Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SSREY, SSREF either through stock ownership, options, ...

Financial Data and Key Metrics Changes - The company reported a net income of $3.2 billion for 2024, achieving a return on equity of 15% [4][21] - The company added $3.1 billion to U.S. liability reserves throughout 2024, positioning overall P&C reserves at the 90th percentile of the best estimate range [5][6] - The combined ratio for P&C Re was reported at 89.9%, missing the target of less than 87% due to reserving actions [22] Business Line Data and Key Metrics Changes - P&C Re achieved a volume growth of 7% driven by increases in property and specialty lines, with nominal price increases of approximately 2.8% [6][7] - Corporate Solutions outperformed its combined ratio target of less than 93% by achieving a combined ratio of 89.7% [8][25] - Life & Health Re delivered a net income of $1.5 billion despite negative impacts from assumption strengthening and experience variances [10][26] Market Data and Key Metrics Changes - The company reported actual large natural catastrophe losses of $1 billion in 2024, significantly below the budgeted expectation of $2 billion [23] - The preliminary estimate for losses from the LA wildfires is less than $700 million, based on an industry market loss of approximately $40 billion [16][60] Company Strategy and Development Direction - The company aims to deliver a net income of more than $4.4 billion in 2025, with a focus on becoming a leaner and more effective firm [14][31] - A dividend increase of 8% is proposed, aligning with the objective of growing dividends by at least 7% per year over the next three years [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 targets despite the impact of the LA wildfires, indicating that the market remains disciplined [39][44] - The company is focused on improving profitability and resilience, with a commitment to consistent delivery on stated objectives [116] Other Important Information - The capital position remains strong with a group SST ratio of 257%, above the target range of 200% to 250% [30] - The company anticipates a $300 million reduction in operating costs by 2027, with $100 million expected to be achieved in 2025 [15] Q&A Session All Questions and Answers Question: Impact of LA wildfires on 2025 targets - Management remains confident in achieving the $4.4 billion target despite the LA wildfires, indicating that the cat budget remains supportive for pricing [39][44] Question: Drivers of lower natural catastrophe losses - The disciplined underwriting approach and avoidance of secondary perils contributed to lower than expected natural catastrophe losses [41][46] Question: Details on negative experience variances in Life & Health Re - Negative experience variances were primarily from EMEA health and smaller Asia portfolios, totaling about $800 million [52][56] Question: Process for estimating California wildfire losses - The estimate was based on detailed information from primary clients and loss adjusters, with a focus on insured structures and additional damages [58][60] Question: Capital generation and SST ratio expectations - Management expects positive momentum in the SST ratio, aligning with the $4.4 billion earnings target [70][72] Question: Insights on renewals and pricing - The company achieved double-digit price increases for nonproportional casualty and maintained a disciplined approach to risk exposure [74][76] Question: Normalized run rate for Corporate Solutions - The combined ratio of 89.7% is seen as sustainable, with confidence in achieving the target of better than 91% [123][125] Question: Comfort with Life & Health assumptions - Management remains comfortable with the Life & Health assumptions despite the reduction in CSM, indicating a proactive approach to adjustments [146]

Dublin, Nov. 25, 2024 (GLOBE NEWSWIRE) -- The "Enterprise Tech Ecosystem Series: Swiss Re Limited 2024" company profile has been added to ResearchAndMarkets.com's offering. The report provides insights into company's tech activities, including its digital transformation strategies, its innovation programs, and its technology initiatives.Swiss Re Ltd provides wholesale reinsurance, insurance and risk transfer solutions. The company provides reinsurance products for casualty, property, aviation, agriculture, ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|----------------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | 9M 2024 Results | | | | | | | | | | | | Swiss Re investor and analyst presentation Zurich, 14 November 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9M 2024 result driven by resilient underwriting and investment ...

Swiss Re AG (OTCPK:SSREY) Q3 2024 Earnings Conference Call November 14, 2024 8:00 AM ET Company Participants Thomas Bohun - Head Group Reporting and Investor Relations Andreas Berger - Group Chief Executive Officer John Dacey - Group Chief Financial Officer Conference Call Participants Kamran Hossain - JPMorgan Will Hardcastle - UBS Ivan Bokhmat - Barclays Andrew Baker - Goldman Sachs James Shuck - Citi Michael Huttner - Berenberg Derald Goh - RBC Faizan Lakhani - HSBC Simon Fossmeier - Vontobel Vinit Malho ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SSREY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While ...

Tati Campelo/iStock Editorial via Getty Images Swiss Re (OTCPK.SSREF) is a leading global reinsurance company. Based in Switzerland, the company has a widespread international presence, with 51.4% of its premiums collected in the USA, 30.6% in EMEA, and the remaining 18% from other regions. The company operates through three divisions: P&C (Property & Casualty) reinsurance (51.4% of premiums), L&H (Life & Health) reinsurance (34.4%), and corporate solutions (14.2%). Geographical diversification 18 51,4 30,6 ...

i designer491 Swiss RE (OTCPK:SSREF) has reported a positive operating performance in recent quarters, but its valuation seems to be fair and upside potential seems limited right now. As I've covered in previous articles, I see Swiss Re as a good income investment in the European insurance sector, as the company offers a high-dividend yield that is sustainable over the long term. As shown in the next graph, my view was right and over the past year its shares are up by more than 43%, including dividends, bea ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|------------------------|-------------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Zurich, 22 August 2024 | Half-year 2024 Results Swiss Re investor and analyst presentation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Strong H1 2024 res ...

