One Group, three businesses
The three distinct Business Units of the Swiss Re Group correspond to Swiss Re’s core activities in reinsurance, insurance and risk transfer solutions.
We provide Property & Casualty and Life & Health clients and brokers all over the world with reinsurance products, insurance-based capital market instruments and risk management services. With our proven reputation for innovative reinsurance and risk management solutions, we understand and meet client need.
For examples of how our two Reinsurance segments lived up to that reputation in South Korea and the United States, see chapter Reinsurance.
Property & Casualty performance
Net income in 2012
P&C Re had a particularly strong performance in 2012. Premiums increased by 21.6% and margins increased as well. The result also benefited by realised gains on investments and the release of reserves that had been set aside in previous years. The P&C Re combined ratio, a measure that captures both profitability and underwriting quality, was significantly better than the year before, at 80.7%. This takes into account the estimated USD 756 million loss from Hurricane Sandy.
Life & Health performance
Net income in L&H Re decreased this year to USD 739 million. This was mostly the result of a lower investment result and some poorly performing business that we wrote in the US before 2004. We are addressing those challenges and have aimed to generate new business in high growth markets in Asia and Latin America, particularly in Health. We had strong growth in the Health segment globally this year, and we also booked a number of successful, innovative longevity transactions in Europe. We see strong longer-term growth prospects for life and health protection markets: we estimate a protection gap of USD 80 trillion worldwide.
Backed by nearly 150 years of collective experience, significant capacity and the financial strength of the Swiss Re Group, Corporate Solutions offers innovative, high-quality insurance capacity to large and mid-sized multinational corporations across the globe.
For examples of how Corporate Solutions met the needs of its clients, turn to chapter Corporate Solutions.
Net income in 2012
Corporate Solutions demonstrated profitable growth in 2012. Gross written premium net of intra-group transactions grew 38% to USD 3.5 billion, compared to USD 2.5 billion in 2011. Net income increased 142% to USD 196 million. The Business Unit opened new offices in Amsterdam, Dubai and Genoa, increasing its footprint to over 40 offices in 17 countries.
In 2013, Corporate Solutions will continue to grow consistent with its strategy. While global commercial insurance rates are generally expected to remain stable, the upward trend in property insurance is likely to be sustained, though differences in rate adequacy between geographies and segments will persist. Corporate Solutions is well positioned to capture opportunities thanks to its value proposition, strong balance sheet and expanding geographic reach.
Admin Re® is a recognised force in closed life business. We take on closed books of in-force life and health insurance business, whole lines of business, or the entire capital stock of life insurance companies. This helps insurers to divest themselves of non-core businesses, reduce administrative costs and release capital in order to realise other opportunities.
To read about Admin Re®’s ongoing transformation, turn to chapter Admin Re®.
Net income in 2012
In 2012 Admin Re® sold its US business in order to focus on growth opportunities in Europe, especially the UK. The proceeds can be channelled to profitable opportunities either within Admin Re® or within the Swiss Re Group. The closed life book market shows positive medium-term prospects. Based on the achievements of 2012, we believe that Admin Re® is in great position to take advantage of this opportunity.