20.2.1819 – 6.12.1882

Zurich

United Arab Emirates

When Alfred Escher (1819–1882) was born 200 years ago, Switzerland faced some economic hardship. To a large degree, the economy relied on homework and farming. But from the mid-19th century on, Switzerland started industrialising with Escher becoming the country's most important entrepreneur and also a highly influential political actor. Some say that he more or less single-handedly provided the young Swiss federal state (founded 1848) with a modern economy and infrastructure.

While Alfred Escher was involved also in the foundation of Swiss Re, he was not a leading player in the creation of our company. Yet, being active in the background, his role was still decisive. More importantly, he had created the economic framework that allowed Swiss reinsurance to be viable.

With the Schweizerische Kreditanstalt, later Credit Suisse, Escher had founded the then most important vehicle to finance and promote growth not only in railways but also for a fledgling insurance and reinsurance industry. The creation of a private reinsurer, Swiss Re, fit into Escher's plans to make Switzerland less dependent on foreign capital. The possibly most important reason for Swiss Re's foundation was to keep reinsurance premium payments within national borders.

Escher and the Board of Directors at Credit Suisse immediately supported the project to create a national reinsurer but did suggest some increases to Swiss Re's capitalisation. As historian Tobias Straumann points out, they may have had some doubts as to the viability of such a company.

But what was unusual about this period was the fact that such capital was actually available in Switzerland. When the founders of Cologne Re had started looking for capital to form their reinsurance company in 1842, it took them several years to finally raise the necessary amount in Paris. In 1863, Swiss Re was founded within a few months. The capital came exclusively from Switzerland. Largely thanks to Alfred Escher's work.

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