of intra-Group interest and dividend income
slide-58
SLIDE 58

43 |

Group investment result compared to prior year

1) Also includes alternative investments and equity derivatives

794 1,403 Current income G/L equities / funds1) G/L investment property Other 2018 2019 G/L bonds

  • incl. FX

movements

  • 40

63 187 440

  • 42

608 (in CHF million)

slide-59
SLIDE 59

CHF 13.7 billion

Europe

44 |

Switzerland

Investments in original currency

(in CHF billion)

CHF 14.7 48% 1.3 46% 0.7 16% 14.8 88% EUR 12.3 40% 0.7 24% 3.1 73% 1.4 9% USD 3.2 11% 0.8 26% 0.4 10% 0.6 4% Other 0.3 1% 0.1 4% 0.1 2% 0.0 0%

  • CHF

EUR USD Other 1% 77% 13% 9% CHF 40.8 billion 9% 91% Bonds Equities Other Funds

slide-60
SLIDE 60

45 |

Currency hedges vs. currency trends

 In general, Helvetia places investments in foreign currencies for congruent coverage of liabilities in foreign currencies and the purpose of diversification; currency risk is systematically hedged.  Exposure to foreign currencies amounts to CHF 10 billion before hedges as of 31/12/2019; new investments in CHF bonds unattractive due to negative returns; USD Treasury bonds currently unattractive due to higher FX hedging costs.  Increased EUR corporate investments with rolling currency hedges. FX EUR/CHF1) FX USD/CHF1) FX GBP/CHF1) Level of currency hedging

1) Indexed as of 30/06/2017

84% 83% 86% 87% 86% 84% 85% 85% 87% 88% 89% 89% 89% 85% 85% 84% 83% 83% 82% 82% 80% 81% 82% 85% 85% Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19

slide-61
SLIDE 61

46 |

  • Equity exposure

Equity exposure delta-adjusted Equity exposure after hedging

1) Incl. Group equity funds

Equity exposure1)

2.9% 2.6% 2.6% 2.3% 2.0% 2.3% 2.4% 2.4% 2.5% 5.6% 4.7% 4.9% 5.2% 3.6% 4.9% 5.1% 5.1% 5.2% 5.9% 5.6% 5.7% 5.6% 4.7% 5.2% 5.4% 5.4% 5.5% Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19

slide-62
SLIDE 62

2% 2% 2% 1% 1% 12% 15% 16% 16% 16% 15% 15% 17% 18% 18% 27% 25% 23% 25% 25% 44% 43% 42% 40% 40% 2015 2016 2017 2018 2019

47 |

Bond credit ratings

  • AAA

A AA BBB <BBB and not rated

slide-63
SLIDE 63

Sector and rating class allocation

(as of 31/12/2019)

48 |

Bond investments

Bonds

54%

  • States &

supranationals1) Financials Corporates

1) Supranational entities such as the European Union; predominantly supranational financial institutions like the European Investment Bank or the Nordic Investment Bank
  • AAA

A AA BBB < BBB (0%) Not rated (1%)

39% 35% 27% 40% 18% 25% 16% CHF 29.4 bn CHF 29.4 bn Total CHF 54.5 billion

slide-64
SLIDE 64

49 |

Bond investments – financial bonds

Risk profile and country allocation

(as of 31/12/2019) Total CHF 54.5 billion Financial bonds

19%

CHF 10.2 bn CHF 10.2 bn CHF 10.2 bn

  • AAA

A AA < A Not rated (1%)

  • Unsecured (straight bonds)

Government guarantee1) Secured Subordinated (1%)

  • Switzerland

Netherlands Germany France (5%) UK (5%) Austria (3%) USA (3%) Luxembourg 2%) Australia (2%) Italy (2%) Other

13% 23% 3% 61% 51% 23% 25% 6% 54% 9% 10%

1) Guaranteed by a state or other public entity; issued, for example, by a cantonal bank or public authority
slide-65
SLIDE 65
  • Regional authorities

Supranational banks1) Country Quasi-governmental enterprises 50 |

Bond investments – government bonds

Government & supranational bonds

21%

Entity and country allocation

(as of 31/12/2019) Total CHF 54.5 billion CHF 7.1 bn 11% 32% 7% 7% 4% 23%

1) Supranational financial institutions such as the European Investment Bank or the Nordic Investment Bank

9% 19% 62% CHF 11.4 bn

  • Switzerland (AAA)

USA (AAA) Italy (BBB) EU (AAA) Germany (AAA) Netherlands (AAA) Finland (AA)

  • Belgium (AA)

