EVM financial information
EVM income statement
For the years ended 31 December
| Download |
USD millions, unless otherwise stated |
2017 |
2018 |
|
|
|
Underwriting result |
|
|
Gross premiums and fees |
41 846 |
44 807 |
Gross premiums and fees growth rate, % |
–11.4 |
7.1 |
Premiums and fees |
40 796 |
43 860 |
Premiums and fees retention rate, % |
97.5 |
97.9 |
Premiums and fees growth rate, % |
–12.4 |
7.5 |
Claims and benefits |
–30 017 |
–29 904 |
Commissions |
–7 413 |
–8 278 |
Other |
136 |
286 |
Gross underwriting result – new business |
3 502 |
5 965 |
Expenses |
–3 390 |
–3 624 |
Net underwriting result – new business |
112 |
2 341 |
Taxes |
18 |
–415 |
Capital costs |
–1 475 |
–1 570 |
EVM profit – new business |
–1 345 |
356 |
EVM profit – previous years’ business |
–148 |
638 |
EVM profit – underwriting |
–1 493 |
993 |
Investment result |
|
|
Mark-to-market investment result |
5 132 |
895 |
Benchmark investment result |
–1 761 |
–1 702 |
Gross outperformance (underperformance) |
3 371 |
–808 |
Other |
125 |
116 |
Expenses |
–253 |
–252 |
Net outperformance (underperformance) |
3 243 |
–943 |
Taxes |
–747 |
167 |
Capital costs |
–1 012 |
–911 |
EVM profit – investments |
1 484 |
–1 686 |
EVM profit |
–9 |
–693 |
Cost of debt |
–626 |
–67 |
Release of current year capital costs |
2 792 |
3 059 |
Additional taxes |
–290 |
–133 |
Total contribution to ENW |
1 867 |
2 166 |
|
|
|
Profit margin – new business, % |
–4.1 |
1.2 |
Profit margin – previous years’ business, % |
–0.8 |
3.5 |
Profit margin – investments, % |
16.5 |
–18.3 |
EVM Balance sheet
As of 31 December
| Download |
USD millions |
2017 |
2018 |
Assets |
|
|
Investments |
162 873 |
143 663 |
Cash and cash equivalents |
6 467 |
5 695 |
In-force business assets |
224 231 |
223 075 |
Retrocession assets |
25 000 |
22 170 |
Other assets |
3 998 |
3 540 |
Total assets |
422 569 |
398 142 |
|
|
|
Liabilities |
|
|
In-force business liabilities |
331 288 |
315 737 |
Retrocession liabilities |
19 835 |
17 114 |
Provision for capital costs |
9 034 |
7 569 |
Future income tax liabilities |
4 914 |
4 264 |
Debt |
13 095 |
11 180 |
Other liabilities |
6 736 |
6 285 |
Total liabilities |
384 902 |
362 149 |
Economic net worth |
37 667 |
35 993 |
Total liabilities and economic net worth |
422 569 |
398 142 |
Statement of economic net worth
For the years ended 31 December
| Download |
USD millions |
2017 |
2018 |
|
|
|
Economic net worth as of 1 January |
36 648 |
37 667 |
Total contribution to ENW |
1 867 |
2 166 |
Dividends and share buy-back |
–2 629 |
–2 939 |
Other, including foreign exchange on economic net worth |
1 781 |
–901 |
Economic net worth as of 31 December |
37 667 |
35 993 |
Common shares outstanding as of 31 December |
314 585 765 |
300 044 141 |
Economic net worth per share in USD as of 31 December |
119.74 |
119.96 |
Business Segments – EVM Income Statement
For the year ended 31 December
| Download |
USD millions, unless otherwise stated |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Consolidation |
Total |
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2017 |
|
|
|
|
|
|
|
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Underwriting result |
|
|
|
|
|
|
|
||||
Gross premiums and fees1 |
17 914 |
