Swiss Re Gives Proposals for Next AGM

March 25, 2011

Swiss Re’s Board of Directors has announced the agenda for the reinsurer’s forthcoming annual general meeting, set for April 15, and the proposals for which it will seek approvals.

The Board will propose a dividend for 2010 of CHF 2.75 [$3.01], “an increase of 175 percent compared to 2009, reflecting Swiss Re’s improved capital base and profitability.”

The Board will also recommend that Renato Fassbind be elected to the Board for a three-year term. He was the former CFO and a member of the Executive Board of Credit Suisse Group from 2004 to September 2010. Before this he held the position of the CEO of Diethelm Keller Group. From 1997 to 2002, he was CFO and from 1990 to 1996 Head of Corporate Staff Audit at ABB Ltd. He worked with F. Hoffmann-La Roche AG, Basel, in Internal Audit from 1984 to 1990 and was appointed Head of Internal Audit in 1988.

Shareholders will also vote on the Board’s proposal for a reduction in authorized capital, alongside changes to conditional capital. The Board will recommend “a reduction in authorized capital to 85 million shares from 180 million shares,” said the bulletin; adding that “despite this proposed reduction, Swiss Re maintains the financial flexibility to raise capital.

“In terms of conditional capital, the Board proposes three motions:
— to cancel conditional capital in favor of Berkshire Hathaway Inc. following the termination of the convertible perpetual capital instrument;
— to cancel conditional capital for employee share participation plans as in future treasury shares will be used;
— and to request an increase in conditional capital for convertibles and similar instruments to 50 million shares.

The Board of Directors also proposed the following Board members for reelection for three-year terms of office: Raymund Breu, Mathis Cabiallavetta, Raymond K.F. Ch’ien, Rajna Gibson Brandon and Hans Ulrich Maerki.

Swiss Re has also published its 2010 annual report, containing the audited annual and consolidated financial statements for the 2010 financial year.

In addition the bulletin noted that in 2010 Swiss Re generated an EVM income before capital costs of $3.2 billion, and an EVM profit after capital costs of $1.3 billion. Economic Net Worth increased 11 percent to $30.7 billion from $27.6 billion in 2009, resulting in Economic Net Worth per share of $89.7 (CHF 83.6).”

Swiss Re explained that the term EVM means Economic Value Management (EVM), “a proprietary method to measure Swiss Re’s economic value creation on a market-consistent basis, with an explicit recognition of capital costs. Swiss Re adopted the EVM framework in 2003, which is used as a primary factor for determining the variable compensation of the Group. The 2010 EVM results will be presented in detail at Swiss Re’s Investors’ Day on 25 March 2011. The full EVM report is available on the web site.

Source: Swiss Re

Was this article valuable?

Here are more articles you may enjoy.