(Bloomberg) — Swiss Re AG, swimming in excess capital from lower-than-expected disaster claims, reverted to share buybacks to return cash to investors after three years of paying special dividends.
Following the example of Munich Re earlier this month, the world's second-biggest reinsurer announced plans Thursday to purchase as much as 1 billion Swiss francs ($1.1 billion) of its stock by its shareholder meeting next year. By then the company will have exhausted its tax-privileged reserves for special dividends, Swiss Re said in a statement.
Swiss Re will also raise its regular dividend to 4.25 francs a share from 3.85 francs for 2013, the Zurich-based company said in a statement. And it will top that off with a special dividend of 3 francs, down from 4.15 francs a year ago. The total payout amounts to 7.25 francs a share, compared with 8 francs a year ago. The surge in the newly liberated Swiss franc has not affected the company's ability to pay dividends, Chief Financial Officer David Cole said at a press conference.
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