Financial Data and Key Metrics Changes - The company reported a net income of 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 billion in 2024, significantly below the budgeted expectation of 700 million, based on an industry market loss of approximately 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 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]
Swiss Re(SSREY) - 2024 Q4 - Earnings Call Transcript