Helvetia today provides information on the implementation of the new accounting principles under IFRS 17 and IFRS 9 and reveals the impact on its financial reporting. To this end, the Group publishes its 2022 annual and half-year financial statements in accordance with the new standards. The Group's underlying business activities and the strategy remain unchanged. Helvetia's capitalisation, cash flows and dividend policy are likewise unaffected by the switch to IFRS 17/9.
Helvetia continues to report a strong balance sheet and solid technical results
The new regulations only affect financial reporting in accordance with IFRS. Following its implementation, the IFRS balance sheet reflects a more economic view of the Group's financial situation and confirms the continued strength of Helvetia's balance sheet. Shareholders' equity excluding the valuation reserve for policyholder participation falls moderately as of the transition date on 1 January 2022 by around 7%. Under IFRS 17/9, net income after tax in the 2022 financial year stood at CHF 480.2 million. This was underpinned by robust technical results based on Helvetia's resilient and broadly diversified business model. The result included a one-off gain from the sale of the Spanish life insurance company Sa Nostra Vida in the amount of CHF 87.2 million. Compared to the 2022 IFRS net income after tax under the old accounting principles (CHF 614.4 million, including a one-off gain of CHF 102.0 million), the changed accounting treatment of gains and losses on investments had an impact on the result under IFRS 17/9.
Key figures remain favourable under new definition
The implementation of the new requirements leads to changes in the definition of certain key performance indicators, including the combined ratio, new business margin and return on equity. For 2022, all three key figures remained at an attractive level following the switch to IFRS 17/9. Helvetia will report fully in compliance with IFRS 17/9 for the first time with the publication of its half-year financial statements on 27 September 2023.