(Reuters) -Switzerand’s Baloise and Helvetia Holding AG have been exploring a potential merger to create one of the country’s largest insurers, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The two companies have held several on-and-off discussions in recent months but there is no certainty these will lead to a deal, the report added.
Baloise has a market capitalization of 8.13 billion Swiss francs ($9.26 billion), while Helvetia is valued at 9.33 billion francs, according to LSEG data.
Both insurers declined to comment. Shares of Helvetia were largely flat and those of Baloise were marginally higher after the report.
Activist investor Cevian, which holds more than 9% stake in Baloise, has been pressing the company to shake up its portfolio and boost returns as the company’s stock has lagged rivals over the past decade. Baloise is Switzerland’s sixth-biggest non-life and third-largest life insurer by premium volumes.
Any step toward consolidation could trigger rival bids from other possible suitors, Bloomberg said.
Following Cevian’s activism, European insurers such as Zurich Insurance Group, Axa SA and Allianz SE are considering whether they would bid for Baloise or parts of its business if it comes up for sale, the report added.
($1 = 0.8783 Swiss francs)
(Reporting by Anusha Shah in Bengaluru; Editing by Leroy Leo)