Financial Data and Key Metrics - The company reported a net income of $2.1 billion for the first half of 2024, putting it on track to achieve the full-year target of over $3.6 billion [3][9] - The P&C Re combined ratio for the first half was 84.5%, reflecting disciplined underwriting and low large NatCat losses [9] - The Life & Health Re business reported a net income of $883 million in the first half, driven by in-force margins and recurring investment income [12] - Corporate Solutions achieved a combined ratio of 88.7% for the first half, with a full-year target of below 93% [12] - The return on investments (ROI) for the first six months was 4.0%, with a reinvestment yield of 4.8% in Q2 [13] Business Line Performance - P&C Re increased loss assumptions by 11% on top of a 13% increase last year, reflecting a more prudent approach to underwriting [5] - Life & Health Re reinforced in-force mortality assumptions to account for potential medium-term pandemic impacts, increasing the resilience of its CSM (Contractual Service Margin) [7] - Corporate Solutions saw a strong underlying performance, with a benign manmade loss experience in the first half, offset by an allowance for potential claim seasonality later in the year [12] Market Performance - The P&C Re market experienced insured NatCat losses of $60 billion in the first half, with the majority related to smaller events assumed by the primary industry [9] - The company's own losses for large NatCat events came in below $100 million, significantly lower than the budgeted $600 million [10] - Premium volume growth in the July renewals was 7%, with Property & Specialty premiums growing by 11% [11] Strategic Direction and Industry Competition - The company is focused on enhancing the overall resilience of the Swiss Re Group, with a particular emphasis on disciplined underwriting and prudent initial loss assumptions [4][6] - The exit from iptiQ is proceeding as planned, with a write-down of all related intangibles to zero in the first half results [7] - The company is committed to growing the regular dividend based on underlying earnings and will return excess capital to shareholders if deployment opportunities are limited [8] Management Commentary on Operating Environment and Future Outlook - The company remains vigilant as it enters the hurricane season, which is the most active part of the year for natural catastrophes [3] - Management emphasized the importance of maintaining a strong capital position, with the SST ratio remaining above 300% at midyear [13] - The company is optimistic about achieving its full-year financial targets, despite the uncertainties in the operating environment [9][13] Other Important Information - The company introduced a reserving uncertainty allowance across all P&C businesses to enhance reserving strength [6] - The U.S. liability reserves were increased by around $650 million in the first half, with the majority allocated to the problematic years of 2014 to 2019 [11][17] - The company expects to add another $0.5 billion to reserves during the course of the year due to the uncertainty load on new business [24] Q&A Session Summary Question: Priorities and U.S. Liability Reserves - The CEO clarified that the current situation is different from 2019, with no need for drastic actions, but the company is addressing specific focus areas [15][16] - The CFO explained that the U.S. liability reserve additions were primarily for the years 2014 to 2019, with some allocations to earlier and later years [17] Question: NatCat Reserving and Liability Reserves - The CFO discussed the low NatCat losses in the first half and the decision to set aside $300 million in IBNR reserves for potential late-reported claims [21][22] - The CEO elaborated on the reserving philosophy introduced in CorSo, which has been extended to the P&C Re business to reduce volatility [23] Question: Life & Health Re Expenses and CSM Release - The CFO addressed the increase in other expenses in Q2, attributing it to comparability challenges with 2023, and expects a more normalized number in the second half [28] - The CSM release in Life & Health Re was higher in Q2, but the company expects it to normalize over time [28] Question: Life & Health Assumption Updates and CorSo Performance - The CFO explained that the negative experience variance in EMEA was due to specific geographies and not a worrying trend [31] - The CEO noted that CorSo had some NatCat losses but remains cautious as the hurricane season progresses [32] Question: NatCat Losses and U.S. Casualty Reserves - The CFO highlighted the disciplined underwriting in P&C Re, which has reduced exposure to high-frequency events and focused on tail risk [39] - The U.S. casualty reserve additions were driven by notifications from the primary industry about increased losses, particularly in umbrella casualty and commercial motor lines [39] Question: Reserve Additions and Combined Ratios - The CFO clarified that the majority of the $650 million reserve additions were IBNR, reinforcing the overall reserving position [40] - The company will provide sub-line combined ratios for the full year, with casualty lines seeing significant price increases [40] Question: Corporate Solutions and NatCat Exposure - The CFO noted that Corporate Solutions had minimal losses from U.S. tornadoes, with most losses coming from other regions [43] - The company expects a solid performance from Corporate Solutions in the second half, with a combined ratio likely below 93% [45]