Swiss Re, a global leader in the reinsurance industry, has stated in its 2022 Annual Report that its operations are “well-positioned for the future” due to the company’s “extremely robust” financial position.
This report was released in advance of the reinsurer’s Annual General Meeting (AGM) on 12 April 2023, at which the company would propose an ordinary dividend of USD 6.40 per share for the 2022 fiscal year.
As Renato Fassbind and Susan L. Wagner will not be running for reelection, Swiss Re is also proposing to elect Vanessa Lau and Pia Tischhauser as new Board members for a one-year term at the AGM.
Swiss Re stated in its 2022 annual report that the company’s overall economic net worth (ENW) fell to $31.1 billion from the previous year’s $34.5 billion.
According to the report, factors such as the conflict in Ukraine, inflation reserve adjustments, the fall in global equity markets, a widening of credit spreads, increased natural catastrophe losses, revised internal pandemic risk models and inflation projections, and revised Life & Health Reinsurance assumptions all played a role in this outcome.
Somewhat offsetting this was a healthy EVM profit on new business, which was propelled by healthy margins in Life & Health Reinsurance and similarly robust new business performance in Property & Casualty Reinsurance and Corporate Solutions.
With a group-wide Swiss Solvency Test (SST) ratio of 294% as of 1 January 2023, Swiss Re stressed that its capital positions remain robust.
In addition, Swiss Re claims it has a “good business view” and will continue to pursue “profitable development prospects” in line with its capital management goals.
For this reason, it has recommended a dividend of USD 6.40, which is comparable to its payout of CHF 5.90 in 2022.
“Despite 2022’s challenges, our extremely strong capital position allows us to execute our obligation to the shareholders,” stated Swiss Re Chairman Sergio P. Ermotti. Our revised 2023 goals reflect our determination to increase profitability and build shareholder value, and we are optimistic about the future of our businesses.
Due to the impact of economic inflation on projected claims, Swiss Re’s P&C companies had a decrease in net income of $472 million for the full year 2022, down from $1.4 billion the year before, while major natural disaster losses of $2.7 billion surpassed estimates.
On the agenda for Swiss Re’s 2023 AGM is a proposal to re-elect Sergio P. Ermotti as Chairman and a member of the Board of Directors for a one-year term, in addition to the recommendations for the election of Lau and Tischhauser.
Other proposals include electing Jay Ralph to the Remuneration Committee and re-electing the current members of the Board of Directors for another year.
In addition, shareholders will cast an advisory vote on the 2022 Compensation Report and approve the Board of Directors’ and Group Executive Committee’s remuneration.
For his part, Ermotti said, “On behalf of my colleagues, I would like to thank Sue and Renato for their exceptional devotion and commitment to Swiss Re over many years” in response to Fassbind and Wagner’s decision to leave the Board. The strategic growth of our organization benefited greatly from their combined efforts. Their wisdom and leadership skills in governance will be much missed. The best of luck to them in whatever they do next