SWISS RE LTD Extracts from 2023 Annual Report
Swiss Re investor and analyst presentation
Zurich, 13 March 2024
Focus areas
Economic | Solvency and | Reserving |
performance | capital generation | update |
Extracts from 2023 Annual Report | 2 |
Economic performance
Extracts from 2023 Annual Report | 3 |
Economic result in 2023 driven by strong performance of P&C businesses
Swiss Re Group
Contribution to ENW (USD bn)
3.2
-1.6
FY 2022 | FY 2023 |
FY 2023 key figures | FY 2023 contribution to ENW by segment | ||||
USD 33bn | P&C Reinsurance | USD 2.6bn | |||
ENW at year-end | L&H Reinsurance | USD 0.4bn | |||
USD 113 | |||||
ENW per share | |||||
Corporate Solutions | USD 1.0bn | ||||
10.8% | |||||
ENW per share growth | Group items | USD -0.7bn | |||
Extracts from 2023 Annual Report | 4 |
Compared to US GAAP, economic result reflects L&H assumption updates, offset by upfront recognition of new business profits
Key differences between US GAAP reported net income and total contribution to ENW for FY 2023 | illustrative |
USD | USD |
3.2bn | 3.2bn |
US GAAP | L&H Reinsurance | P&C Reinsurance | Corporate Solutions | Investments | Total contribution |
net income | to ENW | ||||
- L&H Reinsurance: assumption changes reflected in EVM, while US GAAP is based on locked-in assumptions
- P&C businesses: upfront recognition of new business profits in EVM, while in US GAAP earnings emerge over contract period
- Investments: full economic result recognised in EVM (e.g. credit spread movements)
Extracts from 2023 Annual Report | 5 |
Key EVM figures
USD m, unless otherwise stated | Corporate | Total | Total | ||||||||
P&C Re | L&H Re | Solutions | Group items | FY 2023 | FY 2022 | ||||||
EVM profit - new business | 2 008 | 1 406 | 359 | −26 | 3 747 | 1 422 | |||||
EVM profit - previous years' business | −565 | −2 517 | 193 | −268 | −3 156 | −4 652 | |||||
EVM profit - investments | 108 | 573 | 24 | −68 | 637 | −896 | |||||
EVM profit | 1 552 | -537 | 576 | −362 | 1 228 | −4 126 | |||||
Release of current year capital costs | 1 338 | 1 383 | 322 | −127 | 2 916 | 3 840 | |||||
Cost of debt and additional taxes | −264 | −474 | 60 | -249 | −928 | −1 293 | |||||
Total contribution to Economic Net Worth (ENW) | 2 626 | 371 | 957 | −737 | 3 217 | −1 579 | |||||
ENW | 11 937 | 15 984 | 3 814 | 1 050 | 32 785 | 31 107 | |||||
ENW per share (USD) | |||||||||||
112.89 | 107.64 | ||||||||||
ENW per share (CHF) | 95.00 | 99.57 | |||||||||
ENW per share growth1 | 10.8% | -5.9% |
1 (Current-year closing ENW per share + current-year dividends per share) / (prior-year closing ENW per share + current-year opening balance sheet adjustments per | Extracts from 2023 Annual Report | 6 |
share) | ||
P&C Reinsurance benefitted from strong margins at 2023 renewals
EVM premiums
USD23.7bn
In 2023
USD 23.5bn
In 2022
EVM profit split (USD m)
1 552 | ||||||||
379 | 2 008 | |||||||
852 | ||||||||
108 | ||||||||
-565 | ||||||||
-1 969 | ||||||||
-738 | ||||||||
2022 | 2023 | |||||||
New business | Previous years' business | Investments | ||||||
Total contribution to ENW (USD m)
3 298 | 2 626 | |||
447 | ||||
-351 | ||||
-714 | 20211 | |||
2019 | 2020 | 2022 | 2023 |
- Total contribution to ENW benefitted from strong new business margins
- Increase in premiums reflects price increases in property and specialty, partially offset by targeted reductions in casualty
- New business profit driven by strong renewals outcome and lower-than-expected large loss experience
- Previous years' business driven by reserve strengthening in US casualty, and nat cat events that occurred in 2023 (also impacting underwriting year 2022), partially offset by reserve releases in property and specialty
- Investment result supported by credit spread tightening, partially offset by negative impact from interest rate movements on a net short duration position
1 2021 figures restated for Group items re-segmentation (figures before 2021 are not restated)
