Swiss Re (SREN) Q4 2025 earnings summary

Executive summary

• Achieved record group net income of USD 4.8 billion in 2025, surpassing the USD 4.4 billion target, with ROE at 19.6%–20%.

• Strong underwriting, investment returns, and cost savings drove results; P&C and Corporate Solutions outperformed, while L&H Re was impacted by portfolio reviews.

• Strengthened group resilience through portfolio reviews, reserve additions, and disciplined risk management.

• Completed withdrawal from iptiQ, with all parts sold or in runoff.

• Cost savings of over USD 100 million delivered, supporting increased capital repatriation.

Financial highlights

• Group net income rose to USD 4.8 billion (up from USD 3.2 billion); EPS at USD 15.67.

• Insurance revenue was USD 43.1 billion, down from USD 45.6 billion year-over-year.

• P&C Reinsurance combined ratio improved to 79.4%; Corporate Solutions at 86.5%.

• L&H Re net income was USD 1.3 billion, impacted by assumption updates and adverse experience.

• Return on investment was 4.0%; recurring income yield 4.2%; SST ratio at 250% as of Jan 2026.

Outlook and guidance

• 2026 targets: Group net income USD 4.5 billion; L&H Re net income USD 1.7 billion.

• Combined ratio targets: P&C Re <85%, Corporate Solutions <91%, with normalized P&C Re range of 84–84.5%.

• Dividend per share growth aspiration of at least 7% per year for 2025–2027.

• Expense reduction program on track for USD 300 million run-rate savings by 2027.

• Market conditions expected to remain competitive, especially in Nat Cat, with stable terms and conditions.