1. Annual report, annual and consolidated financial statements for the 2009 financial year
2. Allocation of disposable profit
3. Discharge of the members of the Board of Directors
4. Creation of conditional capital for employee participation
5. Other amendments of the Articles of Association
6. Elections

Martin Bisping, Head of Non-Life Risk Transformation and Jean-Louis Monnier, Head of ILS Europe provided a group of London-based journalists with a summary of the ILS year 2009 and a brief outlook into 2010.

Swiss Re anticipates offering these kind of media updates once or twice a year in different geographic locations, depending on ILS market developments and Swiss Re activity in the ILS space.

Cycle management & portfolio steering

Coffee break

Risk management

News Release

Welcome and introduction


Emerging from the crisis - lessons learned and the outlook for global insurance
Thomas Hess, Chief Economist and Global Head of Economic Research & Consulting
    

Emerging markets - leading global insurance recovery
Clarence Wong, Chief Economist Asia and Head of Economic Research & Consulting Asia
    

Natural Catastrophe Insurance – Aspects of a Growing Business
Matthias Weber, Member of the Executive Board and Head of Property and Specialty
    

Q&A session

Presenters
    

Stefan Lippe
Chief Executive Officer
    

George Quinn
Chief Financial Officer

Questions & answers

News Release

Hotel Fairmont
12 Avenue des Spélugues
MC 98000 Monaco

Presentations have been given by 

• Stefan Lippe, CEO
• Michel Liès, Head of Client Markets 
• Martin Bisping, Head of Non-Life Risk Transformation

Press Release

sigma Press Release

Presentation have been given by Swiss Re’s Chief Risk Officer, Raj Singh, and David Bresch, Swiss Re’s Head of Sustainability and Emerging Risks.

1. Annual Report, annual and consolidated financial statements for the 2008 financial year

2. Appropriation of the results

3. Discharge of the Board of Directors and the Executive Committee

4. Capital increases

5. Elections

News Release

Please find the Annual Report as well as any other documents relating to our annual results 2008 on the Financial Informations page.

Welcome and introduction 

Thomas Hess,
Chief Economist and Head of Swiss Re Economic Research & Consulting

From subprime crisis to global recession 

Kurt E. Karl,
Chief US Economist and Head of Swiss Re Economic Research & Consulting North America

How the financial market turbulence affects insurance and reinsurance

Thomas Hess

The emerging markets perspective 

Clarence Wong,
Chief Economist Asia and Head of Swiss Re Economic Research & Consulting Asia

Q & A 

News Release

Christian Mumenthaler, Head of Life & Health Swiss Re, has provided an overview of the history of Life & Health at Swiss Re, the company‘s strategy in this field, innovative products in response to changing demographies and the challenges ahead.

George Quinn, Chief Financial Officer Swiss Re, has given an update on Swiss Re's investments and its financial market exposures in the light of the unprecedented developments in the global financial markets.

Hotel Fairmont
12 Avenue des Spélugues
MC 98000 Monaco

Presentations have been given by Jacques Aigrain, CEO and Michel Liès, Head of Client Markets.

News Release

Photos from the media conference are available after the conference on www.photopress.ch free of charge

The group advised the reporters on the conference call that the U.S. is likely already in a moderate recession. In addition, non-life premiums are declining along with prices, while life premiums continue to increase, albeit at a slower pace. 

U.S. Economy

Kurt Karl provided an overview of the U.S. economy, noting that he expected the recession to last until late 2008 or early 2009, but not to be too severe.  Given the weak economy, he indicated the Fed is unlikely to raise rates until next year.

“The number of housing starts was less than 1.1 million the last 3 months which is consistent with the economy being in recession”, said Karl. 

Karl also noted:

• Inflation is expected to decline next year
• The yield on the 10 year T-note will rise to 4.5% next year
• Market volatility will continue into 2009
• Investment yields are likely to be low for insurers

P&C Insurance Industry

Thomas Holzeu said that rates in the U.S. property and casualty insurance industry will continue to decline through 2009.  He said that weather related natural catastrophes are assumed to increase to historic averages, resulting in higher combined ratios this year and next.

