Swiss Re reported a net income of $1.4 bn and ROE of 22.8% in 1H2023

Global reinsurer Swiss Re reported a net income of USD 1.4 billion and a return on equity (ROE) of 22.8% for the first half of the year, compared with a net income of USD 157 million and an ROE of 1.6% for the same period in 2022. Swiss Re representatives informed the company maintains its guidance for full-year targets.

At the same time, net premiums earned and fee income for the Group increased 4.4% to USD 22.1 billion, compared with USD 21.2 billion for the same period last year.

The reinsurer mentioned that the “main drivers for this result were contained natural catastrophe losses in the first half of the year, L&H Re’s performance returning to pre-pandemic levels and a strong result for Corporate Solutions”.

P&C Re reported a net income of USD 904 million in the first half of 2023, compared with USD 316 million in the same period in 2022. This increase was driven by a solid investment result and low level of large natural catastrophe claims in the second quarter.

Given the positive contribution of all our main businesses, we are focused on achieving our profit target of more than USD 3 billion for the year

Swiss Re’s Group Chief Executive Officer Christian Mumenthaler

The large natural catastrophe losses of USD 634 million in the first half of 2023 relate to the earthquake in Turkey and Syria, Cyclone Gabrielle and flooding in New Zealand, all of which occurred in the first quarter. Large man-made losses amounted to USD 76 million in the first half of 2023.

Net premiums earned stood at USD 11.4 billion, up from USD 10.6 billion in the prior-year period, reflecting the strong performance during renewals in January and April. Net premiums earned grew by 9.6% at constant foreign exchange rates. P&C Re’s combined ratio for the first half of 2023 improved to 94.7%1.

P&C Re renewed contracts with USD 4.3 billion in treaty premium volume on 1 July 2023.

Overall, P&C Re achieved a price increase of 21% in this renewal round. This more than offset higher loss assumptions of 16%.

L&H Re reported a net income of USD 393 million in the first half of 2023, compared with a net income of USD 2 million for the same period in 2022. Compared to last year, L&H Re benefitted from much lower COVID-19 claims as well as from higher investment income. However, there was elevated mortality in the US from the winter months.

Net premiums earned and fee income increased slightly to USD 7.8 billion from USD 7.5 billion in the same period last year. Net premiums earned and fee income increased by 6.4% at constant foreign exchange rates.

L&H Re continues to target a net income of approximately USD 900 million for 2023.

Corporate Solutions reported a net income of USD 323 million for the first half of 2023, compared with USD 220 million in the prior-year period.

This strong result was achieved despite increased man-made claims activity in the second quarter of 2023, confirming the improved resilience of the business and disciplined underwriting. In addition, Corporate Solutions benefitted from higher investment income.

Large man-made losses accounted for claims of USD 113 million in the first half of 2023, a lower amount than in the prior-year period, which was marked by a significant reserve for the war in Ukraine. Large natural catastrophe losses were also lower than in the same period last year, amounting to USD 20 million.

Net premiums earned decreased to USD 2.6 billion in the first half of 2023 from USD 2.9 billion in the prior-year period.

Corporate Solutions’ combined ratio for the first half of 2023 improved to 91.%.

iptiQ grew in the second quarter, with gross premiums written of USD 476 million for the first half of 2023, up from USD 455 million in the prior-year period and now has approximately 2.2 million policies in force.

Nataly Kramer   by Nataly Kramer