Group 1 - Swiss Re Limited is a provider of wholesale reinsurance, insurance, and risk transfer solutions, offering a wide range of products including casualty, property, aviation, agriculture, and life and health insurance [2][3] - The company serves various clients including stock and mutual insurance companies, mid-to-large-sized corporations, governmental entities, and public sector organizations, operating through a global network [3] - The report on Swiss Re's tech activities highlights its digital transformation strategies, innovation programs, and technology initiatives, providing insights into partnerships, product launches, investments, and acquisitions [4][5] Group 2 - The report covers key topics such as digital transformation strategy, technology focus, and major ICT budgets, along with details on technology initiatives and the company's executive team [6] - Insights into Swiss Re's technology themes and objectives are provided, detailing the benefits of each initiative [4][5] - The report aims to offer comprehensive insights into Swiss Re's tech operations and strategies, making it a valuable resource for understanding the company's innovation landscape [5][6]

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

Financial Data and Key Metrics Changes - The group net income for the first nine months of 2024 stands at $2.2 billion, with a third-quarter profit of $102 million, despite significant reserving actions [13][8] - The P&C Re's nine-month combined ratio is 92.8%, reflecting resilient underwriting results, including a net negative impact of $2.8 billion from reserve strengthening [14][8] - The return on investments for the first nine months is strong at 3.9%, driven by higher recurring income contributions, which increased by about $400 million year-over-year [21][8] Business Line Data and Key Metrics Changes - Life & Health Re reported net income of $1.2 billion for the first nine months, driven by enforced margins and recurring investment income, with a target of approximately $1.5 billion for the full year [17][19] - Corporate Solutions achieved a nine-month combined ratio of 89.4%, reflecting strong underlying business performance, and is on track to exceed the full-year target of less than 93% [20][8] - P&C Re's large Nat Cat claims for the first nine months were a little over $800 million, compared to a budget of about $1.35 billion [14][15] Market Data and Key Metrics Changes - The company has pruned its book by 21% at this year's renewals due to cautiousness regarding new business in the US liability market [5][8] - The company expects robust demand for reinsurance driven by significant catastrophe activity, which will remind primary companies of the need to buy reinsurance [29][8] Company Strategy and Development Direction - The company aims to position itself at the higher end of the best estimate range for P&C reserves, specifically at the 90th percentile, to enhance overall resilience [6][8] - The decision to withdraw from iptiQ and sell iptiQ EMEA P&C to Allianz Direct is part of the strategy to maximize value for the group [9][8] - The company plans to announce financial targets for 2025 during the Management Dialogue event on December 13 [10][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a group net income exceeding $3 billion for 2024, assuming normal loss activity for the remainder of the year [24][8] - The management remains vigilant and proactive regarding new business, particularly in light of the adverse developments in US liability costs [7][8] - The management acknowledged the need for rate increases in the US liability lines to accommodate ultimate losses and find equilibrium in the market [96][8] Other Important Information - The company has significantly strengthened its US liability reserves, adding $2.4 billion in Q3, bringing total prior year US liability reserve additions to $3.1 billion for the first nine months [3][8] - The capital position remains strong with a group SST ratio of 284%, above the top end of the targeted long-term range [22][8] Q&A Session All Questions and Answers Question: How much should we read into the nine-month result when thinking about next year? - Management indicated that while the nine-month results are strong, the exact renewals for P&C Re and portfolio updates for Corporate Solutions remain uncertain [28][8] Question: What was the motivation to change the SST methodology? - The motivation was to align with regulatory expectations and reduce volatility related to interest rates, leading to a more prudent position [33][8] Question: How much of the reserve addition was driven by increasing the percentile versus higher ultimate outcomes? - The majority of the $2.4 billion reserve addition in Q3 was for incurred but not reported (IBNR) claims, reflecting a more prudent position [37][8] Question: What is the current SST ratio? - Management did not provide a quarterly update but indicated that the reserve impacts would not materially affect the SST ratio due to strong performance in other areas [41][8] Question: Are you comfortable with the state of the Life & Health reserves? - Management expressed confidence in the Life & Health reserves, noting adjustments made in previous years and a strong position overall [77][8] Question: What is the expected impact of the Trump presidency on the business? - Management indicated that primary insurance is state-regulated, and any potential impact would likely be related to macroeconomic conditions rather than direct regulatory changes [92][8]

Group 1 - The article discusses the potential for initiating a long position in SSREY within the next 72 hours, indicating a positive outlook for the stock [1] - The author emphasizes the importance of conducting due diligence and research before making any investment decisions, highlighting the risks associated with short-term trading and options trading [2] - It is noted that past performance does not guarantee future results, and no specific investment recommendations are provided [3] Group 2 - The article clarifies that the author does not have any current stock or derivative positions in the mentioned companies but may consider purchasing in the near future [1] - The author owns European/Scandinavian and Canadian tickers of the companies discussed, which may influence their perspective [2] - The article warns investors about the specific risks associated with investing in European/Non-US stocks, particularly regarding withholding tax implications [2]

