Net profit of CHF million (previous year: CHF million), -4.7% due to the lower financial result

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1 Press release Half-year report 2011 Baloise achieves solid result Basel, 30 August The Baloise Group performed well in the first-half of 2011: A net profit of CHF million and the combined ratio of 93.0% testify to the strong earning capacity. Consolidated solvency amounts to 227%. The most important performance figures for the first-half 2011 are: Net profit of CHF million (previous year: CHF million), -4.7% due to the lower financial result Increase in IFRS premium volume in local currencies of 3.2% Investments: Net income of CHF million (previous year: CHF 1,028.0 million). Non-annualised net return of 1.5% Equity: CHF 3,975.5 million (year-end 2010: CHF 4,133.5 million), -3.8%, due to dividend payments and currency effects Solvency of 227% (year-end 2010: 224%) Nonlife division (indemnity and personal loss insurance): Net combined ratio of 93.0% (previous year: 90.2%) Life insurances division: The value of new business totalled CHF 38.6 million (previous year: CHF 25.0 million); new business margin of 19.2% (previous year: 8.4%) Banking division: EBIT of CHF 36.9 million (previous year: CHF 32.9 million), +12.2% Martin Strobel, Chief Executive Officer of the Baloise Group says, Baloise has delivered a convincing performance record and, as expected, has proved itself to be a safe company. The good operating result confirms that we are a reliable

2 BALOISE GROUP PRESS RELEASE PAGE 2 partner for our customers and shareholders. The fact that Standard & Poor s recently confirmed our rating A- with stable outlook speaks for our solidity. Furthermore, the agency awarded our risk management the quality seal strong ; meaning that we are among the best insurers in Europe. By acquiring Avéro and with the upcoming purchase of Nateus, we will become one of the leading insurers in Belgium. BUSINESS DEVELOPMENT AND RESULTS Overview: Good earning capacity The solid insurance business shapes the half-year result of the Baloise Group. Profit after borrowing costs and taxes amounts to CHF million (previous year: CHF million). This decrease is largely due to the weaker financial result, which benefited from the realisation of securities in the previous year. In addition, there is the slightly higher claims burden as well as integration and restructuring costs in Germany and Belgium. The measures of the strategic programme Baloise 2012, which will generate additional sustainable profit of CHF 200 million, again contributed substantially in the first half of Baloise s profit is spread over a wide base, on the one hand there are the main divisions nonlife, life and banking, and on the other there are the large strategic business units. Baloise s strength is also reflected in the solid balance sheet and excellent solvency. Premium volume increased by 3.2% in local currencies. This was accompanied by a decline of 1.2% in Swiss francs as a result of the weak euro. Premium earnings amounted to CHF 4,522.4 million (previous year: CHF 4,577.6 million). Growth was very distinctive in the nonlife business. Business volume, which includes investment-type life insurances, decreased by 11.0% in local currencies and by 15.2 % in Swiss francs. Although it performed well, it still could not match the exceptionally strong previous year, which profited from extraordinary effects. Investments: Good result Investments achieved a good result in an environment characterised by a heightening debt crisis and the sharp decline in exchange rates. Net income amounts to CHF million (previous year: CHF 1,028.0 million). This equates to a net return of 1.5% (non-annualised). The pillar of the investment income was the recurring income of CHF million (previous year: CHF million),

3 BALOISE GROUP PRESS RELEASE PAGE 3 which only decreased due to the lower exchange rates. IFRS performance was 1.6%. The high quality of Baloise s bond portfolio paid off. The proportion of government bonds of the GIIPS countries (Greece, Ireland, Italy, Portugal and Spain) amounts to 1.9% of investments. No impairments were performed on government bonds. The euro foreign currency bonds of the Swiss business were hedged to approximately 85% against currency fluctuations. Nonlife division (indemnity and personal loss insurance): Striking premium growth The above-average high earning capacity of the division was again convincing. The net combined ratio was, despite the slightly higher claims occurrence, an excellent 93.0% (previous year: 90.2%). For many years now, the earning capacity of the nonlife portfolio has been based on the consistent risk selection regarding customers, which means that the claims frequency can be kept low whilst the margin remains high. The expense ratio was kept stable by measures to increase efficiency from the programme Baloise 2012 despite one-off unbundling and integrations costs in Germany and Belgium. The division achieved a profit before borrowing costs and taxes of CHF million (previous year: CHF million). The decrease stems largely from the distinctly lower gains from prior year loss developments compared to the previous year as well as the market-related reduced financial result. The IFRS premiums amounted to CHF 2,098.3 million (previous year: CHF 2,084.5 million); this is an increase of 7.5% in local currencies (of which five percentage points stem from the Avéro acquisition) and 0.7% in Swiss francs. Life insurances division: Strong increase of EBIT Profit after borrowing costs and taxes amounted to CHF million (previous year: CHF 10.2 million). In the first half of 2010 the result of the division was strongly influenced by the negative interest development; the since the beginning of the year 2011 stagnating interest rates, albeit at a low level, as well as the successful implementation of measures from the programme Baloise 2012 facilitated the distinct profit increase. Business volume reached CHF 3,078.1 million (previous year: CHF 4,019.2 million), a minus of 20.6% in local currencies and 23.4% in Swiss francs. This illustrates the fluctuations of the investment-type

