Swiss Re (SREN) Status Update summary

Strategic priorities and market positioning

• Focus on long-term stability, disciplined cycle management, and technical excellence in underwriting and claims, with an emphasis on franchise growth and margin improvement.

• Portfolio repositioned to reduce volatile U.S. casualty exposure, increase decorrelation, and strengthen core business units, with ongoing investments in data, technology, and AI readiness.

• Clear priorities for 2025 and 2026: meet net income targets, increase group resilience, and maintain flexibility to strengthen reserves if performance allows.

• M&A strategy centers on bolt-on acquisitions to strengthen the core, with readiness for integration and a focus on decorrelated specialty lines.

• Market outlook remains constructive, with growth opportunities in select areas and a cautious approach to rate declines and market cycles.

Financial targets, capital management, and cost discipline

• 2026 net income target of USD 4.5 billion, with L&H Re targeting USD 1.7 billion, and a through-the-cycle ROE target above 14%.

• Sustainable annual share buyback program of USD 500 million to start in 2026, subject to achieving 2025 net income targets and board approval, complementing a dividend policy of at least 7% annual growth.

• USD 300 million net cost reduction targeted by 2027, with USD 100 million achieved in 2025, driven by simplification, AI investments, and legacy system reductions.

• Strong solvency position (268% SST), with capital management focused on maintaining a 200–250% range and deploying excess capital through dividends, buybacks, or business growth.

• Prudent leverage management and capital repatriation support financial flexibility, with buybacks subordinated to dividends and business opportunities.

Business unit performance and portfolio actions

• Corporate Solutions delivers stable earnings with a combined ratio averaging 90.6% since 2021, supported by external reinsurance and prudent reserving.

• P&C Re portfolio quality improved, with significant reduction in U.S. casualty exposure and strong reserve levels, including a 10% annual increase in initial loss picks.

• Life & Health Re fully reviewed, with assumption updates and portfolio actions completed, especially in Australia, Israel, and South Korea; 2026 target increased to USD 1.7 billion.

• Business actions in unsustainable markets include pausing new business and placing treaties in runoff to ensure long-term profitability.

• Growth in Life & Health expected globally, with opportunities in mortality outside the U.S., longevity, and financial solutions, while maintaining a focus on in-force book management.