Board of Directors and Group EC: areas of responsibility

Key responsibilities of the Board of Directors

Strategy and overall direction of the company

• defines the strategy of the Swiss Re Group based on proposals by the Group EC;
• approves the capital allocation plan for both Underwriting and Asset Management;
• approves the Swiss Re Group Risk Strategy, Risk Limits and Risk Management Framework;
• approves the entry into new business activities and the exit of existing activities, provided they are of strategic relevance;
• approves significant Corporate Transactions, Participations and Principal Investments and approves an annual capital expenditure plan;
• approves the financial objectives and the means necessary to achieve them; and
• approves all matters where such decisions exceed the authorities delegated to the Board committees, the Group CEO, the Group EC and individual Group EC members and overrules decisions if necessary.

Governance and organisation

• determines the operating model of the Swiss Re Group and the organisational structure in line with this model and the strategy;
• issues and regularly reviews the SRL&Group Bylaws, necessary policies and directives, including governance standards and the Group Code of Conduct;
• regulates and supervises internal control; and
• regulates the compensation framework of the Swiss Re Group as well as the Board of Directors and Group EC compensation for ultimate approval by the General Meeting of shareholders.

Accounting, financial control and financial planning

• approves the applicable accounting standard for external reporting, budgeting and financial control and planning;
• approves the applicable proprietary economic reporting and performance measurement standard (EVM);
• approves an annual budget and a mid-term financial plan based on both the accounting and the internal economic standards;
• approves the annual financial statements for both Swiss Re Ltd and the Swiss Re Group;
• is informed of the quarterly and semi-annual financial statements for both Swiss Re Ltd and the Swiss Re Group, which are approved by the Audit Committee; and
• approves the Annual Report of both Swiss Re Ltd and the Swiss Re Group.

Appointment and removal of Group EC members and further key executives, People Strategy

• appoints and removes Group EC members and the Company Secretary; reviews their performance and plans their succession;
• approves the People Strategy of the Group and, on an annual basis, reviews progress towards this strategy; and
• annually reviews with the Group EC the Swiss Re Group’s overall human capital situation, strength of management and issues like diversity and inclusion, performance process and quality of succession planning.

Capital

• takes decisions regarding equity and equity-linked issuances and reductions of equity in line with applicable law; and

• approves annually a debt funding plan, and, if required, approves individual debt issuances.

General Meetings of shareholders

• convenes General Meetings of shareholders and decides on proposals to be brought forward to the shareholders; and
• implements resolutions taken by the shareholders.

Key responsibilities of the Group Executive Committee

Under the leadership of the Group CEO, the Group EC has management responsibility for Swiss Re Ltd and the Swiss Re Group. It supports the Board of Directors in its decision-making process and prepares any proposals for the Board of Directors in the Group EC’s area of responsibility. In particular with respect to the below topics, it:

Governance

• has overall responsibility for managing operations, subject to delegation by the Board of Directors; and
• issues guidelines relating to the delegation of decision-making authority within the Group.

Strategy and structure

• ensures implementation of the Group’s strategy; and
• decides on legal, financial and management structures, as delegated by the Board of Directors.

Planning

• prepares and proposes the Group business plan to the Board of Directors for approval and reviews the Business Units’ business plans.

Financial Reporting

• prepares and presents to the Board of Directors the annual and interim financial statements of the Group together with segment reporting on the Business Units.

Capital Management

• establishes principles on financing through capital markets and the allocation of financial resources within the Group; and
• establishes the principles for Intra-Group Transactions and funding.

Risk Management

• establishes the principles for external retrocession and the balancing of Group-wide catastrophe and accumulated risk; and
• supervises the Group’s internal control evaluation and certification process.

Business transactions

• decides on certain strategic transactions and proposes important strategic transactions to the Board of Directors for discussion and decision.

Legal, regulatory and compliance

• oversees implementation of Group-wide compliance procedures and monitors remediation of any regulatory and compliance deficiencies.

People Strategy

• has responsibility for the Group’s people management, subject to the authority of the Board of Directors.

Compensation

• makes proposals for the individual compensation of selected members of senior management; and
• proposes benefit plans to the Compensation Committee for decision.

The Group EC discharges its responsibilities as a joint body, except for responsibilities delegated to the Group CEO and further individual Group EC members as outlined in the SRL&Group Bylaws.