Swiss Re increases net income to USD 3.2 billion and delivers a 15% ROE for 2024

Ad hoc announcement pursuant to Article 53 LR

• Property & Casualty Reinsurance (P&C Re) net income of USD 1.2 billion; combined ratio of 89.9%^[1]
• Corporate Solutions net income of USD 829 million; combined ratio of 89.7%^[2]
• Life & Health Reinsurance (L&H Re) net income of USD 1.5 billion
• Return on investments (ROI) of 4.0%; recurring income yield of 4.0%
• P&C Re increased premium volume by 7.0% in the January 2025 renewals, achieving price increases of 2.8%
• Strong capital position with a Group Swiss Solvency Test (SST) ratio above the target range as of 1 January 2025
• Board of Directors to propose a dividend increase of 8% to USD 7.35 per share at the Annual General Meeting on 11 April 2025

Zurich, 27 February 2025 – Swiss Re reported a net income of USD 3.2 billion in 2024, with a net income of USD 1.1 billion for the fourth quarter and a return on equity (ROE) of 15.0% for the full year. The Board of Directors will propose a dividend of USD 7.35 per share.

Swiss Re's Group Chief Executive Officer Andreas Berger said: "Our focus in 2024 was on profitability and resilience. Our results for the period reflect this and show that we are on the right track: we have delivered strong net income and ROE, while achieving our goal of positioning overall P&C reserves at the higher end of our best-estimate range."

Swiss Re's Group Chief Financial Officer John Dacey said: "The strong underlying Business Unit performance is being supported by continued underwriting discipline and recurring investment income. The Group's earnings power, combined with the reserving actions taken in 2024, give us confidence to increase the pay-out to investors by proposing an 8% higher ordinary dividend of USD 7.35 per share."

Group result continues to benefit from disciplined underwriting and recurring investment income
Swiss Re reported an IFRS net income of USD 3.2 billion and an ROE of 15.0% for full-year 2024, compared with an IFRS net income of USD 3.1 billion and an ROE of 16.2% in 2023. The result was driven by disciplined underwriting of new business and investment contributions from all Business Units, partly offset by the strengthening of reserves related to P&C Re's US liability business in the third quarter.

The insurance service result^[3], which reflects the profitability of underwriting activity, was USD 4.3 billion, compared with USD 4.7 billion in 2023. Insurance revenue^[4] for the Group amounted to USD 45.6 billion, up from USD 43.9 billion in 2023.

Increased recurring investment income
Swiss Re's ROI for the full year increased materially to 4.0% in 2024, up from 3.2% in 2023, driven by a continued contribution from recurring income. The recurring income yield for the period was 4.0%, up from 3.5% in 2023. The reinvestment yield for the fourth quarter was 4.6%.

Strong capital position
Swiss Re's capital position continues to be strong with an estimated Group SST ratio as of 1 January 2025 of 257%^[5], above the target range of 200–250%. The reduction compared to the mid-year 2024 Group SST ratio of 284% was primarily driven by reserving actions in the second half of the year, dividend accruals and modest increases in deployed risk capital.

The implementation of the methodology to derive the SST target capital required correction. In the past, the expected change in SST risk-bearing capital (RBC), which is deducted from total risk to derive the target capital, did not factor in the discounting of the expected RBC when implemented. This modification, which results in a reduction of the SST ratio, is reflected in the corrected SST ratios for 2024 and 2023 shown in the Addendum to the Financial Condition Report 2023. The corrected implementation of the methodology will result in a lower interest rate sensitivity.

P&C Re delivers strong underlying underwriting performance

P&C Re reported a net income of USD 1.2 billion for 2024, down 20% from USD 1.5 billion in 2023. Robust underwriting results were impacted by prior-year US liability reserve additions in the third quarter. The result includes strong investment performance.

Large natural catastrophe claims amounted to USD 1.0 billion in 2024. These claims mainly related to hurricanes Milton, Debby and Helene, the severe hailstorm which affected Calgary in Canada, Storm Boris in Europe and flooding in the Gulf region.

P&C Re decisively strengthened its prior-year US liability reserves in the third quarter. These additions were partly offset by releases in other lines of business, resulting in a net prior-year reserve strengthening of USD 2.6 billion^[6] for the full year 2024. This positions overall P&C reserves at the higher end of Swiss Re's best-estimate range which, coupled with the uncertainty allowance on new business, continues to support reserving strength going forward.

P&C Re achieved an insurance service result of USD 1.8 billion, down 33% from USD 2.8 billion in 2023, and a combined ratio of 89.9%. The net impact of reserve strengthening in the third quarter accounted for 10.2 percentage points of the full-year combined ratio; as a result, P&C Re missed its combined ratio target of less than 87% for 2024.

Insurance revenue for 2024 was USD 19.8 billion, compared with USD 19.6 billion in 2023. Insurance revenue was supported by strong margins, continued price increases and targeted growth in property and specialty. Pruning of casualty lines continued in 2024.

