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.

Income statement

Net income for 2012 amounted to CHF 2 718 million (2011: CHF 19 million) and was mostly driven by cash dividends from subsidiaries and affiliated companies of CHF 3 836 million, partially offset by a valuation adjustment to the investment in Swiss Re Life Capital Ltd of CHF 1 150 million, which equals the extraordinary dividend received by the Company from Swiss Re Life Capital Ltd following the sale of Admin Re^®s US business. In addition, Swiss Reinsurance Company Ltd transferred to the Company its investments in Swiss Re Corporate Solutions Ltd and Swiss Re Life Capital Ltd through a dividend in kind of CHF 5 810 million, which resulted in a valuation adjustment to the Companys investment in Swiss Reinsurance Company Ltd of the same amount.

The Company earned trademark license fees of CHF 231 million and incurred administrative expenses of CHF 161 million, of which CHF 157 million were charges for services provided by Swiss Reinsurance Company Ltd. In addition, the Company incurred other expenses of CHF 57 million, including changes in the provision for currency fluctuation and realised foreign exchange losses of CHF 50 million, and capital and indirect taxes of CHF 7 million.

Assets

Total assets increased from CHF 18 281 million as of 31 December 2011 to CHF 19 961 million as of 31 December 2012, mainly driven by dividends in-cash and in-kind from subsidiaries and affiliated companies, partially offset by the corresponding valuation adjustment to the Company’s investment in Swiss Reinsurance Company Ltd, the valuation adjustment to the investment in Swiss Re Life Capital Ltd and dividends to shareholders.

As of 31 December 2012, Swiss Re Ltd held investments in subsidiaries and affiliated companies of CHF 16 351 million, consisting of 100% direct interests in Swiss Reinsurance Company Ltd of CHF 11 691 million, Swiss Re Life Capital Ltd of CHF 2 178 million, Swiss Re Corporate Solutions Ltd of CHF 2 480 million, Swiss Re Specialised Investments Holdings (UK) Ltd of CHF 1 million and Swiss Re Investments Holding Company Ltd of CHF 0.1 million. Following the resolved capital reduction of Swiss Reinsurance Company Ltd on 19 March 2012 and the cancellation of its treasury shares on 25 May 2012 the Company held 100% direct interest in Swiss Reinsurance Company Ltd, compared to 92.8% direct interest held as of 31 December 2011.

As of 31 December 2012, the Company held short-term loans of CHF 2 710 million granted to Swiss Reinsurance Company Ltd.

Liabilities

Total liabilities decreased from CHF 13 million as of 31 December 2011 to CHF 7 million as of 31 December 2012, mainly due to lower payables to subsidiaries and affiliated companies and slightly higher provisions.

Shareholders’ equity

Shareholders’ equity increased from CHF 18 268 million as of 31 December 2011 to CHF 19 954 million as of 31 December 2012, mainly driven by the inclusion of net income for 2012 of CHF 2 718 million, partially offset by dividends to shareholders of CHF 1 032 million.

Legal reserves from capital contributions decreased from CHF 8 995 million as of 31 December 2011 to CHF 7 994 million as of 31 December 2012, reflecting the payment of dividends to shareholders of CHF 1 032 million, and the reclassification from other legal reserves to legal reserves from capital contributions of issuance costs amounting to CHF 31 million related to capital increases in previous years.