Helvetia is publishing its Financial Condition Report (FCR) for the 2021 financial year today. As at 1 January 2022, the Group has a strong SST ratio of 260% (1 January 2021: 193%) and therefore clearly exceeds the regulatory requirements. The increase compared with the previous year is due to a number of positive factors. For instance, the good performance in 2021 had a positive impact on the Group's capitalization. Positive capital market developments such as the rising risk-free interest rates and strong performance of equities and investment properties were also reflected in higher solvency. Moreover, the SST ratio benefited from the introduction of a new standard model for credit risks, resulting in a rise of 8 percentage points. Despite the extraordinarily high claims burden due to natural events in the past business year, Helvetia's solvency remains extremely strong and robust.
Sustainable payout thanks to strong dividend capacity
The sustained balance sheet strength of Helvetia is also reflected in the Group’s robust net economic dividend capacity of CHF 0.8 billion as at 31 December 2021 (31 December 2020: CHF 0.8 billion). With its solid dividend capacity, Helvetia is well placed to ensure a sustainable payout to shareholders in line with the helvetia 20.25 strategy. Based on the proposal by the Board of Directors at today's Shareholders' Meeting, shareholders should benefit from an increase in the dividend of 10% to CHF 5.50 per share.