4 BALOISE GROUP PRESS RELEASE PAGE 4 life insurances, above all within the context of the Italian tax amnesty that expired in the previous year as well as the incentives from the EU interest directive that was then expected. The IFRS premium volume (classic life insurances) remained at the previous year s level despite difficult financial markets. The value of new business improved to CHF 38.6 million during the first half of 2011 (previous year: CHF 25.0 million). The increase was attributable to the positive development of the economic environment as well as operational improvements. The new business margin increased to 19.2% (previous year: 8.4%). Banking division: Attractive profit increase The banking division achieved an encouraging increase in profit before borrowing costs and taxes to CHF 36.9 million (previous year: CHF 32.9 million). The result benefits mainly from the positive business development of Baloise Bank SoBa and Baloise Asset Management. Equity and solvency: Solid and safe basis Mainly due to the currency development and the outflow of dividends, consolidated equity decreased in the first half-year by 3.8% to CHF 3,975.5 million. Group solvency was an excellent 227% (end 2010: 224%). Business units: Good growth and profit contributions All business units have a solid portfolio with a high earning capacity. The increase in premium volume in local currencies was above the industry average in most markets. The business segment Switzerland was convincing with its high earning power as well as the strong growth in the nonlife business, the occupational pension and investment-type life insurances. Profit before borrowing costs and taxes amounted to CHF million (previous year: CHF million). Business volume achieved CHF 3,039.7 million (previous year: CHF 2,994.7 million), an increase of 1.5%. The nonlife division again proved its excellent earning capacity. At 84.3% (previous year: 84.2%) the combined ratio was again at an excellent level. The division s business volume grew by 2.0% to CHF 1,022.9 million (previous year:

5 BALOISE GROUP PRESS RELEASE PAGE 5 CHF 1,002.8 million) and was thus above the market average. The result of the life insurances division developed very positively compared to the previous year. Besides the stable interest rate environment, the Baloise 2012 measures contributed to the distinctly improved result. Business volume amounted to CHF 2,016.8 million (previous year: CHF 1,991.9 million). The plus of 1.3 % is a convincing performance record given the difficult environment. The occupational pension business developed positively. Growth of 1.5% was achieved here. The growth in annual premiums amounted to 7.7%. In the individual life insurance sector, Baloise Switzerland was able to grow above the market average thanks to new and innovative products. The focused financial service provider business model the sale of banking products through the insurance sales force continued to be successful. The total volume amounted to CHF 2,006 million, an increase of 5.9 % since the beginning of the year. Baloise Bank SoBa was able to continue growing in the first half of 2011, in the local domestic market as well as throughout Switzerland where it operates together with Baloise Insurance. The inflow of customer deposits and loans increased steadily. The balance sheet total increased by 2.5 % to CHF 6.5 billion. The net profit (according to local accounting standards) improved to CHF 12.6 million (previous year: CHF 11.9 million) despite the difficult general conditions, a distinct increase of 5.7%. This can be attributed mainly to the increase in growth and the systematic cost management. In the segment Germany, the first half of 2011 was characterised by the scheduled progress made in merging Deutscher Ring Leben und Sach with Baloise Insurance. The division achieved a profit before borrowing costs and taxes of CHF 13.4 million (previous year: CHF 78.0 million). Property insurances contributed largely to this result. The main reasons for the lower result are the expenses from the unbundling and restructuring of Deutscher Ring Leben und Sach as well as the negative impact of the strong Swiss franc. Business volume amounted to CHF 1,016.1 million (previous year: CHF 1,129.1 million). The growth of 1.9% in local currency is accompanied by a currency-related decrease of 10.0%. Baloise Insurances investment-type life and property insurances contributed considerably to this growth. The gross combined ratio of property insurances improved to 95.6% (previous year: 99.5%) due to the favourable