Austria (AA) (3%) France (AA) (3%) Other

10% 4% 4% 4%

slide-66
SLIDE 66
  • Bond investments – corporate bonds
  • AAA

A AA BBB <BBB (0%) Not rated (2%) 51 |

Rating class, country and sector allocation

(as of 31/12/2019) Corporate bonds

14%

Total CHF 54.5 billion

Oil & gas Transportation Pharmaceuticals Commercial services Electric Telecommunications Chemicals Food (5%) Beverages (4%) Auto manufacturers (3%) Others

CHF 7.9 bn CHF 7.9 bn

  • USA

Netherlands France Switzerland Germany UK (5%) Austria (3%) Norway (2%) Spain (2%) Luxembourg (2%) Others

CHF 7.9 bn 35% 39% 21% 10% 9% 8% 11% 34% 15% 14% 8% 6% 7% 7% 6% 37% 4% 5%

slide-67
SLIDE 67

52 |

Bond investments – credit rating BBB

Country allocation

(as of 31/12/2019) Bonds rated BBB

9%

Total CHF 54.5 billion

  • Italy

Netherlands USA Spain France (5%) UK (4%) Germany (4%) Switzerland (3%) Sweden (1%) Canada (1%) Others

9% 28% 35% CHF 4.8 bn 6% 6%

slide-68
SLIDE 68

CHF 7.5 bn

  • Switzerland

Germany (3%) Austria (4%) Spain (1%) Italy (1%) France (1%)

Investment property

Allocation by use and country

(as of 31/12/2019) Investment property

14%

Total CHF 54.5 billion 28% 72% CHF 7.5 bn

Commercial Residential

  • 92%

53 |

slide-69
SLIDE 69

Bonds Investment property Mortgages Investments with market risk for the policyholder Equities Loans (2%) Alternative investments / investment funds / derivatives (4%) Other (4%)

ESG risk profile: A rating

54 | 54%

Sustainable investments: MSCI ESG risk profile

Main asset classes in scope for the analysis1) Alternative investments / investment funds / derivatives

Bonds

Equities

  • High ESG risk = B – CCC

Low / minor ESG risk = AAA – AA Moderate ESG risk = A – BB

10% 34%

Investment portfolio

CHF 54.5 bn as of 31/12/2019

1) The analysis covered a multi-dimensional sustainability risk assessment on security level for financial holdings (66% of total assets) 2) Money market instruments and investments in associates

2)

14% 9% 8% 5%

54% 2%

Not rated by MSCI

slide-70
SLIDE 70

44% 37% 17% 2%

AA - AAA A BBB <BBB & Not rated

42% 40% 17% 2%

EUR USD CHF GBP 55 |

Energy exposure

Share of energy sector on portfolio

2.0%

(as of 31/12/2019)

  • f total

investments (CHF 54.5 billion)

5.4%

  • f corporate bonds

(incl. financials)

3.0%

  • f equities

3.0%

  • f private debt

Total energy exposure by rating class and currency

2.0%

(of total investments)

2.0%

(of total investments)

CHF 9 million

Fracking exposure

Top 3 issuers

› Total S.A. › BP plc › Royal Dutch Shell

~37%

  • f total energy

exposure

slide-71
SLIDE 71

56 |

Equity / comprehensive income

(in CHF million)

18.1%

538

  • 257

700

78.6% 71.2%

6,534

10.7%

5,834

Group profit for the period

  • Unreal. G/L

(net) Policyholder participation Deferred tax liabilities, net invest. hedge, FX translation Dividends Equity (without preferred securities) Preferred securities Total equity as of 31/12/2019 Total equity as of 31/12/2018

Comprehensive income: CHF 993 million

Other

G/L recorded in equity: CHF 455 million

Revalued pension benefit

  • bligation

5,797

12.1% 9.3%

1,432

  • 164
  • 647
  • 166
  • Unrealised gains/losses

(including policyholder share) Hybrid capital Equity, reserves and non- controlling interests

slide-72
SLIDE 72

Non-life 341 Life 52 Other 8 A vailable to shareholders 402 Policyholders, non-controlling interests, deferred tax 2,484 Total 2,886

57 |

Changes in unrealised gains/losses

  • Changes in market value

Gains/losses transferred to the income statement

Unrealised G/L on assets

2018 2019 ∆ Equities 286 567 281 Bonds 1,134 2,239 1,104 Other 33 80 47 Total 1,454 2,886 1,432 (in CHF million)

Unrealised G/L as of 31/12/2018 Unrealised G/L as of 31/12/2019 Bonds Equities Other

