Investments and returns
In recent years, Suva has generated sufficient returns from its financial investments to cover all of its legally required services. What's more, the gains it has made on its investments have generated excess funds that have been reimbursed to insurees through lower premiums.
Short and succinct
In order to generate the returns required by law, Suva follows an investment strategy that
- most closely resembles that of a pension fund;
- is invested in a range of asset classes in order to benefit from the specific risk/return profiles of these classes;
- is focused on the long term and can therefore benefit from investment opportunities countercyclically and
- exceeds comparable indexes when considered over the long term.
Suva's performance since 2000
Suva's investment strategy most closely resembles that of a pension fund. Suva has exceeded the comparative indices of pension funds every year since 2000. It has particularly benefitted from the fact that, as a public sector insurer, it can invest its funds long-term and acts countercyclically as a result.
Suva follows an investment strategy that most closely resembles that of a pension fund. It invests the majority of its financial resources in loans and bonds that represent a low risk, and therefore generate a comparatively low return. Just under a third of the resources are invested in shares. Suva also invests in real estate assets throughout Switzerland and commissions new construction projects.
Since 2000, Suva has generated considerable added value by carefully selecting its individual investments and positioning in the markets, as opposed to a passive implementation of the investment strategy. Insurees have benefitted from this as returns on investments it does not use in the provision of its statutory services are refunded to insurees through lower premiums.
The investment strategy defines which assets Suva can invest in. We have compiled the most relevant aspects of our investment activity here.