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Swiss Re maintains industry-leading capital position in the first half of 2020 despite significant addition to COVID-19 loss reserves

31 July 2020 Swiss Re

• Claims and reserves related to COVID-19 of USD 2.5 billion across the Group resulted in a net loss of USD 1.1 billion in the first half of 2020
• Group net income, excluding COVID-19 claims and reserves, of USD 865 million in the first half of 2020
• Swiss Re maintains its very strong capital position, with Group Swiss Solvency Test (SST) ratio above the target level of 220%
• Property & Casualty Reinsurance (P&C Re) net loss of USD 519 million; excluding COVID-19 losses, net income and return on equity (ROE) of USD 646 million and 14.9% respectively
• Successful July 2020 P&C Re renewals: premium volume up 6%; significant rate hardening in natural catastrophe business
• Life & Health Reinsurance (L&H Re) net income of USD 74 million; excluding COVID-19 losses, net income and ROE of USD 516 million and 12.4% respectively
• Corporate Solutions net loss of USD 301 million; excluding COVID-19 losses, net income of USD 81 million
• Successful closing of ReAssure sale to Phoenix Group Holdings plc represents a strategic milestone for the Group; Life Capital reports ongoing premium growth in open book businesses
• Strong return on investments (ROI) of 3.2%, running yield 2.5%

Swiss Re reported a net loss of USD 1.1 billion for the first half of 2020 after booking claims and reserves related to COVID-19 of USD 2.5 billion. Excluding the impact of COVID-19 losses, net income amounted to USD 865 million for the period, reflecting a strong underlying business performance across the Group. P&C Re achieved profitable premium growth and strong renewals in improving market conditions. The turnaround of Corporate Solutions is well on track. The closing of the ReAssure sale to Phoenix Group, as announced on 22 July 2020, represents a key strategic milestone for the Group. Swiss Re maintains its industry-leading capital position, with the Group SST ratio above the target level of 220% as of 1 July 2020.

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