“Disciplined underwriting, protecting earnings and capital management are necessary for insurers to weather this soft market cycle”, said Holzheu.

L&H Insurance Industry

The growth in premiums in the U.S. life and health insurance industry is likely to slow to 4.6% in 2008, according to Milka Kirova.  A weakening in new business and higher surrenders have slowed growth, which is expected to rebound once the economy improves. 

“The fundamentals are solid in the life and health insurance industry”, said Kirova.  “Product demand going forward will be driven by changes in consumers’ financial needs as they transition from the accumulation phase to the distribution phase of their lifecycle.”

1. Annual Report, Annual and Consolidated Financial Statements for the 2007 Financial Year
2. Allocation of Disposable Profit
3. Discharge of the Board of Directors and the Executive Committee
4. Cancellation of Shares Bought Back and Reduction of Share Capital
5. Further Amendments to the Articles of Association
6. Elections

News Release

Location

Mythenquai 50/60
8022 Zurich
Switzerland

News Release

Swiss Re’s Chief Economist today said the economy is heading for a soft landing, while Thomas Holzheu, also with Swiss Re's Economic Research & Consulting, said insurance markets are bracing for a general softening. The comments of Kurt Karl and Thomas Holzheu came at the company’s Mid-year Economic and Insurance Industry Webcast.

Karl said it is increasingly likely the Fed has engineered a soft landing due to moderate economic growth and falling inflation. He said it is unclear if the Fed will cut rates due to the stickiness of the unemployment rate.

“However, I’m still thinking the Fed may cut rates because inflation is falling,” said Karl. “In order to maintain the neutral monetary policy it would have to cut rates.”

Karl also noted:

• The risk of a recession is about 30% due to the inverted yield curve and weak growth.
• Growth should accelerate in the second half of 2007 as housing markets stabilize.
• The global economy is doing well. Europe, Asia, Japan and emerging markets are all in very good shape.

Holzheu said U.S. property & casualty insurance industry benefited from an unusually mild catastrophe season in the first quarter of 2007, following a quiet 2006. He said the general expectation is that the ‘07 hurricane season would be above average from what was experienced in the last couple of years.

Holzheu noted the capital strength of the insurance industry is growing due to profitability, resulting in a slow growth environment going forward.

“We should see a continuation in moderating or softening pricing and this will spread more into property lines,” said Holzheu. “Competition will increase due to factors such as the state of Florida taking on more natural catastrophe risk.”

Among Holzheu’s observations:

• Strong underwriting fundamentals helped push the industry’s return on equity to 14.6% in 2006, a marked improvement over 2005’s RoE of 11.4%.
• Rate adequacy is still good in most segments and terms and conditions are holding firm.
• Insurers’ overall investment yields are down, particularly in the area of capital gains, and overall investment yields will be insufficient to offset softening pricing.

News Release

1. Annual Report, Annual and Consolidated Financial Statements for the 2006 Financial Year
2. Allocation of Disposable Profit
3. Discharge of the Board of Directors and the Executive Committee
4. Changes to the Capital Structure and Share Buy-back Programme
5. Election

News Release

The day was divided into two events: one for media and one for Swiss Re clients. Four speakers shared their insights on the economy, insurance markets and an economic view of terrorism risk.

Kurt Karl, Chief Economist, said the US economy is heading toward a soft landing and described the characteristics of a "soft landing" as slower growth and lower inflation.

As for consumer spending, Karl noted: "You get the same answer every year: it’s going to be a good holiday season. Consumption has moved down only a bit and income is finally coming back. With oil prices stabilizing we’re seeing a big jump in consumers’ after-inflation income."

Karl added that for those looking forward to 2008, it will be the good year for oil prices. He explained that supply will increase dramatically by then and demand will not grow as much, so prices will fall.

Pierre Ozendo, member of the Executive Board, Chariman & CEO, Swiss Re America Corporation, Head of Americas Division, said the US Property & Casualty industry is having a healthy year, has met its obligations through what he described as “debilitating” losses in 2004 and 2005, and is now realizing the benefits of a year of very modest natural catastrophes and continued underwriting discipline.

