- Swiss Re reports $4.2 bn net income and 22.5% return on equity
- Swiss Re targets $500 mn in operating cost reductions by 2028
- P&C Re earns $2.2 bn despite competitive reinsurance pricing
- Corporate Solutions increases net income to $714 mn
- L&H Re profit rises to $1.5 bn on favorable US mortality experience
Swiss Re reported net income of $1.3 bn for the third quarter of 2026, lifting earnings for the first nine months to $4.2 bn as strong underwriting, relatively low natural catastrophe losses and recurring investment income supported profitability across its three business units.
Nine-month net income increased from $4 bn in the comparable period of 2025, while return on equity (ROE) remained unchanged at 22.5%.
- Swiss Re reported $1.3 bn in third-quarter net income, bringing nine-month profit to $4.2 bn, up from $4 bn in 2025, with return on equity unchanged at 22.5%.
- P&C Re generated $2.2 bn in net income with a 77.3% combined ratio, Corporate Solutions earned $714 mn, and L&H Re increased profit to $1.5 bn.
- The reinsurer remains on track for its $4.5 bn annual profit target, supported by a 259% solvency ratio and plans to reduce operating costs by $500 mn by 2028.
Property and Casualty Reinsurance (P&C Re) and Corporate Solutions benefited from large natural catastrophe claims remaining below expectations. Life and Health Reinsurance (L&H Re) recorded higher earnings, supported by favorable US mortality experience and profitability from its existing portfolio.
Swiss Re said the Group and all three business units were progressing toward their financial objectives for 2026, including its target of $4.5 bn in annual net income.
The results come as greater competition affects pricing and margins on new property and casualty reinsurance business, prompting the company to maintain selective underwriting and focus on operating efficiency.
Swiss Re reports $4.2 bn net income and 22.5% return on equity
Swiss Re’s insurance service result, representing underwriting profit earned during the period, increased to $5.1 bn in the first nine months of 2026 from $4.8 bn a year earlier.
Group insurance revenue declined to $31.2 bn from $32.0 bn. Lower P&C Re revenue was partly offset by increased L&H Re contributions and favorable foreign exchange movements.
The contractual service margin (CSM) generated by new business, an indicator of expected profitability from contracts written during the period, decreased to $2.8 bn from $3.9 bn in the first nine months of 2025.
The decline reflected greater competition during P&C reinsurance renewals, alongside lower new-business contributions from L&H Re. The life and health business recorded reduced volumes, fewer large transactions and a more selective approach to underwriting. Investment performance remained supportive of Group earnings.
Swiss Re generated a 4% return on investments during the first nine months of 2026, including recurring investment income of $3.1 bn. The recurring income yield increased to 4.2% from 4.1% in the comparable period of 2025. The reinvestment yield reached 5.6% in the third quarter of 2026.
Swiss Re Group Chief Executive Officer Andreas Berger attributed the results to underwriting discipline and portfolio improvements made over recent quarters.
Our result for the first nine months reflects disciplined underwriting and the deliberate decisions we have made over recent quarters to strengthen our portfolio and build a more resilient business.
Andreas Berger, Swiss Re Group CEO
“We are applying the same long-term approach as P&C market conditions shift, combining underwriting discipline and greater cost efficiency with commercial ambition, working closely with clients and brokers to identify attractive opportunities. At a time when risks are becoming increasingly complex and interconnected, Swiss Re is well positioned to support clients with the expertise, capacity and solutions they ask for,” Berger said.
Swiss Re targets $500 mn in operating cost reductions by 2028
Swiss Re is continuing to simplify its organizational structure, reduce operational complexity and improve the speed at which products and services reach the market.
The company expects these measures to improve cost efficiency, strengthen client relationships and support profitability over the longer term.
Swiss Re remains on course to reduce operating expenses by $500 mn by 2028. The company raised that objective earlier in 2026 from its previous target of $300 mn in savings by 2027.
At the same time, the Group continues to allocate resources to underwriting, customer-facing operations, data infrastructure and artificial intelligence solutions.
