Swiss Re reports net income of USD 1.4 billion for 2021 and announces ambitious new financial targets

25 February 2022 Swiss Re

• Property & Casualty Reinsurance (P&C Re) net income of USD 2.1 billion; combined ratio of 97.1% and normalised1 combined ratio of 94.7%, in line with full-year target
• Life & Health Reinsurance (L&H Re) net loss of USD 523 million; excluding COVID-19 losses, net income of USD 1.1 billion
• Corporate Solutions net income of USD 578 million; combined ratio of 90.6% and normalised combined ratio of 95.0%, surpassing <97% target
• Strong return on investments (ROI) of 3.2%
• Excluding COVID-19 losses, Group net income of USD 3.0 billion and return on equity (ROE) of 11.6%
• P&C Re increased premium volume by 6% in the January 2022 renewals and achieved price increases of 4%
• Very strong capital position with a Group Swiss Solvency Test (SST) ratio around the mid-point of the 200–250% target range as of 1 January 2022
• Board of Directors to propose a stable dividend of CHF 5.90 per share at the Annual General Meeting on 13 April 2022
• Swiss Re targets Group ROE of 10%2 in 2022 and 14% in 2024

Swiss Re reported a net income of USD 1.4 billion in 2021 and an ROE of 5.7%, driven by the remarkable performance of its property and casualty businesses. Based on the Group’s very strong capital position and positive earnings outlook, the Board of Directors will propose a dividend of CHF 5.90 per share. In addition, Swiss Re announced new ambitious segment targets and aims to increase Group ROE to 10% in 2022 and 14% in 2024.

Swiss Re’s Group Chief Executive Officer Christian Mumenthaler said: “2021 marked an important turning point for Swiss Re. Despite still major COVID-19 impacts and a high occurrence of large natural catastrophe events throughout the year, we rebounded to a USD 1.4 billion profit. We have worked hard to strengthen business performance, with a rigorous focus on portfolio quality and underwriting excellence. Our 2021 results are a testament to these efforts, and we are convinced our performance will continue to improve.“

Swiss Re significantly improves profitability despite COVID-19 impacts
Swiss Re reported a net income of USD 1.4 billion and an ROE of 5.7% for 2021, considerably rebounding from a net loss of USD 878 million in 2020. This result was achieved as the Group absorbed large natural catastrophe losses of USD 2.4 billion across its businesses as well as total COVID-19-related claims of USD 2.0 billion. The vast majority of the COVID-19 losses originated in the L&H Re business, while impacts on the property and casualty businesses were minimal. Excluding the impacts of COVID-19, Swiss Re’s net income was USD 3.0 billion, which is an increase of 39%.

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