EVM financial information
EVM income statement
For the years ended 31 December
USD millions, unless otherwise stated |
2018 |
2019 |
|---|---|---|
|
|
|
Underwriting result |
|
|
Gross premiums and fees |
44 807 |
58 325 |
Gross premiums and fees growth rate, % |
7.1 |
30.2 |
Premiums and fees |
43 860 |
57 120 |
Premiums and fees retention rate, % |
97.9 |
97.9 |
Premiums and fees growth rate, % |
7.5 |
30.2 |
Claims and benefits |
–29 904 |
–40 913 |
Commissions |
–8 278 |
–9 536 |
Other |
286 |
452 |
Gross underwriting result – new business |
5 965 |
7 123 |
Expenses |
–3 624 |
–3 639 |
Net underwriting result – new business |
2 341 |
3 485 |
Taxes |
–415 |
–607 |
Capital costs |
–1 570 |
–1 672 |
EVM profit – new business |
356 |
1 206 |
EVM profit – previous years’ business |
638 |
–3 293 |
EVM profit – underwriting |
993 |
–2 087 |
Investment result |
|
|
Mark-to-market investment result |
895 |
9 565 |
Benchmark investment result |
–1 702 |
–5 645 |
Gross outperformance (underperformance) |
–808 |
3 920 |
Other |
116 |
117 |
Expenses |
–252 |
–249 |
Net outperformance (underperformance) |
–943 |
3 788 |
Taxes |
167 |
–810 |
Capital costs |
–911 |
–910 |
EVM profit – investments |
–1 686 |
2 068 |
EVM profit |
–693 |
–19 |
Cost of debt |
–67 |
–841 |
Release of current year capital costs |
3 059 |
2 911 |
Additional taxes |
–133 |
881 |
Total contribution to ENW |
2 166 |
2 932 |
|
|
|
Profit margin – new business, % |
1.2 |
3.0 |
Profit margin – previous years’ business, % |
3.5 |
–14.2 |
Profit margin – investments, % |
–18.3 |
21.8 |
EVM balance sheet
As of 31 December
USD millions |
2018 |
2019 |
|---|---|---|
Assets |
|
|
Investments |
143 663 |
155 013 |
Cash and cash equivalents |
5 695 |
9 611 |
In-force business assets |
223 075 |
266 327 |
Retrocession assets |
22 170 |
26 072 |
Other assets |
3 540 |
3 457 |
Total assets |
398 142 |
460 480 |
|
|
|
Liabilities |
|
|
In-force business liabilities |
315 737 |
369 967 |
Retrocession liabilities |
17 114 |
19 752 |
Provision for capital costs |
7 569 |
9 850 |
Future income tax liabilities |
4 264 |
4 203 |
Debt |
11 180 |
13 718 |
Other liabilities |
6 285 |
6 852 |
Total liabilities |
362 149 |
424 342 |
Economic net worth |
35 993 |
36 138 |
Total liabilities and economic net worth |
398 142 |
460 480 |
Statement of economic net worth
For the years ended 31 December
USD millions |
2018 |
2019 |
|---|---|---|
|
|
|
Economic net worth as of 1 January |
37 667 |
35 993 |
Total contribution to ENW |
2 166 |
2 932 |
Dividends and share buyback |
–2 939 |
–2 590 |
Other, including foreign exchange on economic net worth |
–901 |
–197 |
Economic net worth as of 31 December |
35 993 |
36 138 |
Common shares outstanding as of 31 December |
300 044 141 |
290 654 942 |
Economic net worth per share in USD as of 31 December |
119.96 |
124.33 |
Business segments – EVM income statement
For the year ended 31 December
USD millions, unless otherwise stated |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Consolidation |
Total |
||
|---|---|---|---|---|---|---|---|---|---|
|
|||||||||
|
|
|
|
|
|
|
|
||
2018 |
|
|
|
|
|
|
|
||
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 |
||
|
|
|
|
|
|
|
|
||
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 |
||
USD millions, unless otherwise stated |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Consolidation |
