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Annual Report 2017

6 Commitments

The Company has established subordinated debt facilities which allow the Company to issue subordinated callable notes at any time. The Company pays a fee on the available commitment under the facility and an interest rate on issued notes. Notes, when issued, will be classified as subordinated debt. As of 31 December 2017, no notes have been issued under the facilities.

An overview of the subordinated debt facilities is provided in the following table:

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Instrument

Issued in

Cur­rency

Nominal value in millions

Commit­ment fee (paid on undrawn amount)

Interest rate on issued notes

Facility first termi­nation date

Issued notes’ scheduled maturity date

1

Until first optional redemption date.

2

First optional redemption date in 2022 and every five years thereafter.

Dated subordinated fixed-to-floating rate callable notes facility

2015

USD

700

3.53%

5.75%1

2025

2050

Dated subordinated fixed rate callable notes facility

2016

USD

400

3.92%

6.05%1

2031

2056

Dated subordinated fixed-to-floating rate callable notes facility

2016

USD

800

3.67%

5.625%1

2027

2052

Perpetual subordinated fixed spread callable notes facility

2017

USD

750

2.77%

4.625%1

2022

Perpetual2

The Company has entered into subordinated funding facilities with its subsidiary Swiss Reinsurance Company Ltd under which Swiss Reinsurance Company Ltd has the right, among others, to issue subordinated notes to the Company at any time. For its various rights, Swiss Reinsurance Company Ltd owes the Company an unconditional fixed commitment fee on the total facility amount, payable in annual instalments. Annually, Swiss Reinsurance Company Ltd receives a partial reimbursement of the commitment fee on the undrawn facility amount. As of 31 December 2017, the facilities were undrawn.

An overview of the subordinated funding facilities is provided in the following table:

Download

Instrument

Borrower

Issued in

Cur­rency

Nominal value in millions

Total commit­ment fee calculated and paid on nominal value

Re­imburse­ment fee paid on undrawn amount

Net commit­ment fee paid on undrawn amount

Maturity

Subordinated funding facility

Swiss Reinsurance Company Ltd

2015

USD

700

5.80%

2.22%

3.58%

2030

Subordinated funding facility

Swiss Reinsurance Company Ltd

2016

USD

400

6.10%

2.13%

3.97%

2036

Subordinated funding facility

Swiss Reinsurance Company Ltd

2016

USD

800

5.68%

1.95%

3.73%

2032