Chief Financial Officer Anders Malmström said that competitive P&C pricing was reducing margins on newly written business, although the existing portfolio and other earnings sources continued to support financial performance.
Our strong current earnings reflect disciplined underwriting and portfolio management, while lower margins on new business reflect the competitive P&C pricing environment we are seeing today.
Anders Malmström, Swiss Re CFO
“Our focus on simplifying Swiss Re and directing resources where they create the greatest value is bringing us closer to clients and driving progress towards our cost reduction targets. At the same time, L&H Re’s large in-force portfolio, consistently strong performance from Corporate Solutions and healthy recurring investment income continue to provide important support to Group profitability. From a capital management perspective, the execution of our USD 1.5 billion share buyback programme, announced in February, is nearly complete,” Malmström said.
The Group’s estimated Swiss Solvency Test (SST) ratio stood at 259% as of October 1, 2026, exceeding its target range of 200-250%.
P&C Re earns $2.2 bn despite competitive reinsurance pricing
Swiss Re’s P&C Re business generated net income of $2.2 bn in the first nine months of 2026, compared with $2.3 bn in the corresponding period of 2025.
The 6% decline primarily reflected more competitive market conditions, although underwriting performance and investment returns remained strong. The business reported an insurance service result of $2.7 bn, down from $2.9 bn a year earlier.
Large losses reached $941 mn during the nine-month period, of which $624 mn occurred in the third quarter.
Natural catastrophe losses accounted for $640 mn of the nine-month total, primarily associated with the August earthquake in Colombia and Storm Kristin, which made landfall in Portugal in January.
Large man-made losses totaled $301 mn over the same period. P&C Re recorded a combined ratio of 77.3%, improving from 77.6% in the first nine months of 2025. The result remained comfortably below the business unit’s full-year 2026 target of less than 85%.
Insurance revenue declined to $12.8 bn from $14.0 bn, reflecting the overall outcome of reinsurance renewals and reduced business volumes written by cedents.
New-business CSM fell to $1.8 bn from $2.5 bn, indicating the effect of more competitive pricing conditions on the expected profitability of newly written contracts.
Swiss Re said P&C Re was continuing to manage the underwriting cycle actively, protecting portfolio quality and maintaining pricing discipline while selectively pursuing business that meets its profitability requirements.
The approach is intended to preserve underwriting margins as reinsurance market conditions become more competitive.
Corporate Solutions increases net income to $714 mn
Swiss Re’s Corporate Solutions business reported net income of $714 mn for the first nine months of 2026, compared with $693 mn in the prior-year period. The increase was supported by strong underwriting results and lower-than-expected large natural catastrophe losses.
The insurance service result rose to $863 mn from $832 mn. Large man-made losses amounted to $219 mn during the first nine months, including $150 mn in the third quarter.
Natural catastrophe losses totaled $54 mn. The main contributing events were the August earthquake in Colombia, Storm Fern, which affected several areas of North America in January, and a tornado in Texas in April.
Corporate Solutions achieved a combined ratio of 86.4%, compared with 87.1% for the same period in 2025.
The business unit continues to target a combined ratio below 91% for the full year.
Insurance revenue declined to $5.5 bn from $5.7 bn. Growth in selected business lines and favorable currency movements offset most of the revenue impact from the previously announced non-renewal of the Irish Medex business.
The unit’s new-business CSM decreased to $418 mn from $500 mn in the comparable nine-month period.
Corporate Solutions is also changing its operating model in response to increasing competition.
The restructuring includes centralizing the global underwriting function, while individual market units will place greater emphasis on customer relationships, business development and new-business origination.
Swiss Re expects the changes to simplify operations, strengthen commercial execution and support profitable expansion.
Swiss Re expands Corporate Solutions partnerships in growth markets
Corporate Solutions announced a strategic cooperation agreement with Old Mutual Insure in South Africa, subject to the necessary regulatory approvals.
The agreement forms part of Swiss Re’s strategy to expand its commercial insurance activities through partnerships with established local insurers.
Similar agreements with GNP Seguros in Mexico and Bajaj General Insurance in India were announced alongside Swiss Re’s half-year financial results on August 6, 2026.