Total |
||
|---|---|---|---|---|---|---|---|---|---|
|
|||||||||
|
|
|
|
|
|
|
|
||
2019 |
|
|
|
|
|
|
|
||
Underwriting result |
|
|
|
|
|
|
|
||
Gross premiums and fees |
24 174 |
27 244 |
4 767 |
2 656 |
|
–517 |
58 325 |
||
Gross premiums and fees growth rate, % |
27.1 |
37.9 |
6.2 |
92.9 |
n/a |
|
30.2 |
||
Premiums and fees |
23 540 |
27 213 |
4 071 |
2 296 |
|
|
57 120 |
||
Premiums and fees retention rate, % |
97.4 |
99.9 |
85.4 |
86.5 |
n/a |
|
97.9 |
||
Premiums and fees growth rate, % |
26.5 |
34.4 |
2.8 |
120.4 |
n/a |
|
30.2 |
||
Claims and benefits |
–15 937 |
–21 021 |
–2 197 |
–1 758 |
|
|
–40 913 |
||
Commissions |
–5 873 |
–2 702 |
–626 |
–334 |
|
|
–9 536 |
||
Other |
14 |
–6 |
59 |
380 |
4 |
|
452 |
||
Gross underwriting result – new business |
1 745 |
3 484 |
1 307 |
584 |
4 |
0 |
7 123 |
||
Expenses |
–1 411 |
–828 |
–875 |
–402 |
–123 |
|
–3 639 |
||
Net underwriting result – new business |
334 |
2 656 |
432 |
182 |
–119 |
0 |
3 485 |
||
Taxes |
–209 |
–417 |
–90 |
39 |
70 |
|
–607 |
||
Capital costs |
–334 |
–931 |
–178 |
–88 |
–140 |
|
–1 672 |
||
EVM profit – new business |
–209 |
1 308 |
164 |
133 |
–190 |
0 |
1 206 |
||
EVM profit – previous years’ business |
–1 814 |
–272 |
–1 081 |
–137 |
11 |
0 |
–3 293 |
||
EVM profit – underwriting |
–2 023 |
1 036 |
–917 |
–4 |
–179 |
0 |
–2 087 |
||
Investment result |
|
|
|
|
|
|
|
||
Mark-to-market investment result |
3 370 |
3 388 |
541 |
1 870 |
395 |
|
9 565 |
||
Benchmark investment result |
–2 099 |
–2 166 |
–357 |
–933 |
–91 |
|
–5 645 |
||
Gross outperformance (underperformance) |
1 272 |
1 222 |
185 |
937 |
304 |
0 |
3 920 |
||
Other |
66 |
26 |
11 |
13 |
1 |
|
117 |
||
Expenses |
–103 |
–71 |
–20 |
–28 |
–26 |
|
–249 |
||
Net outperformance (underperformance) |
1 234 |
1 178 |
175 |
922 |
278 |
0 |
3 788 |
||
Taxes |
–269 |
–242 |
–38 |
–188 |
–72 |
|
–810 |
||
Capital costs |
–338 |
–197 |
–25 |
–139 |
–211 |
|
–910 |
||
EVM profit – investments |
627 |
739 |
112 |
596 |
–6 |
0 |
2 068 |
||
EVM profit |
–1 396 |
1 775 |
–805 |
591 |
–184 |
0 |
–19 |
||
Cost of debt |
–273 |
–322 |
–45 |
–151 |
–50 |
|
–841 |
||
Release of current year capital costs |
931 |
980 |
176 |
346 |
479 |
|
2 911 |
||
Additional taxes |
386 |
223 |
–52 |
151 |
172 |
|
881 |
||
Total contribution to ENW |
–351 |
2 656 |
–727 |
937 |
417 |
0 |
2 932 |
||
|
|
|
|
|
|
|
|
||
Profit margin – new business, % |
–1.1 |
7.8 |
5.3 |
7.2 |
|
|
3.0 |
||
Profit margin – previous years’ business, %1 |
–19.5 |
–2.5 |
–88.8 |
–6.9 |
|
|
–14.2 |
||
Profit margin – investments, % |
23.2 |
18.8 |
20.5 |
|
–0.3 |
|
21.8 |
||
Business segments – EVM balance sheet
As of 31 December
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 |
USD millions |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Consolidation |
Total |
|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
2019 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Investments |
61 167 |
39 811 |
8 027 |
53 808 |
5 745 |
–13 544 |
155 013 |
Cash and cash equivalents |
3 675 |
1 697 |
1 696 |
2 540 |
2 |
|
9 611 |
In-force business assets |
20 125 |
250 985 |
2 564 |
39 076 |
|
–46 424 |
266 327 |
Retrocession assets |
2 744 |
37 957 |
6 741 |
25 049 |
|
–46 419 |
26 072 |
Other assets |
5 101 |
3 208 |
1 058 |
1 022 |
1 756 |
–8 689 |
