Swiss Re to propose regular dividend of CHF 5.90 per share, supported by strong economic earnings

Ad hoc announcement pursuant to Article 53 LR

  • Swiss Re maintains a very strong capital position; Group Swiss Solvency Test (SST) ratio of 223% as of 1 January 2022
  • Economic earnings[1] of USD 3.8 billion in 2021, compared with
    USD –434 million in 2020
  • Raymond K.F. Ch’ien will not stand for re-election to the Board of Directors; all other members are proposed for re-election for a one-year term
  • Board of Directors commits to reaching female representation at Board level of at least 30% by the 2023 AGM

Zurich, 17 March 2022 – Swiss Re today published its 2021 Annual Report, Sustainability Report and the agenda for the upcoming Annual General Meeting of shareholders (AGM) on 13 April 2022.

Consistent with its capital management priorities, Swiss Re continues to focus on ensuring superior capitalisation while offering attractive shareholder returns and deploying capital to profitable growth opportunities. The Group’s capital position remained very strong with a Group SST ratio of 223% as of 1 January 2022, comfortably in line with the 200–250% target range. Combined with a positive business outlook, Swiss Re’s Board of Directors decided to propose an unchanged regular dividend of CHF 5.90 per share.

Swiss Re’s Chairman Sergio P. Ermotti said: “In 2021, Swiss Re demonstrated the embedded earnings power of its business as the strategic actions we have implemented over the past years bear fruit. We are confident that we will continue this positive momentum going forward as we focus on improving profitability and creating value for our shareholders.“

Swiss Re achieves economic earnings of USD 3.8 billion in 2021
The improvement in Swiss Re’s profitability in 2021 is evident in the Group’s Economic Value Management (EVM) results. EVM is Swiss Re’s proprietary integrated economic valuation and steering framework, consistently measuring economic performance across all businesses. It allows Swiss Re to see the connection between risk-taking and value creation and provides a consistent framework to evaluate the outcome of capital allocation decisions throughout a performance cycle.

In 2021, Swiss Re achieved economic earnings of USD 3.8 billion, compared with
USD 434 million in 2020. The significant turnaround in economic profitability was driven by very strong underwriting performance in Property & Casualty Reinsurance (P&C Re) and Corporate Solutions, which delivered combined economic earnings of USD 4.3 billion.

While Life & Health Reinsurance (L&H Re) remained impacted by COVID-19 claims in 2021, the business nevertheless delivered positive economic earnings of USD 657 million. This result was primarily driven by excellent new business profits of USD 1.3 billion on the back of increased pricing and a strong transaction pipeline.

The Group’s EVM premiums and fees increased by 14.4% year on year to USD 67.1 billion in 2021. All businesses grew their top line, with L&H Re reporting the strongest growth at 18.3%.

Total economic net worth (ENW) increased to USD 35.4 billion as of 31 December 2021 from USD 33.7 billion as of 31 December 2020. ENW per share was USD 122.42 (CHF 111.53) as of 31 December 2021. ENW per share growth amounted to 10.7% in 2021, exceeding the target of 10% per annum.

The Group’s economic earnings, partially offset by increased capital deployment, fuelled an increase in the Group SST ratio from 215% as of 1 January 2021 to 223% as of 1 January 2022.

Publication of the 2021 Annual Report and Sustainability Report
Swiss Re today published its 2021 Annual Report “Partnering for Progress“, consisting of the Business Report and the Financial Report. The Business Report explores how Swiss Re has successfully created long-term shareholder value by applying its risk insights to accurately model and understand risks, building innovative risk partnerships and strengthening its core risk transfer business. The Financial Report includes the audited consolidated and statutory financial statements for 2021. Both the 2021 Annual Report and the Sustainability Report are available on Swiss Re’s website. In addition, the SRZ Annual Report 2020 is available here.

Swiss Re 2022 Annual General Meeting
To best protect the health of Swiss Re’s shareholders and employees, this year’s AGM will be held without the personal attendance of shareholders. Shareholders can exercise their voting rights in writing or electronically via the independent proxy.

Shareholders are also invited to attend a virtual shareholder information event, which will take place after the AGM and will be streamed live at 10:00 CEST on 13 April 2022. Details for the information event are available with the shareholder invitation to the AGM, through the Sherpany App or on the Swiss Re website.

In line with Swiss Re’s diversity, equity and inclusion strategy, the Board of Directors places a particular importance on increasing the proportion of women in leadership positions. Therefore, gender diversity plays a key role in all new Board appointments. At the 2022 AGM, to further underline this conviction, the Board of Directors will formally commit to increasing the female representation at Board level to at least 30% by the 2023 AGM.

The agenda for the 2022 AGM, published by the Board of Directors of Swiss Re Ltd, includes but is not limited to:

  • Proposal for a distribution of an ordinary dividend of CHF 5.90 per share for the 2021 financial year.
  • Proposal for the introduction of a 12-year tenure limit for all current and new Board members.
  • Proposal for the re-election of Sergio P. Ermotti as member and Chairman of the Board of Directors for a one-year term of office until completion of the next AGM.
  • Proposal for the re-election of the other members of the Board of Directors for a one-year term of office; in line with the newly proposed tenure limit, Raymond K.F. Ch’ien will not stand for re-election.
  • Proposal for the re-election of the members of the Compensation Committee and for the election of Deanna Ong as a new member of the Compensation Committee.
  • Approval of the compensation of the Board of Directors and the Group Executive Committee, as well as a consultative vote on the 2021 Compensation Report.

Swiss Re’s Chairman Sergio P. Ermotti said: “On behalf of my colleagues, I would like to thank Raymond K.F. Ch’ien for his great dedication and valuable contribution to Swiss Re over the last 14 years. He played a key role in shaping Swiss Re’s development, and we wish him all the best for his future.“

The invitation to Swiss Re Ltd’s 2022 AGM is available online here. Voting results will be published on the Group’s website shortly after the AGM.

 

[1] Equal to total contribution to economic net worth (ENW)

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