6 BALOISE GROUP PRESS RELEASE PAGE 6 claims development as well as the successful implementation of the Baloise 2012 measures. Baloise expanded its position distinctly in Belgium and is now one of the leading insurers. The additionally acquired Avéro Schadeverzekering Benelux N.V. with a premium volume of CHF 90.7 million for the half-year was integrated into the Mercator in the first half-year. The purchase of Nateus SA/NV and Nateus Life SA/NV was announced on 16 March 2011 and will be completed in the second half of The segment Belgium achieved a profit before borrowing costs and taxes of CHF 40.9 million (previous year: CHF million). The result has decreased in comparison to the previous year, when it was impacted by capital gains and the positive prior year loss development. Integration costs also resulted from the acquisition of Avéro. Business volume increased to CHF million (previous year: CHF million). Without considering Avéro, the business unit grew in the nonlife business by 6.2%, whereas the market increase was merely 3.2%. The business volume of the life insurances increased by an excellent 32.9% in local currency thanks to new sales cooperations and innovative products. The combined ratio nonlife amounted to 95.4%. The previous year s very low figure of 79.2% reflected extraordinary settlement gains. In Luxembourg the integration of the former Fortis Luxembourg IARD was successfully completed. The business unit performed very solidly and achieved a profit before borrowing costs and taxes of CHF 4.5 million (previous year: CHF 9.3 million). This decrease is due to the pronounced margins and price pressure in the car insurance business and negative currency effects. Business volume amounted to CHF million (previous year: CHF million). In the first half of 2011, the development returned to a normal level after the exceptional year 2010 with significant growth spurt in the investment-type life insurance business. The gross combined ratio was 87.0% (previous year: 79.5%). Baloise Austria continued its strong growth by expanding its own sales force. Business volume increased to CHF 80.8 million (previous year: CHF 83.7 million), this equates to a gain of 9.3% in local currency. The increase was striking in the nonlife business at 10.5%. The gross combined ratio improved distinctly to 94.5% (previous year: 97.6%). The ratio of the previous year was heavily burdened by major claims.

7 BALOISE GROUP PRESS RELEASE PAGE 7 The units in Croatia and Serbia achieved a business volume of CHF 36.2 million (previous year: CHF 41.9 million). The optimisation of operations has not yet been completed and this, together with the recessive market, substantially impacted business development. The small Serbian unit still in the start-up phase is growing steadily. Baloise Life domiciled in Liechtenstein achieved a business volume of CHF million (previous year: CHF million). As expected, the decrease is due to the Italian tax amnesty that expired in On the other hand, the variable annuities business grew by 27.3% to CHF 64.4 million. OUTLOOK In the face of the uncertain development on the financial markets and currencies, our forecasts for the immediate future are conservative. However, Baloise can rely on its efficient and profitable core business. Building on this stable foundation, we aim to as before achieve a return on equity over the insurance cycle of 15 % and continue to steadily increase earnings per share. In the nonlife business we aim to continue to keep the combined ratio appreciably below 100%. By 2012, we aim to increase the earning capacity sustainably by CHF 200 million with the strategic programme Baloise 2012.

8 BALOISE GROUP PRESS RELEASE PAGE 8 KEY FIGURES an) Change in % in CHF million Business volume versus Gross premiums written, nonlife 2, , , Gross premiums written, life 2, , , Subtotal of IFRS gross premiums written 1 4, , , Investment-type premiums 1, , Total business volume 6, , , in CHF million Business result versus Half-year profit / loss before borrowing costs and taxes Nonlife Life Banking Other activities Half-year consolidated profit in CHF million Balance sheet versus Investments including investment-type insurances 3 61, , , Technical reserves 45, , , Equity 4, , , in percent Ratios Combined ratio, nonlife (gross) Combined ratio, nonlife (net) Key share figures versus Shares issued in units 50,000,000 50,000,000 50,000,000 Consolidated profit per share basic in CHF Consolidated profit per share diluted in CHF Equity per share 5 in CHF Closring price in CHF Market capitalisation in CHF million 3, , , Premiums written and policy fees, gross. 2 Of which latency calculation effects from other operating segments: 30 June 2010 CHF -9.9 million / 31 December 2010 CHF million / 30 June 2011 CHF -0.0 million. 3 Assets fort he account and at the risk of life insurance policyholders. 4 Changes in consolidated profit per share versus 30 June Calculated based on consolidated equity before minority interests and average number of outstanding shares.

9 BALOISE GROUP PRESS RELEASE PAGE 9 Baloise Group, Aeschengraben 21, CH-4002 Basel Internet: media.relations@baloise.com / investor.relations@baloise.com Media Relations: Dominik Müller, Tel / Fax Investor Relations: Marc Kaiser, Tel / Fax The Baloise Group, based in Basel/Switzerland, is a European provider of insurance and pension solutions. As an insurer, its unique selling point is intelligent prevention under the "Safety World" brand. In Switzerland, it acts as a focused financial services provider, combining insurance and banking. Its other markets are Germany, Austria, Belgium, Luxembourg, Liechtenstein, Croatia and Serbia. Its sales network includes its own sales organisation, brokers and other partners. Its innovative retirement products for private customers throughout Europe are sold by the Baloise competence centres in Luxembourg and Liechtenstein. The Baloise Holding Ltd share is quoted in the main segment on the SIX Swiss Exchange. The Baloise Group employs some 8,800 staff.