Capital management

The Company is the holding entity of Swiss Re’s Reinsurance Business Unit. It plans, assesses and steers its own risk and solvency position in combination with the risk and solvency positions of its subsidiaries.

For the Group and its Swiss-regulated Business Unit holding companies, the Company and Swiss Re Corporate Solutions Ltd, the Group Risk Policy sets SST capitalisation targets on a consolidated basis, which define the capitalisation objective for executive management in normal operating circumstances. Target capital is used as a basis to coordinate capital planning and capital management actions. Any deviation from target capitalisation − whether deliberate or intentional − must be restored as soon as practical, and in any event over the applicable three-year plan. Surplus capital is expected to be made available to the Group holding company.

Change in shareholder’s equity

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CHF millions

Share capital

Legal capital reserves

Legal profit reserves

Voluntary profit reserves

Retained earnings brought forward

Net income for the financial year

Total
share­holder’s equity

Shareholder’s equity 1.1.2016

34

6 778

650

272

94

6 432

14 260

Allocations relating to the dividend paid

 

 

 

6 500

–68

–6 432

Dividend for the financial year 2015

 

 

 

–2 933

 

 

–2 933

Net income for the financial year

 

 

 

 

 

875

875

Shareholder’s equity 31.12.2016

34

6 778

650

3 839

26

875

12 202

 

 

 

 

 

 

 

 

Shareholder’s equity 1.1.2017

34

6 778

650

3 839

26

875

12 202

Allocations relating to the dividend paid

 

 

 

850

25

–875

Dividend for the financial year 2016

 

 

 

–2 590

 

 

–2 590

Net income for the financial year

 

 

 

 

 

1 209

1 209

Shareholder’s equity 31.12.2017

34

6 778

650

2 099

51

1 209

10 821

For more details on valuation differences between shareholder’s equity and the SST net asset value, please refer to the Valuation section of this Report.