Corporate Solutions

Corporate Solutions continued on its path of disciplined growth by expanding into primary lead and further broadening its footprint.

Agostino Galvagni – CEO, Corporate Solutions (photo)

“In a difficult market like this, disciplined cycle management is required. At the same time, however, we continue to build the capabilities for our future growth.”

Agostino Galvagni

CEO, Corporate Solutions

Strategy and priorities

Corporate Solutions’ distribution network grew to 55 offices in 21 countries, supported by acquisitions. During the year, Corporate Solutions completed the acquisition of IHC Risk Solutions, LLC (IHC), a leading US employer stop-loss underwriter. The IHC acquisition broadens Corporate Solutions capabilities in the small- and middle-market self-funded healthcare benefits segment.

In October 2016, Corporate Solutions and Bradesco Seguros S.A. (Bradesco) signed an agreement under which Bradesco will contribute its commercial large-risk portfolio to Swiss Re Corporate Solutions Brazil Seguros S.A. (SRCSB), subject to regulatory approval. Upon closing the transaction, Bradesco will take a 40% equity stake in SRCSB, while Corporate Solutions will retain the remaining 60%. SRCSB will have exclusive access to Bradesco’s distribution network and will become a leading commercial large-risk insurer in Brazil.


Net income was USD 135 million in 2016, compared to USD 357 million in 2015, with a net operating margin of 4.2%, down from 14.1%. The 2016 result was impacted by continued pricing pressure and large man-made losses, especially in casualty, offset by lower-than-expected natural catastrophe losses, income from investment activities and realised gains from insurance in derivative form.

Corporate Solutions results


USD millions



Change in %





Premiums earned

3 379

3 503


Net investment income




Net realised investment gains/losses




Other revenues




Total revenues

3 665

3 697










Claims and claim adjustment expenses

–1 955

–2 263


Acquisition costs




Operating expenses




Total expenses before interest expenses

–3 148

–3 540






Income before interest and income tax expense




Interest expenses




Income before income tax expense




Income tax expense




Net income before attribution of non-controlling interests








Income/loss attributable to non-controlling interests



Net income attributable to common shareholders








Claims ratio in %




Expense ratio in %




Combined ratio in %




Net premiums earned

Net premiums were USD 3.5 billion in 2016, an increase of 3.7% compared to 2015. Gross premiums written and premiums for insurance in derivative form, net of internal fronting for the Reinsurance Business Unit, increased 5.8% to USD 4.1 billion in 2016 compared to USD 3.9 billion in 2015. The increase was driven by the IHC acquisition completed in the first quarter of 2016.

Combined ratio

The combined ratio increased to 101.1% in 2016 compared to 93.2% in 2015, impacted by large man-made losses. Lower than expected natural catastrophe losses improved the 2016 combined ratio by 4.2 percentage points.

Lines of business

The property combined ratio for 2016 increased by 8.1 percentage points to 84.4%, mainly due to higher natural catastrophe losses, partially offset by lower large man-made losses compared to 2015.

The casualty combined ratio increased to 115.9% in 2016 compared to 103.5% in 2015, impacted by large man-made losses in North America.

The credit combined ratio for 2016 deteriorated by 16.6 percentage points to 106.9%, driven by a higher frequency of small- and medium-sized losses.

In other specialty lines, the combined ratio for 2016 decreased by 10.2 percentage points to 99.4%, mainly due to lower aviation and satellite losses compared to 2015.

Investment result

The return on investments for 2016 was 2.5% compared to 3.0% in 2015, reflecting a reduction in the investment result of USD 41 million stemming from lower net realised gains.

Net investment income increased by USD 9 million to USD 158 million in 2016, driven by higher income from fixed income securities. Net realised gains were USD 57 million in 2016 compared to USD 107 million in 2015, with the prior period benefiting from additional gains from sales of equity securities.

Insurance-related derivative results and foreign exchange remeasurement are not included in the investment figures above.

Corporate Solutions offers insurance protection against weather perils and other risks, which are accounted for as derivatives. Insurance in derivative form reported net realised gains of USD 16 million in 2016, compared to USD 33 million in 2015, reflecting a more challenging market in 2016.

Shareholders’ equity

Common shareholders’ equity decreased to USD 2.2 billion since the end of 2015, with a USD 250 million dividend paid to Swiss Re Ltd, partially offset by net income for the year. The return on equity was 6.0% in 2016, compared to 15.5% in 2015.


Prices for commercial insurance are under significant pressure, with many segments operating at unattractive rate levels. Underwriting discipline remains a key focus for Corporate Solutions. Thanks to its value proposition, strong balance sheet and selective underwriting approach, Corporate Solutions is well positioned to successfully navigate the current market, but it is not fully insulated from the general market environment.