Swiss Re intends to further grow and diversify its natural catastrophe portfolio to enhance earnings and there is plenty of room to grow.
The Swiss Re Institute is predicting that the global nat cat reinsurance market is forecast to grow to US$40 billion in four years up from US$30 billion this year.
The Zurich-headquartered firm has outlined its strategy on its Investor’s Day in London yesterday on November 25.
The wholesale strategy is aligned with its ambitious growth plans in Asia, undeterred by recent weather-related impacts in the region. Russell Higginbotham, Swiss Re’s chief executive Asia, told InsuranceAsia News in October: “Swiss Re wants to double its business in the region in the next five years and we see growth in all markets. We see opportunities in developing agriculture, engineering and liability lines; this is a diverse and dynamic region with plenty of opportunity.”
The group also highlighted its life and health credentials with peer-leading returns, global diversification, strong growth in Asia; China and India are particular target countries for Swiss Re in the region.
Christian Mumenthaler, group chief executive of Swiss Re, said: “Swiss Re’s strategy is centred around diversifying our access to risk pools by leveraging our risk knowledge, unique client access and capital strength. We are investing in research and technology to give us an edge in accessing growing risk pools, such as natural catastrophe.”
In September, Swiss Re established its Alternative Capital Partners unit in group finance by combining its ILS, retro and syndication teams. The idea is to help  grow its nat cat book, while keeping group peak exposures within risk limits.
Swiss Re’s group chief financial officer John Dacey said: “The establishment of Alternative Capital Partners enhances our already flexible capital structure. It allows us to consider all sources of capital holistically.”
Meanwhile the group is prioritising the turnaround of Swiss Re Corporate Solutions.
 
 

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