Swiss Re becomes latest reinsurer to return cash to shareholders

Swiss Re has unveiled plans to return Sfr1 billion ($1 billion) of capital to shareholders via a share buyback scheme that will be completed before its next AGM in April 2018, as it struggles to find business opportunities that meet its objectives.

The world’s second largest reinsurer has also proposed a regular dividend of Sfr4.85 per share – a 5.4 percent increase on the year before. Together with its last share buy-back that finished on February 9, 2017, this will mean it will have paid some Sfr2.5 billion to shareholders for 2016.

The company has a stated strategy of returning capital to shareholders when the following criteria are met: excess capital is available, no major loss events have occurred, other business opportunities do not meet its strategic and financial objectives and the necessary regulatory approvals are obtained.

Walter Kielholz, the chairman, said: "2016 was a year of profound changes. However, despite many difficulties, Swiss Re was able to stay on course and deliver good results. In the course of our 153 years of experience, we have shown an undisputed ability to operate successfully in ever-changing and highly challenging situations.

"While we decisively invest in our business and actively address the challenges mentioned, we stay committed — in the context of our capital management priorities — to return capital to our shareholders if we do not identify any better investment opportunities."

Today’s top stories

Greenlight Re appoints Ireland CEO, targets growth in Europe

Generali hails turnaround with solid 2016 profits driven by P/C unit

Swiss Re welcomes three to board amid reshuffle

PhilNaRe announces resignation of key officer

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.