{"id":857,"date":"2026-09-09T12:44:42","date_gmt":"2026-09-09T12:44:42","guid":{"rendered":"https:\/\/baarda.ch\/?p=857"},"modified":"2026-09-09T12:44:42","modified_gmt":"2026-09-09T12:44:42","slug":"reint-jelger-could-you-explain-to-me-what-swiss-re-does-exactly-and-approximately-if-you-would-buy-for-half-a-million-franks-how-much-income-you-would-get-per-year","status":"publish","type":"post","link":"https:\/\/baarda.ch\/?p=857","title":{"rendered":"Reint Jelger: Could you explain to me what Swiss Re does exactly, and approximately if you would buy for half a million Franks how much income you would get per year?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Gemini: Swiss Re (Swiss Reinsurance Company Ltd) is one of the world&#8217;s leading providers of <strong>reinsurance<\/strong>, primary insurance, and other insurance-based forms of risk transfer. Founded in 1863 and headquartered in Zurich, Switzerland, it acts as an &#171;insurance company for insurance companies.&#187;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/baarda.ch\/wp-content\/uploads\/2026\/09\/afbeelding-25.png\" alt=\"\" class=\"wp-image-858\" srcset=\"https:\/\/baarda.ch\/wp-content\/uploads\/2026\/09\/afbeelding-25.png 1024w, https:\/\/baarda.ch\/wp-content\/uploads\/2026\/09\/afbeelding-25-300x164.png 300w, https:\/\/baarda.ch\/wp-content\/uploads\/2026\/09\/afbeelding-25-768x419.png 768w\" sizes=\"auto, (max-width: 706px) 89vw, (max-width: 767px) 82vw, 740px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">What Swiss Re Does<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Swiss Re functions as a shock absorber for the global economy by absorbing high-level risks that individual insurance companies cannot handle alone:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Property &amp; Casualty (P&amp;C) Reinsurance:<\/strong> Swiss Re underwrites large-scale risks, protecting primary insurers against catastrophic events like natural disasters (hurricanes, earthquakes), severe weather, industrial accidents, and large cyber liability claims.<\/li>\n\n\n\n<li><strong>Life &amp; Health (L&amp;H) Reinsurance:<\/strong> Partners with primary insurers to manage mortality, morbidity, and longevity risks (e.g., life insurance policies, critical illness plans, annuity risks).<\/li>\n\n\n\n<li><strong>Corporate Solutions:<\/strong> Provides commercial insurance directly to large mid-sized and corporate clients for complex risks, major industrial projects, or tailored coverage.<\/li>\n\n\n\n<li><strong>Asset Management:<\/strong> Manages its vast float (pre-collected insurance premiums) by investing across fixed income, real estate, and global markets to earn returns before claims are paid out.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Projected Annual Income on a CHF 500,000 Investment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To estimate annual income, we look at Swiss Re&#8217;s share price and regular dividend payout on the SIX Swiss Exchange (Ticker: <code>SREN<\/code> \/ <code>SRENH<\/code>):<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Current Share Price:<\/strong> ~CHF 135<\/li>\n\n\n\n<li><strong>Annual Dividend Yield:<\/strong> ~4.5%\u20134.7%<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Income Calculation Breakdown<\/h4>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Shares Purchased:<\/strong>CHF\u00a0135\u00a0\/\u00a0shareCHF\u00a0500,000\u200b\u22483,703\u00a0shares<\/li>\n\n\n\n<li><strong>Gross Annual Dividend Income:<\/strong>CHF\u00a0500,000\u00d74.6%=CHF\u00a023,000\u00a0per\u00a0year<em>(Approx. CHF 1,916 per month)<\/em><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Key Financial Considerations<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Swiss Dividend Withholding Tax:<\/strong> If held directly through a Swiss broker or resident account, Swiss equities are subject to a <strong>35% Swiss Federal Withholding Tax<\/strong> (<em>Verrechnungssteuer<\/em>) at source. Non-residents can typically reclaim part or all of this tax via double-taxation treaties, while Swiss residents offset it against their income tax returns.<\/li>\n\n\n\n<li><strong>Dividend Frequency:<\/strong> Swiss Re pays its dividend <strong>once per year<\/strong> (typically in April following its Annual General Meeting).<\/li>\n\n\n\n<li><strong>Market Exposure:<\/strong> The value of your initial CHF 500,000 investment will fluctuate with daily stock price movements and depends on Swiss Re&#8217;s underwriting performance, catastrophic loss events, and interest rate trends.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">How does the 35% Swiss dividend withholding tax work for international investors and how can it be reclaimed?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When a Swiss company pays a dividend, <strong>35% Swiss Withholding Tax<\/strong> (<em>Verrechnungssteuer<\/em> or <em>Anticipatory Tax<\/em>) is automatically deducted at the source before the payment reaches your brokerage account.<sup><\/sup><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For non-resident international investors, this 35% is higher than the tax rate agreed upon in most Double Taxation Agreements (DTAs).