Successful January P&C Re renewals
P&C Re renewed treaty contracts resulting in USD 13.3 billion in premium volume on 1 January 2025. This represents a 7.0% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 2.8% in this renewal round. Based on a prudent view on Inflation and updated loss models, loss assumptions increased by 4.2%. The resulting portfolio quality is supportive of the Group's 2025 financial targets.

Corporate Solutions outperforms combined ratio target
Corporate Solutions reported a net income of USD 829 million in 2024, up 26% from USD 658 million in 2023. The strong result reflects a consistent underlying business performance throughout the year, supported by strong investment income.

Large natural catastrophe losses of USD 344 million were mainly driven by Tropical Cyclone Megan in Australia, Hurricanes Milton and Helene in the US, and the Calgary hailstorm.

Corporate Solutions achieved an insurance service result of USD 1.0 billion in 2024, up 23% from USD 831 million in 2023. The 2024 result reflects the earn-through of robust in-force and new business margins complemented by lower-than-expected man-made loss experience. Corporate Solutions achieved a combined ratio of 89.7% for 2024, outperforming the target of below 93% for the full year.

Insurance revenue for 2024 rose to USD 8.1 billion from USD 7.6 billion in 2023. Driven by stringent portfolio steering and disciplined underwriting, Corporate Solutions' insurance revenue reflects new business growth in its focus portfolios and earn-through of previously realised rate increases.

L&H Re delivers on net income target
L&H Re reported a net income of USD 1.5 billion in 2024, achieving its target and improving on its 2023 result of USD 1.4 billion. The result reflects recognition of in-force margins supported by a strong investment income, partially offset by adverse experience and assumption reviews.

The assumption review conducted in the fourth quarter of 2024, as announced at the Management Dialogue event in December 2024, led to a reduction in L&H Re's Contractual Service Margin (CSM) of USD 1.1 billion, bringing the CSM balance to USD 17.4 billion by year-end. These updates are fully reflected in the 2025 net income target of USD 1.6 billion.

L&H Re achieved an insurance service result of USD 1.5 billion, up 15% from USD 1.3 billion in 2023, and insurance revenue of USD 17.1 billion, compared with the 2023 result of USD 16.4 billion.

Withdrawal from iptiQ proceeding as planned
The withdrawal from iptiQ is proceeding as planned, with the sale of iptiQ's European P&C business to Allianz Direct announced in the fourth quarter of 2024 and the placement of the Americas and APAC businesses into run-off.

iptiQ reported a net loss of USD 325 million for 2024. This includes (pre-tax) USD 188 million which is attributable to one-off impairments of goodwill and intangibles related to the withdrawal from the business and a charge related to the sale of the European P&C business.

Financial targets and outlook
Swiss Re confirms the financial targets communicated at its Management Dialogue event in December 2024. For 2025, the Group aims for a net income of more than USD 4.4 billion, while L&H Re targets a net income of USD 1.6 billion. P&C Re targets a combined ratio of less than 85% and Corporate Solutions targets a combined ratio of less than 91%. The Group maintains its multi-year IFRS ROE target of more than 14% and aims for dividend per share growth of 7% or more per year for dividends paid in 2025–2027.

Swiss Re estimates its preliminary claims from the wildfires which affected Los Angeles to be less than USD 700 million, which will impact Group results in the first quarter of 2025. Its estimate for the preliminary total insured market loss from the wildfires is approximately USD 40 billion.

Swiss Re's Group Chief Executive Officer Andreas Berger said: "All our businesses have started 2025 in a strong position, thanks to the resilient foundation we have created and disciplined underwriting as evidenced by the successful January renewals. We remain focused on delivering on our targets for the year and reaching our cost efficiency goals."

Details of FY 2024 performance

Financial calendar

13 March 2025 Publication of the Annual Report 2024
11 April 2025  161st Annual General Meeting
16 May 2025  First-quarter 2025 Results
14 August 2025 Half-year 2025 Results

Media conference call

Swiss Re will hold a virtual media conference this morning at 10:30 CET. To join, please access the webcast here.

Investor and analyst call

Swiss Re will hold an investors' and analysts' webcast at 14:00 CET, which will focus exclusively on Q&A. The investor and analyst presentation can be found here.

^[1] P&C Re combined ratio is defined as [–Insurance service expense (net) / Insurance revenue (net)].

^[2] Corporate Solutions combined ratio is defined as [–(Insurance service expense (gross) + Reinsurance result + Non-directly attributable expenses) / Insurance revenue (gross)].

^[3] Insurance service result reflects the discounted underwriting profit earned from providing insurance coverage in a given period, and comprises insurance revenue (gross) less insurance service expenses (gross) plus reinsurance result.

^[4] Insurance revenue (gross) reflects the expected discounted claims and expenses, release of risk capital costs, as well as release of expected profit for the services provided in a period.

^[5] Estimated Group SST ratio as of 1 January 2025, subject to regular review by FINMA.

^[6] Represents a nominal (undiscounted) amount.

^{[7]FY 2023 comparative information has been revised since previous publication.}

^[8] Including net income/loss attributable to non-controlling interests of USD 30 million for 2023 and USD –3 million for 2024.