19 118 |
4 207 |
1 315 |
|
–708 |
41 846 |
||||
Gross premiums and fees growth rate, %1 |
–4.8 |
–20.7 |
0.0 |
49.6 |
|
|
–11.4 |
||||
Premiums and fees |
17 495 |
18 974 |
3 685 |
642 |
|
|
40 796 |
||||
Premiums and fees retention rate, %1 |
97.7 |
99.2 |
87.6 |
48.8 |
|
|
97.5 |
||||
Premiums and fees growth rate, % |
–5.1 |
–21.1 |
–0.6 |
79.3 |
|
|
–12.4 |
||||
Claims and benefits |
–13 253 |
–13 330 |
–2 929 |
–505 |
|
|
–30 017 |
||||
Commissions |
–4 156 |
–2 628 |
–561 |
–68 |
|
|
–7 413 |
||||
Other |
–47 |
–37 |
–92 |
309 |
3 |
|
136 |
||||
Gross underwriting result – new business |
39 |
2 979 |
103 |
378 |
3 |
0 |
3 502 |
||||
Expenses |
–1 320 |
–909 |
–843 |
–203 |
–115 |
|
–3 390 |
||||
Net underwriting result – new business |
–1 281 |
2 070 |
–740 |
175 |
–112 |
0 |
112 |
||||
Taxes |
172 |
–369 |
129 |
22 |
64 |
|
18 |
||||
Capital costs |
–384 |
–714 |
–128 |
–65 |
–184 |
|
–1 475 |
||||
EVM profit – new business |
–1 493 |
987 |
–739 |
132 |
–232 |
0 |
–1 345 |
||||
EVM profit – previous years’ business |
120 |
11 |
–257 |
20 |
–42 |
0 |
–148 |
||||
EVM profit – underwriting |
–1 373 |
998 |
–996 |
152 |
–274 |
0 |
–1 493 |
||||
Investment result |
|
|
|
|
|
|
|
||||
Mark-to-market investment result |
1 287 |
1 912 |
273 |
1 099 |
561 |
|
5 132 |
||||
Benchmark investment result |
–542 |
–757 |
–116 |
–295 |
–51 |
|
–1 761 |
||||
Gross outperformance (underperformance) |
745 |
1 155 |
157 |
804 |
510 |
0 |
3 371 |
||||
Other |
58 |
26 |
9 |
32 |
|
|
125 |
||||
Expenses |
–87 |
–63 |
–14 |
–38 |
–51 |
|
–253 |
||||
Net outperformance (underperformance) |
716 |
1 118 |
152 |
798 |
459 |
0 |
3 243 |
||||
Taxes |
–162 |
–260 |
–35 |
–184 |
–106 |
|
–747 |
||||
Capital costs |
–342 |
–231 |
–38 |
–194 |
–207 |
|
–1 012 |
||||
EVM profit – investments |
212 |
627 |
79 |
420 |
146 |
0 |
1 484 |
||||
EVM profit |
–1 161 |
1 625 |
–917 |
572 |
–128 |
0 |
–9 |
||||
Cost of debt |
–352 |
–170 |
–39 |
–40 |
–25 |
|
–626 |
||||
Release of current year capital costs |
881 |
871 |
186 |
382 |
472 |
|
2 792 |
||||
Additional taxes |
–322 |
–146 |
20 |
73 |
85 |
|
–290 |
||||
Total contribution to ENW |
–954 |
2 180 |
–750 |
987 |
404 |
0 |
1 867 |
||||
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|
|
|
|
|
|
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Profit margin – new business, % |
–10.2 |
8.6 |
–21.2 |
4.3 |
|
|
–4.1 |
||||
Profit margin – previous years’ business, %2 |
1.9 |
0.1 |
–18.3 |
1.0 |
|
|
–0.8 |
||||
Profit margin – investments, % |
7.2 |
16.0 |
14.6 |
|
11.0 |
|
16.5 |
||||
| Download |
USD millions, unless otherwise stated |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Consolidation |
Total |
||
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|
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2018 |
|
|
|
|
|
|
|
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Underwriting result |
|
|
|
|
|
|
|
||
Gross premiums and fees |
19 014 |
19 754 |
4 488 |
1 376 |
|
175 |
44 807 |
||
Gross premiums and fees growth rate, % |
6.1 |
3.3 |
6.7 |
4.7 |
|
|
7.1 |
||
Premiums and fees |
18 604 |
20 253 |
3 962 |
1 042 |
|
|
43 860 |
||
Premiums and fees retention rate, % |
97.8 |
102.5 |
88.3 |
75.7 |
|
|
97.9 |
||
Premiums and fees growth rate, % |
