Swiss Re CFO on Buyback, Growth Opportunities, Earnings Outlook

The video discusses the strategic decision-making process behind share buybacks versus asset investments, highlighting Swiss Re's financial resilience and shareholder returns. It covers the approval of a significant buyback program, the impact of market performance on financial strategies, and plans for an IPO of the ReAssure subsidiary. The benefits of retaining a stake in ReAssure are also explored.

What is one reason the company prefers share buybacks over buying new assets?

• They believe it creates more value at current price levels.

• They have no opportunities to expand into new markets.

• They want to reduce their balance sheet size.

• They are required by law to buy back shares.

How has the company managed to maintain a strong balance sheet despite large losses?

• By absorbing losses and maintaining excess capital.

• By reducing employee salaries.

• By cutting down on operational costs.

• By selling off non-core assets.

What financial strategy has the company used to return value to shareholders?

• Increasing operational costs.

• Issuing new shares.

• Share buybacks and dividend increases.

• Reducing product prices.

What is a potential benefit of the company retaining a stake in ReAssure after the IPO?

• It eliminates competition in Switzerland.

• It reduces their tax liabilities.

• It ensures continued cash flow through dividends.

• It allows them to control the UK market.

Why does the company believe ReAssure does not fit well in their consolidated balance sheets?

• Due to its small size compared to other subsidiaries.

• Because it operates in a different industry.

• Because it is not profitable.

• Due to differing capital requirements in Switzerland.