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.

Income statement

Net income for 2016 amounted to CHF 3 972 million (2015: CHF 3 865 million) and was mostly driven by cash dividends from subsidiaries and affiliated companies of CHF 3 517 million.

The Company earned trademark licence fees of CHF 339 million and other revenues of CHF 263 million, mainly consisting of net realised foreign exchange gains of CHF 252 million. In addition, the Company incurred administrative expenses of CHF 147 million, of which CHF 143 million were charges for services provided by Swiss Re Management Ltd and Swiss Reinsurance Company Ltd, and other expenses of CHF 70 million, due to financing costs related to subordinated debt facilities of CHF 63 million and capital and indirect taxes of CHF 7 million.

Assets

Total assets increased from CHF 21 840 million as of 31 December 2015 to CHF 23 173 million as of 31 December 2016.

Current assets decreased by CHF 683 million to CHF 3 596 million as of 31 December 2016, mainly driven by a decrease in short-term investments due to the funding of the acquisition of Guardian Financial Services.

Non-current assets increased from CHF 17 561 million as of 31 December 2015 to CHF 19 577 million as of 31 December 2016. Loans to subsidiaries and affiliated companies increased by CHF 103 million due to a new credit facility with Swiss Re Management Ltd. Investments in subsidiaries and affiliated companies increased from CHF 17 561 million as of 31 December 2015 to CHF 19 474 million as of 31 December 2016 due to capital contributions to Swiss Re Life Capital Ltd of CHF 1 736 million, Swiss Re Management Ltd of CHF 100 million and Swiss Re Principal Investments Company Ltd of CHF 77 million.

Liabilities

Total liabilities decreased from CHF 371 million as of 31 December 2015 to CHF 352 million as of 31 December 2016.

Short-term liabilities increased by CHF 121 million to CHF 239 million as of 31 December 2016, mainly due to an increase in accrued expenses of CHF 80 million and payables to subsidiaries and affiliated companies of CHF 40 million.

Long-term liabilities decreased by CHF 140 million to CHF 113 million as of 31 December 2016, mainly due to a reduction in the provision for currency fluctuations of CHF 154 million, partially offset by an increase in the tax provision of CHF 14 million.

Shareholders’ equity

Shareholders’ equity increased from CHF 21 469 million as of 31 December 2015 to CHF 22 821 million as of 31 December 2016, mainly due to net income of CHF 3 972 million, partially offset by dividends to shareholders of CHF 1 525 million and share buy-back programmes of CHF 1 091 million.

Share capital decreased by CHF 1 million to CHF 36 million as of 31 December 2016 and legal profit reserves decreased by CHF 903 million to CHF 8 265 million as of 31 December 2016 resulting from the cancellation of own shares.

Legal capital reserves decreased by CHF 65 million to CHF 192 million as of 31 December 2016 due to the cancellation of own shares of CHF 96 million, partially offset by net realised gains on sale of own shares of CHF 31 million.

Own shares (directly held by the Company) increased by CHF 125 million to CHF 1 555 million as of 31 December 2016 due to net purchases of own shares of CHF 34 million and share buy-back programmes of CHF 1 091 million, partially offset by the cancellation of own shares of CHF 1 000 million.