Swiss Re reports a first-quarter net income of US$1.3bn

Zurich - Swiss Re reported a net income of US$1.3bn and a return on equity (ROE) of 22.4% for the first quarter of 2025. The impact of large claims from natural catastrophes and man-made events was offset by strong underlying performance across the Group's businesses. The Group also benefitted from favourable investment and tax impacts.

Swiss Re's Group Chief Executive Officer Andreas Berger said: "The first quarter of 2025 was marked by significant large loss events in our property and casualty businesses. Despite this, all Business Units posted robust results, highlighting the resilience of the Group and underscoring our ability to support clients by acting as a shock absorber for peak risks."

Swiss Re's Group Chief Financial Officer Anders Malmström said: "The main driver for Swiss Re's first-quarter results was continued disciplined underwriting, which was supported by our investment performance. We have maintained our strong capital position and remain well-placed to support our clients."

Group result driven by contributions from all Business Units

Swiss Re reported a net income of US$1.3bn and an ROE of 22.4% for the first quarter of 2025, compared with a net income of US$1.1bn and an ROE of 20.7% for the same period in 2024. The result was driven by resilient underwriting results across the Group's businesses and supported by healthy investment returns and a favourable tax rate of 14%.

Insurance revenue for the Group amounted to US$10.4bn, compared with US$11.7bn for the same period in 2024. The reduction was primarily driven by non-recurring IFRS transition effects and the termination of an external retrocession transaction in L&H Re, both of which had a positive effect on the prior-year period, as well as unfavourable foreign exchange impacts.

The insurance service result, which reflects the profitability of underwriting activity, was US$1.3bn, compared with US$1.4bn in the first quarter of 2024.

Increased recurring investment income

Swiss Re's ROI for the first quarter of 2025 was 4.4%, up from 4.0% for the same period in 2024. The increase was driven by a higher recurring income alongside realised gains from the sale of a minority equity position in March 2025 amounting to US$209m. This gain was partially offset by realised losses from targeted sales of fixed income securities. The recurring income yield for the period was 4.1%, compared with 3.9% for the prior-year period. The reinvestment yield for the quarter was 4.5%.

Strong capital position

Swiss Re's capital position continues to be strong with an estimated Group SST ratio of 254% as of 1 April 2025, above the target range of 200 - 250%.

Cancellation of surplus treasury shares

Swiss Re plans to cancel approximately 18.7 million surplus treasury shares, which are not eligible for dividends, by 30 June 2025, in accordance with the capital band set out in its Articles of Association. Upon completion of the cancellation, the total number of shares of Swiss Re Ltd will be 298.8 million, comprising approximately 294.8 million shares outstanding and eligible for dividends and approximately 4.0 million treasury shares held primarily for share-based compensation plans.

P&C Re delivers resilient performance despite large losses

P&C Re reported a net income of US$527m for the first quarter of 2025, compared with US$555m for the same period in 2024. P&C Re absorbed elevated large loss activity during the period, while the gain from the sale of a minority equity position supported the result.

Large natural catastrophe claims amounted to US$570m in the first quarter of 2025, accounting for 29% of the full-year large natural catastrophe claims budget, mainly related to the Los Angeles wildfires. In addition, large man-made losses totalled US$140m.

P&C Re achieved an insurance service result of US$575m, compared with US$704m in 2024, and a combined ratio of 86.0%. P&C Re targets a combined ratio below 85% for the full year.

Insurance revenue for the first quarter of 2025 was US$4.5bn, compared with US$5.0bn for the same period in 2024. The decrease was driven by positive non-recurring IFRS transition effects which affected the prior-year period, unfavourable foreign exchange impacts and pruning actions taken in casualty lines.

Successful P&C Re April renewals

P&C Re renewed contracts with US$2.2bn in treaty premium volume on 1 April 2025. This represents a 2.8% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 1.5% in this renewal round. Based on a prudent view on inflation and updated loss models, loss assumptions increased by 3.7%. The resulting portfolio quality is supportive of the Group's 2025 financial targets.

Corporate Solutions maintains performance with strong first quarter

Corporate Solutions reported a net income of US$208m for the first quarter of 2025, compared with US$195m for the same period in 2024. The result reflects a robust underlying business performance despite elevated man-made loss experience, supported by a solid investment income.

The insurance service result reached US$240 in the first quarter of 2025, compared with US$213m for the first quarter of 2024. Large man-made losses in the quarter amounted to US$147m. Large natural catastrophe losses of US$60m were mainly driven by the Los Angeles wildfires and Tropical Cyclone Alfred, which affected Queensland, Australia.

Corporate Solutions achieved a combined ratio of 88.4% for the first quarter and targets a combined ratio of below 91% for the full year.

Insurance revenue amounted to US$1.8bn for the first quarter of 2025, in line with the same period in 2024. Stringent portfolio steering and focused growth partly compensated for the previously announced non-renewal of the Irish Medex business, non-recurring IFRS transition effects in the prior-year period and unfavourable foreign exchange developments.

L&H Re reports solid first-quarter result

L&H Re reported a net income of US$439m in the first quarter of 2025, up slightly from US$412m for the prior-year period. The result demonstrates the underwriting margins of L&H Re's large in-force book, complemented by the investment result.

Insurance revenue amounted to US$4.1bn, compared with the 2024 result of US$4.8bn. The reduction compared to the previous year was mainly driven by the termination of an external retrocession transaction and positive non-recurring IFRS transition effects which benefitted the prior-year period, alongside unfavourable foreign exchange impacts. The insurance service result for the first quarter was US$456m, up 5% from US$434m in 2024.

L&H Re achieved solid margins on new business. The Business Unit targets a net income of US$1.6bn for 2025.

Withdrawal from iptiQ proceeding as planned

The withdrawal from iptiQ is proceeding as planned. In April 2025, Swiss Re completed the sale of the iptiQ Americas Sales Solutions business through a management buyout and announced the sale of iptiQ's Australian business to Hannover Re.

Outlook

Swiss Re's Group Chief Executive Officer Andreas Berger said: "With a turbulent start to the year, we remain vigilant and focused on maintaining our strong foundations. Thanks to the decisive actions we took in 2024, all our businesses are well-positioned and have delivered a robust performance in the first quarter. Alongside our continued focus on cost discipline and efficiency, this gives us confidence in our 2025 targets despite a challenging environment."