Swiss Re reported a net income of $3.2bn for 2024, ROE of 15%

Swiss Re reported a net income of $3.2bn for 2024, with a return on equity (ROE) of 15%. Fourth-quarter net income reached $1.1bn. The Board of Directors plans to propose an 8% dividend increase to $7.35 per share at the Annual General Meeting on April 11, 2025.

Business Segment Performance

• Property & Casualty Reinsurance (P&C Re): Net income of $1.2bn; combined ratio of 89.9%. Premium volume rose 7% in the January 2025 renewals, with price increases of 2.8%.
• Corporate Solutions: Net income of $829mn; combined ratio of 89.7%.
• Life & Health Reinsurance (L&H Re): Net income of $1.5bn.
• Investment Returns: Return on investments (ROI) reached 4%, with a recurring income yield of 4%.

Swiss Re CEO Andreas Berger stated that 2024’s focus was on profitability and financial strength, leading to strong net income and ROE. CFO John Dacey highlighted the role of disciplined underwriting and recurring investment income in supporting earnings. He noted that these factors, along with reserving actions in 2024, justify the proposed dividend increase.

Swiss Re reported an IFRS net income of $3.2bn for 2024, compared to $3.1bn in 2023. ROE declined from 16.2% in 2023 to 15%. The insurance service result, reflecting underwriting profitability, stood at $4.3bn, down from $4.7bn in 2023. Insurance revenue increased to $45.6bn from $43.9bn.

ROI improved to 4% from 3.2% in 2023, supported by higher recurring income. The recurring income yield rose to 4% from 3.5%, while the fourth-quarter reinvestment yield reached 4.6%.

Swiss Re maintained a strong capital position with an estimated Swiss Solvency Test (SST) ratio of 257% as of January 1, 2025, above the 200–250% target range. This was lower than the mid-2024 ratio of 284%, mainly due to reserving actions, dividend accruals, and modest increases in deployed risk capital.

All our businesses have started 2025 in a strong position, thanks to the resilient foundation we have created and disciplined underwriting as evidenced by the successful January renewals. We remain focused on delivering on our targets for the year and reaching our cost efficiency goals.

Swiss Re’s Group Chief Executive Officer Andreas Berger

The SST methodology was adjusted to correct the calculation of target capital, specifically the discounting of expected risk-bearing capital (RBC). This correction reduced SST ratios for 2024 and 2023, as reflected in the Addendum to the Financial Condition Report 2023. The revised methodology lowers interest rate sensitivity.

P&C Re delivers strong underlying underwriting performance

P&C Re reported a net income of $1.2 bn for 2024, down 20% from $1.5 bn in 2023. Robust underwriting results were impacted by prior-year US liability reserve additions in the third quarter. The result includes strong investment performance.

Large natural catastrophe claims amounted to $1.0 bn in 2024. These claims mainly related to hurricanes Milton, Debby and Helene, the severe hailstorm which affected Calgary in Canada, Storm Boris in Europe and flooding in the Gulf region.

P&C Re decisively strengthened its prior-year US liability reserves in the third quarter. These additions were partly offset by releases in other lines of business, resulting in a net prior-year reserve strengthening of $2.6 bn^[6] for the full year 2024. This positions overall P&C reserves at the higher end of Swiss Re’s best-estimate range which, coupled with the uncertainty allowance on new business, continues to support reserving strength going forward.

P&C Re achieved an insurance service result of $1.8 bn, down 33% from $2.8 bn in 2023, and a combined ratio of 89.9%. The net impact of reserve strengthening in the third quarter accounted for 10.2 percentage points of the full-year combined ratio; as a result, P&C Re missed its combined ratio target of less than 87% for 2024.

Insurance revenue for 2024 was $19.8 bn, compared with $19.6 bn in 2023. Insurance revenue was supported by strong margins, continued price increases and targeted growth in property and specialty. Pruning of casualty lines continued in 2024.

Successful January P&C Re renewals

P&C Re renewed treaty contracts resulting in $13.3 bn in premium volume on 1 January 2025. This represents a 7.0% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 2.8% in this renewal round. Based on a prudent view on inflation and updated loss models, loss assumptions increased by 4.2%. The resulting portfolio quality is supportive of the Group’s 2025 financial targets.

Corporate Solutions outperforms combined ratio target

Corporate Solutions reported a net income of $829 mn in 2024, up 26% from $658 mn in 2023. The strong result reflects a consistent underlying business performance throughout the year, supported by strong investment income.

Large natural catastrophe losses of $344 mn were mainly driven by Tropical Cyclone Megan in Australia, Hurricanes Milton and Helene in the US, and the Calgary hailstorm.

Corporate Solutions achieved an insurance service result of $1.0 bn in 2024, up 23% from $831 mn in 2023. The 2024 result reflects the earn-through of robust in-force and new business margins complemented by lower-than-expected man-made loss experience. Corporate Solutions achieved a combined ratio of 89.7% for 2024, outperforming the target of below 93% for the full year.

Insurance revenue for 2024 rose to $8.1 bn from $7.6 bn in 2023. Driven by stringent portfolio steering and disciplined underwriting, Corporate Solutions’ insurance revenue reflects new business growth in its focus portfolios and earn-through of previously realised rate increases.

L&H Re delivers on net income target

L&H Re reported a net income of $1.5 bn in 2024, achieving its target and improving on its 2023 result of $1.4 bn. The result reflects recognition of in-force margins supported by a strong investment income, partially offset by adverse experience and assumption reviews.

The assumption review conducted in the fourth quarter of 2024, as announced at the Management Dialogue event in December 2024, led to a reduction in L&H Re’s Contractual Service Margin (CSM) of $1.1 bn, bringing the CSM balance to $17.4 bn by year-end. These updates are fully reflected in the 2025 net income target of $1.6 bn.

L&H Re achieved an insurance service result of $1.5 bn, up 15% from $1.3 bn in 2023, and insurance revenue of $17.1 bn, compared with the 2023 result of $16.4 bn.

Details of FY 2024 performance

Withdrawal from iptiQ proceeding as planned

The withdrawal from iptiQ is proceeding as planned, with the sale of iptiQ’s European P&C business to Allianz Direct announced in the fourth quarter of 2024 and the placement of the Americas and APAC businesses into run-off.

iptiQ reported a net loss of $325 mn for 2024. This includes (pre-tax) $188 mn which is attributable to one-off impairments of goodwill and intangibles related to the withdrawal from the business and a charge related to the sale of the European P&C business.

Financial targets and outlook

Swiss Re confirms the financial targets communicated at its Management Dialogue event in December 2024. For 2025, the Group aims for a net income of more than $4.4 bn, while L&H Re targets a net income of $1.6 bn. P&C Re targets a combined ratio of less than 85% and Corporate Solutions targets a combined ratio of less than 91%.

The Group maintains its multi-year IFRS ROE target of more than 14% and aims for dividend per share growth of 7% or more per year for dividends paid in 2025–2027.

Swiss Re estimates its preliminary claims from the wildfires which affected Los Angeles to be less than $700 mn, which will impact Group results in the first quarter of 2025. Its estimate for the preliminary total insured market loss from the wildfires is approximately $40 bn.