ENW (USD m) | Share of 2023 Group ENW |
12 412 | 11 937 |
P&C Re | |
36% |
20222023
Extracts from 2023 Annual Report | 7 |
L&H Reinsurance impacted by assumption updates and elevated mortality in the US
EVM premiums and fees
USD27.6bn
In 2023
USD 16.7bn
In 2022
EVM profit split (USD m)
1 406 | |
1 030 | 573 |
-2 789 | -2 517 | |||||
-537 | ||||||
-1 525 | ||||||
-3 284 | ||||||
2022 | 2023 | |||||
New business | Previous years' business | Investments | ||||
Total contribution to ENW (USD m)
2 656 | ||||||
820 | 599 | |||||
371 | ||||||
-2 063 | ||||||
2019 | 2020 | 20211 | 2022 | 2023 |
- Strong new business profit and release of capital cost, partially offset by negative performance of previous years' business
ENW (USD m) | Share of 2023 Group ENW |
- Increase in premiums and fees driven by large transactions
- New business profit reflects strong contribution from transactional business as well as improved margins
- Previous years' business mainly reflects impact of assumption changes, and elevated mortality experience in the US
- Investment result benefitted from positive impact of higher interest rates on a net long duration position as well as credit spread tightening
1 2021 figures restated for Group items re-segmentation (figures before 2021 are not restated)
15 984
13 560
49% L&H Re
20222023
Extracts from 2023 Annual Report | 8 |
Corporate Solutions achieved another year of strong performance
EVM premiums EVM premiums
EVM profit split (USD m)
Total contribution to ENW (USD m)
USD5.4bn
In 2023
USD 5.8bn
In2022
402 |
172 |
231 |
-1 |
2022 |
576 |
359 |
193 |
24 |
2023 |
920 | 629 | 957 | ||
-727 | -622 | |||
2019 | 20202 | 2021 | 20221 | 2023 |
- USD 2.5bn total contribution to ENW over the past three years
New business | Previous years' business | Investments |
- Decrease in premiums driven by partial sale of elipsLife mid-2022. On a pro-forma basis1, premiums increased by 7%, benefitting from targeted new business growth
- New business profit reflects steadily improved portfolio resilience driven by stringent portfolio steering and disciplined underwriting as well as lower large loss activity
- Previous years' business profit benefitted from favourable experience variances in property and specialty
- Investment profit largely driven by credit spread tightening
ENW (USD m)Share of 2023 Group ENW
Corporate Solutions
3 814 | 12% |
3 093 |
20222023
1 Including medical business of Elips Versicherungen AG in Ireland and excluding parts of elipsLife sold to Swiss Life International (effective 1 July 2022) | Extracts from 2023 Annual Report | 9 |
2 Figures for 2020 restated to include impact of elipsLife, which as of 1 January 2021 is reported as part of Corporate Solutions (2019 not restated) |
EVM profit reflects strong new business result and good investment performance, partially offset by assumption updates in L&H Reinsurance
Total contribution to ENW1 (USD m)
EVM profit (USD m)
2 058 | 1 228 | |||||
-19 | ||||||
-3 590 | -4 126 | |||||
2019 | 2020 | 2021 | 2022 | 2023 |
- 2023 reflects strong new business profit and good investment result, partially offset by assumption updates in L&H Reinsurance
2'932
2019
-434
2020
3'762 | 3 762 |
3 217 | |
-1'579
202120222023
Capital cost release, tax and other (USD m)
3 156 | 2 547 | |||
2 951 | 1 705 | 1 988 | ||
2 911 | 2 443 | 2 644 | 3 840 | 2 916 |
40 | 713 | |||
-939 | -1 293 | -928 | ||
2019 | 2020 | 2021 | 2022 | 2023 |
Capital cost release2 | Taxes and other |
- Based on current interest rates, annual expected economic earnings of in-force book2 cover ~1.5x ordinary dividend
- EVM profit + capital cost release, tax and other
- Capital cost release from underwriting and investments
Extracts from 2023 Annual Report 10
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Disclaimer
Swiss Re Ltd. published this content on 12 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2024 06:23:10 UTC.