1,454 1,148 285

  • 5

47

  • 43

2,886 ∆ 1,432

slide-73
SLIDE 73

Unrealised gains/losses

Total unrealised G/L Shareholders' unrealised G/L in equity Policyholders' unrealised G/L in equity Policyholders' unrealised G/L in liabilities

  • Non-controlling interest in unrealised G/L and

deferred tax 1,454 171 370 762 151 2,886 402 779 1,427 278 31/12/2018 Equity Liabilities 31/12/2019 Liabilities Equity

Breakdown between shareholders and policyholders

(in CHF million)

58 |

slide-74
SLIDE 74

Net economic dividend capacity supporting sustainable dividends

1) Valuation reservesless deductions 2) SST RBC as of 01/01/2020 3) IFRS equity excluding preferred securities 4) Net economic dividend capacity after taking into account capital and additional buffer

Capital walk: from SST capital to net economic dividend capacity (2019)

(as of 31/12/2019; in CHF billion)

59 | 5.8 5.8 0.7 1.6

  • 1.6
  • 5.1

2.1

  • 2.1

SST risk-bearing capital Valuation and other differences Consolidated IFRS equity Valuation and other differences Net economic dividend capacity

3)

Valuation and

  • ther differences1)

Hybrid capital IFRS equity 9.5

2)

Main effects:  Valuation differences in IFRS vs. local accounting  Bound reserves & other restrictions (e.g. from capital steering) Main effects:  Valuation differences in SST vs. IFRS accounting  Hybrid capital & other (e.g. deferred taxes)

4)

slide-75
SLIDE 75

59.1 |

Net economic dividend capacity supporting sustainable dividends

 Net economic dividend capacity (NEDC) reflects additional free

available capital at the balance sheet date that can be used for dividends or growth purposes.

 NEDC takes into account certain considerations: > the available free local equity (net of dividends and other capital

effects such as capital in-/decreases),

> our available free tied assets over insurance technical liabilities

(including a small security buffer), in legal entities where such tied asset requirements still exist or are required by the prudent person principle,

> surpluses defined by local solvency requirements (i.e. SST,

Solvency II) at each individual legal entity level; Group considerations such as Group SST and S&P only play a minor role; and finally,

> capital buffers on top of SST and Solvency II requirements in

  • rder to balance prospective volatility of own funds or required

capital, e.g. from investments, as well as additional capital buffers, e.g. to fund growth or to reflect restrictions in transferability of funds.

Remarks

slide-76
SLIDE 76

Do the legal entities have free statutory shareholder reserves? Solvency ratios above minimum buffer? Surplus above minimum tied asset ratio? Is the market unit RoE below our targets? Pay out from free statutory shareholder reserves down to level of buffer

1) Market unit = e.g. Switzerland or Germany; legal entity = company (or branch, where regulated) such as Helvetia Swiss Insuran ce Company; a market unit may be made up of several legal entities

 To pay out dividends, we need the following conditions:

> free statutory shareholder reserves that can be

dividended out;

> surplus above our minimum solvency ratio

targets including buffers;

> surplus above minimum tied asset ratio; > tax and regulatory hurdles also have to be

cleared.  NB dividends are payable by legal entities, not by individual market units or segments1).

Managing capital generation

Helvetia capital management approach (1/2)

60 |

How much dividend do we need to pay from the Holding?

slide-77
SLIDE 77

Available capital (own funds) Solvency capital requirements Solvency margin (free surplus) IFRS equity

Stat equity Valuation differences stat/IFRS Additional capital Minimum solvency margin we require Excess above minimum required solvency margin Free distributable shareholder reserves Free distri- butable resvs This is the maximum distributable capital we can pay. It is lower than the excess solvency margin, because the limiting factor is free distributable shareholder reserves

 Capital distributable to shareholders is determined

predominantly by the free shareholders' reserves within statutory equity, calculated on a legal entity by legal entity basis. This depends on local accounting rules, laws, regulations and regulatory practice.

 Another limiting factor is the minimum required

solvency margin both at legal entity and group level.

 Helvetia includes additional buffers to address

volatility and uncertainty.

What determines dividend payments

Helvetia capital management approach (2/2)

61 |

slide-78
SLIDE 78 1) NB: Dividendsare subject to statutory accounting, not solvency accounting; solvency capital includesnon-shareholder components

SST ratio

240% 180%

140% 100%

> Validate capitalisation against strategy and take action as necessary1) > Focus on economic business steering > Considering measures to increase resilience of solvency NB: Regulatorysolvency constraintsfor dividends only below 80% SST coverage > Implementingconcrete measuresto improve capital and reduce risks

Capital management actions

80%

62 |

Target range

SST ratio

(as of 01/01/2020)

235%

slide-79
SLIDE 79

63 |

Duration gap

1) The weighted duration gap shows the sensitivity of own funds to a parallel shift in the yield curve, expressed as a percentag e of the best estimate of insurance liabilities

.

