Swiss Re reported $2.2 bn in net income and a 13.4% return on equity (ROE) for the first nine months of 2024. Resilient underwriting and investment contributions across all business units drove the results, partially offset by reserve strengthening in P&C Re’s US liability business during Q3.
Andreas Berger, Swiss Re’s Group CEO, stated that recent actions have positioned property and casualty reserves at the higher end of the best estimate range.
Enhancing the overall resilience of the Group has been a key priority for the management team. With the decisive actions in the third quarter, which follow a comprehensive review, we have reached our goal of positioning overall property and casualty reserves at the higher end of the best estimate range
Andreas Berger, Swiss Re’s Group CEO
Swiss Re’s net income for Q3 was $102 mn. Disciplined underwriting and recurring investment income helped mitigate the impact of increased natural catastrophe activity and US liability reserving actions. Insurance revenue for the first nine months totaled $33.7 bn, with an insurance service result of $2.9 bn. The return on investments (ROI) reached 3.9%, supported by a 4% recurring income yield and a 4.6% reinvestment yield in Q3. The Group maintained a strong capital position, with a 284% Swiss Solvency Test (SST) ratio as of July 1, 2024.
P&C Re reported $603 mn in net income for the first nine months, driven by strong underwriting performance despite $2.4 bn in Q3 reserve additions for US liability lines. Total reserve additions for the period reached $3.1 bn, partially offset by releases in other areas, resulting in a net prior year reserve strengthening of $2.0 bn. Large natural catastrophe claims totaled $813 mn, including $743 mn from Q3, linked to hailstorms in Calgary, Storm Boris in Europe, and hurricanes Debby and Helene.
The insurance service result was $1.0 bn, with a combined ratio of 92.8%. Reserve adjustments added 13.3 percentage points to the ratio, leading to a revised year-end combined ratio above the 87% target.
Group CFO John Dacey noted strong underlying performance supported by disciplined underwriting and robust investment income.
All our Business Units continue to deliver attractive underlying performance thanks to disciplined underwriting and capital allocation. This is further supported by a significant positive contribution from investment income.
John Dacey, Swiss Re’s Group CFO
L&H Re achieved $1.2 bn in net income for the first nine months, supported by strong investment income and favorable in-force margins. US mortality experience slightly outperformed expectations, though EMEA developments partially offset these gains. Insurance revenue was $12.6 bn, with an insurance service result of $1.2 bn. The unit aims for $1.5 bn in net income by year-end.
Corporate Solutions delivered $642 mn in net income for the first nine months. Solid investment income, disciplined underwriting, and portfolio management underpinned the performance. Insurance revenue totaled $5.8 bn, with $294 mn in large natural catastrophe losses from events like Cyclone Megan, Hurricane Helene, and the Calgary hailstorm.
The insurance service result was $739 mn, with a combined ratio of 89.4%. The unit remains on track to achieve a sub-93% combined ratio for 2024.
iptiQ recorded a $241 mn net loss for the first nine months, including $111 mn in pre-tax impairments tied to its withdrawal from the business. Allianz Direct will acquire iptiQ’s European P&C operations, including over 100 employees and distribution agreements, with the transaction expected to close in 2025.
Swiss Re projects more than $3 bn in Group net income for 2024, assuming normal loss activity for the rest of the year. Losses from Hurricane Milton are expected to remain below $300 mn, impacting Q4 results. Berger highlighted the strengthened reserves as a foundation for future success, with new targets for 2025 to be announced next month.