6.3 |
6.7 |
7.5 |
62.3 |
|
|
7.5 |
||
Claims and benefits |
–12 587 |
–14 141 |
–2 367 |
–809 |
|
|
–29 904 |
||
Commissions |
–4 644 |
–2 923 |
–617 |
–93 |
|
|
–8 278 |
||
Other |
62 |
–143 |
–9 |
286 |
89 |
|
286 |
||
Gross underwriting result – new business |
1 435 |
3 045 |
969 |
427 |
89 |
0 |
5 965 |
||
Expenses |
–1 301 |
–929 |
–880 |
–302 |
–211 |
|
–3 624 |
||
Net underwriting result – new business |
134 |
2 116 |
89 |
124 |
–122 |
0 |
2 341 |
||
Taxes |
–117 |
–388 |
–21 |
31 |
79 |
|
–415 |
||
Capital costs |
–447 |
–748 |
–148 |
–89 |
–137 |
|
–1 570 |
||
EVM profit – new business |
–430 |
980 |
–81 |
66 |
–179 |
0 |
356 |
||
EVM profit – previous years’ business |
698 |
168 |
–530 |
374 |
–72 |
0 |
638 |
||
EVM profit – underwriting |
268 |
1 148 |
–611 |
440 |
–251 |
0 |
993 |
||
Investment result |
|
|
|
|
|
|
|
||
Mark-to-market investment result |
1 046 |
–28 |
125 |
–137 |
–112 |
|
895 |
||
Benchmark investment result |
–707 |
–442 |
–164 |
–310 |
–77 |
|
–1 702 |
||
Gross outperformance (underperformance) |
339 |
–470 |
–39 |
–447 |
–189 |
0 |
–808 |
||
Other |
59 |
22 |
10 |
24 |
1 |
|
116 |
||
Expenses |
–90 |
–66 |
–17 |
–36 |
–44 |
|
–252 |
||
Net outperformance (underperformance) |
308 |
–513 |
–46 |
–460 |
–232 |
0 |
–943 |
||
Taxes |
–74 |
97 |
9 |
92 |
44 |
|
167 |
||
Capital costs |
–302 |
–209 |
–26 |
–165 |
–209 |
|
–911 |
||
EVM profit – investments |
–68 |
–625 |
–63 |
–533 |
–398 |
0 |
–1 686 |
||
EVM profit |
199 |
523 |
–673 |
–93 |
–649 |
0 |
–693 |
||
Cost of debt |
–58 |
–40 |
36 |
–2 |
–3 |
|
–67 |
||
Release of current year capital costs |
908 |
1 060 |
200 |
398 |
493 |
|
3 059 |
||
Additional taxes |
299 |
–272 |
–37 |
–38 |
–86 |
|
–133 |
||
Total contribution to ENW |
1 350 |
1 271 |
–474 |
265 |
–245 |
0 |
2 166 |
||
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|
|
|
|
|
|
|
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Profit margin – new business, % |
–3.1 |
8.2 |
–2.2 |
11.8 |
|
|
1.2 |
||
Profit margin – previous years’ business, %1 |
11.7 |
1.8 |
–36.4 |
23.1 |
|
|
3.5 |
||
Profit margin – investments, % |
–2.4 |
–19.4 |
–11.9 |
|
–16.5 |
|
–18.3 |
||
Business segments – EVM balance sheet
As of 31 December
| Download |
USD millions |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Consolidation |
Total |
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Investments |
54 625 |
38 384 |
9 323 |
64 776 |
6 284 |
–10 519 |
162 873 |
Cash and cash equivalents |
1 335 |
1 595 |
651 |
2 623 |
263 |
|
6 467 |
In-force business assets |
16 446 |
223 346 |
2 962 |
32 100 |
3 |
–50 626 |
224 231 |
Retrocession assets |
2 776 |
35 944 |
4 637 |
25 378 |
|
–43 735 |
25 000 |
Other assets |
6 675 |
652 |
485 |
1 657 |
1 651 |
–7 122 |
3 998 |
Total assets |
81 857 |
299 921 |
18 058 |
126 534 |
8 201 |
–112 002 |
422 569 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
In-force business liabilities |
54 174 |
218 935 |
12 608 |
88 590 |
717 |
–43 736 |
331 288 |
Retrocession liabilities |
537 |
40 151 |
912 |
28 861 |
|
–50 626 |
19 835 |
Provision for capital costs |
97 |
7 179 |
198 |
1 560 |
|
|
9 034 |
Future income tax liabilities |
1 513 |
3 259 |
79 |
239 |
–176 |
|
4 914 |
Debt |
4 697 |
14 071 |
526 |
2 246 |
