Swiss Re(US:SSREY)2024-05-16 09:42Financial Data and Key Metrics Changes - Swiss Re achieved a net income of $1.1 billion for Q1 2024, reflecting strong performance across all main businesses [2][12] - Insurance revenues for the group reached $11.7 billion, with an insurance service result of $1.4 billion [9] - The return on investments was 4% in Q1, driven by increased recurring income [9] Business Line Data and Key Metrics Changes - Property & Casualty Reinsurance reported a net income of $552 million, with insurance revenue of $5 billion and a combined ratio of 84.7% [3] - Life & Health Reinsurance reported a net income of $412 million, with insurance revenue of $4.8 billion and a target net income of approximately $1.5 billion for 2024 [4][24] - Corporate Solutions achieved a net income of $194 million, with insurance revenue of $1.8 billion and a combined ratio of 89.9% [5][11] Market Data and Key Metrics Changes - P&C Re achieved a 12% price increase in the April 2024 renewals, with a treaty premium volume of $2.5 billion, representing a 6% volume increase [10] - The company noted a significant increase in industry loss estimates for summer storms in Italy, adjusting from $3.3 billion to $6 billion [18] Company Strategy and Development Direction - Swiss Re plans to withdraw from the iptiQ business due to a changed market environment, focusing on core activities with better growth prospects [12][67] - The company aims to achieve a Group net income of more than $3.6 billion for 2024, reflecting a 20% increase from the previous year's target [78] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial targets despite challenges, emphasizing the importance of disciplined underwriting and effective management of operating expenses [2][12] - The company anticipates continued strong demand for reinsurance, with adequate supply but not excessive, maintaining pricing discipline [27][30] Other Important Information - Swiss Re transitioned to IFRS reporting from U.S. GAAP as of January 1, 2024, affecting comparability with prior periods [9] - The company expects to manage restructuring charges related to iptiQ without significant negative impact on overall earnings [88][110] Q&A Session Summary Question: Estimate for the Baltimore Bridge loss and vulnerabilities - The gross loss for Swiss Re from the Baltimore Bridge incident was approximately $100 million, with a net loss of about $75 million [16][80] Question: Changes in iptiQ business and future plans - The decision to withdraw from iptiQ was based on lower than expected demand for its capabilities, with plans to manage the exit in a way that maximizes value [67][81] Question: Pricing environment and future expectations - Management noted that while some areas may see price stabilization, there remains room for price increases in property and nat cat reinsurance [30][43] Question: Investment return and strategy - The 4% investment return was primarily driven by a strong fixed income portfolio, with a focus on safe assets [122] Question: Overall loss booked at iptiQ - The expected loss for iptiQ in 2023 was approximately $250 million, with a smaller loss anticipated for 2024 as the business is restructured [88][86]