Swiss Re announces a net income of $2.1 billion for the first half of 2024.

Swiss Re’s Group Chief Executive Officer Andreas Berger stated: “Swiss Re’s performance in the first half of 2024 reflects our focus on delivering consistent results. We continue to increase the overall resilience of the firm through a disciplined approach to underwriting new business while remaining on top of loss trends across our in-force portfolios.”

Swiss Re Group Chief Financial Officer John Dacey added: “These results underscore our focus on disciplined capital allocation and maintaining quality in both our underwriting and investment portfolios. Additionally, higher interest rates have positively impacted our investment income.”

Swiss Re Group Results Driven by Disciplined Underwriting and Strong Investment Income
Swiss Re reported a net income of USD 2.1 billion and a return on equity (ROE) of 20.1% for the first half of 2024. This success was primarily attributed to disciplined underwriting, low natural catastrophe claims, and robust investment income.

The Group’s insurance revenue reached USD 22.5 billion, with an insurance service result, reflecting underwriting profitability, of USD 2.9 billion.

The Group achieved a strong return on investments (ROI) of 4.0%, supported by contributions from recurring income. The recurring income yield for the first half of 2024 was 4.0%, while the reinvestment yield for the second quarter was 4.8%, benefiting from higher interest rates.

P&C Re Maintains Strong Performance with Disciplined Underwriting

P&C Re reported a net income of USD 989 million in the first half of 2024, driven by disciplined underwriting, low large natural catastrophe losses, and strong investment income. Insurance revenue for the first half of 2024 was USD 9.8 billion.

In property and specialty lines, low natural catastrophe claims in the first half were partially offset by reserves for natural catastrophe and man-made losses, largely in the form of incurred-but-not-reported reserves. P&C Re also increased reserves for specific casualty lines.

P&C Re achieved an insurance service result of USD 1.4 billion and a combined ratio of 84.5%, despite the additions to reserves and the introduction of an uncertainty load across all lines since the beginning of the year. P&C Re is targeting a combined ratio below 87% for the full year.

Successful July P&C Re Renewals

On 1 July 2024, P&C Re renewed contracts with USD 4.5 billion in treaty premium volume, marking a 7% increase in volume compared to the business up for renewal. P&C Re achieved an 8% price increase in this renewal round. Loss assumptions were raised by 10% based on a prudent view of inflation and updated loss models, ensuring the portfolio quality aligns with the Group’s 2024 financial targets.

L&H Re Performance Supported by Improved US Mortality Experience

L&H Re reported a net income of USD 883 million in the first half of 2024, driven by positive US mortality experience and higher investment income, partially offset by unfavorable developments in the EMEA region.

L&H Re achieved an insurance revenue of USD 8.7 billion and an insurance service result of USD 1.0 billion.

After a successful first half, L&H Re continues to target a net income of approximately USD 1.5 billion for the full year.

Corporate Solutions Delivers Strong Results

Corporate Solutions reported a net income of USD 435 million in the first half of 2024, reflecting strong underlying business performance, low claims, and strong investment income. Insurance revenue for the first half of 2024 was USD 3.8 billion. Nominal rates increased by approximately 3%, remaining flat on a risk-adjusted basis.

Disciplined portfolio management and underwriting contributed to strong margins in both in-force and new business, complemented by low man-made loss experience. Large natural catastrophe losses of USD 138 million were primarily due to the Noto earthquake in Japan and Tropical Cyclone Megan in Australia.

Corporate Solutions achieved an insurance service result of USD 509 million and a combined ratio of 88.7% for the first half of 2024. Corporate Solutions targets a combined ratio below 93% for the full year.

iptiQ Withdrawal Proceeding as Planned

iptiQ reported a net loss of USD 182 million for the first half of 2024, including one-off impairments of goodwill and intangibles of USD 111 million (pre-tax) related to the withdrawal from the business announced in May 2024.

Outlook

Swiss Re’s Group CEO Andreas Berger commented:  “After a strong start in the first half of this year, we maintain our 2024 targets, including Group net income of more than USD 3.6 billion. Amid a challenging macroeconomic and geopolitical environment, we continue to focus on disciplined underwriting to maintain and where possible improve the resilience of our portfolios to enable delivery of consistent results.”