COVID-19 impact 'absolutely manageable': Swiss Re in 'very unusual' AGM

Global reinsurer Swiss Re has increased the dividend, authorised a new share buyback and elected new board members at its annual general meeting as it insists "business is running without interruptions" despite the current crisis.

The reinsurer's AGM took place without the shareholders' presence, as per the Swiss Federal Council mandate. Chairman Walter Kielholz said that it "was a very unusual meeting" and he hopes it returns to normal AGM next year.

The shareholders approved a 5 percent increase in regular dividend to CHF 5.90 per share, which will be distributed beginning April 23, 2020. From April 21, Swiss Re shares will be traded ex-dividend.

The board also authorised a new public share buyback programme of up to CHF 1.0 billion purchase value. However, in light of the current volatility in the financial markets and global economic situation precipitated by the COVID-19 pandemic, at its post-AGM meeting the board concluded that the share buyback programme will not be launched.

Sergio Ermotti, Joachim Oechslin and Deanna Ong have been elected as new members to the board of directors, while Walter Kielholz has been re-elected as chairman.

Kielholz said: "Despite the current circumstances, business is running without interruptions at Swiss Re as we continue to handle claims, renew contracts, share our knowledge and innovate," said Kielholz.

"While at this point we assess the financial impact of the current crisis on Swiss Re as absolutely manageable, we run our business and allocate capital with the prudence that current volatility calls for," he added.

The shareholders also approved the maximum aggregate amount of compensation for the board of directors’ members for the one-year term until the completion of the AGM 2021 with 84.7 percent of the votes cast.

In addition, shareholders approved the maximum aggregate amount of fixed compensation and variable long-term compensation for the members of the Group Executive Committee for the financial year 2021 with 85.5 percent. Shareholders also approved the aggregate amount of variable short-term compensation for the members of the Group Executive Committee related to the preceding financial year (2019) with 86.4 percent of the votes cast.

Shareholders also re-elected PricewaterhouseCoopers, Zurich, as the group’s auditor for a last one-year term of office for the financial year starting on 1 January 2020.

KPMG was elected as the group’s new auditor for a one-year term of office for the financial year starting on 1 January 2021.