With a US GAAP net income of USD 678 million for 2023, we have benefitted from our disciplined underwriting, a long-term portfolio strategy, strict expense management and realised rate increases. The US GAAP combined ratio of 91.7% for 2023 has delivered on our financial target of less than 94%.

We achieved these results against a backdrop of increasing challenges for our customers and brokers. Economic volatility and geopolitical turmoil have heightened risk awareness. We have risen to these challenges with risk transfer to bring certainty to the balance sheets of our corporate clients − and risk knowledge so our clients better understand the risks they face.  

Portfolio steering: the right type of growth

At the heart of Corporate Solutions' strategy is the goal to generate resilient returns across the cycle. To achieve this, we've broadened our capabilities in our core business. We continued the gradual shift of the portfolio mix towards cycle-resilient portfolios such as accident & health and credit & surety, while remaining overweight in property. Corporate Solutions reduced exposure in lines where rates were not adequate. Our portfolio steering allows us to react quickly to a changing market environment and is visible in the reduced volatility of Corporate Solutions' results.

In terms of clients, we continue to focus on the upper-mid-sized and large corporates. This offers a potential customer base of around 40 000 of the world's largest companies – with a total available market premium of around USD 300 billion, expected to grow by at least 5% per annum.

Our journey in this market has seen Corporate Solutions move from what was largely a follower position – a so-called “Excess and Follow“ business – to writing more Primary Lead business. Primary Lead is a more sophisticated business which creates closer client relationships and is less price sensitive. It plays to Swiss Re's strengths as a leading risk knowledge company and our robust infrastructure.  

Growing value-added solutions and services

Swiss Re Corporate Solutions continues to expand its value proposition through differentiated offerings and services that meet more complex risk transfer needs and the growing demand for adjacent risk analytics. This work requires substantial innovation and knowledge. The focus has been on three areas: International Programs, Innovative Risk Solutions and Risk & Data Services for Corporates.

International Programs is an integrated platform to administrate multinational insurance programmes and reduce complexity for insurance buyers. The platform provides local policy issuance and cash-flow management in over 150 jurisdictions, allowing corporates to keep an overview of their insurance even when it involves thousands of individual policies.

The need for these services is clear. International Programs has grown twentyfold, from 30 active clients at the end of 2018, to well over 650 at the end of 2023.

Innovative Risk Solutions (IRS) is a dedicated unit offering tailor-made risk management solutions for large corporates and captives. The offering includes structured re/insurance and fronting solutions, parametric covers and reinsurance in derivative form. IRS reached a milestone in 2023, adding its 1 000th transaction. Since IRS was formed in 2021, it has generated around USD 1.4 billion in gross premiums written.

Our Risk Data & Services platform is a powerful tool that allows companies to gain a granular understanding of their risk exposures. In 2023, we moved this data platform even closer to the demands our clients face by introducing modules that can support the disclosure requirement of the EU Taxonomy and the Task Force on Climate-Related Disclosures (TCFD), as well as new regulations, such as the Supply Chain Due Diligence Act in Germany. 

A bright future ahead

From a strategic and financial point of view, the expansion into risk solutions offers our clients a range of new risk knowledge products and increases the value we can add to their risk management. For Corporate Solutions, it offers cycle-independent growth opportunities and diversification into fee-based sources of income.

The outlook for the coming years is favourable for our business. We have a strong relationship with our customers and brokers, extremely talented and dedicated teams, and a very strong financial position.

For 2024, we have again set an ambitious target. Under the IFRS 17 standard, we aim to achieve a combined ratio under 93%.