60 |
–8 505 |
13 095 |
Other liabilities |
8 429 |
3 245 |
817 |
1 060 |
2 315 |
–9 130 |
6 736 |
Total liabilities |
69 447 |
286 840 |
15 140 |
122 556 |
2 916 |
–111 997 |
384 902 |
Economic net worth |
12 410 |
13 081 |
2 918 |
3 978 |
5 285 |
–5 |
37 667 |
Total liabilities and economic net worth |
81 857 |
299 921 |
18 058 |
126 534 |
8 201 |
–112 002 |
422 569 |
| Download |
USD millions |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Consolidation |
Total |
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Investments |
55 645 |
34 641 |
8 774 |
49 954 |
7 263 |
–12 614 |
143 663 |
Cash and cash equivalents |
1 651 |
1 705 |
795 |
1 316 |
227 |
|
5 695 |
In-force business assets |
15 912 |
219 518 |
2 677 |
28 760 |
|
–43 793 |
223 075 |
Retrocession assets |
2 613 |
33 303 |
5 046 |
22 577 |
|
–41 369 |
22 170 |
Other assets |
5 710 |
1 954 |
745 |
1 196 |
1 370 |
–7 434 |
3 540 |
Total assets |
81 531 |
291 122 |
18 038 |
103 802 |
8 860 |
–105 210 |
398 142 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
In-force business liabilities |
54 480 |
215 998 |
13 237 |
72 558 |
745 |
–41 280 |
315 737 |
Retrocession liabilities |
492 |
35 317 |
665 |
24 529 |
|
–43 889 |
17 114 |
Provision for capital costs |
–88 |
6 250 |
226 |
1 181 |
|
|
7 569 |
Future income tax liabilities |
324 |
4 396 |
–186 |
–48 |
–221 |
|
4 264 |
Debt |
5 415 |
14 339 |
817 |
1 290 |
547 |
–11 227 |
11 180 |
Other liabilities |
7 996 |
2 446 |
824 |
1 023 |
2 810 |
–8 814 |
6 285 |
Total liabilities |
68 618 |
278 745 |
15 583 |
100 532 |
3 881 |
–105 210 |
362 149 |
Economic net worth |
12 913 |
12 377 |
2 454 |
3 270 |
4 979 |
0 |
35 993 |
Total liabilities and economic net worth |
81 531 |
291 122 |
18 038 |
103 802 |
8 860 |
–105 210 |
398 142 |
Business segments – statement of economic net worth
For the year ended 31 December
| Download |
USD millions |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Consolidation |
Total |
||
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|||||||||
|
|
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|
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2018 |
|
|
|
|
|
|
|
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Economic net worth as of 1 January |
12 410 |
13 081 |
2 918 |
3 978 |
5 285 |
–5 |
37 667 |
||
Change in EVM methodology1 |
743 |
–813 |
63 |
64 |
–57 |
|
0 |
||
Adjusted economic net worth as of 1 January |
13 153 |
12 268 |
2 981 |
4 042 |
5 228 |
–5 |
37 667 |
||
Total contribution to ENW |
1 350 |
1 271 |
–474 |
265 |
–245 |
|
2 166 |
||
Dividends and share buy-back |
–1 300 |
–650 |
–50 |
–1 125 |
186 |
|
–2 939 |
||
Other, including foreign exchange on economic net worth |
–289 |
–512 |
–3 |
88 |
–190 |
5 |
–901 |
||
Economic net worth as of 31 December |
12 913 |
12 377 |
2 454 |
3 270 |
4 979 |
0 |
35 993 |
||
Comparison of EVM and US GAAP
The most significant differences between EVM and US GAAP are as follows:
- Discounting: For EVM, all future expected cash flows are discounted using risk-free interest rates. Under US GAAP, most property and casualty reserves are undiscounted (except for reserves acquired in business combinations), whereas life and health reserves are usually discounted based on book yields.
