Swiss Re reported strong first-quarter results in both its property & casualty and life & health reinsurance businesses, despite a slight drop in revenue and continued caution in U.S. casualty lines.
CEO Andreas Berger said the group had a small increase in net income, even after natural catastrophe losses of about $900 mn, mainly from the Los Angeles wildfires, which accounted for nearly two-thirds of the total.
All operating divisions reported positive contributions, supported by solid investment returns. The group also benefited from the weaker U.S. dollar, as around half of its business is in dollars.
Berger noted that economic conditions remain unstable, but Swiss Re has not been directly impacted by tariffs. However, the company is monitoring inflation risks and indirect effects.
The April renewals followed the positive trend seen in January. Swiss Re recorded 6% growth in renewal volumes so far this year, while pricing declined 1.5%.
This still met internal targets and reflected disciplined underwriting. The contract service margin for new P&C reinsurance business in Q1 remained at $1.4 bn, the same as last year.
Berger said this stable outcome supports the company’s approach ahead of mid-year renewals.
Swiss Re does not set top-line growth goals and instead aims to keep strong risk-adjusted returns and a high-quality portfolio.
First-quarter net income increased to $1.28 bn, up from $1.10 bn the year before. Insurance revenue dropped to $10.41 bn from $11.68 bn.
The P&C reinsurance combined ratio rose to 86 from 84.7. CFO Anders Malmström said large natural catastrophe losses totaled $570 mn, with $537 mn tied to the Los Angeles wildfires. Man-made claims reached $140 mn, slightly above expectations.
