Managing our assets

Asset Management manages the assets that Swiss Re generates through its core businesses using a clear and robust asset-liability management framework.

Following 2009, a year of significant change, Asset Management utilized 2010 to cement the foundations established by previous initiatives. Besides making progress in the de-risking initiatives, Asset Management implemented a prudent top-down driven investment plan. Navigating the financial markets in 2010 with a low investment risk profile proved to be the right strategy given the bumpy road for risky asset classes through most of the year.

Asset Management also selectively extended external mandates to leading asset managers to manage specific corporate credit and equity portfolios. External mandates, including the initial credit and securitized mandates awarded in 2009, now comprises USD 31 billion in assets (22% of total assets), placed with a total of 15 external managers.

The rigorous asset-liability matching that Swiss Re follows requires a dedicated, expert in-house Rates team. Our team now manages more than half of Asset Management's investment portfolio in 19 currencies and works very closely with the Chief Investment Office which sets investment strategy, retains responsibility for overall portfolio steering and compliance with regulatory requirements.

Swiss Re also manages certain principle investments in-house, for example, Real Estate and direct investments. Additionally, through Swiss Re Private Equity Partners, it also offers private equity fund-of-fund-investments to like-minded institutional investors such as insurance companies and pension funds.