In February 2018, Swiss Re announced it had entered into preliminary discussions with SoftBank Group Corp. regarding a potential partnership and minority investment.
Today, Swiss Re confirmed that negotiations are still ongoing in respect of a minority investment by SoftBank in Swiss Re, currently expected not to exceed 10% of Swiss Re's share capital.
In parallel, the two parties are exploring areas of potential strategic cooperation. Swiss Re reiterates that its capital position remains very strong and the issuance of new capital is not under consideration.
Swiss Re would like to emphasise that these discussions remain at an early stage, and there is no certainty that any minority investment or strategic partnership will be agreed, or as to any terms, timing, or form of any such investment or partnership, said a release by the reinsurer.
Swiss Re has achieved higher margins and outperformed the market over the last ten years owing to clear underwriting priorities. These include active allocation of capital to the most profitable risk pools and dynamic selection of risks at more attractive economics.
To continue to outperform in underwriting, Swiss Re focuses its R&D activities on addressing market issues such as changes in sea surface temperature, cyber risk scenarios, or in the area of critical illness, the over-diagnosis through emerging technologies.
Christian Mumenthaler, Swiss Re’s Group Chief Executive Officer said ,Swiss Re maintains its commitment to creating long-term value, and we are well-placed for growth. The company’s capital position is industry-leading, enabling us to a deploy capital in the currently more positive environment.
“We are a risk knowledge company with strong R&D focus. Our tech strategy provides us with a competitive advantage to anticipate changes in the insurance value chain and secure access to new risk pools. Our insights allow us to continue partnering with our clients and to develop solutions which tackle the protection gapm,“ he said.
According to the Swiss Re The current outlook for the re/insurance industry remains positive as the market environment continues to improve. Increasing prices are expected to be particularly beneficial for Property & Casualty Reinsurance and Corporate Solutions.
Swiss Re also is convinced that the long-term trends for the industry remain positive and highly attractive. Risk pools are expected to continue to grow, fuelled by demographic trends and a strengthening of the world economies’ combined GDP, with an overall insurance market expected growth of 5% 1 . High growth markets, in particular, continue to offer much potential, with projected growth rates of 8 oer cent .
Technology-based solutions are expected to broaden insurance coverage and reduce the large protection gap by enabling the creation of improved, more efficient and less expensive insurance offerings.
“Technology will fundamentally change the insurance value chain over the coming years. I am convinced it will blur industry boundaries and shift insured risks between insurance lines. Swiss Re’s tech strategy aims to access new risk pools and manage existing ones more effectively. Through in-house developments and external partnerships, we are prepared to respond to the impact technology will have and drive innovation,'' said Mumenthaler. .