Swiss Re aims to be the leading player in the wholesale re/insurance industry. We seek to outperform peers in core areas, combined with a smart expansion into areas where additional growth opportunities exist.
Our building blocks:
The organisation has settled well into the new Group structure created in 2011 with three distinct Business Units: Reinsurance, Corporate Solutions and Admin Re®. Higher transparency and higher accountability drive a positive business culture and allow for agility and flexibility. The Group’s principal goal is to ensure optimal capital and resource allocation across diversified insurance risks and businesses in order to maximise shareholder value.
Building on our capital strength, expertise and innovation we enable the risk-taking upon which clients and progress in society depend.
We aim to be the best re/insurer in the world, and to outperform our peers in the closed life book business as well as with our balanced asset management approach.
We continue to expand our business where we see opportunities for sustainable growth, especially in Corporate Solutions, in high growth markets, and in funding longer lives and health.
Group structure and operating model
Swiss Re Group
Reinsurance is Swiss Re’s largest business in terms of income and the foundation of our strength, providing about 80% of gross premiums through two segments – Property & Casualty and Life & Health. The unit aims to extend Swiss Re’s industry-leading position with disciplined underwriting, prudent portfolio management and diligent client service.
Reinsurance is working smarter together with clients in Colombia
Corporate Solutions serves mid-sized and large corporations, with product offerings ranging from traditional property and casualty insurance to highly customised solutions. Corporate Solutions serves customers from over 40 offices worldwide and is a growth engine of the Swiss Re Group.
Corporate Solutions supports sustainable energy
Admin Re® provides risk and capital management solutions by which Swiss Re acquires closed books of in-force life and health insurance business, entire lines of business, or the entire capital stock of life insurance companies. Admin Re® solutions help clients free up capital to redeploy to new business opportunities while reducing administrative burdens.
Admin Re® helps insurers adjust to changing conditions
Our 2011–2015 financial targets
Return on equity:
700 basis points above risk-free (average over five years)1
(13.4% in 2012)
Earnings per share growth:
10% average annual growth rate over 5 years, adjusted for special dividends2 (in USD, base 2010)
(54.5% in 2012)
Economic net worth per share growth plus dividend:
10% average annual growth rate over 5 years (in USD, base 2010)
(19.9% in 2012)
2 EPS growth rate has been adjusted from 10% to 5% for 2014 to account for the proposed CHF 4.15 per share special dividend (approx. USD 1.6 billion) expected to be distributed in April 2014. Methodology is in line with the approach taken for the special dividend of CHF 4.00 per share paid in April 2013.
3 EPS growth rate from 31 December 2012 until 31 December 2013.
4 ENW growth rate from 31 December 2012 until 31 December 2013, including regular and special dividends per share paid.
About these targets
The 2011–2015 financial targets remain our top priority. In 2013 we continued to make good progress toward achieving them. We are well ahead of schedule on our return on equity, our earnings per share and our economic net worth per share targets.
The Group continues to be an industry leader in underwriting quality. In Property & Casualty Reinsurance, working smarter together with clients, supported by a strict focus on risk selection and portfolio management, will remain a key value driver. We are determined to meet the challenge of low returns in Life & Health Reinsurance through management actions and generating profitable new business. Corporate Solutions is managing its costs and investing for growth, especially in high growth markets. Admin Re® continues to make progress to transform its operations and grow selectively in the UK.
At Group level measures are in place to enhance productivity. We expect to deliver USD 250–300 million in cash savings by 2015 compared to 2012.
With these actions we aim to move toward higher returns and achieve our 2011–2015 financial targets.