<sup><\/sup> You can reclaim the excess amount through a structured procedure with the <strong>Swiss Federal Tax Administration (ESTV \/ SFTA)<\/strong>.<sup><\/sup><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How the Tax Mechanics Work<\/h3>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Gross Dividend:<\/strong> Swiss company distributes a CHF 100 dividend.<\/li>\n\n\n\n<li><strong>Withholding at Source:<\/strong> The company remits CHF 35 (35%) directly to the ESTV and pays CHF 65 (65%) to your brokerage. Fiduciaire Genevoise<\/li>\n\n\n\n<li><strong>Treaty Rate Benchmark:<\/strong> Most Swiss double-taxation treaties cap the final withholding tax on retail stock dividends at <strong>15%<\/strong> (e.g., for investors in the US, UK, Netherlands, Germany, France, etc.).<\/li>\n\n\n\n<li><strong>Reclaimable Difference:<\/strong> You are entitled to reclaim <strong>20%<\/strong> of the gross dividend back from the Swiss government (35% withheld \u2212 15% final treaty rate). Findea AG<\/li>\n\n\n\n<li><strong>Home Country Tax Credit:<\/strong> The remaining 15% withheld by Switzerland can usually be claimed as a foreign tax credit against your local income tax obligations.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Step-by-Step Reclaim Process<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To claim back the 20% overpaid tax, follow these four steps:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Step 1: Obtain Your Supporting Tax Documents<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Request a <strong>Tax Voucher<\/strong> (<em>Verrechnungssteuer-Bescheinigung<\/em>) or an official <strong>Dividend Advice Note<\/strong> from your broker or bank.<sup><\/sup> This serves as official legal proof that 35% was remitted to the Swiss tax authority.<sup><\/sup><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Step 2: Access the ESTV Refund Portal<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Go to the official portal of the Swiss Federal Tax Administration (ESTV) under <em>Claim to refund of Swiss Anticipatory Tax<\/em>.<sup><\/sup> Select the form corresponding to your country of tax residence (e.g., Form R-US for the US, Form 85 for EU\/EEA countries, Form 86 for the UK).<sup><\/sup><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Step 3: Local Tax Authority Certification<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Print the completed form and send or present it to your <strong>home country\u2019s local tax authority<\/strong>.<sup><\/sup> They must stamp and sign the form (or provide an official Certificate of Tax Residence) confirming that you were tax-resident in your home country when the dividend was paid.<sup><\/sup><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Step 4: Submission to ESTV<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Upload the certified form, tax voucher, and broker statement to the ESTV electronic portal (or mail the physical wet-ink certified form if required for your specific jurisdiction).<sup><\/sup> Once processed, the ESTV deposits the 20% refund directly into your bank account in Swiss Francs (CHF).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Crucial Practical Rules &amp; Caveats<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Statute of Limitations:<\/strong> You have <strong>three years<\/strong> from the end of the calendar year in which the dividend was paid to submit your refund claim. Fiduciaire Genevoise<\/li>\n\n\n\n<li><strong>Minimum Claim Limits:<\/strong> The ESTV typically enforces a minimum annual reclaim threshold (often CHF 50 to CHF 100 in total withheld tax) to prevent processing tiny claims.<\/li>\n\n\n\n<li><strong>Broker Automated Reclaims:<\/strong> Some major custodians and international brokers offer bulk automated tax relief or reclaim services on behalf of their clients for a small administrative fee. Check if your broker handles this directly.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Gemini: Swiss Re (Swiss Reinsurance Company Ltd) is one of the world&#8217;s leading providers of reinsurance, primary insurance, and other insurance-based forms of risk transfer. Founded in 1863 and headquartered in Zurich, Switzerland, it acts as an &#171;insurance company for insurance companies.&#187; What Swiss Re Does Swiss Re functions as a shock absorber for the &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/baarda.ch\/?p=857\" class=\"more-link\"><span class=\"screen-reader-text\">&#171;Reint Jelger: Could you explain to me what Swiss Re does exactly, and approximately if you would buy for half a million Franks how much income you would get per year?&#187;<\/span> weiterlesen<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-857","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=857"}],"version-history":[{"count":1,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/857\/revisions"}],"predecessor-version":[{"id":859,"href":"https:\/\/baarda.ch\/index.php?rest_route=\/wp\/v2\/posts\/857\/revisions\/859"}],"wp:attachment":[{"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baarda.ch\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}