Performance

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Total

Life

Accident, health

Motor

Marine, aviation, transport

Property

Casualty

Miscellaneous

CHF millions

2017

2018

2017

2018

2017

2018

2017

2018

2017

2018

2017

2018

2017

2018

2017

2018

Premiums written gross

22 529

18 277

4 431

4 238

2 925

3 172

3 702

2 646

714

651

6 769

5 289

2 626

1 521

1 362

760

Premiums written retroceded

–3 822

–4 041

–810

–826

–436

–372

–639

–548

–120

–161

–1 573

–1 812

–103

–165

–141

–157

Premiums written net

18 707

14 236

3 621

3 412

2 489

2 800

3 063

2 098

594

490

5 196

3 477

2 523

1 356

1 221

603

Change in unearned premiums gross

–918

1 602

–3

–4

10

19

–94

389

–15

75

–936

564

119

345

1

214

Change in unearned premiums retroceded

–368

–40

1

–1

–9

–13

–216

–16

–17

1

–91

–47

–45

27

9

9

Premiums earned

17 421

15 798

3 619

3 407

2 490

2 806

2 753

2 471

562

566

4 169

3 994

2 597

1 728

1 231

826

Other reinsurance revenues

1 439

1 933

1 172

1 656

192

119

23

25

2

2

–20

31

42

59

28

41

Total revenues from reinsurance business

18 860

17 731

4 791

5 063

2 682

2 925

2 776

2 496

564

568

4 149

4 025

2 639

1 787

1 259

867

Claims paid and claim adjustment expenses gross

–10 547

–18 009

–2 983

–6 488

–1 732

–2 069

–1 667

–2 378

–350

–562

–1 968

–4 543

–1 370

–1 552

–477

–417

Claims paid and claim adjustment expenses retroceded

–2 189

3 350

–3 460

856

–639

359

573

418

146

106

998

1 438

125

120

68

53

Change in unpaid claims and life and health benefits gross

–5 374

2 192

–1 028

2 845

–111

–754

–1 074

316

–236

145

–2 140

–290

–459

135

–326

–205

Change in unpaid claims and life and health benefits retroceded

5 012

678

3 975

34

873

–48

–151

–134

–16

26

368

813

–65

–44

28

31

Change in unpaid claims for unit-linked life insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Claims incurred

–13 098

–11 789

–3 496

–2 753

–1 609

–2 512

–2 319

–1 778

–456

–285

–2 742

–2 582

–1 769

–1 341

–707

–538

Acquisition and operating costs gross

–6 128

–5 378

–1 051

–865

–856

–862

–1 240

–1 157

–169

–190

–1 494

–1 377

–884

–624

–434

–303

Acquisition and operating costs retroceded

1 088

995

84

98

103

112

436

283

48

48

321

357

55

51

41

46

Acquisition and operating costs net

–5 040

–4 383

–967

–767

–753

–750

–804

–874

–121

–142

–1 173

–1 020

–829

–573

–393

–257

Other reinsurance expenses

–878

–1 545

–735

–1 320

–120

–200

–5

–5

–2

 

–15

–21

–1

1

 

 

Total expenses from reinsurance business

–19 016

–17 717

–5 198

–4 840

–2 482

–3 462

–3 128

–2 657

–579

–427

–3 930

–3 623

–2 599

–1 913

–1 100

–795

Investment income

3 246

2 777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment expenses

–317

–466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment result

2 929

2 311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment result from unit-linked life insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial income

2 300

1 356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial expenses

–2 559

–1 539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating result

2 514

2 142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expenses on debt and subordinated liabilities

–408

–421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

73

82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses

–552

–416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary income and expenses

–226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

1 401

1 387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

–192

–156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

1 209

1 231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reinsurance result

The Property & Casualty Reinsurance result increased in 2018. The current year experienced a modest Property & Casualty Reinsurance result impacted by several new large natural-catastrophe losses in Asia and the Americas and by man-made losses compared to an exceptionally large loss burden in 2017. The Life & Health Reinsurance result deteriorated, mainly due to day-one impacts originating from several new large transactions as well as unfavourable reserves development, predominantly in Israel. In addition, the Life & Health Reinsurance result was affected by restructurings of intra-group retrocession agreements with Swiss Re Life & Health America Inc, leading to a net gain of CHF 643 million and with Swiss Re Asia Pte. Ltd. generating a loss of CHF 297 million.

Premiums earned decreased from CHF 17 421 million in 2017 to CHF 15 798 million in 2018. The decrease was primarily driven by the restructuring of several intra-group retrocession agreements with US-affiliated companies. In addition, the decrease was driven by the non-renewal of a large quota share treaty with an external US client in property and casualty, partly offset by higher assumed life and health Canadian business, new Life Capital business as well as continued growth in Asia.

Other reinsurance revenues increased from CHF 1 439 million in 2017 to CHF 1 933 million in 2018, mainly driven by the gain from the recapture of the Swiss Re Life & Health America Inc intra-group retrocession agreements.

Claims incurred decreased from CHF 13 098 million in 2017 to CHF 11 789 million in 2018, mostly reflecting the large natural catastrophes in 2017. The comparison of the individual claims line items is affected by large intra-group restructurings as well as new large life and health transactions, creating substantial changes year-over-year. In aggregate, these various movements fully offset each other.

Property and casualty claims paid and claims adjustment expenses net increased from CHF 3 922 million in 2017 to CHF 7 317 million in 2018, reflecting the new intra-group retrocession agreement with Swiss Re Asia Pte. Ltd. established in 2017, fully offset in change in unpaid claims. Property and casualty change in unpaid claims net decreased from an expense of CHF 5 393 million in 2017 to an income of CHF 793 million in 2018 due to the quota share reduction of the intra-group retrocession agreement with Swiss Re America Corporation and the settlement of outstanding claims to Swiss Re Asia Pte. Ltd. related to 2017 intra-group retrocession agreements as well as the settlement of large losses reported in 2017.

