Zurich - Swiss Re confirms commitment to deliver long-term profitability
Four-pillar strategic framework builds on current successful strategy, enabling Swiss Re to move to the next stage of its transformation to be an agile capital allocator in insurance and associated asset risks
Strategic framework centres on systematic and fast allocation of capital into new and existing risks, as well as broadening and diversifying Swiss Re's client reach and optimising resources
It allows Swiss Re to actively differentiate itself in the industry and better positions it to achieve its new financial targets and deliver sustainable, long-term shareholder value
From 2016 the company targets a 700 basis point return on equity above risk free,10-year US government bonds, and to grow economic net worth per share by 10% per annum
Zurich - Swiss Re's share buy-back programme to begin on 12 November 2015
Swiss Re's share buy-back programme of up to CHF 1 billion will start on 12 November 2015. The programme, announced on 29 October 2015 and authorised by the Annual General Meeting on 21 April 2015, will run until 2 March 2016 at the latest.
Zurich - The USD 1.3 trillion disaster protection gap
Disaster risks are increasing but insurance hasn't kept pace: the estimated USD 1.3 trillion gap between insured and total losses remains stubbornly large, hampering a country's ability to recover
Governments are uniquely exposed as they typically shoulder the cost of relief and recovery and also pay for reconstruction of infrastructure
Uninsured losses following a catastrophe impact economic growth over several years, hampering a country's ability to bounce back
Innovative insurance solutions can help countries, cities and individuals preserve hard-won development gains, even in the face of major natural disasters and climate change but it's crucial to arrange them before disaster strikes
Governments increasingly use these solutions to manage their budgets and fiscal contingencies; successful examples can be found in many emerging markets as well as in OECD countries but more needs to be done
New York - Swiss Re Capital Markets underwrites transaction for AXA Global Life
Swiss Re Capital Markets has successfully led the issuance of EUR 285 million of insurance-linked securities by Benu Capital Limited ("Benu") on behalf of AXA Global Life, a wholly-owned subsidiary of AXA S.A. The securities cover excess mortality events in France, Japan and the United States. It is the largest excess mortality issuance since 2007
Zurich - Current high levels of financial repression create significant costs
Since the financial crisis, US savers alone have lost roughly USD 470 billion in interest income
Artificially low interest rates that go with financial repression lower incentives for policymakers to tackle much needed structural reforms in Europe
Other unintended consequences of financial repression include potential asset bubbles, crowding out long-term investors in otherwise functioning private markets, increasing economic inequality and the potential of higher inflation over the long-term besides distorting private capital markets
Swiss Re developed a Financial Repression Index, the first of its kind, measuring the extent of policymakers' actions. Swiss Re has also quantified the costs of interest rates being at artificially low levels for households and long-term investors
Financial repression describes official policies directing funds to markets that would otherwise go elsewhere and reduces diversification of funding sources to the economy, representing a risk for financial stability
Zurich - Swiss Re proposes to return CHF 2.5bn to shareholders via dividends
The Board of Directors proposes a 10.4% increase in regular dividend to CHF 4.25 per share and an additional special dividend of CHF 3.00 per share
Share buy-back programme of up to CHF 1 billion proposed
Trevor Manuel and Philip K. Ryan put forward for election as new members of the Board of Directors; Raymond Breu to step down
2014 EVM income of USD 5.2 billion, economic net worth USD 38.4 billion
At Swiss Re's upcoming Annual General Meeting (AGM) on 21 April 2015, the Board of Directors proposes a regular dividend of CHF 4.25 per share and an additional special dividend of CHF 3.00 per share. In addition, the Board of Directors proposes a public share buy-back programme of up to CHF 1 billion for future excess capital management measures. As Swiss Re has implemented the Swiss federal "Ordinance Against Excessive Compensation at Public Corporations", shareholders will cast a binding vote on compensation of the members of the Board of Directors and the Group Executive Committee at the 2015 AGM for the first time. The Board of Directors further proposes the election of Trevor Manuel and Philip K. Ryan as new non-executive and independent members. Swiss Re today publishes its 2014 Annual Report and the Economic Value Management (EVM) 2014 report.
Zurich - Swiss Re delivers strong 2014 net income of USD 3.5 billion
Group net income USD 3.5 billion, supported by strong underwriting performance and investment results
Property & Casualty Reinsurance USD 3.6 billion net income on strong underwriting, benign natural catastrophe losses and net reserve releases; combined ratio of 83.7%
Life & Health Reinsurance USD 462 million loss reflecting previously announced management actions on pre-2004 US life business and the unwinding of an asset funding structure; both enhancing future profitability
Corporate Solutions net income USD 319 million; profitable growth across all regions
Admin Re® net income USD 34 million; excellent gross cash generation of USD 945 million
High-quality portfolio maintained in January P&C renewals despite rate pressures
Board of Directors to propose CHF 4.25 regular dividend, CHF 3.00 special dividend per share and a public share buy-back programme of up to CHF 1.0 billion
Swiss Re on track to meet 2011–2015 financial targets; announces new financial targets commencing 2016
New York - Farmers Insurance Exchange renews USD 500m surplus note facility (Partner News Release)
Farmers Insurance Exchange ("Farmers") has successfully closed a USD 500 million contingent surplus loan note facility. This is the third time Farmers has put a facility in place which complements the capital structure of Farmers with bank and non-bank lenders participating in the transaction.
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