Swiss Re commits to long-term profitability with new framework

Swiss Re has confirmed its commitment to deliver long-term profitability and economic growth at its Investors' Day. The firm unveiled its strategic framework, which it said will position the company strongly with regards to current and future opportunities and challenges facing the re/insurance industry. The framework, according to the firm, allows for systematic and fast allocation of capital to access new and existing risk pools and revenue streams. Swiss Re also showed at the Investors Day how the framework will lay the foundation to meet its financial targets over the cycle. It said it will proactively address the low interest rate environment, and will look to its strategic framework both to seize new and emerging opportunities and tackle existing challenges.  The re/insurer said the framework builds on the successful execution of its current strategy, which has enabled the firm to deliver a shareholder return of 22 percent on an annualised basis over the last five years. "Since 2011, we consistently outperformed our peers, grew our business and we continue to focus, with only a few weeks to go, on delivering our 2011–2015 financial targets,” said Michel Liès, group chief executive officer, Swiss Re. “Past success however is no guarantee for the future and therefore, we actively looked into what will shape our industry going forward. We developed our strategic framework with the trends, opportunities and challenges we identified in mind.  “As a result, we'll be able to increase our agility and respond more quickly and effectively to change and to drive change ourselves. At the heart of our transformation journey is our aim to be an agile capital allocator in insurance and associated asset risks.” Liès added the new framework will be carried out with a strong balance sheet and three business units delivering on their core strengths, such as expert underwriting and solid client relationships.