Swiss Re reported a profit of $996 mn in the second quarter of 2024, resulting in a net income of $2.1 bn and a return on equity (ROE) of 20% for the first half of the year.
The Group’s financial performance was supported by strong contributions from all Business Units, and Swiss Re maintains its full-year targets.
Swiss Re Group result benefits
Swiss Re reported a net income of $2.1 bn and an ROE of 20.1% for the first half of 2024. The main drivers for this result were disciplined underwriting, low natural catastrophe claims and strong investment income.
Insurance revenue for the Group amounted to $22.5 bn. The insurance service result, which reflects profitability of the underwriting activity, was $2.9 bn.
Swiss Re continue to increase the overall resilience of the firm through a disciplined approach to underwriting new business while remaining on top of loss trends across our in-force portfolios
Andreas Berger, Swiss Re’s Group CEO
The Group achieved a strong return on investments (ROI) of 4%, driven by contributions from recurring income. The recurring income yield for the first half of 2024 was 4%, while the reinvestment yield for the second quarter stood at 4.8%, continuing to benefit from higher interest rates.
Underwriting
P&C Re reported a net income of $989 mn in the first half of 2024. This was primarily driven by disciplined underwriting and low large natural catastrophe experience, alongside strong investment income. The insurance revenue for the first half of 2024 was $9.8 bn.
After a strong start in the first half of this year, we maintain our 2024 targets, including Group net income of more than $3.6 bn
“Amid a challenging macroeconomic and geopolitical environment, we continue to focus on disciplined underwriting to maintain and where possible improve the resilience of our portfolios to enable delivery of consistent results”, Andreas Berger said.
In property and specialty lines, the low reported natural catastrophe claims in the H1 2024 of the year were partially offset by selected additions across natural catastrophe and man-made loss reserves, the large majority of which were in the form of incurred-but-not-reported reserves. P&C Re also increased reserves on specific casualty lines.
P&C Re achieved an insurance service result of $1.4 bn and a combined ratio of 84.5%, despite the additions to reserves and the uncertainty load introduced on all lines since the beginning of this year. P&C Re targets a combined ratio below 87% for the full year.
Reinsurance renewals
P&C Re renewed contracts with $4.5 bn in treaty premium volume on 1 July 2024. This represents a 7% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 8% in this renewal round.
Based on a continued prudent view on inflation and updated loss models, loss assumptions increased by 10%. The resulting portfolio quality is consistent with the Group’s 2024 financial targets.
L&H Re reported a net income of $883 mn in the first half of 2024, reflecting positive US mortality experience and higher investment income. This was partially offset by unfavourable developments in the EMEA region.
L&H Re achieved an insurance revenue of $8.7 bn and an insurance service result of $1 bn.
Corporate Solutions
Corporate Solutions reported a net income of $435 mn in the first half of 2024. The continued strong result reflects a consistent underlying business performance, further enhanced by benign claims experience in the first six months of the year and supported by a strong investment income. Insurance revenue for the first half of 2024 was $3.8 bn.
Stringent portfolio steering and disciplined underwriting resulted in strong in-force and new business margins complemented by low man-made loss experience.
Large natural catastrophe losses of $138 mn were mainly driven by the Noto earthquake in Japan and Tropical Cyclone Megan in Australia.
Corporate Solutions achieved an insurance service result of $509 mn and a combined ratio of 88.7% for the first half of 2024. Corporate Solutions targets a combined ratio below 93% for the full year.
by Yana Keller
