Swiss Re is ready for the challenges of weak growth in Western countries, expansion into emerging markets and tougher regulation, executives told last week’s annual general meeting.

The group expects to learn this year whether it is classified as “globally systemically relevant” by the G20 Financial Stability Board, according to Chairman Walter Kielholz.

It is unclear what this might mean for Swiss Re, but it is well prepared for any new requirements, he says.

The reinsurance industry faces a challenging environment, according to Mr Kielholz. Growth in Europe is weak, value concentrations are growing in areas exposed to natural catastrophes, interest rates are low and regulation is tightening.

“The good news is Swiss Re has succeeded in positioning itself very well,” he told the meeting.

The company was “only marginally” affected by US crop losses and Superstorm Sandy, according to Group CEO Michel Liès.

In the January reinsurance renewals its premium volume grew 67% in Asia (excluding China), 48% in Africa and 35% in Latin America.

“It is obvious that emerging economies are not an ‘option’ for us, but rather a strategy,” Mr Liès said.

Swiss Re reported a 62% rise in profit to $US4.2 billion ($4 billion) last year, and says its combined ratio has been improving since 2000.

While property and casualty (P&C) reinsurance made a $US3.7 billion ($3.5 billion) profit, the corporate solutions division profit grew 142% to $US196 million ($186 million).

The Admin Re division, which manages closed life insurance portfolios, made $US183 million ($174 million) profit.

Growth at P&C renewals was 11%, driven by demand for tailored solutions and capital relief transactions.

Celebrations for Swiss Re’s 150th anniversary will start in August. Building work on the company’s new headquarters will begin this year.