Ozendo added that there is a growing convergence between insurance markets and capital markets as innovators look for alternative ways to take risk to the capital markets. He noted that insurance-linked securities continue to grow in popularity, with USD 23 billion in transactions outstanding.

He said rate adequacy was holding in all major lines and terms and conditions are holding firm because the industry is generally exhibiting discipline. All of this, he said, portends good opportunities for growth and profitability.

Donna Kinnaird, Head of Swiss Re North America's Life & Health business, gave her perspective on trends in Life & Health insurance, noting a general shift in demand from mortality protection to asset accumulation. She added that as a result of this shift in demand prices on mortality protection products are becoming more competitive.

Kinnaird also recognized an uptick in innovation in the Life & Health industry, noting that as 401k funds are moved from institutional to retail accounts, the industry is responding by releasing more innovative retirement protection products.

As for the future, Kinnaird says Swiss Re predicts a continued decrease in cession rates and continued product development.

“We will continue to assist clients with securitization and look for acquisition opportunities with in-force books,” she said.

Roger Ferguson, Head of Swiss Re Financial Services, offered an economist’s view of terrorism risk. A former Fed Vice Chairman, Ferguson noted that the insurance industry has historically overcome imperfections, but terrorism is an exception. He noted information on terrorism is inconsistent and “asymmetrical”. Without proper information, he said, insurers cannot adequately accommodate terrorism risk in a vacuum.

Ferguson advocated for a permanent federal backstop, which he said would reduce the risk of market disruption and the gains of terrorism.

"An explicit government terrorism risk backstop offers numerous advantages," he said. "It reduces ambiguity both pre- and post-event and enhances transparency by making it clear who will pay how much for what, should an event occur. This clarity makes it easier for insurers to price risks and strengthens the incentives to purchase terrorism insurance and mitigate risks."

10:15 AM: Registration and Coffee

10:45 AM: Welcome and introduction: Risks and trends for the insurance industry, Roger W. Ferguson

10:50 AM: Review 2006 and outlook 2007, Thomas Hess

11:10 AM: Insurance Linked Securities: Market, players and trends, Phil Lotz

11:25 AM: Benefits of public-private insurance solutions for emerging markets, Roger W. Ferguson

Underwriting for profit - managing the cycle at its peak

For the second successive year Swiss Re hosted its media briefing at the annual Rendez-vous de Monte Carlo. At the event, held at the Hotel Hermitage on the 13 September, Thomas Hess, Chief Economist, presented on the status-quo of the reinsurance market while John Coomber, CEO, showed that risk is a growth business for the industry and particularly for Swiss Re.

Thomas Hess started the presentation with a look back at the years 2001-2003 and the effect of the soft market and stock market crash. While he described these as difficult years for insurers, he reiterated that the industry has in the meantime made significant progress and that especially reinsurance remains an attractive business, growing at rates faster than GDP. In fact, reinsurance premiums grew by more than 60% in USD terms between 2000 and 2004.

John Coomber explained how Swiss Re will continue to benefit from this growth market and steer capacity towards solid returns in the respective lines of business and geographical locations. Since 1994 Swiss Re has produced annual growth rates of 12%, outperforming the market by an average of 5% per year.

At the media briefing John Coomber presented to the media the underwriting tools developed by Swiss Re to achieve attractive returns in each line of business. He described the various underwriting tracking tools and systems that lead to efficient capacity steering for product prioritisation.

In summary he pointed out that the cycle will be less pronounced than in the past and that generally pricing levels will stay attractive.

The media briefing was attended by 30 journalists. The briefing also saw the attendance of a number of Swiss Re managers present at Monte Carlo.

10.30 AM: Registration and coffee

11.00 AM: Credit (re)insurance – how does the insurance industry transfer credit risk?

11.20 AM: Credit solutions for the insurance market and for the capital market

11.40 AM: Outlook for the credit (re)insurance market

12.00 AM: Q&A session

12.30 AM: Close

Swiss Re’s Chief Economist today said that inflation concerns will cause the Fed to raise the federal funds rate to 5.5 percent. Additionally, at the company’s Mid-year Economic and Insurance Industry teleconference, Swiss Re’s Senior Economist, Thomas Holzheu, asserted that despite record losses, the insurance industry posted solid profits in 2005.

