Our Responsible Investing strategy

Asset-liability management (ALM) continues to be the foundation of our investment philosophy. To meet future claims and benefits, we invest the premiums generated by our underwriting activities in assets whose cash flows match the durations and currencies of our re/insurance liabilities. Therefore, we generally invest the majority of our portfolio in higher-quality fixed income securities with stable long-term returns. At the end of 2020, such investments accounted for 69% of our total assets under management1 (see graph below).

Overall investment portfolio

USD 125.7bn, as of 31 December 2020

Overall investment portfolio (pie chart)

1 Asset classes considered are government bonds, credit bonds, and mortgages and other loans

2 Includes equity securities, private equity, hedge funds and Principal Investments

Including ESG criteria along the investment process makes economic sense as it improves risk-adjusted return profiles and reduces downside risks, especially for long-term investors. Managing risks arising from climate change is another important part of our Responsible Investing approach, and comprises setting targets, taking actions, measuring and reporting.

Our Responsible Investing strategy relies on the three cornerstones Enhancement, Inclusion and Exclusion, of which Enhancement is the most meaningful for Swiss Re.

Swiss Re’s approach to responsible investing
Swiss Re’s approach to responsible investing (graphic)