Swiss Re Expects To Meet Ambitious Targets, To Deliver Strong Performance
WASHINGTON (dpa-AFX) - Reinsurer Swiss Re (SSREY.
PK) on Friday reiterated its commitment to achieve the individual Business Units' return on equity or RoE targets and its two Group financial targets over the cycle.
In terms of profitability, the target is an RoE of or above 700 basis points over the risk-free rate, measured by 10-Year US government bonds. The growth target aims for an increase in Economic Net Worth or ENW per share of 10% or more per annum.
David Cole, Swiss Re Group Chief Financial Officer, said, "We are committed to meeting our ambitious targets. We've generated an RoE of more than 11% over the past 10 years and an economic net worth per share growth over the same period of over 14%. This gives us confidence that we can continue delivering strong performance over the cycle."
The company said it aims to grow the regular dividend with long-term earnings, or at a minimum maintain it. The company would also deploy capital for business growth where it meets its strategy and profitability requirements.
Swiss Re said it will further expand its R&D capabilities to efficiently allocate capital into growing risk pools.
The current insurance environment is challenged by pricing pressures, low interest rates, political instability and regulatory fragmentation, the firm noted. Amid the difficult short- and mid-term environment, Swiss Re's strategic framework, and particularly its investment in R&D and technology, helps the company to leverage its unique capabilities to weather the challenges.
Further, Swiss Re announced the creation of the Swiss Re Institute, to sustain leadership as a knowledge company and enhance differentiation.
Copyright RTT News/dpa-AFX
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