Swiss Re Reports Strong Q3 2024 Performance with Net Income of USD 2.2 Billion

Swiss Re has demonstrated its remarkable financial resilience and strategic acumen by reporting a net income of USD 2.2 billion and a return on equity (ROE) of 13.4% for the first nine months of 2024. This robust performance is attributed to disciplined underwriting and strong investment returns across all business units, albeit tempered by reserve strengthening in the US liability sector during the third quarter.

Financial and Operational Highlights:

• Group Performance:
• Reported net income of USD 2.2 billion and an ROE of 13.4%.
• Q3 net income achieved USD 102 million.
• Group insurance revenue reached USD 33.7 billion.
• Insurance service result stood at USD 2.9 billion.
• Return on investments (ROI) was 3.9%, driven by recurring income with a yield of 4.0%, and a reinvestment yield for Q3 of 4.6%.
• Maintained a strong capital position with a Group Swiss Solvency Test (SST) ratio of 284% as of 1 July 2024.

Segment Performance:

• Property & Casualty Reinsurance (P&C Re):
• Generated a net income of USD 603 million.
• Recorded insurance revenue of USD 15.0 billion.
• Achieved an insurance service result of USD 1.0 billion and a combined ratio of 92.8%.
• Large natural catastrophe claims amounted to USD 813 million for the first nine months, primarily from severe weather events such as hailstorms in Calgary and hurricanes.
• Strengthened US liability reserves by a decisive USD 2.4 billion in Q3, bringing total reserve additions to USD 3.1 billion for the year.
• The net impact of reserve strengthening accounted for 13.3 percentage points of the combined ratio, resulting in an expected miss of its <87% target for 2024.
• Life & Health Reinsurance (L&H Re):
• Reported a net income of USD 1.2 billion, reflecting strong investment income and favourable US mortality experience.
• Insurance revenue was listed at USD 12.6 billion.
• The insurance service result matched the net income of USD 1.2 billion, underpinned by a large in-force book.
• Corporate Solutions:
• Achieved a net income of USD 642 million.
• Insurance revenue of USD 5.8 billion.
• Combined ratio stood at 89.4%, highlighting disciplined underwriting and low loss experience.
• Natural catastrophe losses of USD 294 million were influenced by events like Cyclone Megan and Hurricane Helene.
• iptiQ:
• Recorded a net loss of USD 241 million, influenced by one-off impairments tied to its exit from the business announced in May 2024.
• Allianz Direct will acquire iptiQ’s European P&C business, including over 100 employees, with the transaction expected to close in 2025.

Strategic Initiatives and Developments:

Swiss Re’s proactive management actions, especially in Q3, were pivotal in fortifying reserve positions, significantly contributing to future resilience. Group CEO Andreas Berger noted that these measures enhance the Group’s strategic positioning within the best-estimate range for reserves.

Future Outlook:

Looking ahead, Swiss Re anticipates achieving a Group net income exceeding USD 3 billion for the full year 2024, assuming normalized loss activity. The expected impact from Hurricane Milton is projected to stay below USD 300 million for Q4, ensuring a resilient financial closure for the year. The Company looks forward to updating market targets for 2025 shortly.

Group CFO John Dacey remarked on the importance of disciplined underwriting and capital allocation, underscoring the sustained viability and profitability across business segments.

For a deeper dive into Swiss Re’s financial performance and strategic trajectory, stakeholders and industry enthusiasts can access the full report on Swiss Re’s official website.