Swiss Re’s partnership teams
In this section, we take a tour of the various teams within Swiss Re that are driving innovations and enabling growth through partnerships.
iptiQ is a digital insurance company and division of Swiss Re. The business offers consumer products for life, health, home and car insurance on a white-labelling platform via its partners. In 2021, iptiQ reported growth in gross written premiums for its core business of 95% compared to 76% in 2020. The division generated USD 723 million in gross premiums written and recorded USD 53 million of adjusted gross income for 2021. This technical profit, combined with strong top-line growth, puts iptiQ on track for future value creation.
iptiQ is a digital insurance engine with a business model based on forging strong partnerships to sell insurance via trusted brands. This opens up access to new risk pools that differ from Swiss Re’s traditional Reinsurance and Corporate Solutions businesses, making it a key source of innovation and growth that delivers value for the company and shareholders.
With 51 distribution partners across ten countries at the end of 2021, iptiQ’s continued success in onboarding new partners provides a solid basis for future growth. Partners include insurers and intermediaries who wish to transition from a traditional distribution model to a digital approach, as well as banks and retailers looking to open up new revenue streams and improve customer satisfaction and loyalty. The business provides its partners with insurance products, data and technology, so that they can deliver a seamless insurance experience to consumers across various markets with maximum efficiency and minimal fuss.
In the future it will likely be impossible to distribute insurance without digital means. More and more people are purchasing insurance cover embedded within other products or services online. iptiQ helps to make insurance more accessible to customers.
Core business premium growth year on year at end of 2021
Public Sector Solutions
Today, society faces several unprecedented threats that require coordinated public-private partnerships. These range from global pandemics to global warming. Worldwide protection levels against such risks are still limited, with over 65% of economic losses caused by uninsured natural catastrophes and even larger gaps in healthcare and life risks.
Swiss Re’s Public Sector Solutions (PSS) is the first division in the reinsurance industry fully dedicated to the public sector. Set up in 2011, the team has since completed over 800 transactions with governments and other public sector entities around the world and an average of more than 100 transactions per annum over the last five years.
PSS works with governments across the world to protect public assets against disasters by providing traditional risk transfer solutions and preventative measures that enable better adaptation to risks. This work has created an extra premium income of around USD 1.5 billion over the past five years for the Group. In 2021, PSS generated USD 364 million in premiums. The division also brought in USD 109 million from new business opportunities during the year, showing that its client base and solutions portfolio continues to grow. The business has been growing at an average annual rate of around 10% over the past five years and meets or exceeds the group underwriting targets, which reflects Swiss Re’s ability to sustainably and profitably serve the ever-increasing demand for risk transfer from the public sector globally.
PSS pursues a three-level approach:
- Working with public sector clients to insure against large losses. PSS’s risk transfer solutions allow public sector risk owners to meet their fiscal resilience objectives, even after a shock event.
- Producing unique, science-informed risk insights through technology platforms tailored to the public sector.
- Partnering with development banks as well as technology and industry leaders and non-profit organisations to create sustainable, comprehensive and inclusive responses to the global agenda of governments.
Much of PSS’s work is highly innovative and collaborative. For example, in 2021 the PSS team was involved in the COVID-19 Vaccines Global Access (COVAX) programme, which contributes to increased COVID vaccination rates in developing countries across the world. The insurance aspect of this programme protects against the risk of non-payment for the vaccinations.
New business economic contribution in 2021
Economic premium generated in 2021
Economic premium generated over the past 5 years
Average annual growth rate of new business economic contribution over the past 5 years
Transactions closed by PSS in the past 10 years
Alternative Capital Partners
Alternative Capital Partners was formed in 2019 by combining Swiss Re’s Insurance-Linked Securities (ILS) and Retro & Syndications teams.
The ACP team creates and manages investment partnerships with third parties across a number of products, including insurance-linked securities, retrocession, sidecars and a fund. Through these partnerships, Swiss Re can manage its peak underwriting risks while providing its partners with access to its strong underwriting expertise.
The team also provides a one-stop shop for our clients for their alternative capital needs. Clients include re/insurers, governments and corporations with expertise provided in both the property and casualty and life and health risk markets.
ACP is Swiss Re’s centre of expertise for the alternative capital markets. The ACP team manages risk exposure by ceding excess risks to partner investors. This limits the Group’s risk exposure and enhances Swiss Re’s capital position, while allowing investors to benefit from Swiss Re’s leading risk assessments. In addition, ACP itself invests in capital market instruments, allowing Swiss Re further access to risks in an alternative format to the traditional reinsurance business.
ACP’s regular Insurance-Linked Securities Updates are the industry benchmark for ILS reporting.
As a registered broker-dealer, ACP also offers ILS trading support via our broker-dealer unit Swiss Re Capital Markets (SRCM). This unit is one of the current leading arrangers in the ILS market, and has also consistently ranked among the top underwriters since the market’s inception. ACP has raised approximately USD 40 billion in ILS capital since 1997, more than any other arranger.
In 2020, Swiss Re’s subsidiary Swiss Re Insurance-Linked Investment Management Ltd received authorisation from the Swiss Financial Market Supervisory Authority (FINMA) for an asset management licence for funds. The company now manages a standalone fund company, 1863 Fund Ltd, providing investors with a new way of accessing Swiss Re’s natural catastrophe business.
This marked the first time Swiss Re opened its natural catastrophe portfolio to investors through a permanent fund format. It gives investors the opportunity to invest in the same book of business as Swiss Re, thus benefitting from Swiss Re’s global reach, client access, risk knowledge and underwriting expertise.
ILS capital raised by ACP since 1997 – More than any other arranger