Business activities
Reinsurance business
Strategy and priorities
The Company conducts the commercial insurance business of the Group and is committed to deliver long-term profitability and economic growth. Through the Company’s network of subsidiaries, future growth aspirations are focused on selected areas, with dedicated strategic initiatives to expanding into Primary Lead and further broadening of the footprint. Corporate Solutions offers customised, innovative and multi-line, multi-year risk transfer solutions, taking into account the unique needs of local markets and specialty industries.
Outlook
Prices for commercial insurance have been under significant pressure in the past years, with a majority of segments operating at unsustainable rate levels since 2015. We expect a medium-paced, steady increase of prices over the next 12 to 18 months following the recent natural catastrophe events, with most pronounced increases in property in the US and a reinforced focus on terms and conditions. The Company will maintain its commitment to underwriting discipline.
Investments
Strategy and priorities
Financial investments are managed in accordance with Swiss Re’s asset management policy and the Company’s investment guidelines, which are intended to ensure compliance with regulatory requirements. The general principle governing investment management in the Company is the creation of economic value on the basis of returns relative to the liability benchmark, while adhering to the investment guidelines and the general prudence principle. The liability benchmark is determined by approximating an investable benchmark from projected liability cash flows. A cash benchmark is used for the economic surplus.
Outlook
In terms of the economic outlook, the moderate global growth environment is set to continue during 2018, both in developed and emerging market economies, while inflation is forecast to modestly increase globally. From a regional perspective, growth is set to stay solid in the Eurozone and the US where it is supported by expected improvements in US corporate earnings from the recently passed tax reform legislation, while growth for China is expected to slow somewhat in 2018. For the UK, growth is expected to be more modest amid continued Brexit-related uncertainty.
Reinsurance and sub-holding company
The Company, domiciled in Zurich, Switzerland, performs a dual role within the Group as both a reinsurance company and a sub-holding company for the Corporate Solutions Business Unit. The Company is a wholly-owned subsidiary of Swiss Re Ltd, the ultimate parent company domiciled in Zurich, Switzerland.
Claims on and obligations towards affiliated companies
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CHF millions |
2016 |
2017 |
Loans |
971 |
945 |
Funds held by ceding companies |
603 |
1 566 |
Premiums and other receivables from reinsurance |
950 |
1 300 |
Other receivables |
72 |
90 |
Reinsurance balances payable |
10 |
470 |
Other liabilities |
33 |
54 |
There were no outstanding claims on and obligations towards the parent company, Swiss Re Ltd, at the end of 2017 and 2016.
Share capital and major shareholder
The nominal share capital of the Company amounted to CHF 100 million. It is divided into 100 000 shares, each with a nominal value of CHF 1 000. The shares were fully paid-in and held directly by Swiss Re Ltd. As of 31 December 2017 and 2016, the Company was a wholly owned subsidiary of Swiss Re Ltd.
List of branch offices:
- Swiss Re Corporate Solutions Ltd, Dubai Branch
- Swiss Re Corporate Solutions Ltd, Labuan Branch
Significant events
The Company’s subsidiary Corporate Solutions Brasil Seguros S.A. (SRCSB) acquired the commercial large-risk portfolio from Bradesco Seguros S.A. (Brazil) in exchange for a 40% equity stake in SRCSB, while the Company retains a 60% stake. This transaction was approved by the relevant regulators.
The Company established a locally licensed and regulated direct insurance company and a service company in Mexico in 2017. Swiss Re Corporate Solutions Investment Holding Company Ltd, a subsidiary of the Company, established Swiss Re Corporate Solutions Services Slovakia s.r.o. for its operations in Slovakia.
Report of the statutory auditors
PricewaterhouseCoopers Ltd is the auditor of the Company. For more information, please see the Report of the statutory auditor in the 2017 Annual Report (available on www.swissre.com).