The reinsurer has also proposed an ordinary dividend of US$6.40 per share for the 2022 financial year at its upcoming Annual General Meeting of shareholders.
The event follows on from Swiss Re’s election of two new Board members, Vanessa Lau and Pia Tischhauser, for a one-year term, in December last year.
Swiss Re drop in net income in 2022
Swiss Re’s total economic net worth (ENW) decreased to $31.1bn by the end of 2022 compared to $34.5bn in the previous year, which the company attributed to various factors, including reserve adjustments for economic inflation, elevated natural catastrophe losses, and updates to the internal pandemic risk model.
Despite these challenges, Swiss Re’s capital position remains strong, with a group wide Swiss Solvency Test (SST) ratio of 294% as of 1 January 2023.
The company is committed to pursuing profitable growth opportunities and has a positive business outlook, according to its capital management priorities. Swiss Re’s Chairman, Sergio P. Ermotti, expressed confidence that the company is well-positioned for the future and is focused on driving profitability and creating shareholder value.
Speaking about the growth report, Ermotti said: “Although 2022 was a challenging year, our very strong capital position allows us to fulfil our commitment to the shareholders. We are confident that our businesses are well-positioned for the future, and the new targets for 2023, announced last month, reflect our ambition to drive profitability and create shareholder value.”
A challenging year for insurers
Swiss Re reported a total net income of $472mn for the full year 2022, a decrease from 2021, the insurance giant cited the war in Ukraine as a major contributing factor.
Other challenges have included reserve adjustments for economic inflation, decline in global equity markets and credit spread widening, natural catastrophe losses, pandemic risk model and inflation scenario updates, and Life & Health Reinsurance assumption updates as contributing factors.
However, the company’s capital position remains strong, with a groupwide Swiss Solvency Test ratio of 294% as of 1 January 2023. Swiss Re remains committed to pursuing profitable growth opportunities.
The agenda for the company’s 2023 AGM includes proposals for the election and re-election of various members of the Board of Directors and the Compensation Committee, as well as votes to approve the compensation of the Board of Directors and the Group Executive Committee.