3 457 |
Total assets |
92 812 |
333 658 |
20 087 |
121 496 |
7 503 |
–115 075 |
460 480 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
In-force business liabilities |
63 537 |
249 676 |
14 870 |
87 513 |
776 |
–46 405 |
369 967 |
Retrocession liabilities |
662 |
38 753 |
1 390 |
25 392 |
|
–46 445 |
19 752 |
Provision for capital costs |
922 |
7 231 |
257 |
1 441 |
|
|
9 850 |
Future income tax liabilities |
–93 |
4 635 |
–264 |
183 |
–259 |
|
4 203 |
Debt |
6 968 |
15 216 |
866 |
1 847 |
626 |
–11 807 |
13 718 |
Other liabilities |
10 681 |
3 260 |
662 |
1 164 |
1 505 |
–10 419 |
6 852 |
Total liabilities |
82 676 |
318 772 |
17 780 |
117 540 |
2 649 |
–115 075 |
424 342 |
Economic net worth |
10 136 |
14 887 |
2 306 |
3 955 |
4 854 |
0 |
36 138 |
Total liabilities and economic net worth |
92 812 |
333 658 |
20 087 |
121 496 |
7 503 |
–115 075 |
460 480 |
Business segments – statement of economic net worth
For the year ended 31 December
USD millions |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Total |
|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
2019 |
|
|
|
|
|
|
Economic net worth as of 1 January |
12 913 |
12 377 |
2 454 |
3 270 |
4 979 |
35 993 |
Total contribution to ENW |
–351 |
2 656 |
–727 |
937 |
417 |
2 932 |
Dividends and share buyback |
–1 420 |
–250 |
|
–505 |
–415 |
–2 590 |
Other, including foreign exchange on economic net worth |
–1 006 |
104 |
579 |
253 |
–127 |
–197 |
Economic net worth as of 31 December |
10 136 |
14 887 |
2 306 |
3 955 |
4 854 |
36 138 |
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
USD millions |
Property & Casualty Reinsurance |
Life & Health Reinsurance |
Corporate Solutions |
Life Capital |
Group items |
Total |
|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
US GAAP shareholders’ equity |
9 483 |
6 274 |
1 795 |
5 113 |
5 265 |
27 930 |
Discounting |
4 827 |
–849 |
417 |
–3 076 |
|
1 319 |
Investments and debt |
2 013 |
–1 414 |
22 |
118 |
905 |
1 644 |
Reserving basis |
|
|
|
|
|
|
GAAP margins |
|
18 612 |
|
2 824 |
|
21 436 |
Other |
–4 |
103 |
922 |
–471 |
–745 |
–195 |
Recognition differences |
–44 |
–168 |
–62 |
–125 |
|
–399 |
Goodwill and other intangibles |
–1 962 |
–1 836 |
–370 |
–159 |
–603 |
–4 930 |
Taxes |
–1 203 |
–2 249 |
–114 |
513 |
–23 |
–3 076 |
Capital costs |
221 |
–6 213 |
–194 |
–1 488 |
|
–7 674 |
Other |
–418 |
117 |
38 |
21 |
180 |
–62 |
Total EVM valuation adjustments |
3 430 |
6 103 |
659 |
–1 843 |
–286 |
8 063 |
Economic net worth |
12 913 |
12 377 |
2 454 |
3 270 |
4 979 |
35 993 |
|
|
|
|
|
|
|
2019 |
|
|
|
|
|
|
US GAAP shareholders’ equity |
8 318 |
8 253 |
2 005 |
5 289 |
5 386 |
29 251 |
Discounting |
3 484 |
–745 |
162 |
–3 796 |
|
–895 |
Investments and debt |
2 302 |
–2 305 |
–34 |
–39 |
491 |
414 |
Reserving basis |
|
|
|
|
|
|
GAAP margins |
|
20 796 |
|
3 162 |
|
23 958 |
Other |
80 |
–35 |
850 |
–281 |
–776 |
–163 |
Recognition differences |
–30 |
193 |
–25 |
87 |
|
225 |
Goodwill and other intangibles |
–1 943 |
–1 847 |
–342 |
–31 |
–515 |
–4 678 |
Taxes |
–1 043 |
–2 213 |
–58 |
570 |
139 |
–2 605 |
Capital costs |
–808 |
–7 187 |
–230 |
–1 802 |
|
–10 026 |
Other |
–224 |
–21 |
–22 |
796 |
129 |
659 |
Total EVM valuation adjustments |
1 818 |
6 634 |
301 |
–1 334 |
–532 |
6 887 |
Economic net worth |
10 136 |
14 887 |
2 306 |
3 955 |
4 854 |
36 138 |