Swiss Re (SREN) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months of 2024 reached USD 2.2 billion, driven by resilient underwriting and investment performance, partially offset by significant US liability reserve strengthening in P&C Re.

• Decisive reserve actions in P&C Reinsurance moved reserves to the 90th percentile of the best estimate range, with net prior year reserve additions of USD 3.1 billion for the first nine months.

• Group insurance revenue totaled USD 33.7 billion, with disciplined growth in property and specialty lines and robust new business generation across all regions.

• Despite significant reserving and natural catastrophe events, a small profit was posted for Q3, with strong underlying underwriting and investment results.

• Sale of iptiQ EMEA P&C to Allianz Direct announced, with further divestment options under evaluation.

Financial highlights

• Group net income for the first nine months was USD 2.2 billion, with Q3 profit at USD 102 million.

• Return on equity for the first nine months was 13.4%; return on investments was 3.9%, with a recurring income yield of 4.0% and a reinvestment yield of 4.6% in Q3.

• P&C Re nine-month combined ratio was 92.8%, including reserve strengthening; Corporate Solutions combined ratio was 89.4%.

• Group insurance revenue reached USD 33.7 billion; book value per share was USD 73.47 as of 30 September 2024.

• Recurring investment income increased by USD 0.4 billion year-over-year.

Outlook and guidance

• Group net income for 2024 expected to exceed USD 3 billion, assuming normal catastrophe or loss activity.

• Life and Health Re continues to target USD 1.5 billion net income for the year.

• Management to announce 2025 financial targets in December.