AlphaValue/Baader Europe Bullish on Helvetia Baloise Amid 'Significant' Uncertainty on Earnings Outlook Post-Merger

07:05 AM EST, 12/12/2025 (MT Newswires) -- AlphaValue/Baader Europe expects a "significant degree of uncertainty" around Helvetia Baloise's (HBAN.SW) future earnings following the recently completed merger of Swiss insurers Helvetia and Baloise, but remains bullish on the potential benefits of the combination. The research firm on Thursday noted that the new combined entity's accounting will take a hit from increased total equity, fair value adjustments and policy alignment, and recognition of 4.7 billion francs in goodwill and 3.4 billion francs in other intangible assets, among others. "We are updating our assumptions on Helvetia Baloise following the publication of pro-forma accounts post-merger. The impacts are substantial on both the balance sheet and the P&L. However, these effects are purely IFRS accounting-related and do not affect cash generation, solvency, or dividend prospects. We continue to view the strategic rationale of the merger positively," analysts wrote, highlighting that the deal resulted in the creation of the second-largest insurer in Switzerland. "That said, integration costs will weigh on reported earnings over the next few years before the net benefits materialise." Investors anticipate more details on the company's strategy at its capital markets day scheduled for April 15, 2026. Meanwhile, analysts adjusted their price target on the reduce-rated stock to 208 francs from 192 francs to reflect a change in its intrinsic value over "various conflicting technical adjustments" and the ongoing consolidation process post-merger.