The partnership model combines Swiss Re’s underwriting expertise, risk management capabilities and international resources with the market knowledge and distribution networks of domestic partners.
The company intends to use these relationships to develop its presence in selected growth markets while maintaining underwriting discipline and expanding its access to corporate insurance customers.
Lori Goltermann appointed Chief Commercial Officer of Corporate Solutions
Swiss Re has appointed Lori Goltermann as Chief Commercial Officer for Corporate Solutions, establishing a new global leadership position focused on corporate clients, government organizations and distribution partners.
Goltermann will be responsible for coordinating the company’s commercial strategy across these customer groups, drawing on its underwriting capabilities, risk expertise, technology and international operations.
Based in Chicago, she will report to Ivan Gonzalez, Chief Executive Officer of Corporate Solutions, and become a member of the business unit’s Executive Committee. Her appointment takes effect on January 11, 2027. Goltermann joins Swiss Re following more than 30 years at Aon.
“Lori Goltermann is one of the most distinguished and accomplished executives in the insurance industry,” Berger said.
Her track record of over 30 years at Aon is a remarkable one, characterised by high performance, client centricity, and teamwork. We look forward to having her at Swiss Re, working closely with leaders across the firm to deliver our value proposition through a world class go-to-market organisation.
Goltermann said the new role would involve helping corporate and government clients address increasingly interconnected risks.
“As corporates and governments around the world face an increasingly complex and interconnected risk environment, I am excited to join Swiss Re, a widely respected and truly global organisation, to help clients better understand, manage and transfer their risks,” she said. “I look forward to building on the company’s market-leading capabilities and delivering solutions that meet clients’ evolving needs.”
L&H Re profit rises to $1.5 bn on favorable US mortality experience
Swiss Re’s Life and Health Reinsurance business delivered net income of $1.5 bn in the first nine months of 2026, compared with $1.1 bn in the corresponding period of 2025.
The result reflected favorable claims experience, particularly in US mortality, alongside continued earnings contributions from its substantial portfolio of existing contracts.
That in-force business remains an important source of earnings diversification for Swiss Re, helping balance the Group’s exposure to property and casualty underwriting conditions.
L&H Re is targeting net income of $1.7 bn for the full year. The unit’s insurance service result increased to $1.6 bn from $1.1 bn in the comparable period of 2025, supported by favorable experience variance.
Insurance revenue rose to $12.9 bn from $12 bn, primarily reflecting positive foreign exchange movements and contributions from newly written longevity business. New-business CSM declined to $488 mn from $833 mn.
Swiss Re attributed the reduction to fewer large transactions and a more selective approach to writing new business, particularly in the Asia-Pacific region.
The company continues to invest in its transaction capabilities to position L&H Re for additional opportunities that meet its financial and underwriting requirements.
The business unit’s total CSM balance stood at $16.6 bn after the first nine months of 2026, compared with $16.9 bn at the end of 2025.
Swiss Re maintains $4.5 bn net income target for 2026
Swiss Re reiterated its full-year financial objectives following the nine-month results, supported by earnings contributions from all three business units.
The Group continues to target net income of $4.5 bn for 2026, while L&H Re is aiming for $1.7 bn. P&C Re maintains its combined ratio target below 85%, and Corporate Solutions continues to target a ratio below 91%.
Swiss Re’s capital management priorities include completing the $1.5 bn share repurchase program announced in February, maintaining its solvency position and directing investment toward selected areas of underwriting, technology and customer service.
Management nevertheless remains attentive to competitive P&C reinsurance pricing, which has reduced new-business margins despite the Group’s strong reported earnings.
Berger said the company would continue balancing financial performance with capital strength and business resilience.
We maintain our two priorities: delivering on our financial targets and the Group’s overall resilience. Our performance in the first nine months puts us firmly on track to meet both goals.
“Looking beyond 2026, our robust foundations and the diversification provided by our three Business Units give us confidence in our ability to navigate different market cycles successfully. We continue to see attractive opportunities across our businesses and are pursuing them with ambition and discipline.”
