Swiss Re (SREN) Status Update summary

Strategic priorities and transformation

• Addressed recurring drag from U.S. casualty reserves and exited underperforming portfolios, notably iptiQ, to focus on core businesses and reinforce underwriting as a core focus.

• Emphasized technical underwriting, data-driven decision-making, and a performance-oriented culture to drive bottom-line growth, leveraging data, technology, and talent initiatives.

• Targeting $300 million in operating cost savings by 2027, with a leaner, more agile organization and cost discipline.

• Set clear KPIs across business units to close the gap to top industry peers, focusing on client-centricity, speed, technical improvement, and profitability.

• Ongoing investment in people, technology, and culture to support technical excellence and innovation.

Financial guidance and targets

• Raised 2025 net income target to over $4.4 billion, up from the previous $3.6 billion for 2024, reflecting a 22% increase.

• Combined ratio targets improved to ≤85 for P&C Re and ≤91 for Corporate Solutions in 2025.

• Life & Health earnings target increased to $1.6 billion for 2025, with CSM release guidance adjusted to 8%.

• Ordinary dividend per share expected to grow by 7% or more annually over the next three years.

• Return on equity aspiration remains above 14%, with 2025 guidance implying a 20% ROE.

Portfolio management and reserving actions

• Reduced exposure to U.S. casualty and large corporate risks, with significant reserve strengthening; total reserves for U.S. liability rose from $10B to $13B in nine months, including $3.1bn in additions in 9M 2024.

• Introduced and maintained an uncertainty load in P&C and Corporate Solutions, with no releases expected in 2025; 2024 charge is ~$500 million.

• Prudent reserving philosophy aims for the 90th percentile of best estimate range, with ongoing vigilance for volatility and social inflation impacts.

• Business mix shifting toward shorter-tail lines, benefiting combined ratio over time.

• Withdrew from iptiQ business, with EMEA P&C sold and Americas/APAC in run-off, reducing net loss to ~$50m by 2027.