London:
At today’s Investors’ Day, Swiss Re, the largest global reinsurer, has confirmed its strategy, targets and capital management priorities, underlining its unique client access, leading risk knowledge and capital strength as key drivers of success.
In the closed book business, Swiss Re’s mid-term goal to reduce its ownership and deconsolidate ReAssure remains unchanged, said press release by the reinsurer.
The Reinsurance Business Unit is the foundation of the group’s strength, with increasing earnings power. Corporate Solutions is focused on returning to profitability and leveraging its competitive advantages. Life Capital is creating economic value for the group by expanding its open book business. Swiss Re’s capital position remains very strong.
Swiss Re’s Group Chief Executive Officer Christian Mumenthaler said: “Swiss Re’s strategy is centred around diversifying our access to risk pools by leveraging our risk knowledge, unique client access and capital strength. 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. The group’s superior capital strength allows us to capture such opportunities and maintain attractive shareholder returns,“ he said.
An integral part of the Group strategy relies on monetising its research and development (R&D) capabilities, thereby cementing Swiss Re’s position as the leading risk knowledge company. The group is running 80 R&D programs with 450 dedicated FTEs and investing about USD 300 million a year in key technology projects. The aim is to strengthen Swiss Re’s proprietary risk knowledge and to advance its capabilities to enter new risk pools, compete and advise, said the release.
In particular, digital platforms such as iptiQ, the digital B2B2C business, and Magnum, the leading automated underwriting solution for L&H Re, are becoming a significant business driver.
The goup's P&C Re’s average performance remains strong despite significant natural catastrophe claims in recent years. L&H Re delivers peerleading returns underpinned by global diversification and strong growth in Asia.
Swiss Re intends to further grow and diversify its natural catastrophe portfolio, with a positive effect on earnings. The natural catastrophe reinsurance market is forecast to grow to about USD 40 billion over the next four years from USD 30 billion now, according to Swiss Re Institute. It delivers attractive returns to the group thanks to proprietary risk knowledge and diversification benefits.
The pricing momentum for Corporate Solutions remains strong. Price quality for the Corporate Solutions portfolio improved by 10 percent in the first nine months of 2019, and this positive price momentum is expected to continue.