Swiss Re will keep its focus on the problems at the corporate solutions unit as well as on the future of ReAssure, the division that it aims to divest, it said in today’s update of its strategy.
Swiss Re, the world’s second-largest reinsurance, presented an update on its strategy at the annual investors’ day, a presentation that didn’t contain much in terms of market-moving news. Swiss Re confirmed its strategy, targets and capital management priorities, according to a statement released on Monday.
Investors will have been eager to learn what the Zurich-based company intends to do about the loss-making corporate solutions business and the ReAssure unit it had planned to sell via an initial public offering.
Corporate Solutions Sorted Out by 2021
The company made clear that it still intends to divest the ReAssure unit. Before it can do so, it will profit from its performance and gross cash generation, a surplus it expects to reach £2.1 billion ($2.7 billion) in the period from 2019 through 2013.
Corporate solutions meanwhile will remain a pillar of the company’s business and focuses on regaining its profitability. It is making good progress with the implementation of the announced management actions to reposition the business, Swiss Re said. Andreas Berger, the new head of unit, expects to sort out the problems by the year 2021.
