General compensation

Payouts of deferred compensation plans

Value Alignment Incentive (VAI)

The VAI performance is measured for each underlying business area. Participants receive the performance factor relating to the business area that they were in at the time of award. In March 2012, the Group VAI 2008 (awarded in 2009) vested with an average performance factor of 135.7%.

The VAI plan year 2008 performance factor resulted from favourable claims development and lower than expected natural catastrophe losses on business that was still at risk in 2009, together with favourable mortality experience in the Americas and Europe.

Status of Value Alignment Incentive (VAI) awards

Long Term Incentive (LTI)

The performance hurdles for the LTI award defined in 2010, expiring in March 2013, were centred on a return on equity (RoE) target of 10.5% and average earnings per share (EPS) growth rate target of USD 7.50. The RoE target was set in April 2010. Considerations which led to the respective targets were the market outlook, the level of uncertainty and the clear priority set by the Board to de-risk the balance sheet.

The LTI plan has been discontinued and the last award of LTI was granted in March 2011. The last grant of LTI was disclosed in the 2010 Compensation Report. The table below reflects the units awarded and subsequently vested across all LTI plan years.

Of the plans that have expired or are due to expire in 2013, the LTI represented 28% of the Total Compensation disclosed for the EC members over that period. The LTI plans that have expired to date (2006–2010) have resulted or will result in a settlement value of 70% of the award value disclosed for the EC members. Consequently, the Total Compensation disclosed for the EC members over that period was 8.4% higher than the value realised upon vesting.

Aggregate compensation of the Swiss Re Group

The aggregate compensation for the performance years 2011 and 2012 for all employees was as follows:

As of 31 December 2012, Swiss Re Group employed 11 193 regular staff worldwide, compared to 10 788 employees at the end of 2011.

Aggregate compensation for Key Risk Takers

The aggregate compensation of the individuals that held a key risk taking position during the performance years 2011 and 2012 was:

Aggregate variable compensation expense

The Compensation Committee takes its decisions to award variable compensation on an economic value basis at the time of grant. In the financial statements the recognition of deferred compensation follows the accrual principles as defined under US GAAP. The financial statements reflect the aggregate value of variable compensation for the year under review as follows: