Swiss Re, the world’s second-largest reinsurer, has identified the potential for improving its result in 2021, in particular in the corporate solutions business. It also hopes to increase its dividend.
Zurich-based Swiss Re, which ranks second after Munich Re in its industry, will hold its investors’ day in the shape of a live webcast on Friday. The company led by CEO Christian Mumenthaler will confirm its financial targets, according to a statement released in advance. It sees a strong earnings momentum.
Swiss Re is taking confidence from its proactive reserving approach and very strong balance sheet and today will reiterate its capital management priorities, focusing on superior capitalization and a stable or increasing dividend.
Corporate Solutions Turnaround
«We expect that Covid-19 will remain an earnings and not a capital event for the group, with declining exposures going forward,» said Mumenthaler, according to the statement. «We are focused on delivering on our financial targets and capital management priorities.»
The turnaround of the corporate solutions business is well on track, said the company. It expects to achieve a combined ratio that is less than or equal to its 98 percent target in 2021. Over the medium term, the division aims to move towards a better diversified and more cycle-resilient commercial insurance model.
