ZURICH (AFX) - Baloise Holding AG still expects to post a 'markedly higher' full year net profit, despite net insurance claims of around 100 mln sfr from this summers' floods, CEO Frank Schnewlin said.

However, due to the floods, the insurer will miss its full year non-life combined ratio target of 93 pct, even though the target remains unchanged in the long-term, Schnewlin said.

'The targets remain unchanged. We still see an equity capital ratio of at least 10 pct by 2006 and markedly improved full year earnings this year,' Schnewlin said in an interview with Swiss bi-weekly, Finanz und Wirtschaft.

At 4 bln sfr, the group's equity capital remains at a comfortable level, about 56 pct of premiums, and its solvency ratio at 280 pct is three times the legal required minimum, he added.

Though the group's target of a 10 pct return on equity is lower than its peers, this is in Swiss francs and reflects the current low level of interest rates in Switzerland, he explained.

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