Business

Swiss Re posts £627m net loss

Excluding Covid-related claims and reserves for the year, the group’s net income was £1.5bn

Swiss Re has reported a net loss of $878m (£627m) for 2020, with the pandemic adversely impacting the company.

Excluding Covid-related claims and reserves for the year, which were worth $3.9bn (£2.7bn), the group’s net income was $2.2bn (£1.5bn).

This represents a sharp increase from the $727m (£519m) in net income reported back in 2019.

In its latest update, the group revealed that its board of directors is set to propose a dividend of CHF 5.9 (£4.72) per share at Swiss Re’s annual general meeting on 16 April 2021.

Christian Mumenthaler, Swiss Re’s group chief executive officer, said: “The Covid-19 pandemic continues to affect communities and businesses across the globe. The start of vaccination efforts brings hope that the situation will improve soon. 

“Our group has gone through this crisis with confidence and strength, and in our role as a shock absorber we are doing our part to help mitigate the challenges of the pandemic and improve resilience to future systemic risks.”

He added: “From the start of the pandemic, we took a disciplined and prudent approach to building reserves as actual claims have been slow to come in. While some further CovidD-19 losses are expected in 2021, we have dramatically reduced relevant exposures in P&C lines.

“I am very encouraged by broad-based improvements in portfolio quality and underwriting margins in P&C Re and Corporate Solutions, including in the January renewals.“

John Dacey, Swiss Re’s chief financial officer, said: “Our capital position remained very strong throughout 2020, despite the unprecedented impact from Covid-19 and an unusually high frequency of natural catastrophes. 

Swiss Re’s businesses continued to run without disruptions, delivering a strong underlying performance. Together with a positive outlook, this allows us to propose a stable dividend payment to our shareholders even in these challenging times.“

 

Show More
Back to top button