Swiss Re Confirms Strategy, Targets; Plans Further Growth In Reinsurance

Reinsurer Swiss Re on Monday confirmed its strategy, targets and capital management priorities.

Source: Finanz Nachrichten | Published on November 25, 2019

At Investors' Day, the company noted that the Reinsurance Business Unit, which remains the core engine of profitability, is pursuing a targeted profitable growth strategy, with strong contribution from Transactions and Solutions.

Transactions, which contributed about 30% to the unit's economic profit in 2018, continue to be in demand as they can meet a range of client needs, such as greater capital efficiency or reduced earnings volatility. With Solutions, Swiss Re helps its clients to deliver on their strategic priorities, such as improving profitability, developing new products or increasing efficiency. The percentage of clients with whom Swiss Re partners on Solutions has grown from 15% to 25% in just two years.

Based on expected loss trends, pricing outlook and risk management, the Reinsurance unit is expanding its natural catastrophe franchise, while managing exposure in casualty reinsurance.

Swiss Re intends to further grow and diversify its natural catastrophe portfolio, with a positive effect on earnings. According to Swiss Re Institute, the natural catastrophe reinsurance market is forecast to grow to about $40 billion over the next four years from $30 billion now.

Corporate Solutions is focused on returning to profitability and leveraging its competitive advantages, while Life Capital is creating economic value through strong growth of iptiQ.

Swiss Re said its capital position remains very strong.

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said, ': 'We are winning an increasing proportion of reinsurance business through our capabilities in underwriting large transactions and providing innovative solutions. We are investing in research and technology to give us an edge in accessing growing risk pools, such as natural catastrophe, and drive forward our Corporate Solutions and Life Capital businesses.'