Swiss Re released its 2023 financial condition report, detailing the financial performance and regulatory standings of the Swiss Re Group for the year ending December 31, 2023.
Over the period, the company reported an enhancement in its capital standing, with the Group SST (Swiss Solvency Test) 2024 ratio climbing 12 percentage points to 306% from the previous year. This increase is attributed to positive outcomes in investment and underwriting, coupled with the benefits of elevated short-term interest rates.
That said, these gains were slightly mitigated by expenditures related to dividends, subordinated debt buybacks, and increased financial market risks.
Previously, the SST ratio was derived from the SST risk-bearing capital minus the market value margin, divided by the SST target capital minus the market value margin. Adjustments have been made to the calculation of the SST ratio following changes to the Insurance Supervision Ordinance (ISO) effective January 1, 2024. The new calculation method involves SST risk-bearing capital divided by SST target capital, both revised under the new ISO regulation.
According to the new definitions, the SST risk-bearing capital is reduced due to a deduction for market value margin, while the SST target capital no longer includes the market value margin. These alterations do not affect the overall valuation of the SST ratio.
In addition to its financial condition, Swiss Re’s shareholders endorsed all proposals presented by the board of directors at the annual general meeting.
Notably, the shareholders ratified the distribution of an ordinary dividend of $6.80 per share for the fiscal year 2023. The dividend is scheduled for distribution starting April 18, 2024, and will be paid in Swiss francs from voluntary profit reserves. Swiss Re shares are set to trade ex-dividend from April 16, 2024.
Additionally, following his endorsement a month ago, Jacques de Vaucleroy has been elected as the new chairman of the board of directors, taking office for a one-year term.
“I would like to thank shareholders for their support and trust in me,” de Vaucleroy said. “Since joining the board of directors seven years ago, my appreciation for Swiss Re has only grown. I look forward to continuing to work with the board of directors and the management team as we remain focused on increasing profitability and shareholder returns.”
Geraldine Matchett has also joined the board as a new member, with all proposed members, including the re-election of the compensation committee members, securing their positions for another year.
In matters of compensation, the shareholders approved with 83.16% of the votes the maximum aggregate compensation for the board of directors for the upcoming year. The variable short-term compensation for the group executive committee for 2023 received 93.51% approval, and the overall compensation structure for 2025 was also endorsed.
Additionally, the 2023 compensation report was approved by 90.45% of the votes cast in a consultative vote.
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