Swiss Re has won approval from shareholders for a public share buyback of 1 billion Swiss francs ($1.33 billion).

The move received backing at last week’s AGM in Zurich. It is in line with the reinsurer’s capital management policy to return funds to shareholders when excess capital is available.

“For some time now we have seen a trend of Swiss Re’s economic value significantly exceeding its market value,” Chairman Walter Kielholz said.

“I am convinced Swiss Re should use this opportunity and invest in its own shares, so the company and ultimately the shareholders can benefit from this premium.”

The buyback can take place any time before next year’s AGM.

Shareholders approved all proposals from the board last week. Mr Kielholz was re-elected as Chairman.

An increase in the regular dividend was also approved, moving to 4.25 Swiss francs per share ($5.65) and an additional special dividend of 3 Swiss francs ($3.99) per share.

CEO Michel Liès says last year produced a record high 189 natural catastrophes worldwide, plus 147 man-made disasters, but there have been improvements to early-warning systems and emergency care.

“Last year’s insured losses of $US35 billion ($45.08 billion) were below the 10-year average,” he said.

Numbers of victims and economic losses were also well below average.

Swiss Re will report third-quarter results on Thursday.