“The Fed will most likely raise rates this week and again in August by 25 basis points because inflation indicators are rising,” said Kurt Karl, Chief Economist, Swiss Re. “There is a chance that we will get 50 basis points this week, with a clear indication of the end of tightening for now.”

Karl also noted:

• Inflation is rising — core CPI inflation was 2.4 percent year-over-year in May, up from 2.1 percent in March, and it will probably rise further. Accelerating wage gains, rising capacity utilization, a weak dollar and high oil prices are all contributing to higher inflation.
• Economic growth is slowing, but not dramatically, and real GDP growth should be close to 3 percent in the second half of this year and next year, about where the Fed would like to see it.
• Next year, if growth is close to 3 percent and core inflation eases back to 2 percent, as expected, the Fed will likely ease, lowering the federal funds rate back to 5 percent.
• The yield on the 10-year Treasury note should remain close to the fed funds rate – there is still a lot of liquidity in the world and this will keep the yield curve flat. An inversion of fed funds and 10-year T-note is possible, but should be temporary because the economy is in solid shape.

Regarding the property and casualty insurance business, Thomas Holzheu, Swiss Re’s senior economist for that business sector, said, “2005 was dominated by record losses from hurricanes Katrina, Rita, and Wilma. Nevertheless, the industry showed resilience. Underwriting discipline and the benefits of reinsurance preserved the industry’s surplus and profitability. Going forward, the realization of higher catastrophe exposures increases capital requirements and property premium rates."

Among Holzheu’s observations:

• Insurers and reinsurers worldwide bore a record USD 83 billion of total insured property cat losses, with Hurricane Katrina alone estimated at USD 45 billion. US P&C insurers are expected to pay USD 58 billion losses for last year’s natural catastrophes.
• Despite the unprecedented cat losses, the 2005 combined ratio was 101 percent and is expected to improve in 2006.
• The industry’s ROE for 2005 was 11.6 percent; for 2006, the ROE is likely to be around 11 percent .
• In the aftermath of the hurricane season, the pace of premium growth is likely to pick up slightly as commercial property prices firm.

News Release

The day's presentations began with a macroeconomic view of the economy from Swiss Re Chief Economist Kurt Karl. The Economic Research & Consulting North America Head said that inflationary pressures are rising and Katrina has aggravated them. He added that in this climate, the US Federal Reserve is likely to continue tightening, raising the Fed funds rate to 5% by mid-2006. Karl also stated that the growth outlook seems solid, and the US economy has weathered the storm of post-Katrina uncertainty.

The Property & Casualty business came next, with an appraisal by Patrick Mailloux, President and CEO, Swiss Re America Corporation. Mailloux outlined the business impact of the 2005 hurricanes as well as their future implications on several aspects of the P&C market. He predicted a stronger demand for reinsurance in the coming year. "A flight to quality will favor large and diversified players," he added.

Americas Catastrophe and Perils Unit Head Andrew Castaldi examined the four largest storms that impacted the US Gulf Coast states and Florida in 2005. The insurance industry, he noted, has the ability to cope with record-setting catastrophes. Castaldi also analyzed modeling strengths and weaknesses, saying most tools are being recalibrated upward, and/or will take into account long term oscillations.

The year-end event concluded with an overview of the US Life and Health reinsurance market from Swiss Re Life & Health America CEO Weldon Wilson. The Swiss Re executive pointed out that the past decade's growth in the life reinsurance cessions was under pressure as clients changed their product mix and increased their retention.

"Mortality expertise and capital management skills are important qualities we can provide to our clients.," Wilson said. "In particular, the securitization of the life business will advance in the next 12 months and life reinsurers will play an integral role in this process."

