Swiss Re reports a first-quarter net income of USD 1.3 billion
Ad hoc announcement pursuant to Article 53 LR
• Property & Casualty Reinsurance (P&C Re) net income of USD 527 million; combined ratio of 86.0%[1]
• Successful P&C Re April 2025 renewals, with price increase of 1.5% achieved
• Corporate Solutions net income of USD 208 million; combined ratio of 88.4%[2]
• Life & Health Reinsurance (L&H Re) net income of USD 439 million
• Return on investments (ROI) of 4.4%; recurring income yield of 4.1%
Swiss Re reported a net income of USD 1.3 billion and a return on equity (ROE) of 22.4% for the first quarter of 2025. The impact of large claims from natural catastrophes and man-made events was offset by strong underlying performance across the Group's businesses. The Group also benefitted from favourable investment and tax impacts.
Swiss Re's Group Chief Executive Officer Andreas Berger said: "The first quarter of 2025 was marked by significant large loss events in our property and casualty businesses. Despite this, all Business Units posted robust results, highlighting the resilience of the Group and underscoring our ability to support clients by acting as a shock absorber for peak risks."
Swiss Re's Group Chief Financial Officer Anders Malmström said: "The main driver for Swiss Re's first-quarter results was continued disciplined underwriting, which was supported by our investment performance. We have maintained our strong capital position and remain well-placed to support our clients."
Group result driven by contributions from all Business Units
Swiss Re reported a net income of USD 1.3 billion and an ROE of 22.4% for the first quarter of 2025, compared with a net income of USD 1.1 billion and an ROE of 20.7% for the same period in 2024. The result was driven by resilient underwriting results across the Group's businesses and supported by healthy investment returns and a favourable tax rate of 14%[3].
Insurance revenue for the Group amounted to USD 10.4 billion, compared with USD 11.7 billion for the same period in 2024. The reduction was primarily driven by non-recurring IFRS transition effects and the termination of an external retrocession transaction in L&H Re, both of which had a positive effect on the prior-year period, as well as unfavourable foreign exchange impacts.
The insurance service result, which reflects the profitability of underwriting activity, was USD 1.3 billion, compared with USD 1.4 billion in the first quarter of 2024.
Increased recurring investment income
Swiss Re's ROI for the first quarter of 2025 was 4.4%, up from 4.0% for the same period in 2024. The increase was driven by a higher recurring income alongside realised gains from the sale of a minority equity position in March 2025 amounting to USD 209 million. This gain was partially offset by realised losses from targeted sales of fixed income securities. The recurring income yield for the period was 4.1%, compared with 3.9% for the prior-year period. The reinvestment yield for the quarter was 4.5%.
Strong capital position
Swiss Re's capital position continues to be strong with an estimated Group SST ratio of 254%[4] as of 1 April 2025, above the target range of 200–250%.
Cancellation of surplus treasury shares
Swiss Re plans to cancel approximately 18.7 million surplus treasury shares, which are not eligible for dividends, by 30 June 2025, in accordance with the capital band set out in its Articles of Association. Upon completion of the cancellation, the total number of shares of Swiss Re Ltd will be 298.8 million, comprising approximately 294.8 million shares outstanding and eligible for dividends and approximately 4.0 million treasury shares held primarily for share-based compensation plans.
P&C Re delivers resilient performance despite large losses
P&C Re reported a net income of USD 527 million for the first quarter of 2025, compared with USD 555 million for the same period in 2024. P&C Re absorbed elevated large loss activity during the period, while the gain from the sale of a minority equity position supported the result.
Large natural catastrophe claims amounted to USD 570 million in the first quarter of 2025, accounting for 29% of the full-year large natural catastrophe claims budget, mainly related to the Los Angeles wildfires. In addition, large man-made losses totalled USD 140 million.
P&C Re achieved an insurance service result of USD 575 million, compared with USD 704 million in 2024, and a combined ratio of 86.0%. P&C Re targets a combined ratio below 85% for the full year.
Insurance revenue for the first quarter of 2025 was USD 4.5 billion, compared with USD 5.0 billion for the same period in 2024. The decrease was driven by positive non-recurring IFRS transition effects which affected the prior-year period, unfavourable foreign exchange impacts and pruning actions taken in casualty lines.
Successful P&C Re April renewals
P&C Re renewed contracts with USD 2.2 billion in treaty premium volume on 1 April 2025. This represents a 2.8% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 1.5% in this renewal round. Based on a prudent view on inflation and updated loss models, loss assumptions increased by 3.7%. The resulting portfolio quality is supportive of the Group's 2025 financial targets.
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