Swiss Re’s risk landscape
The risk categories shown in the table below are discussed on the following pages. Across these categories we identify and evaluate emerging threats and opportunities through a systematic framework that includes the assessment of potential surprise factors that could affect known loss potentials. Liquidity risk management is discussed in Liquidity management.
- Costing and reserving
- Inflation
- Man-made risks
- Natural catastrophes
- Lethal pandemic
- Longevity
- Mortality trend
- Credit (default and migration)
- Credit spread
- Equity market
- Foreign exchange
- Interest rate
- Real estate
- FM inflation
Group capital requirement based on one-year 99% tail VaR
| Download |
USD billions, as of 31 December |
2014 |
2015 |
Change in % |
cross reference information |
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Property and casualty |
9.1 |
9.4 |
4 |
see Insurance risk |
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Life and health |
8.0 |
7.2 |
–10 |
see Insurance risk |
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Financial market |
12.2 |
12.6 |
4 |
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Credit1 |
2.6 |
3.4 |
29 |
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Simple sum |
31.9 |
32.7 |
2 |
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Diversification effect |
–12.9 |
–13.1 |
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Swiss Re Group |
19.1 |
19.6 |
3 |
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Our internal risk model takes account of the accumulation and diversification between individual risks. The effect of diversification at the category level is demonstrated in the table above, which represents the difference between the Group 99% tail VaR and the sum of standalone tail VaR amounts in the individual risk categories. The extent of diversification is largely determined by the selected level of aggregation — the higher the aggregation level, the lower the diversification effect.