Swiss Re holds Investors' Day in London today, with a focus on Asset Management
11 June 2010, London
Swiss Re's Investors' Day conference today provides insights into the company’s Asset Management function and the Swiss Solvency Test framework. The Group today also gives an update on its estimated claims from the earthquake in Chile.
Swiss Re expects the growth outlook for the reinsurance industry in the next decade to be moderate but stable. The company estimates the non-life industry will grow on average by 6.5% annually and the life and health industry to grow by 3.7%. According to Swiss Re, consolidation within the insurance sector will continue and capital remains an industry issue. Upcoming regulatory frameworks, such as the Swiss Solvency Test or Solvency II, are likely to influence (re)insurers’ returns in the years to come.
In his update on the Group’s business priorities, Stefan Lippe, Swiss Re’s Chief Executive Officer, comments: “Against the background of this market outlook, we will build further on what we are good at: delivering superior performance in (re)insurance, Admin Re® and Asset Management, while expanding our business in the areas of industrial risks insurance, longevity and emerging markets. Our mission is clear: we aim to be the leading player in the wholesale (re)insurance industry.”
David Blumer, Swiss Re’s Chief Investment Officer, explains how, in this changing environment, the company’s Asset Management will continue to contribute to the Group’s performance: “Swiss Re has a transparent, disciplined and flexible investment process in place, with investment decisions taken from a strict asset-liability-matching perspective. We will continue to optimise the investment portfolio with a clear allocation of risk capital and responsibilities.”
From the beginning of 2011, the Swiss Solvency Test capital requirements will become effective. George Quinn, Swiss Re’s Chief Financial Officer, comments: “From a capital management perspective, we are glad to see that capital measures are becoming more consistent and economic with the convergence of Swiss Re’s internal model, the Swiss Solvency Test and Solvency II.” He concludes: “Our experience in implementing the Swiss Solvency Test and our economic capital strength position us well to support our clients in preparing for Solvency II.”
Update on Chile earthquake estimate
Swiss Re expects its claims from the Chile earthquake, net of retrocession, to be approximately USD 630 million before tax. In its preliminary estimate of 10 March 2010, Swiss Re estimated own claims of around USD 500 million. The new estimate reflects more specific information from clients on actual damage to individual properties and businesses. The final cost remains subject to change.
Notes to editors
Analysts’ conference call (listen only)
Swiss Re will hold an analysts’ conference call (listen only) this afternoon at
2.00 pm (GMT). You are kindly requested to dial in 10 minutes prior to the start
using the following numbers:
|Switzerland:||+41 (0)44 800 9674|
|Germany:||+49 (0)69 9897 2623|
|France:||+33 (0)1 70 99 42 88|
|UK:||+44 (0)20 7138 0844|
|USA:||+1 212 444 0896|
|Australia:||+61(0)2 8223 9223|
The presentation slides are available on www.swissre.com.
Swiss Reinsurance Company Ltd
Swiss Re is a leading and highly diversified global reinsurer. The company operates through offices in more than 20 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company’s traditional reinsurance products and related services for property and casualty, as well as the life and health business are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Swiss Re is rated “A+“ by Standard & Poor’s, “A1” by Moody’s and “A” by A.M. Best.
Cautionary note on forward-looking statements
Certain statements and illustrations contained herein are forward-looking. These statements and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical fact or current fact. Forward-looking statements typically are identified by words or phrases such as “anticipate“, “assume“, “believe“, “continue“, “estimate“, “expect“, “foresee“, “intend“, “may increase“ and “may fluctuate“ and similar expressions or by future or conditional verbs such as “will“, “should“, “would“ and “could“. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause Swiss Re’s actual results, performance, achievements or prospects to be materially different from any future results, performance, achievements or prospects expressed or implied by such statements. Such factors include, among others:
- further instability affecting the global financial system and developments related thereto;
- changes in global economic conditions;
- Swiss Re’s ability to maintain sufficient liquidity and access to capital markets, including sufficient liquidity to cover potential recapture of reinsurance agreements, early calls of debt or debt-like arrangements and collateral calls under derivative contracts due to actual or perceived deterioration of Swiss Re’s financial strength;
- the effect of market conditions, including the global equity and credit markets, and the level and volatility of equity prices, interest rates, credit spreads, currency values and other market indices, on Swiss Re’s investment assets;
- changes in Swiss Re’s investment result as a result of changes in its investment policy or the changed composition of its investment assets, and the impact of the timing of any such changes relative to changes in market conditions;
- uncertainties in valuing credit default swaps and other credit-related instruments;
- possible inability to realise amounts on sales of securities on Swiss Re’s balance sheet equivalent to its mark-to-market values recorded for accounting purposes;
- the outcome of tax audits, the ability to realise tax loss carryforwards and the ability to realise deferred tax assets (including by reason of the mix of earnings in a jurisdiction or deemed change of control), which could negatively impact future earnings;
- the possibility that hedging arrangements may not be effective;
- the lowering or loss of one of the financial strength or other ratings of one or more companies in the Group;
- the cyclicality of the reinsurance industry;
- uncertainties in estimating reserves;
- the frequency, severity and development of insured claim events;
- acts of terrorism and acts of war;
- mortality and morbidity experience;
- policy renewal and lapse rates;
- extraordinary events affecting Swiss Re’s clients and other counterparties, such as bankruptcies, liquidations and other credit-related events;
- current, pending and future legislation and regulation affecting Swiss Re or its ceding companies, and regulatory or legal actions;
- changes in accounting standards;
- significant investments, acquisitions or dispositions, and any delays, unexpected costs or other issues experienced in connection with any such transactions, including, in the case of acquisitions, issues arising in connection with integrating acquired operations;
- changing levels of competition; and
- operational factors, including the efficacy of risk management and other internal procedures in managing the foregoing risks.
These factors are not exhaustive. Swiss Re operates in a continually changing environment and new risks emerge continually. Readers are cautioned not to place undue reliance on forward-looking statements. Swiss Re undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
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