Reinsurance News

Swiss Re adjusts its financial reporting

28th April 2017 - Author: Steve Evans

Reinsurance firm Swiss Re is changing the way it reports its performance, adjusting the financial reporting it will deliver at the end of the first and third quarters of the year.

Swiss Re logoThe reinsurer said that by adjusting the “format and scope” of the financial information it reports at the end of the first and third quarters it aims to “promote a longer-term view of its performance.”

Starting in the upcoming Q1 2017 results, which are due May 4th, Swiss Re said that it will only provide information on “key financial data and business developments” at end of Q1 and Q3. The information will be provided in a news release only and full quarterly reports and investor presentations will not be given.

Conference calls with the media and with investors or analysts will still be held, providing a chance for deeper questioning and insights on the reinsurers performance.

Swiss Re intends to keep its first-half and full-year financial reporting the same as it has ever been, with a full financial report and investor presentation published.

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Swiss Re said that as well as key financial metrics, such as premiums, income, combined ratio and return on equity by business unit, the new Q1 and Q3 releases will also contain details on current strategy and business activities as well as any performance drivers.

The reasons for changing its reporting, effectively reducing information provided at the end of two quarters, are of course many.

Financial reporting is quite an overhead for large, global companies and while some may feel that Swiss Re’s performance becomes less transparent as a result, there are others (key shareholders and activist investors of course) that will point to this as an effort to make the financial reporting process more efficient and ultimately make the half and full-year results more meaningful.

With the reinsurance market following an annual cycle of renewals, pricing, seasonality etc, reporting less frequently could actually offer a more consistent (perhaps even accurate) view of performance.

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