Value Alignment Incentive


The VAI is the mandatory deferred portion of the API which introduces a time component to the performance-based, variable compensation. This supports the Group’s business model by aligning a portion of variable compensation with sustainable long-term results. The aim is to ensure that the ultimate value of the deferred variable compensation is affected by the longer-term performance of the relevant Business Unit and the Group.

Plan duration

The VAI supports a longer-term perspective by linking awards to performance over a three-year period.

Performance measurement

The performance measurement calculation uses the three-year average of the published EVM previous years’ business profit margin.

EVM is Swiss Re’s proprietary integrated economic valuation and steering framework, consistently measuring performance across all businesses (please refer to the EVM section of this Financial Report).

A higher EVM previous years’ business profit margin (for all prior underwriting years) results in a higher performance factor. Conversely, a lower EVM previous years’ business profit margin results in a lower performance factor. The performance factor is a linear function, whereby payout generally ranges from 50% to 150%.


The higher the API granted, the greater the amount of compensation that remains at risk through deferral into the VAI, as shown in the table below.

Portion of API that is deferred


Deferral into VAI

Group CEO

50% of API

Other Group EC members

45% of API

Other key executives

40% of API

All other employees

50% of the API amount exceeding USD 100 000 with a minimum deferral amount of USD 5 000 at USD 100 000 and up to a maximum of 40% of API


The VAI is not funded as a separate pool. The Group API pool includes amounts paid in cash and amounts to be deferred into the VAI.


At the end of the deferral period, the VAI is settled in cash. For the full three-year performance measurement period, forfeiture conditions apply.

Additionally, clawback provisions apply in a range of events as defined in the VAI plan rules (please refer to Long-term compensation termination and clawback provisions in this Financial Report for details on termination and clawback provisions).

For VAI performance outcomes over past years, please refer to Performance outcomes 2019 in this Financial Report.

Value Alignment Incentive
Value Alignment Incentive (graphic)