Swiss Re reports $2.6 bn H1 2025 profit, maintains full-year targets

Swiss Re posted a Q2 2025 profit of $1.3bn, bringing net income for the first half to $2.6bn and delivering a return on equity of 23%.

The Group’s performance reflects strong underwriting margins across all business units and a stable investment result.

CEO Andreas Berger credited the result to continued focus on underwriting discipline, portfolio management, and a cautious investment strategy.

CFO Anders Malmström highlighted that the Group’s capital deployment supports earnings stability, even amid tougher P&C market conditions.

Strong Group-Level Financials

The insurance service result for H1 2025 reached $3.0bn, compared to $2.9bn in H1 2024. Group insurance revenue came in at $20.9bn, down from $22.2bn. The new business contractual service margin (CSM) rose slightly to $3.1bn from $3bn.

Return on investments (ROI) for the period was 4.1%, up from 4.0% the prior year. The result was driven by recurring income and realized gains from a minority equity stake sale in Q1.

Recurring income yield stood at 4.1%, with a reinvestment yield of 4.3% in Q2.

The Group’s Swiss Solvency Test (SST) ratio stood at 264% as of July 1, exceeding the 200–250% target range.

Details of H1 2025 performance

P&C Re: Improved Combined Ratio, Strong Underwriting Gains

P&C Re delivered $1.2bn in net income for H1 2025, up from $992mn. Insurance service result reached $1.6bn, compared to $1.4bn in the prior-year period. The unit reported a combined ratio of 81.1%, improved from 84.3%, and remains on track to stay below its 85% full-year target.

Natural catastrophe claims totaled $556mn, mainly from the Los Angeles wildfires. Man-made losses added another $213mn.

Insurance revenue dropped to $8.9bn from $9.7bn, reflecting casualty pruning and revenue seasonality.

At mid-year renewals, P&C Re renewed $4.5bn in treaty premium volume—a 5.9% decline—driven by further cuts in casualty. Year-to-date, treaty volume rose 3%.

The unit secured a 2.3% price increase while adjusting loss assumptions upward by 4.6% based on inflation and model updates. New business CSM held steady at $2.2bn.

Corporate Solutions: Solid Investment Offset by Claims

Corporate Solutions posted $430mn in net income for H1 2025, slightly below the $441mn recorded in the same period last year. Insurance service result was flat at $515mn.

The combined ratio improved to 88.2% from 88.7%. Large man-made losses reached $193mn, while catastrophe losses, mainly from the LA wildfires and Tropical Cyclone Alfred, totaled $60mn.

Insurance revenue remained at $3.7bn, supported by active portfolio management, despite the non-renewal of the Irish Medex account. New business CSM rose to $262mn from $223mn.

L&H Re: Consistent Results from In-Force Portfolio

L&H Re reported net income of $839mn for H1 2025, down from $883mn. The insurance service result came in at $900mn, compared with $1bn in the prior-year period.

The drop reflects a lower CSM release tied to a 2024 assumption review, offset by lower negative experience variance.

Insurance revenue declined to $8.0bn from $8.5bn, mainly due to the termination of a retrocession deal that boosted 2024 results. New business CSM increased slightly to $569mn, and the overall CSM balance rose by $410mn to $17.8bn, largely due to USD depreciation.

L&H Re maintains its full-year net income target of $1.6bn.

iptiQ Exit Nearing Completion

Swiss Re is progressing with its exit from iptiQ. The sale of its Australian business to Hannover Re is complete, along with a management buyout of the Americas Sales Solutions unit. The sale of the EMEA P&C business to Allianz Direct closed in July.

Swiss Re confirmed its full-year targets. The Group remains cautious heading into the peak of hurricane season and amid global economic uncertainty.

Management continues to prioritize disciplined underwriting and cost control to sustain profitability.