Outgoing Americas Property & Casualty Head Andreas Beerli hosted this year's event and introduced Pierre Ozendo, his designated successor as of January 1, 2006. As the current Head of Swiss Re's P&C operations in Asia, Ozendo has played a key role in growing the business in that emerging region of the world. Beerli is stepping down from his current role to become Chief Operating Officer of Swiss Re Group on January 1, 2006.

10.30 am Coffee

11.00 am: Welcome and introduction

Michel M. Liès

11.10 am: Global insurance

Thomas Hess
Review 2005 and outlook 2006

11.35 am: Insurance stocks

Stephan L. Christiansen
Review 2005 and outlook 2006

12.00 pm Q & A session



News Release

News Release

Swiss Re also presented new risk mitigation products relating to weather risks which are relevant to the Scandinavian markets.

This media briefing was part of an industry conference organised by Swiss Re, which took place in Copenhagen on 30 - 31 August 2005.

Welcome and presentation of Swiss Re, introductory facts: Ludger Arnoldussen

NatCat/wind storms in the Nordic context: David Bresch

Risk mitigation products relating to weather risks: Christopher Walker

Programme 

Motor insurance accounts for about EUR 100 billion in premium volume, making it the main European non-life insurance line. Therein lies one reason why Swiss Re should monitor motor insurance closely. There is also another reason: Swiss Re Germany has, at 35% of its overall premium volume, the highest share of motor insurance premiums of any reinsurer. 1.2 million people die in traffic accidents every year, 50 million sustain serious injuries and property damage costs amount to USD 518 billion. That makes it a risk that urgently needs to be addressed.

Swiss Re’s chief economist said that with an expected modest rise in inflation accompanied by firm economic growth, the Federal Reserve will continue to raise interest rates, pushing the federal funds rate to 4.5 percent by the middle of next year.

Additionally, at the company’s Mid-year Economic and Insurance Industry Teleconference, it was noted that rising interest rates will dampen investment returns, necessitating continued underwriting discipline for insurers to remain profitable.

“The Fed is moving at a measured pace, and we expect a 25 basis point hike after six of the next eight Federal Open Market Committee meetings,” said Kurt Karl, Swiss Re’s chief economist in North America. “We also expect consumption and business investment to remain engines of growth, though this will be constrained by rising interest rates and higher oil prices. The greatest risk to this outlook stems from higher oil prices — if they hit $80 per barrel, we could see a mild recession.”

Regarding the property and casualty insurance business, Thomas Holzheu, Swiss Re’s senior economist for that business sector said, “We’ve seen a significant improvement in underwriting, and believe that profitable underwriting conditions will continue through 2005 in most areas. We foresee moderate growth for the industry on the whole.”

Among the observations made by the economists:

• On June 30, the FOMC is highly likely to raise interest rates by 25 basis points, followed by 25 basis points for the next three FOMC meetings
• Economic growth will likely be sustained through 2006
• The yield on the 10-year Treasury note is projected to rise to 4.6 percent - 5.1 percent by the end of 2005, and near 5.5 percent by the end of 2006, as the economy remains strong, inflation ticks up and the Fed continues raising rates
• The biggest risk to growth still remains rising oil prices
• Assuming average catastrophe losses for the balance of 2005, combined ratios should be slightly lower than last year’s
• Improved underwriting results and investment results will fuel further earnings growth in 2005.

10.30 AM Registration and coffee

11.00 AM Insurance-linked securities: an introduction

11.15 AM Insurance-linked securities: the “European” context

11.30 AM Weather derivatives: an introduction

11.45 AM Weather derivatives in Europe and Asia

12.00 AM Q & A session

News Release

Andreas Beerli, Head of Swiss Re’s Property & Casualty business in the Americas, speaking on December 14 at Swiss Re’s annual year-end economic and insurance industry review and outlook, asserted that property & casualty reinsurance industry remains strong.

“Profitability has improved primarily through smart, technically-sound underwriting,“ said Beerli at the gathering, held at the company’s New York offices.

“Still, the industry faces challenges in 2005, including the extension of the Terrorism Risk Insurance Act (TRIA),” said Beerli.” Working closely with policyholders, our industry has urged Congress to pass a two-year extension of TRIA through 2007. This will allow time for both to study and consider a more long-term approach to this very important issue.”

