18 March 2015 News

Swiss Re proposes $2.5bn return to shareholders

Reinsurer Swiss Re has proposed to return $2.5 billion (SFr2.5 billion) to shareholders via dividends and just under $1 billion (SFr1 billion) in a share buy-back scheme.

Ahead of its annual general meeting (AGM) on April 21, 2015, the board of directors proposed the buyback scheme at any time ahead of the 2016 AGM, to achieve its objective of returning capital to shareholders when excess capital is available and other business opportunities do not meet its internal investment hurdle rate.

Walter Kielholz, Swiss Re's chairman, said: "For some time now we have seen a trend of Swiss Re's economic value significantly exceeding its market value. I am convinced that Swiss Re should use this opportunity and invest in its own shares so the company and ultimately the shareholders can benefit from this premium.

“Additionally, all these proposals follow the clear capital management policy we have set out over the past few years: maintaining our regular dividend and growing it in line with long-term earnings as our highest priority, followed by business growth where it meets our profitability targets."

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