Swiss Re (SREN) Q4 2024 earnings summary

Executive summary

• Net income for 2024 was USD 3.2 billion with a 15% ROE, reflecting strong recovery and disciplined underwriting, though below the >USD 3.6 billion target due to significant reserving actions in P&C Reinsurance.

• Board proposes an 8% dividend increase to USD 7.35 per share for 2024, in line with long-term growth aspirations.

• Life & Health Re met its USD 1.5 billion net income target despite assumption strengthening and negative experience variances.

• Corporate Solutions outperformed with an 89.7% combined ratio, marking its 18th consecutive quarter of consensus beat.

• Focus on profitability, resilience, and strong underlying business unit performance.

Financial highlights

• IFRS net income increased to USD 3.2 billion from USD 3.1 billion in 2023; ROE was 15.0% (down from 16.2%).

• Insurance revenue grew to USD 45.6 billion, up from USD 43.9 billion year-over-year.

• Return on investments improved to 4.0% from 3.2% in 2023; recurring investment income increased by USD 0.5 billion.

• Book value per share increased to USD 74.44 from USD 70.49 at year-end 2023.

• EPS was USD 10.88 (vs. USD 10.50 in FY 2023); leverage ratio at 16%.

Outlook and guidance

• 2025 net income target set at over USD 4.4 billion, reaffirmed despite LA wildfires; L&H Re targets USD 1.6 billion net income.

• P&C Re aims for a combined ratio below 85%, Corporate Solutions below 91%.

• Multi-year IFRS ROE target remains above 14%; dividend per share growth of 7%+ annually for 2025-2027.

• Operating cost run rate expected to reduce by USD 300 million by 2027, with USD 100 million savings anticipated in 2025.

• Group SST ratio at 257% as of January 1, 2025, above the 200–250% target range.