Although global reinsurance giant Swiss Re fell to a net loss in 2020 on the back of a significant COVID-19 impact, the underlying business results remained strong and the company is optimistic about the future.
Early this morning, Swiss Re published its 2020 Annual Report, Sustainability Report, and the agenda for its upcoming AGM on April 16th, 2021.
The reinsurer states that its capital position remained very strong throughout last year and as of January 1st, 2021, the Group Swiss Solvency Test (SST) ratio stood at 215%, which is within the target range of 200 – 250%.
In light of this robust capital position, the Swiss Re Board of Directors will propose a regular dividend of CHF 5.90 per share at the upcoming AGM.
“In 2020, Swiss Re again proved that its business model is robust and that it can fulfil its role as shock absorber for the insurance industry in times of crisis.
“The company has supported its clients through the extraordinary events of the COVID-19 pandemic, all the while maintaining a very strong capital position. Swiss Re’s businesses delivered strong underlying results, highlighting their long-term earning potential, and market trends point to an optimistic outlook for 2021 and beyond. These factors allow the Board of Directors to confidently propose an attractive dividend to shareholders,” said Swiss Re’s Chairman, Walter B. Kielholz.
Today, Swiss Re has also announced that Cathy Desquesses will succeed Nigel Fretwell, who has decided to retire, as Group Chief Human Resources Officer and member of the Group Executive Committee, effective July 1st, 2021.
Desquesses has served as the Chief People Officer and member of the Executive Committee at Sodexo since July of 2018, having previously spent two decades with GE, working in a variety of senior HR roles around the world.
“On behalf of the Swiss Re Board of Directors, I would like to thank Nigel Fretwell for his contribution to the Group over the past eight years and wish him all the best in retirement. We are pleased to have found an ideal successor in Cathy Desquesses to continue championing the topics of employee engagement, global talent pipeline, inclusion and diversity,” said Kielholz.
At the same time, Swiss Re’s Board has proposed that Sergio P. Ermotti be re-elected as a member of the Board and elected as its Chairman for a one-year term of office. It was announced in March of last year that Kielholz will retire after 12 years as Chairman.
Additionally, the Board of Directors is set to propose the re-election of the following members for a one-year term: Raymond K.F. Ch’ien; Renato Fassbind; Karen Gavan; Joachim Oechslin; Deanna Ong; Jay Ralph; Joerg Reinhardt; Philip K. Ryan; Sir Paul Tucker; Jacques de Vaucleroy; Susan L. Wagner; Larry Zimpleman.
The Board will also propose the following individuals to be re-elected as members of the Compensation Committee: Raymond K.F. Ch’ien; Renato Fassbind; Karen Gavan; Joerg Reinhardt; Jacques de Vaucleroy.
Included within the Annual Report is the reinsurer’s Economic Value Management (EVM) Results, which is the firm’s proprietary integrated economic valuation and steering framework, consistently measuring economic performance across all businesses. According to Swiss Re, this enables it to see the connection between risk-taking and value creation.
In 2020, Swiss Re reported a total contribution to economic net worth (ENW) of $434 million, largely driven by pandemic-related claims and reserves of $4.6 billion. Excluding COVID-19, and Swiss Re says that the total economic contribution to ENW reached $3.3 billion for the year, which reflects strong underlying business performance in both its Reinsurance and Corporate Solutions arm.
The reinsurer reports that, ENW fell to $33.7 billion as at the end of 2020 from the $36.1 billion recorded at the end of 2019. ENW per share totalled $116.45 as at the end of 2020, amounting to annual ENW per share growth of -0.1%. Excluding the pandemic, and ENW per share growth was 10.3%, again underpinning the robust underlying business performance.