Beerli was among several Swiss Re executives at the event who discussed the state of both the property & casualty reinsurance industry, the 2004 hurricane season and the overall US economy.

Patrick Mailloux, Head, US Direct, for the Americas Division, added, “Industry-wide, capital position is improving but capacity constraints persist, and the hurricane losses from 2004 offset some of the recent efforts in rebuilding capital. Casualty rates remain strong, while property rates have moderated at high levels.

“Underwriting remains disciplined,” he added.

In describing the four major hurricanes which hit Florida and other portions of the Southeastern United States, Andrew Castaldi, Head of Catastrophe Perils for the Americas Division, said, “Neither the annual losses nor the clustering of events associated with the 2004 season are surprising. They underscore the need for proper evaluation and risk assessment techniques.”

Giving a broad overview of the US economy, Kurt Karl, Chief US Economist, Swiss Re Economic Research & Consulting, North America, said, “Long term interest rates are expected to rise next year, with the yield on the 10-year Treasury note expected to rise slightly above 5 percent. The price of oil poses the greatest risk to this outlook. If oil prices rise to USD 60 per barrel next year, growth will be 0.5 percent lower.”

In the life & health insurance arena, Weldon Wilson, CEO of Swiss Re Life & Health America Inc., said the demographic shift to older age life insurance purchasers will continue to challenge the industry, and that prices for popular level term products should increase.

Commenting on the life & health insurance market in general, he added, "The continued pressure for capital efficiency and earnings will result in additional consolidations in the market."

This year's event included presentations by John Fitzpatrick, Head of Swiss Re Life & Health Business Group, Thomas Hess, Chief Economist and Head of Swiss Re Economic Research & Consulting and Bob Yates, Global Head of Research Fox-Pitt, Kelton.

Swiss Re's Economic Research and Consulting team are the authors of the independent and internationally renowned sigma series of publications.

10.30 am Coffee

11.00 am: Welcome and introduction

John Fitzpatrick

11.15 am: Global insurance

Thomas Hess
Review 2004 and outlook 2005

11.40 am: Insurance stocks

William Hawkins
Review 2004 and outlook 2005

12.05 pm Q & A session

The market for greenhouse gas emissions is taking off. As of January 2005, the European Union will introduce one of the most far-reaching environmental policies, with the launch of an emissions trading scheme. With the Russian Government signing the Kyoto Protocol, the agreement will soon be coming into effect.

This year’s fifth Green House Gas conference organised by Swiss Re focused on the role of the financial industry in this market for greenhouse gas emissions and renewable energy. Speakers and panel discussion members included specialists from various fields of the finance industry: insurance, banking, pension funds, regulatory bodies and international organisations such as the World Bank.

The conference was held at the Swiss Re Centre for Global Dialogue, Gheisstrasse 37, 8803 Rüschlikon and continued the dialogue begun at the previous Swiss Re Greenhouse Gas Conferences in 2001–2003. It was co-organised with the International Emissions Trading Association (IETA), The Climate Group and ABN AMRO Bank, and was run in conjunction with the IETA Annual Gathering on 3–4 November that also took place in Rüschlikon.

Underwriting for profit - managing the cycle at its peak

For the second successive year Swiss Re hosted its media briefing at the annual Rendez-vous de Monte Carlo. At the event, held at the Hotel Hermitage on the 13 September, Thomas Hess, Chief Economist, presented on the status-quo of the reinsurance market while John Coomber, CEO, showed that risk is a growth business for the industry and particularly for Swiss Re.

Thomas Hess started the presentation with a look back at the years 2001-2003 and the effect of the soft market and stock market crash. While he described these as difficult years for insurers, he reiterated that the industry has in the meantime made significant progress and that especially reinsurance remains an attractive business, growing at rates faster than GDP. In fact, reinsurance premiums grew by more than 60% in USD terms between 2000 and 2004.

John Coomber explained how Swiss Re will continue to benefit from this growth market and steer capacity towards solid returns in the respective lines of business and geographical locations. Since 1994 Swiss Re has produced annual growth rates of 12%, outperforming the market by an average of 5% per year.

