Liquidity position of Swiss Reinsurance Company Ltd (SRZ)
From a liquidity perspective, SRZ is the most important legal entity of the Group. The estimated total liquidity sources in SRZ available within one year, after haircuts and net of short-term loans from Swiss Re Ltd and securities lending, amounted to USD 15.0 billion as of 31 December 2018, compared with USD 17.9 billion as of 31 December 2017. Based on the internal liquidity stress tests described above, we estimate that SRZ holds surplus liquidity after dividends to Swiss Re Ltd.
In 2018, the amount of surplus liquidity reduced. This reduction was largely due to the management decision to reduce external debt, as well as an increase in contingent funding requirements stemming from extreme stress loss events.