Swiss Re L&H Embedded Value up 38%; Conference Call Today

April 3, 2007

Swiss Re announced that its life & health embedded value earnings grew by 38 percent to CHF 2.4 billion ($1.97 billion), up from CHF 1.7 billion ($1.4 billion) in 2005. Overall embedded value increased by 13 percent to CHF 22.6 billion ($18.57 billion) in 2006, up from CHF 20.1 billion ($16.5 billion) in 2005. Value of new business was CHF 664 million ($545.5 million) in 2006. The internal rate of return for new business was 12.7 percent.

Swiss Re said its “embedded value profit increased 85 percent to CHF 1.0 billion [$821 million] up from CHF 562 million [$462 million] in 2005.” The increases were attributed to “new business, continuing favorable mortality experience and a higher return on in-force policies.”

The world’s largest reinsurer also noted that the “acquisition of GE Insurance Solutions, which closed in June 2006, contributed strongly to the increase in embedded value and close to 100 percent of the business was retained. New business value of CHF 664 million [$545.5 million] was driven by the GE Life UK acquisition, which closed in December 2006, and the effect of higher margins in the traditional life business, reflecting pricing actions and a favorable change in the mix of business. The after tax internal rate of return of the new business was 12.7 percent.”

Swiss Re is holding an Analysts’ conference call today at 14.00 CET. The call can be followed by dialing: Europe (without UK): +41 91 610 5605 UK: +44 207 107 0613 USA: +1 866 865 5144.

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