ZURICH Dec 2 Swiss Re on Friday
reaffirmed its financial targets and said it would focus on
using research and development to access new growth areas in a
The world's second-biggest reinsurer has said it is
targeting a return on equity of 700 basis points above risk-free
10-year U.S. government bonds and aims to grow economic net
worth per share by 10 percent each year.
It aims to raise its regular dividend along with long-term
earnings or at least maintain it.
"We acknowledge significant challenges in some of our
markets but we remain optimistic for our industry in the long
term," Chief Executive Christian Mumenthaler said.
"In the current environment, it is absolutely essential that
we focus on what we do best: leverage our capability to price
risk and allocate capital to those opportunities that are most
By focusing on R&D and technological investments and by
allocating capital to the most attractive, growing risk pools,
it aimed to differentiate itself from peers, a strategy that had
let it generate higher margins and outperform other reinsurers.
Swiss Re's targets -- formulated last year -- are set
through the insurance cycle, which it has said can typically
last for five to 10 years. New targets were set
from 2016 onwards.
Contract renewals in January will provide an important
signal whether a softening cycle, characterised by falling
prices amidst fierce competition and low global interest rates,
has finally bottomed out.
(Reporting by Brenna Hughes Neghaiwi; Editing by Michael