Annual Report Swiss Re Ltd
Swiss Re Ltd (the Company), domiciled in Zurich, Switzerland, is the ultimate holding company of the Swiss Re Group. Its principal activity is the holding of investments in Swiss Re Group companies.
Net income for 2015 amounted to CHF 3 865 million (2014: CHF 4 110 million) and was mostly driven by cash dividends from subsidiaries and affiliated companies of CHF 3 539 million.
The Company earned trademark licence fees of CHF 306 million and other revenues of CHF 156 million, mainly consisting of net realised foreign exchange gains of CHF 143 million. In addition, the Company incurred administrative expenses of CHF 112 million, of which CHF 107 million were charges for services provided by Swiss Reinsurance Company Ltd, and other expenses of CHF 20 million, due to financing costs of CHF 11 million and capital and indirect taxes of CHF 9 million.
Total assets increased from CHF 20 843 million as of 31 December 2014 to CHF 21 840 million as of 31 December 2015.
Short-term investments increased from CHF 159 million as of 31 December 2014 to CHF 1 917 million as of 31 December 2015 mainly due to reinvestment of dividends and loan repayments received from subsidiaries.
Loans to subsidiaries and affiliated companies, which consist of loans granted to Swiss Reinsurance Company Ltd, decreased from CHF 3 250 million as of 31 December 2014 to CHF 2 287 million as of 31 December 2015, mainly to contribute to the funding of the share buy-back programme and a capital contribution to Swiss Re Capital Ltd related to the acquisition of Guardian Financial Services in January 2016.
Investments in subsidiaries and affiliated companies increased from CHF 17 340 million as of 31 December 2014 to CHF 17 561 million as of 31 December 2015 due to capital contributions made to a subsidiary of Swiss Re Investments Holding Company Ltd of CHF 129 million and subsidiaries of Swiss Re Principal Investments Company Ltd of CHF 92 million.
Total liabilities increased from CHF 340 million as of 31 December 2014 to CHF 371 million as of 31 December 2015.
Short-term liabilities increased from nil as of 31 December 2014 to CHF 118 million as of 31 December 2015, mainly due to withholding tax payable of CHF 89 million related to the share buy-back programme and deferred income of CHF 25 million. Provisions decreased by CHF 87 million, mainly due to a reduction in the provision for currency fluctuations of CHF 102 million, partly offset by an increase in the tax provision of CHF 15 million.
Shareholders’ equity increased from CHF 20 503 million as of 31 December 2014 to CHF 21 469 million as of 31 December 2015, mainly due to net income of CHF 3 865 million and net gains from transactions in own shares of CHF 65 million, partly offset by dividends to shareholders of CHF 2 490 million and net purchases of own shares of CHF 474 million.
Legal reserves from capital contributions decreased from CHF 2 682 million as of 31 December 2014 to CHF 192 million as of 31 December 2015, reflecting the payment of dividends to shareholders of CHF 2 490 million.
Own shares (directly held by the Company) increased from CHF 956 million as of 31 December 2014 to CHF 1 430 million as of 31 December 2015 which was mainly due to a share buy-back programme of CHF 430 million and other net purchases of own shares of CHF 44 million.