- Investments and debt: For EVM, all investments and debt positions are carried at fair value. Under US GAAP, different treatment applies for certain investments (eg real estate is held at depreciated cost) and debt is carried at amortised cost rather than at fair value.
- Reserving basis: For EVM, best-estimate current assumptions are used for all re/insurance reserves. Under US GAAP, life and health assumptions, including book yield discounting assumptions, are usually locked in and can include a provision for adverse deviation.
- Recognition differences: EVM considers the economic value related to annual management charges on unit-linked funds and adjusts for counterparty credit risk in the valuation of insurance-related net assets. In addition, EVM does not show minority interests on the balance sheet, but consolidates assets and liabilities based on the proportion of the interest held by Swiss Re.
- Goodwill and other intangibles: EVM excludes the recognition of potential future new business activities, including potential renewals. As a result, no goodwill or other intangible assets are carried in the EVM balance sheet.
- Taxes: For EVM, deferred tax assets and liabilities are recognised for temporary differences between US GAAP and EVM.
- Capital costs: EVM recognises opportunity costs for shareholders’ capital. The present value of capital costs allocated to existing contracts are recognised in the EVM balance sheet.
Business segments – reconciliation to US GAAP
As of 31 December
| Download |
USD billions |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Total |
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
|
US GAAP shareholders’ equity |
10.7 |
8.2 |
2.4 |
7.1 |
5.7 |
34.1 |
Discounting |
4.4 |
–0.3 |
0.4 |
–4.2 |
0.0 |
0.3 |
Investments and debt |
1.8 |
–2.3 |
0.0 |
0.0 |
0.5 |
0.0 |
Reserving basis |
|
|
|
|
|
|
GAAP margins |
0.0 |
17.3 |
0.0 |
3.3 |
0.0 |
20.6 |
Other |
–0.1 |
0.1 |
1.0 |
–0.5 |
–0.7 |
–0.2 |
Recognition differences |
0.0 |
0.0 |
–0.1 |
–0.5 |
0.0 |
–0.6 |
Goodwill and other intangibles |
–2.0 |
–1.9 |
–0.4 |
–0.2 |
–0.5 |
–5.0 |
Taxes |
–2.0 |
–0.9 |
–0.3 |
0.6 |
0.1 |
–2.5 |
Capital costs |
0.0 |
–7.1 |
–0.2 |
–1.6 |
0.0 |
–8.9 |
Other |
–0.4 |
0.0 |
0.1 |
0.0 |
0.2 |
–0.1 |
Total EVM valuation adjustments |
1.7 |
4.9 |
0.5 |
–3.1 |
–0.4 |
3.6 |
Economic net worth |
12.4 |
13.1 |
2.9 |
4.0 |
5.3 |
37.7 |
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
US GAAP shareholders’ equity |
9.5 |
6.3 |
1.8 |
5.1 |
5.3 |
27.9 |
Discounting |
4.8 |
–0.8 |
0.4 |
–3.1 |
0.0 |
1.3 |
Investments and debt |
2.0 |
–1.4 |
0.0 |
0.1 |
0.9 |
1.6 |
Reserving basis |
|
|
|
|
|
|
GAAP margins |
0.0 |
18.6 |
0.0 |
2.8 |
0.0 |
21.4 |
Other |
0.0 |
0.1 |
0.9 |
–0.5 |
–0.7 |
–0.2 |
Recognition differences |
0.0 |
–0.2 |
–0.1 |
–0.1 |
0.0 |
–0.4 |
Goodwill and other intangibles |
–2.0 |
–1.8 |
–0.4 |
–0.2 |
–0.6 |
–4.9 |
Taxes |
–1.2 |
–2.2 |
–0.1 |
0.5 |
0.0 |
–3.1 |
Capital costs |
0.2 |
–6.2 |
–0.2 |
–1.5 |
0.0 |
–7.7 |
Other |
–0.4 |
0.1 |
0.0 |
0.0 |
0.2 |
–0.1 |
Total EVM valuation adjustments |
3.4 |
6.1 |
0.7 |
–1.8 |
–0.3 |
8.1 |
Economic net worth |
12.9 |
12.4 |
2.5 |
3.3 |
5.0 |
36.0 |