Swiss Re’s capital position remains very strong, with a Group SST ratio at 232% as of 1 January 2020, above its 220% target. Based on this and confidence in Swiss Re’s long-term capital generation, the Board of Directors will propose to the AGM an increased dividend of CHF 5.90 per share. The Board will also seek authorisation for a public share buyback programme of up to CHF 1 billion purchase value. In light of the recent volatility in the financial markets, the Board will evaluate the appropriateness of launching the share buyback programme in the second half of 2020.
Swiss Re’s 2019 Annual Report contains 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 controlled risk-taking and capital allocation decisions throughout a performance cycle.
Swiss Re reported a Total Contribution to ENW, or Group economic earnings, of USD 2.9 billion in 2019, including an EVM loss of USD 19 million for the year. The EVM loss reflected the impact of large natural catastrophe and man-made losses as well as proactive measures to address ongoing trends in US casualty business and an update to capital costs. These losses were partly offset by an excellent investment result, strong performance of Life & Health Reinsurance and an EVM profit on the agreement to sell ReAssure.
Swiss Re’s economic net worth (ENW) increased to USD 36.1 billion as of 31 December 2019 from USD 36.0 billion as of 31 December 2018. This was driven by the total contribution to ENW of USD 2.9 billion, partly offset by the USD 2.6 billion impact from dividend payments and the share buyback programme.
ENW per share increased to USD 124.33 (CHF 120.41) as of 31 December 2019 from USD 119.96 (CHF 118.20) as of 31 December 2018. ENW per share growth amounted to 8.2% in 2019, below the over-the-cycle target of 10%.