Combined ratio in % 99.3 132.9 Return on equity1 in % 7.3 –30.5 1 Return on equity is calculated by dividing net income attributable to common shareholder by average common shareholder’s equity.
Reclassification out of accumulated other comprehensive income For the years ended 31 December 2016 Unrealised investment Foreign currency
Accident & Health The Accident & Health segment includes non-life accident and health insurance, primarily consisting of employers stop loss. Employers stop loss policies provide specific and aggregate coverage for self-funded medical benefit plans. Additionally, reserves for run off workers compensation business are held and maintained, though this business is no longer actively written.
United States 2 162 2 192 Brazil 125 243 United Kingdom 210 220 Germany 165 188 Canada 128 155 Australia 105 126 Colombia 82 98 France 85 97 Netherlands 81 87 Bermuda 89 80 Other 810 764
Premiums earned, thereof: Direct 2 878 3 229 Reinsurance 1 164 1 021 Ceded –539 –599
Prior-year development During 2017, Property, Other liability and Credit experienced adverse development on prior accident years. The development was driven by adverse experience related to large losses or newly established losses related to prior accident years.
Other liability business may have a significant reporting lag between the accident date and the date reported to the Group. The reported claim counts have been trending up for 2012 to 2014, which is similar to the incurred losses. For all recent years, there will be significant increases in reported claim counts over time, which will narrow the gap of claim counts.
The fair values of assets are adjusted to incorporate the counterparty risk of non-performance. Similarly, the fair values of liabilities reflect the risk of non-performance of the Group, captured by the Group’s credit spread. These valuation adjustments from assets and liabilities measured at fair value using significant unobservable inputs are recognised in net realised gains and losses. For 2017, these adjustments were not material.
Corporate debt securities mainly include US and European investment-grade positions, which are priced on the basis of quotes provided by third-party pricing vendors and first utilise valuation inputs from actively traded securities, such as bid prices, bid spreads to Treasury securities, Treasury curves, and same or comparable issuer curves and spreads. Issuer spreads are determined from actual quotes and traded prices and incorporate considerations of credit/default, sector composition, and liquidity and call
Closing balance as of 31 December 16 0 16 –76 –76 1 Transfers are recognised at the date of the event or change in circumstances that caused the transfer.
The higher tax rate in the current year is mainly driven by tax benefits from large losses and US tax law changes.
As of 31 December 2017, the aggregate amount of temporary differences associated with investment in subsidiaries, branches and associates and interests in joint ventures, for which deferred tax liabilities have not been recognised amount to approximately USD 351 million. In the remote scenario in which these temporary differences were to reverse simultaneously, the resulting tax liabilities would be very limited due to participation exemption rules.
Group contributions for 2017 For the year ended 31 December 2017, the Group contributed USD 11 million to the aforementioned pension plans. The Group contributes into a number of defined contribution plans. The amount expensed in 2017 was USD 8 million.
Report of the statutory auditor on the consolidated financial statements As statutory auditor, we have audited the accompanying consolidated financial statements of Swiss Re Corporate Solutions Ltd and its subsidiaries (the ‘Company’), which comprise the consolidated balance sheet as of 31 December 2017, and the related consolidated income statement, statement of comprehensive income, statement of shareholder’s equity, statement of cash flows and notes for the year ended 31 December 2017.
Shares in investment funds are carried at cost or lower market value.
Reinsurance recoverable on technical provisions retroceded Reinsurance recoverable on technical provisions represents the retroceded part of the technical provisions. The respective accounting principle per technical provision category is described further under “Technical provisions gross”.
Deferred acquisition costs Deferred acquisition costs consist principally of commissions and are related to the generation of new reinsurance business. Property and casualty deferred acquisition costs are generally amortised in proportion to premiums earned.
Swiss Re Corporate Solutions México Seguros, S.A. de C.V. Mexico Mexico City 100% 99% Swiss Re Corporate Solutions México Servicios, S. de R.L. de C.V. Mexico Mexico City 100% 67% Swiss Re Corporate Solutions Services Ltd United Kingdom London 100% 100% Swiss Re Serviços de Consultoria em Seguros e Resseguros Ltda Brazil São Paulo 100% 100%
Growth forecasts among the principal global economies remain uneven and uncertain in an environment of elevated political uncertainty. The planned withdrawal of the United Kingdom from the European Union has created uncertainty not only for the United Kingdom but for the rest of the European Union, and negotiations over withdrawal will likely continue to contribute to volatility and pose significant challenges for the European Union and the United Kingdom. The longterm effects of a withdrawal of the United Kingdom from the European Union will depend in part on any agreements the United Kingdom makes to retain access to the single market within the European Economic Area (EEA) following such withdrawal, the scope and nature of which currently remain highly uncertain. As China’s economy undergoes structural changes, recent near-term growth stabilisation may be reversed in the context of a broader economic slowdown were it to occur. The foregoing may be exacerbated by geopolitical tensions, fears over security and migration, and uncertainty created generally by the policy pronouncements that have been, and may in the coming months be, announced by the US administration on a range of trade, security, foreign policy, environmental protection and other issues having global implications, as well as by the consequences of the implementation of such policy pronouncements.
With fewer options available to policymakers and concerns generally over the absence of realistic confidence-building measures, and with heightened risk that volatility or depressed conditions in one sector, one market, one country or one region could have far broader implications, volatility can be expected to continue. Further adverse developments or the continuation of adverse trends that, in turn, have a negative impact on financial markets and economic conditions could limit the Group’s ability to access the capital markets and bank funding markets, could adversely affect the ability of counterparties to meet their obligations to the Group and could adversely affect the confidence of the ultimate buyers of insurance.