While as a consequence of property and casualty losses in 2017, driven by the large natural-catastrophe events, the equalisation provision was reduced by CHF 1 323 million, no release was necessary in 2018.

Life and health claims paid and claims adjustment expenses net and change in unpaid claims net decreased from CHF 8 598 million in 2017 to CHF 6 818 million in 2018, driven by several intra-group retrocession agreement restructurings, in 2018 the recapture from Swiss Re Life & Health America Inc and in 2017 the new agreement with Swiss Re Life Capital Reinsurance Ltd, as well as by large transactions in both years. These aforementioned restructurings and large transactions impacts were fully offset in life and health benefits net. Furthermore, claims paid and claims adjustment expenses net and change in unpaid claims net movements were mainly driven by Swiss Re Life Capital Reinsurance Ltd intra-group retrocession agreements for the Canadian business, as well as for the new Life Capital business.

Life and health benefits net decreased from a gain of CHF 3 492 million in 2017 to a gain of CHF 1 554 million in 2018, mainly driven by several intra-group retrocession restructurings, in 2018 the recapture with Swiss Re Life & Health America Inc and in 2017 the new agreement with Swiss Re Life Capital Reinsurance Ltd, as well as large transactions in both years. These aforementioned restructurings and large transactions impacts were fully offset in life and health claims paid and claims adjustment expenses net and change in unpaid claims net. In addition, 2018 was negatively impacted in line with the volume update and new business in Asia, mainly in Japan, as well as reserve strengthening in Israel.

Acquisition costs net decreased from CHF 4 333 million in 2017 to CHF 3 664 million in 2018, mainly in property and casualty, in line with the premium development. This was driven by the quota share reduction of the intra-group retrocession agreement from Swiss Reinsurance America Corporation and the non-renewal of a large quota share treaty with an external US client, partly offset by the new volume from the intra-group retrocession agreement with Swiss Re Asia Pte. Ltd.

Other reinsurance expenses increased from CHF 878 million in 2017 to CHF 1 545 million in 2018, reflecting the day-one losses from the new life and health intra-group retrocession from Swiss Re Asia Pte. Ltd. and from large transactions retroceded from Swiss Re Life & Health Australia Limited.

Investment result

Investment income decreased from CHF 3 246 million in 2017 to CHF 2 777 million in 2018. The decrease was driven by lower distributions from investment funds of CHF 153 million and lower realised gains on equity securities of CHF 120 million compared to the prior year. Furthermore, the introduction of the new accounting policy to account fixed-income securities at amortised cost resulted in a one-off value readjustment in 2017 of CHF 227 million.

In 2018, SRZ received less income from subsidiaries and affiliated companies by CHF 536 million. This decrease was offset by a one-off realised gain on investments in subsidiaries and affiliated companies of CHF 563 million, mostly related to the sale of Swiss Re Australia Ltd.

Investment expenses increased from CHF 317 million in 2017 to CHF 466 million in 2018. The increase was mainly related to higher value adjustments on equity securities and shares in investment funds, driven by market deteriorations in 2018.

Investment result

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CHF millions

Income

Value readjustments

Realised gains

2018 total

Investment income

 

 

 

 

Investments in subsidiaries and affiliated companies

441

 

563

1 004

Fixed-income securities

521

 

208

729

Loans

278

 

 

278

Mortgages

5

 

 

5

Equity securities

28

4

53

85

Shares in investment funds

420

 

42

462

Short-term investments

20

 

 

20

Alternative investments

51

10

2

63

Other investments

491

10

44

545

Income from investment services

131

 

 

131

Investment income

1 895

14

868

2 777

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CHF millions

Expenses

Value adjustments

Realised losses

2018 total

Investment expenses

 

 

 

 

Investments in subsidiaries and affiliated companies

 

–41

 

–41

Fixed-income securities

 

–6

–50

–56

Loans

 

 

 

0

Equity securities

 

–110

–12

–122

Shares in investment funds

 

–36

–14

–50

Short-term investments

 

 

–1

–1

Alternative investments

 

–22

 

–22

Other investments

 

–58

–15

–73

Investment management expenses

–174

 

 

–174

Investment expenses

–174

–215

–77

–466

 

 

 

 

 

Allocated investment return

 

 

 

–397

Investment result

 

 

 

1 914

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CHF millions

Income

Value readjustments

Realised gains

2017 total

Investment income

 

 

 

 

Investments in subsidiaries and affiliated companies

978

 

 

978

Fixed-income securities

515

226

162

903

Loans

216

 

 

216

Mortgages

5

 

 

5

Equity securities

20

9

173

202

Shares in investment funds

573

63

88

724

Short-term investments

18

 

 

18

Alternative investments

39

19

 

58

Other investments

630

82

88

800

Income from investment services

142

 

 

142

Investment income

2 506

317

423

3 246

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CHF millions

Expenses

Value adjustments

Realised losses

2017 total

Investment expenses

 

 

 

 

Investments in subsidiaries and affiliated companies

 

 

 

0

Fixed-income securities

 

 

–66

–66

Loans

 

–7

 

–7

Equity securities

 

–19

–9

–28

Shares in investment funds

 

–7

 

–7

Short-term investments

 

 

–2

–2

Alternative investments

 

–11

 

–11

Other investments

 

–18

–2

–20

Investment management expenses

–196

 

 

–196

Investment expenses

–196

–44

–77

–317

 

 

 

 

 

Allocated investment return

 

 

 

–383

Investment result

 

 

 

2 546