Swiss Re's business and EVM reports for 2016 published, shoeing a solid performance
At Swiss Re's upcoming Annual General Meeting of shareholders (AGM) on 21 April 2017, the Board of Directors proposes a regular dividend of CHF 4.85 per share. Together with the share buy-back that finished on 9 February 2017, this will bring total pay-out to shareholders for 2016 to CHF 2.5 billion. In addition, the Board of Directors requests the authorisation of a new public share buy-back programme of up to CHF 1.0 billion purchase value. The Board of Directors further proposes the election of Jay Ralph, Joerg Reinhardt and Jacques de Vaucleroy as new members to the Board of Directors. Swiss Re today publishes its 2016 Annual Report, its Economic Value Management (EVM) 2016 Annual Report and the 2016 Corporate Responsibility Report.
Swiss Re's Chairman, Walter B. KIELHOLZ, says: "2016 was a year of profound changes. However, despite many difficulties, Swiss Re was able to stay on course and deliver good results. In the course of our 153 years of experience, we have shown an undisputed ability to operate successfully in ever-changing and highly challenging situations. While we decisively invest in our business and actively address the challenges mentioned, we stay committed — in the context of our capital management priorities — to return capital to our shareholders if we do not identify any better investment opportunities."
Publication of the 2016 EVM Report
Swiss Re also published its 2016 EVM Report. Economic Value Management (EVM) is Swiss Re Group's proprietary integrated economic valuation and accounting framework for planning, pricing, reserving, and steering its business. EVM allows Swiss Re to see the connection between risk-taking and value creation and provides a consistent framework to evaluate the outcome of controlled risk-taking and capital allocation decisions throughout a performance cycle.
Swiss Re reported a strong EVM profit of USD 1.4 billion in 2016, compared to USD 480 million in 2015, reflecting a strong new business contribution from Life & Health Reinsurance and a strong investment result.
As of 31 December 2016, Swiss Re's economic net worth (ENW) was USD 36.6 billion, down from USD 37.4 billion as of 31 December 2015. The decrease was driven by the impact of changes in EVM methodology, dividends and the share buy-back programme. ENW per share was USD 112.42 (CHF 114.20) as of 31 December 2016, compared to USD 110.61 (CHF 110.70) at the end of 2015.
At 11%, the growth in Swiss Re's ENW per share in 2016 exceeded the over-the-cycle annual growth target of 10%.
The 2016 EVM Report can be downloaded from www.swissre.com.