Liquidity position of the 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 21.7 billion as of 31 December 2019, compared with USD 15.0 billion as of 31 December 2018. Based on the internal liquidity stress tests described above, we estimate that SRZ holds surplus liquidity after dividends to Swiss Re Ltd.
In 2019, the amount of surplus liquidity increased. This increase was largely due to net operating cashflows, internal dividends following legal entity optimisation and the positive impact of the reduction in interest rates.