Swiss Re Posts $4.4 Billion Profit for 2013; Plans Special Dividend

February 20, 2014

Swiss Re posted net income of $4.4 billion for 2013. The earnings report said the “result was driven by sustained, high profitability in Property and Casualty Reinsurance and very good performances by Corporate Solutions and Admin Re®. Life and Health Reinsurance delivered a reduced profit due to reserve strengthening in Australia.”

Swiss Re said its Board of Directors “will propose a regular dividend of CHF 3.85 per share and, in addition, a special dividend of CHF 4.15 per share [$4.32 and $4.66 respectively].”

Michel M. Liès, Swiss Re’s Group Chief Executive Officer, commented: “All Business Units contributed to this excellent result, with a particularly strong performance from P&C Re and continued profitable growth from Corporate Solutions. We are very happy that we have achieved so much in financial terms in our anniversary year and, while we are well aware of the challenges ahead, we look forward to 2014 with confidence.”

The report noted the following earnings highlights:

— Net income was $4.4 billion in 2013 ($4.2 billion in 2012).

— Premium and fee income grew by 13 percent to $28.8 billion ($25.4 billion in 2012.

— Solid underwriting from prior years contributed to the strong performance by the P&C businesses, as well as a number of one-off tax benefits across the Group and reserve releases totaling $1 billion.

— Net investment income, gains from alternative investments and realized gains from sales contributed to the strong investment result of $4.3 billion for the year, with a return on investments of 3.6 percent (4.0 percent in 2012). The investment result includes the contribution from Principal Investments, a dedicated unit to generate long-term economic value via investments in insurance-related businesses.

— The Group combined ratio was excellent at 85.3 percent. Adjusting for prior-year reserve releases and lower than expected natural catastrophe losses, the underlying combined ratio for the year was 94.6 percent.

Swiss Re also announced that David Cole has been appointed as new Group CFO, and Susan L. Wagner has been proposed to be elected to Swiss Re’s Board of Directors

Source: Swiss Re

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