Swiss Re Group

The stable outlook on Swiss Re reflects our expectation that the group will maintain an excellent competitive position in life and non-life reinsurance markets. We expect that the group will achieve this by maintaining: At least 'AA' capital level (we expect capital adequacy to remain at the 'AAA' level over 2019-2020); Strategic risk management practices and disciplined underwriting controls that support profitable growth and diversification, sustaining the group's competitive position; and Practices that minimize downside risks in volatile market conditions and allow the group to exploit any profitable opportunities that may arise. Over the next 12-24 months, we view a downgrade as unlikely. However, we could take this action if a combination of events severely eroded the group's capital base

...Swiss Re Group will maintain its top tier position within the global reinsurance sector and actively develop its primary life and non-life business. As of June 2019, about 50% of Swiss Re's net premiums earned (NPE) emanates from the non-life reinsurance business unit, 35% from Life & Health reinsurance, 10% from corporate solutions (CorSo; primary non-life business), and 5% Life Capital (primary business). The group is also present in many significant markets, and generates about 47% of its NPE in the Americas, 32% in Europe, the Middle East, and Africa (EMEA), and 21% in Asia-Pacific based on 2018 NPE. Difficulty in meeting performance targets consistently given the still-challenging pricing and low investment return environment. Like its peers, Swiss Re continues to face challenging business conditions in non-life reinsurance, despite some modest rate increases in 2018 and in the first half of 2019, after record back-to-back catastrophe losses in 2017 and 2018. Overall, we expect that...

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