Share buy-back
Swiss Re is focused on delivering a sustainable dividend and active capital management while maintaining superior capital adequacy.
Share buy-back
Based on very strong results in 2006, continued commitment to underwriting discipline and anticipated benefits from streamlining its legal entity structure, Swiss Re announced on 1 March 2007 a share buy-back of up to CHF 6.0bn within a three year period.
On 23 January 2008, Swiss Re announced an increase in the buy-back to a total of up to CHF 7.75bn. Following the announcement of the proportional reinsurance contract with Berkshire Hathaway, Swiss Re intends, in addition to its previously announced buy-back, to acquire its own shares in the market for general treasury purposes up to a total value of CHF 1.75 billion. This buy-back is expected to be completed over the next 24 months as the capital relief resulting from the quota share arrangement is achieved. As a result, Swiss Re now targets a total buy-back, including shares already re-purchased, of up to CHF 7.75 billion.
On 1 March 2007, Swiss Re repurchased 16 650 479 Swiss Re shares for approximately CHF 1.7bn from GE, which were held by them as a result of the acquisition of GE Insurance Solutions in June 2006.
At the Annual General Meeting on 20 April 2007, Swiss Re’s shareholders approved a further buy-back for cancellation of up to CHF 4.2bn over the next three years.
Swiss Re set up a second trading line on SWX Europe exchange (formerly known as virt-x) on 10 August 2007 to enable a tax efficient buy-back for cancellation (ticker symbol is RUKNE). On this second line, shares will be purchased exclusively by the company for the purpose of cancellation. The repurchased shares will be formally cancelled following a respective amendment of the company’s Articles of Association, which is subject to approval at the subsequent Annual General Meeting.
On 4 November 2008, Swiss Re announced that due to current market conditions the buy-back has been suspended. As of this date Swiss Re has repurchased 44 805 479 shares for approximately CHF 4.0 billion and has thus completed 51.2% of the share buy-back programme.
The following document shows volumes and average purchase prices of the buy-back:
Share buy-back progress (84 kB)
