Swiss Re reports a net income of $2.2 bn and an ROE of 13.4% for 9M 2024. Resilient underwriting and investment contributions from all Business Units contributed to the results, although reserve strengthening in P&C Re’s US liability business in the third quarter partly offset these gains.
Enhancing the overall resilience of the Group has been a key priority for the management team. Decisive actions in the third quarter, which followed a comprehensive review, have helped us position property and casualty reserves at the higher end of the best estimate range
Group CEO Andreas Berger
Swiss Re expects a full-year net income exceeding $3 bn, assuming typical loss activity for the remainder of 2024. Anticipated losses from Hurricane Milton are projected at under $300 mn, which will influence fourth-quarter outcomes.
CEO Andreas Berger highlighted that reserve strengthening ensures a resilient foundation for future success. The strong capital position will support favorable outcomes in the upcoming renewal season, with new 2025 targets to be announced next month.
Key Figures:
- P&C Re: $603 mn net income, combined ratio at 92.8%, with insurance revenue of $15.0 bn. Despite reserve strengthening totaling $3.1 bn for the first nine months, the unit showed strong current-year underwriting results. Large natural catastrophe claims amounted to $813 mn, primarily from the Calgary hailstorm, Storm Boris in Europe, and hurricanes Debby and Helene. The insurance service result was $1.0 bn.
- L&H Re: Net income reached $1.2 bn, reflecting strong investment income and favorable in-force margins. US mortality experience remained positive, with minor negative impacts in EMEA. Insurance revenue amounted to $12.6 bn, and the insurance service result was $1.2 bn. L&H Re aims for a full-year net income of approximately $1.5 bn.
- Corporate Solutions: Reported a net income of $642 mn and a combined ratio of 89.4%, driven by disciplined underwriting and low man-made loss experience. Insurance revenue totaled $5.8 bn. The unit incurred $294 mn in natural catastrophe losses, mainly from Tropical Cyclone Megan in Australia, Hurricane Helene in the US, and the Calgary hailstorm. The insurance service result was $739 mn.
- iptiQ: Recorded a net loss of $241 mn, which included one-off impairments of $111 mn (pre-tax) related to the planned withdrawal from the business announced in May 2024. Allianz Direct will acquire iptiQ’s European P&C business, including over 100 employees across multiple countries. The transaction, subject to customary closing conditions and regulatory approval, is expected to complete in 2025.
Investment and Capital Highlights
Swiss Re reported a return on investments of 3.9% for the first nine months, supported by recurring income, with a yield of 4.0% and a reinvestment yield of 4.6% for the third quarter. The Group’s capital position remains solid, with a Swiss Solvency Test (SST) ratio of 284% as of 1 July 2024. Methodology updates have lowered the reported ratio while reducing sensitivity to interest rate changes.
P&C Re Reserve Strengthening
P&C Re strengthened prior year US liability reserves by $2.4 bn in the third quarter, raising total reserve additions to $3.1 bn for the year. Reserve releases in other segments partially offset this, resulting in a net strengthening of $2 bn in the third quarter.
Reserve strengthening advances the Group’s strategy of maintaining reserves at the higher end of the estimate range, and a new uncertainty allowance for future business will bolster reserve stability.
Large catastrophe claims, totaling $813 mn, impacted results, with significant third-quarter events such as the Calgary hailstorm, Storm Boris, and hurricanes Debby and Helene. P&C Re’s combined ratio, affected by reserve actions, stood at 92.8%, with reserve impacts adding 13.3 percentage points. Consequently, P&C Re will likely miss the target of achieving a combined ratio under 87% for 2024.
L&H Re Performance
L&H Re’s net income of $1.2 bn was driven by a large in-force book and favorable investment returns. Despite slight US mortality gains, challenges emerged in EMEA markets. The business generated $12.6 bn in insurance revenue and reported an insurance service result of $1.2 bn. The segment is on track for a full-year net income of about $1.5 bn.
Corporate Solutions Strength
Corporate Solutions posted a $642 mn net income, with strong performance aided by portfolio management and disciplined underwriting. Insurance revenue reached $5.8 bn, while natural catastrophe losses of $294 mn impacted the unit. The combined ratio was a robust 89.4%, and the insurance service result was $739 mn. The unit remains on track to achieve a combined ratio below 93% by year-end.
iptiQ Withdrawal Progress
iptiQ experienced a $241 mn net loss, with impairments linked to the planned exit from its business. Allianz Direct’s acquisition will encompass iptiQ’s European P&C operations and associated personnel. Completion is expected in 2025, pending regulatory approvals.
Details of 9M 2024 performance
USD millions, unless otherwise stated
| Consolidated Group (total) | 9M 2024 |
|---|---|
| Net income/loss | 2 190 |
| Insurance revenue (gross) | 33 711 |
| Insurance service result | 2 908 |
| Return on equity (%, annualised) | 13.4 |
| Return on investments (%, annualised) | 3.9 |
| Recurring income yield (%, annualised) | 4.0 |
| 30.09.24 | |
| Shareholders’ equity | 21 600 |
| Book value per share (USD) | 73.47 |
| P&C Reinsurance | 9M 2024 |
| Net income | 603 |
| Insurance revenue (gross) | 14 977 |
| Insurance service result | 1 010 |
| Combined ratio (%) | 92.8 |
| L&H Reinsurance | 9M 2024 |
| Net income | 1 204 |
| Insurance revenue (gross) | 12 555 |
| Insurance service result | 1 240 |
| Corporate Solutions | 9M 2024 |
| Net income | 642 |
| Insurance revenue (gross) | 5 792 |
| Insurance service result | 739 |
| Combined ratio (%) | 89.4 |