Core Viewpoint - Swiss Re is a leading global reinsurance company with strong performance and growth prospects, making it an attractive investment opportunity in a volatile market [3][4][11] Company Overview - Swiss Re is based in Switzerland and has a significant international presence, with 51.4% of its premiums collected in the USA, 30.6% in EMEA, and 18% from other regions [1] - 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%) [1][2] Financial Performance - Swiss Re's stock has increased by 21% year-to-date, reaching CHF 118.3, the highest since 2007, outperforming European peers [3] - Q2 2024 results showed net income of $2.088 billion, a 16.8% year-over-year increase, driven by a 46.2% increase in net income from the L&H Re division [3] - The P&C Re sector's net profit remained stable at $989 million, with a combined ratio of 84.4%, better than the consensus estimate [3] Growth Prospects - The global insurance market is projected to grow at an annual rate of 5.5%, with Swiss Re's net premiums expected to grow at a 5.7% CAGR over the next decade [4] - EPS is estimated to grow at a 4% CAGR, with a net margin stabilizing at 6% in the medium term [4] Dividend and Valuation - Swiss Re paid a CHF 6.21 dividend for 2023, yielding 5.4%, with expectations for further increases in annual dividends [5] - The company has a strong financial position with a solvency ratio of 306% at the end of 2023 [6] - A DCF model suggests a target price of CHF 133/share ($160.9/share), reflecting a 16.6% upside from the recent closing price [7] Market Sentiment - Analysts remain cautious with 6 Buy, 7 Hold, and 3 Sell recommendations, but have raised price targets for Swiss Re, indicating underestimated strength [8]

Core Viewpoint - Swiss Re has demonstrated positive operating performance in recent quarters, but its valuation appears fair with limited upside potential at this time [1][6]. Financial Performance - Swiss Re's net income for H1 2024 was slightly above $2 billion, reflecting a 17% year-over-year increase, and the company is on track to exceed its annual net income goal of $3.6 billion for 2024, indicating at least 12.5% annual growth [3][4]. - The company's insurance revenue reached $22.5 billion in H1 2024, up by 3.2% year-over-year, primarily driven by the life & health segment [4]. - Investment income surged to $2.2 billion in H1 2024, an increase of 89% from the same period in 2023, attributed to higher returns on investments [4]. Market Conditions - The reinsurance industry has seen improved operating conditions since mid-2022 due to tighter funding conditions and increased pricing from higher catastrophe losses [3]. - Swiss Re's combined ratio in the P&C segment was 84.5% in H1 2024, better than its target of less than 87% for the year, indicating strong profitability [5]. Strategic Decisions - Swiss Re has decided to exit its digital insurance business iptiQ, which reported an annual loss of approximately $250 million in 2023, as it was unable to achieve profitability [5]. - The company aims for a net profit of about $1.5 billion in the life segment for 2024, which appears achievable based on H1 2024 performance [5]. Capitalization and Dividends - Swiss Re's capital ratio was approximately 300% at the end of 2023, indicating a strong capital position, which supports its dividend growth and sustainability [5]. - The annual dividend for 2023 was $6.80 per share, a 65% increase year-over-year, resulting in a dividend yield of about 5.4% [5]. Valuation - Swiss Re is currently trading at 10x earnings, in line with its historical average, but at a slight discount compared to peers trading at 11x earnings, suggesting limited upside potential after recent share price increases [6].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|------------------------|-------------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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]

Core Viewpoint - Swiss Re Ltd. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - For Swiss Re, the recent upgrade reflects an improvement in the company's underlying business, likely leading to increased stock prices due to investor confidence [5][11]. Earnings Estimate Revisions - Swiss Re is projected to earn $3.42 per share for the fiscal year ending December 2024, marking a year-over-year increase of 23.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Swiss Re has risen by 4.7%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Swiss Re to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [11].

Core Viewpoint - Swiss Re is expected to rebound past the $32 level due to strong growth in premiums and net income, alongside a lower combined ratio in the Property & Casualty segment [1][2][19] Financial Performance - For Q1 2024, Swiss Re reported a combined ratio of 84.7%, an improvement from 85.8% in FY 2023, indicating better efficiency in managing losses and expenses relative to premiums collected [3][5] - The gross insurance revenue for Q1 2024 was USD 4,964 million, with net insurance revenue of USD 4,612 million after accounting for reinsurance premiums [4][5] - Net income for the Property & Casualty (P&C) Reinsurance segment reached USD 552 million in Q1 2024, up from USD 369 million in Q1 2023, reflecting strong demand for premium renewals despite price increases [6][7] Pricing and Demand - The P&C segment experienced a price increase of 12% during April 2024 renewals, indicating sustained demand for insurance products [6][10] - Although price growth has moderated from 19% in April 2023, the overall demand remains robust, contributing to strong net income performance [7][10] Balance Sheet and Valuation - The long-term debt to total assets ratio for the P&C Reinsurance segment is significantly lower than that of the Life & Health (L&H) Reinsurance segment, indicating a healthier balance sheet [8][9] - Swiss Re is trading at a price to book ratio lower than its competitor Zurich Insurance Group, while also achieving a higher return on equity [11][13] Future Outlook - Claims inflation in the motor industry is expected to ease, which may lead to lower personal motor premium rates, potentially moderating price increases across the Property & Casualty segment [16][17] - Despite potential short-term revenue growth pressures due to price moderation, the company is anticipated to continue experiencing healthy revenue growth driven by volume increases [18]