General presentation of Swiss Re:
Check out more useful information about the Swiss Re company and its activities through a detailed presentation of the group which will help you to better understand where its profits and revenues come from and therefore how to anticipate its future profitability.
The Swiss Re group is a Swiss company operating in the insurance industry. More specifically, the company is one of the leaders in the reinsurance segment around the world.
To better understand the activities of the group, it's possible to divide them by geographic sector according to the turnover share generated like so:
- First of all, the major part of the Swiss Re group income, i.e. nearly 50.8% of its turnover comes from non-life reinsurance activities in particular damage reinsurance, civil liability, automobile, accidents and even credit and deposit.
- The group's second area of activity is life and health reinsurance, which generates 33.8% of the company's turnover. In this segment, Swiss Re is also the leader worldwide with life insurance which generates 67.4% of the premiums earned in this segment and health insurance which generates 32.6%.
- Finally, the remainder of the group's turnover, i.e. 15.4%, comes from the provision of financial services with, among other things, asset management, private equity, financial advice and the sale of structured products.
Know the Swiss Re shares competition:
Now let's find out who the main competitors of the Swiss Re group are in its sector of activity with the largest international companies:
- Munich Re: First of all, the German reinsurance company Munich Re is one of the main players in this sector worldwide and includes the subsidiary ERGO which specializes in direct insurance. This group is also listed on the various German stock exchanges as well as on the electronic transaction system Xetra. It's important to mention that Munich Re is part of the composition of the German DAX 30 stock market index.
- Berkshire Hathaway : This Company is an American investment conglomerate led by Warren Buffet which specializes in insurance and reinsurance. It's one of the largest companies in terms of capitalization in this sector and its shares are listed on the New York Stock Exchange.
- RGA: Finally, the company RGA for Reinsurance Group of America is also one of the main groups in this sector of activity although it is positioned after Swiss Re. It's a holding company for a global life and health reinsurance entity based in Missouri, United States. The company has over $ 3.5 trillion dollars in life reinsurance in effect and $ 76.4 billion in assets at the start of 2020. It has also become the only international company in the world to focus primarily on life and health reinsurance.
As part of your analyses of the Swiss Re share price, don't forget to explore all of this company's competitors in order to learn about data and news likely to influence the evolution of market shares.
The strategic alliances set up by the Swiss Re group:
The Swiss Re group regularly signs strategic partnerships which allow it to boost its growth. Some specific examples:
- Hitachi: In 2020, Swiss Re joined forces with the electronics group Hitachi aimed at offering insurance to companies embarking on a digital transformation. The two entities want to enable their future customers to accelerate their digital transformation by reducing insurance risks against potential interruptions in their business.
- Toyota : The same year, it was with Toyota Insurance Services that the Swiss re group set up a strategic partnership aimed at the development of an advanced driver assistance system. Swiss Re had already signed such a partnership with the car manufacturer BMW , in 2019. The objective of this concept is to offer car policyholders cheaper insurance premiums.
The elements in favour of an increase in the price of the Swiss Re share:
Currently, the Swiss Re group enjoys a number of advantages over its competitors on the market, here are a few examples:
- First of all, the Swiss Re group is one of the most important groups in the field of reinsurance around the world with international operations.
- The Group's long experience, which has existed for 150 years, is another of its major assets.
- Another advantage is the commercial and geographical diversification of the company which reduces risks with activities equally well distributed over the different segments of insurance.
- The workforce and the size of the company is another of its strengths with more than 11,000 employees around the world.
- Finally, the group's presence in over 25 different countries is also one of its strengths.
The arguments in favour of a drop in the Swiss Re share price:
With regard to the weaknesses of the Swiss Re group, the following elements should be taken into account:
- Firstly, the trend recorded in the life and health activities of the group has been rather downward in recent years and is weighing on its operating profit.
- Finally, the recent decline in investment income may also affect the future profitability of the group.