Swiss Re net income rises to $3.2bn, delivers a 15% ROE for 2024

Zurich – Swiss Re reported a net income of US$3.2 billion in 2024, with a net income of US$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 US$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 US$7.35 per share."

Group result continues to benefit from disciplined underwriting and recurring investment income
Swiss Re reported an IFRS net income of US$3.2 billion and an ROE of 15.0% for full-year 2024, compared with an IFRS net income of US$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, which reflects the profitability of underwriting activity, was US$4.3 billion, compared with US$4.7 billion in 2023. Insurance revenue for the Group amounted to US$45.6 billion, up from US$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 US$1.2 billion for 2024, down 20% from US$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 US$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 US$2.6 billion 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 US$1.8 billion, down 33% from US$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 US$19.8 billion, compared with US$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 US$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 US$829 million in 2024, up 26% from US$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 US$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 US$1.0 billion in 2024, up 23% from US$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 US$8.1 billion from US$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 US$1.5 billion in 2024, achieving its target and improving on its 2023 result of US$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 US$1.1 billion, bringing the CSM balance to US$17.4 billion by year-end. These updates are fully reflected in the 2025 net income target of US$1.6 billion.

L&H Re achieved an insurance service result of US$1.5 billion, up 15% from US$1.3 billion in 2023, and insurance revenue of US$17.1 billion, compared with the 2023 result of US$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 US$325 million for 2024. This includes (pre-tax) US$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 US$4.4 billion, while L&H Re targets a net income of US$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 US$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 US$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."