At the media briefing John Coomber presented to the media the underwriting tools developed by Swiss Re to achieve attractive returns in each line of business. He described the various underwriting tracking tools and systems that lead to efficient capacity steering for product prioritisation.

In summary he pointed out that the cycle will be less pronounced than in the past and that generally pricing levels will stay attractive.

The media briefing was attended by 30 journalists. The briefing also saw the attendance of a number of Swiss Re managers present at Monte Carlo.

Programme (London time) 

Swiss Re's chief economist Kurt Karl said that strong economic growth, coupled with a slight uptick in inflation, will force the Federal Reserve to raise the federal funds rate to close to 2 percent by the end of 2004.

Additionally, at the company's Mid-year Economic and Insurance Industry Teleconference, it was stated that a rising interest rate environment usually dampens investment results, straining insurance companies' capital base. This will tend to prolong the hard-market conditions through the end of 2005.

"We expect the next year to be good for corporate profits, good for job growth, but a challenging year for investors," said Kurt Karl, Swiss Re's chief economist in North America. "We also expect consumers to remain an engine of growth, but rising interest rates and a spike in commodity prices could dampen consumer spending power."

Regarding the property and casualty insurance business, Thomas Holzheu, Swiss Re's senior economist for that business sector said, "We've seen a significant improvement in underwriting, and believe the hard market will last through 2005.

"Additionally, we foresee moderate growth for the industry as a whole," he added. "With market conditions improving, we expect the rating agencies to follow the market by issuing more upgrades and fewer downgrades by the end of this year or beginning of next year."

Among some other observations made by the economists:

• On June 30, the Federal Open Market Committee is highly likely to raise interest rates by 25 basis points, followed by 25 basis points for the next 11 FOMC meeting
• A large spike in market interest rates, up to 6% for the 10-year Treasury note, is possible over next 12 months as the Fed raises rates
• 2005 could see quite high interest rates, particularly with large deficits
• Higher rates will improve investment results of insurance companies after 2005, but dampen GDP growth
• Credit conditions should continue to improve
• A sharp rise in core inflation is unlikely

Andreas Beerli
CEO, Americas Division
Introduction and opening remarks

Patrick Mailloux
Head, US Direct, Americas Division
The Future of the Hard Market

Kurt Karl
Senior Economist, Economic Research and Consulting
US Economic Review 2003/Outlook 2004

W. Weldon Wilson
CEO, Swiss Re Life & Health America Inc.
Life & Health Reinsurance in a Changing Climate

Michael Hallett
Vice President, Insurance Research, Fox-Pitt, Kelton
2004 Outlook for Insurance Stocks

10.30 am Coffee

11.00 am: Welcome and introduction

John Fitzpatrick

11.15 am: Global insurance

Thomas Hess
Review 2003 and outlook 2004

11.40 am: Insurance stocks

William Hawkins
Review 2003 and outlook 2004

12.05 pm Q & A session



The conference will analyse the exposure of industries to carbon, water and biodiversity risk and identify strategies to address those risks and the ensuing business opportunities. It will highlight, in particular, the need for European companies to take immediate action to review their current operational strategies in preparation for the introduction of CO2 trading within the EU in 2005.

In addition to experts from Swiss Re, who will announce its latest initiatives in this fast-growing area of business, and conference co-sponsor Forest Trends, a keynote speaker will discuss emerging issues for emissions reduction and provide the latest information on developing market mechanisms that can also help to meet the Millennium Development Goals set forth by the United Nations.

Under the motto: Back to Basic - Concentration on Core Insurance Business top representatives from business and science will discuss at the European Insurance Summit 2003 how best to solve outstanding problems of the insurance industry. The Summit will focus on a wide range of current developments including discussions on how to produce profits again, on impacts of the international wave of consolidation, concentration on one's core business and on how to handle the technical insurance business.

