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Swiss Re reports full-year 2018 net income of USD 421 million, after absorbing USD 3.0 billion of large claims and USD 599 million US GAAP accounting change impact

21 February 2019 Swiss Re

• Group net income of USD 421 million despite high natural catastrophes and man-made losses; 2018 was the fourth-costliest year for the insurance industry according to the Swiss Re Institute
• Excluding the impact of the US GAAP accounting change on recognition of equity investments, Group net income would have been USD 894 million
• Property & Casualty Reinsurance net income of USD 370 million; impacted by estimated large claims of USD 2.3 billion
• Life & Health Reinsurance solid net income of USD 761 million
• Corporate Solutions net loss of USD 405 million; estimated large claims burden of USD 0.7 billion
• Life Capital net income of USD 23 million; exceptional gross cash generation of USD 818 million
• The Group’s return on equity (ROE) was 1.4%; return on investments (ROI) was 2.8%; running yield stable at 2.9%
• January 2019 renewals premium volume up 19%; price quality increased by 1%
• Board of Directors to propose a higher dividend of CHF 5.60 per share; Swiss Re to seek authorisation for a new public share buy-back programme
• Anette Bronder appointed Group Chief Operating Officer and member of the Group Executive Committee, effective 1 July 2019

Swiss Re delivered a full-year net income of USD 421 million in 2018. The result includes estimated large claims of USD 3.0 billion, net of retrocession and before tax, which significantly affected both Property & Casualty Reinsurance (P&C Re) and Corporate Solutions’ earnings. In addition, an estimated pre-tax USD 599 million impact due to a change in US GAAP accounting guidance effective as of 1 January 2018 affected net income. Life & Health Reinsurance (L&H Re) reported a solid result, driven by transactions, and Life Capital generated exceptional gross cash of USD 818 million. Based on the Group’s very strong capital position and supported by confidence in Swiss Re’s long-term capital generation, the Board of Directors will propose to the Annual General Meeting (AGM) a higher dividend of CHF 5.60 and the authorisation of a new public share buy-back programme to be executed prior to the 2020 AGM in accordance with Swiss Re’s capital management priorities and subject to obtaining all necessary legal and regulatory approvals.

Swiss Re annual Results read more here....

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