30/06/2019 31/12/2019 Asset duration 7.9 7.7 Total weighted duration gap1) On regulatory basis 0.2 0.3 On economic basis 1.9 1.8

 Including bonds and other interest rate instruments

and loans.

 Excluding real estate as additionally matching

asset class which covers the volume gap of interest rate instruments and loans to liabilities.

 No material duration gap in the new SST-model.  Controlled upside exposure to rising interest rates

under economic assumptions.

slide-80
SLIDE 80

64 |

Risk sensitivities

Interest rate risk sensitivities Interest rate level +10 bp Interest rate level

  • 10 bp

Income statement 1.3

  • 2.5

Equity

  • 85.6

86.9 Equity price risk sensitivities Equity price +10% Equity price

  • 10%

Income statement 109.5

  • 103.2

Foreign exchange risk sensitivities EUR / CHF USD / CHF GBP / CHF +2%

  • 2%

+2%

  • 2%

+2%

  • 2%

Income statement

  • 2.4

2.4

  • 8.1

8.1

  • 1.3

1.3

1) Net of PHP and tax

Risk sensitivities1)

(as of 31/12/2019; in CHF million)

slide-81
SLIDE 81

64.1 |

SST 2019: own funds (RBC) sensitivities

(in CHF million)

Market risk sensitivities Shift 31/12/2018 ∆ SST- Ratio1) 31/12/2018 31/12/2019 ∆ SST- Ratio1) 31/12/2019 Interest rates

  • 50 bp
  • 20
  • 1% pts.
  • 79
  • 2% pts.

Spreads2) +50 bp

  • 800
  • 24% pts.
  • 823
  • 23% pts.

Equities

  • 10 %
  • 173
  • 5% pts.
  • 279
  • 8% pts.

Real estate

  • 10 %
  • 951
  • 29% pts.
  • 989
  • 27% pts.

FX EUR/CHF +10 % +5 +0% pts.

  • 54
  • 1% pts.

FX USD/CHF

  • 10 %
  • 62
  • 2% pts.
  • 83
  • 2% pts.

Life insurance risk sensitivities Shift 31/12/2018 ∆ SST- Ratio1) 31/12/2018 31/12/2019 ∆ SST- Ratio1) 31/12/2019 Longevity +10 %

  • 263
  • 8% pts.
  • 203
  • 6% pts.

Disability +10 %

  • 36
  • 1% pts.
  • 35
  • 1% pts.

Reactivation

  • 10 %
  • 113
  • 3% pts.
  • 100
  • 3% pts.

Costs +10 %

  • 215
  • 7% pts.
  • 271
  • 7% pts.

Lapse +10 %

  • 42
  • 1% pts.
  • 42
  • 1% pts.
1) Only own funds(RBC) sensitivitiesincluded; excl. effect on targetcapital 2) Spread-sensitive investments are defined as interest-bearing investments with the exception of "AAA"-rated government bonds, bonds issued

by multilateral development banks, mortgages, policy loans and mortgage-backed bonds

slide-82
SLIDE 82 1) Source: Caser annual report 2018 2) Source: CECA, Anuario Estadístico 2018

65 |

Caser: company overview

14%

EUR 1,639 million 62% 29% 9%

Revenues by segment and line of business1)

(as of 2018)

Life: Non-life: Non-insurance businesses:

EUR 1,018 million

Multirisk Motor Corporate Agricultural Health Personal lines

32% 18% 17% 15% 6% 13% 18% 82%

Life savings Life risk

EUR 141 million 13% 16% 20% 51%

Elderly care Hospitals Assistance Other Total branches: ~3,000

Bank partners' branch network2)

(as of December 2018)

EUR 481 million ~590 ~275 ~15 ~130 ~500 ~85 ~10 ~10 ~100 ~100 ~390 ~285 ~65 ~385 ~15 ~5 ~580 ~290 ~10 1-5

(Unicaja, Ibercaja and Liberbank combined)

1-5

slide-83
SLIDE 83

66 |

Executive Management as of 1 May 2020

Finance

Paul Norton2) Beat Müller

IT

Achim Baumstark

Investments

André Keller

Actuarial CEO

Philipp Gmür

Internal Audit1)

Simon Schneider

Corporate Center

Roland Bentele

Corporate Secretary1)

Barbara Bolliger

Strategy & M&A

Patrick Scherrer

Switzerland

Martin Jara

Specialty Markets

David Ribeaud

Europe

Markus Gemperle

Support functions Market areas / segments

Reports to the Chairwoman of the Board of Directors Members of the Group Executive Management Member of the extended Group Executive Management Member of the Swiss Executive Management Staff function