Some of the featured speakers are: Sergio Balbinot, Co-Chief Executive Officer, Generali Group; Henri de Castries, Chief Executive Officer, AXA Group; Leonhard Fischer, Chief Executive Officer, Winterthur Group; Rudolf Kellenberger, Deputy Chief Executive Officer, Swiss Re Group; Ewald Kist, Chief Executive Officer, ING Group; Lord Levene of Portsoken, Chairman, Lloyd's of London; James J. Schiro, Chief Executive Officer, Zurich Financial Services; Gary Schmalzriedt, Chief Executive Officer, ACE European Group; Anton von Rossum, Chief Executive Officer, Fortis; Wilhelm Zeller, Chairman of the Board of Directors, Hanover Re and Dr Werner Zedelius, Member of the Board of Management, Allianz Group.

At the Rendez-Vous de Septembre, the reinsurance industry's annual meeting in Monte Carlo, Swiss Re Chief Executive Officer John Coomber and Michel Liès, Head of Europe Division, spoke to representatives of the international media about the challenges and outlook for the industry.

In his introductory comments, John Coomber outlined how the industry is currently characterised by two trends: a low interest rate environment and a depleted capital situation that continues to be stretched despite the capital inflows into the market since 2001. Both situations demand that insurers and reinsurers put risk management and a strict underwriting approach at the top of their agenda to achieve attractive returns on the capital deployed.

At the same time, the regulatory environment is in a process of change as a heightened awareness of security issues prevails.

Looking into the future, Coomber believes that hard market conditions will persist in 2004 and that prospects for earnings growth remain favourable. An important feature for the long term will be to avoid a highly volatile industry pricing cycle. "I dislike seeing a 20 % rise in prices, followed by a 30% fall," he said.

The continuing hard market was a theme picked up by Michel Liès in his outlook on the 2003 / 2004 renewal season for Europe Division's Property & Casualty business. In the course of the last year, property business has seen an increase in rates and it is anticipated that this positive trend will continue. There are also signs of higher rates and better terms and conditions in casualty insurance, "but more improvement is still needed to achieve satisfactory results," he commented.

One sign of improving conditions overall is the continuing trend towards shifting business from a proportional to a non-proportional basis. Among other features, a disciplined underwriting approach will need to include capturing accumulation and separately pricing risks such as contingent business interruption and removing unlimited covers where they are not legally required. The exclusion or the separate pricing of exposures such as new asbestos and terrorism will also continue.

To keep up the improvements in conditions, the reinsurance industry will need to focus on ensuring transparency in conditions and adequate pricing.

Programme

News Release

Kurt Karl,
Chief Economist, Swiss Re Economic Research &
Consulting, North America

Thomas Holzheu,
Senior Economist, Swiss Re Economic Research &
Consulting, North America

News Release

The conference, dubbed "A new dawn for the insurance industry", features twenty experts from the international insurance and finance sectors sharing their insights and strategies for responding to the present challenges in the insurance industry.

The event is an established platform for the insurance industry and one of the most important industry conferences in Germany. It regularly gathers some 500 specialists from around the world.

Speakers from (re)insurance companies, brokers and industry are examining a broad range of topical issues including “A new awakening for the value chain” through “The capital market situation” to “The life assurance industry in crisis?”.

Among this year’s Swiss Re speakers are Thomas Hess, Head of Economic Research & Consulting, Swiss Re Group, and Prakash A. Shimpi, President & Chief Executive Officer, Swiss Re Financial Services Corporation.

In his speech entitled “Opportunities and challenges in the Asian insurance markets”, Thomas Hess discusses the state of play in the Asian markets, giving an overview of the current situation in the region's insurance industry, its potential for development and the strategic challenges facing insurers in Asia. In particular, he points out that the Asian market, presently valued at around USD 600 billion, continues to see substantial potential as life premium growth has remained strong and non-life growth been amongst the fastest.

Prakash A. Shimpi, President & Chief Executive Officer, Swiss Re Financial Services Corporation, focused his speech on "Capital and risk management as part of corporate strategy". In his convergence related speech, he looks at the following aspects in detail: "The quest for capital efficiency", "Taking a comprehensive view of risk and capital" and "A corporate finance view of risk management".