Swiss Re has reported net income of $4bn for the first nine months of 2025 (9M 2025), an 85% increase from $2.2bn over the same period last year. The growth in earnings was mainly attributed to improved underwriting results within its property and casualty (P&C) reinsurance segment. The company’s insurance service result stood at $4.8bn, a 64% increase compared to $2.9bn in the prior-year period. Swiss Re’s total insurance revenue decreased by 5% to $32bn from $33.7bn a year ago. Return on investments ...

Core Insights - The company's net profit increased to $4 billion for the first nine months of the year, up from $2.2 billion in the same period last year, indicating a significant recovery from prior challenges related to U.S. liability reserves [1] Financial Performance - Net profit for the first nine months of the year: $4 billion [1] - Net profit for the same period last year: $2.2 billion [1] - The increase in net profit reflects a recovery from previous financial impacts [1]

UK Chancellor of the Exchequer Rachel Reeves will meet CEOs from top insurers in Downing Street on Wednesday, as she seeks to encourage more investment in the City ahead of a tricky budget later this month.The meeting, whose attendees will include Lloyds of London Chair Charles Roxburgh, Swiss Re AG CEO Andreas Berger and Hiscox Ltd CEO Aki Hussain, will focus on “opportunities for more investment in the London market” and Reeves will highlight recent “cuts to financial red tape,” according to a statement f ...

Core Insights - The rise of catastrophe bonds is impacting the market share of reinsurers, with primary insurers increasingly relying on these bonds as a backstop for extreme disaster scenarios [1][2] - The market for catastrophe bonds has grown significantly, with primary insurers sponsoring 58% of all cat bonds, up from 48% two years ago [1] - Reinsurers are experiencing new market dynamics, as a larger share of their business is moving to alternative investment managers seeking higher returns [2] Group 1: Market Dynamics - Insurers' reliance on capital markets is increasing, coinciding with rising costs from natural catastrophes, with industry losses expected to exceed $150 billion this year [3] - The cat bond market has expanded by over 50% since 2023, reaching an estimated $55 billion [3] - The performance of cat bonds has been favorable, with the Swiss Re Global Cat Bond Performance Index up about 10% this year, following a 2% loss during Hurricane Ian in 2022 [5] Group 2: Reinsurer Strategies - Reinsurers are facing pressure on rates due to the expansion of the cat bond market, leading to signs of price correction [6] - Some reinsurers, like Swiss Re, are increasing their involvement in the cat bond market, both as issuers and investment managers [7] - Swiss Re emphasizes the importance of integrating capital markets with traditional reinsurance to enhance resilience against natural disasters [8] Group 3: Profit Risks - Property and casualty insurers face greater profit risks in 2025 compared to reinsurers, with significant losses from severe convective storms [8]

Core Viewpoint - Swiss Re indicates that the widespread use of GLP-1 drugs for obesity treatment could lead to a reduction in the annual death rate by up to 6.4% in the United States by 2045 [1] Group 1 - The potential impact of GLP-1 drugs on public health is significant, suggesting a proactive approach to obesity management could yield substantial benefits [1]

Group 1 - The coverage of Swiss RE AG is being resumed in light of its first-half 2025 results [1] - The analysis focuses on the insurance sector, highlighting the expertise in conducting fundamental, income-oriented, long-term analysis across global developed markets [1] - The article invites discussions on investment ideas related to the company [1] Group 2 - The analyst has a beneficial long position in the shares of SSREY and SSREF through various financial instruments [2] - The article expresses the author's own opinions without any compensation from the company mentioned [2] - There is no business relationship with any company whose stock is mentioned in the article [2]

Analyst's Disclosure:I/we have a beneficial long position in the shares of SCRYY either through stock ownership, options, or other derivatives. 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 this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advic ...

Group 1 - The article discusses the role of buy-side hedge professionals who conduct fundamental, income-oriented, long-term analysis across various sectors globally in developed markets [1] - It emphasizes the importance of engaging in discussions about investment ideas and strategies among professionals in the field [1] Group 2 - The analyst has disclosed a beneficial long position in the shares of SSREY and SSREF, indicating a personal investment interest in these stocks [2] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned, ensuring an independent perspective [2]

Group 1 - The article discusses the role of buy-side hedge professionals who conduct fundamental, income-oriented, long-term analysis across various sectors globally in developed markets [1] - It emphasizes the importance of sharing ideas and engaging in discussions among professionals in the investment community [1] Group 2 - The analyst has disclosed a beneficial long position in the shares of SSREY and SSREF, indicating a personal investment interest in these stocks [2] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned, ensuring an independent viewpoint [2]

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]