Legal and regulatory risks The Group has been named, from time to time, as a defendant in various legal actions in connection with its operations. The Group is also involved from time to time in investigations and regulatory proceedings, certain of which could result in adverse judgments, settlements, fines and other outcomes. The number of these investigations and proceedings involving the financial services industry has increased in recent years. The Group could also be subject to risk from potential employee misconduct, including non-compliance with internal policies and procedures. Substantial legal liability could materially adversely affect the Group’s business, financial condition or results of operations or could cause significant reputational harm, which could seriously harm its business.
Maximum amount of risk that can be accepted in insurance. Capacity also refers to the amount of insurance coverage allocated to a particular policyholder or in the marketplace in general.
Remuneration paid by the insurer to its agents, brokers or intermediaries, or by the reinsurer to the insurer, for costs in connection with the acquisition and administration of insurance business.
Swiss Re uses some of the term definitions provided by the glossary of the International Association of Insurance Supervisors (IAIS). For additional insurance terms, see Swiss Re’s online glossary of technical terms at www.swissre.com
Key events 7 January Strategic partnership in Vietnam Acquisition of 25% stake in Vietnam’s leading reinsurance provider, Vietnam National Reinsurance Corporation 11 January “Regulation XXX” transaction with SBLI USD 175 million of peak “Regulation XXX” reserve requirements for the Savings Bank Life Insurance Company of Massachusetts (SBLI) funded through private securitisation 22 January First Central American earthquake bond USD 85 million issued in multi-peril securitisation covering windstorm events in the US and earthquakes in California and Central America 23 January Property & Casualty quota-share arrangement Five year quota-share agreement with Berkshire Hathaway covering 20% of the Group’s new and renewed Property & Casualty business
CEO Jacques Aigrain announces initiative with Oxfam Swiss Re establishes third-party administrator in China Swiss Re’s Pierre Ozendo honoured by Insurance Industry Charitable Foundation 29 February 2007 annual results Net income of CHF 4.2 billion and a return on equity of 13.5%
2 April Comprehensive third-party healthcare administrator established in China Swiss Re received approval to establish a consulting company in China to provide full-service third-party administrator and related consulting services to hospitals, insurers, policyholders and employers 18 April 144th Annual General Meeting Shareholders approved an 18% increase in dividend to CHF 4.00 per share 6 May First quarter 2008 results Net income of CHF 624 million for the first quarter (EPS: CHF 1.84)
̤ Life reinsurance company of the year Professional service provider of the year ̤
“For the third year running the world’s largest reinsurer has been awarded the accolade of being the best life player in the secondary market.
In Asia, the main focus of Swiss Re’s push to grow health business will be in offering reinsurance solutions that combine risk taking, professional risk management and professional third party administration (for example, in India and China) to promote the sustainable development of the primary medical industry”. (“The Review” magazine, September 2008)
“The Farmers Insurance Exchange deal was the first broadly syndicated transaction to combine an insurance event, in this case a hurricane, with the issuance of regulatory capital. The concept created “just-in-time” capital that would be available if a major natural disaster loss occurred rather than holding additional, and expensive, equity on its balance sheet or purchasing more reinsurance to cover remote events.” (“Risk & Insurance”, September 2008)
“Swiss Re is a dominant player in all lines of business. And the judges felt it led the way for marine risks. (…) Swiss Re impressed the judges with its expertise. (…) The firm’s marine underwriters have worked together as a team for many years and have made Swiss Re in the UK a respected London market lead for both proportional and non-proportional treaty business.” (“Reactions” London Market Awards, June 2008)
“Swiss Re was voted as top of the market in this category. ‘It is efficient and responsive,’ said one broker.” (“Global Broker & Underwriter”, May/June 2008)
”Today, the world’s leading companies are integrating sustainability considerations into their core business. They are accounting for general as well as industry-specific sustainability risks and opportunities. And they do so by setting and achieving clear and quantifiable objectives. At the same time, there remains significant room for improvement and thus wide scope for a continued strong sustainability momentum.” Alexander Barkawi, Managing Director, SAM Indexes (SAM media release, September 2008)
Mexico City Insurgentes Sur 1898, Piso 8 Torre Siglum Colonia Florida México, D.F. 01030