1)

1) Reports to the Chairwoman of the Board of Directors 2) From 1 October 2020: Annelis Lüscher Hämmerli
slide-84
SLIDE 84

67 |

Group structure as of 31 December 20191)

  • Helvetia Holding A

G St.Gallen, 100% Helvetia Insurance St.Gallen, 100% Helvetia Life Basel, 100% Helvetia Venture Fund SA , SICA R Luxembourg, 99% Helvetia Head Of fice Germany, Frankfurt Helvetia Reinsurance St.Gallen Helvetia Vita Milan, 100% Helvetia Versicherungen A G Vienna, 100% Helvetia Compañia Suiza Sev illa, 99% Helvetia A ssurancesSA Le Hav re, 100% Helvetia IT A ssicurazioni Milan,100% Helvetia Head Of fice Austria, Vienna Helvetia Head Of fice Italy, Milan Helvetia Head Of fice France, Le Havre Helvetia Holding Suizo SA Madrid, 100% Helvetia Versicherungs-A G Frankf urt, 100% Chiara A ssicurazioni Milan, 100% Helvetia CH Vers. Liechtenstein A G Vaduz, 100% Smile Insurance Wallisellen Helvetia Swiss Ins. Comp. Singapore Helvetia Swiss Ins. Comp. Malay sia Helvetia Leben Frankf urt, 100%

CH Other IT A T FR ES DE

Helvetia Latin A merica LLC Miami, 100%

Legal subsidiaries of Helvetia Holding AG Branches of Helvetia Insurance, St.Gallen

MoneyPark A G Wollerau, 82%

1) Chart depictsthe main entitiesof Helvetia Group only

Finovo A G Zürich, 100% Helvetia Head Of fice Switzerland, St.Gallen

  • Europ. Reiseversicherung

Basel Helvetia A sset Management A G Basel, 100%

slide-85
SLIDE 85

Corporate: includes corporate functions, centrally managed investments (funds), Group Reinsurance, financing companies and Helvetia Holding AG Other activities: includes the Corporate segment, the intermediary and advisory business and service companies Specialty Markets: includes Engineering, Marine, Art and Active Reinsurance Specialty Lines CH/Int.: includes Engineering, Marine and Art 68 |

Abbreviations and glossary

Acc. Accounting AFS Available for sale AHV Old-age and survivor's insurance ARI Active reinsurance bp Basis point(s) BVG Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans CH Switzerland CHF Swiss franc CR (Net) combined ratio ESG Environmental, social and governance Excl. Exclusive EU Europe EUR Euro FX Foreign exchange FY Full-year G/L Gains/Losses GBP British pound GRI Group Reinsurance GWP Gross written premiums HTM Held to maturity IFRS International Financial Reporting Standards LAR Loans and receivables M&A Mergers & acquisitions MSCI Morgan Stanley Capital International n.a. not available NatCat Natural catastrophe NB nota bene NBM New business margin NL Non-life OC Original currency PH Policyholder(s) PHP Policyholder participation PVNBP Present value of new business premiums PVFP Present value of future profit R/I Reinsurance RBC Risk-bearing capital RoE Return on equity SpL Specialty Lines SpM Specialty Markets SST Swiss Solvency Test TEV Traditional embedded value UPR Unearned premium reserve ULAE Unallocated loss adjustment expenses USD U.S. dollar VNB Value of new business

slide-86
SLIDE 86

69 |

Additional information

 Infokit financial results 2019  Equity story / Fact sheet  Financial presentations  Business publications  Financial calendar

slide-87
SLIDE 87

70 |

Calendar and contact

Important dates Contact details

 15/09/2020 Publication of half-year results 2020  25/03/2021 Publication of financial results 2020  30/04/2021 Ordinary Shareholders' Meeting 2021 Philipp Schüpbach Investor Relations Manager Helvetia Group Dufourstrasse 40 9001 St.Gallen (Switzerland) Phone: +41 (0)58 280 59 23 Email: philipp.schuepbach@helvetia.ch Investor Relations Corporate Communications & PR Susanne Tengler Head of Investor Relations Helvetia Group Dufourstrasse 40 9001 St.Gallen (Switzerland) Phone: +41 (0)58 280 57 79 Email: susanne.tengler@helvetia.ch Jonas Grossniklaus Senior Manager Corporate Communications & PR Helvetia Group Dufourstrasse 40 9001 St.Gallen (Switzerland) Phone: +41 (0)58 280 50 33 Email: media.relations@helvetia.ch