Swiss Re reports net income of $2.1 billion for first half of 2024

Ad hoc announcement pursuant to Article 53 LR

• Property and Casualty Reinsurance (P&C Re) H1 2024 net income of USD 989 million; combined ratio of 84.5%(1)
• Successful July 2024 P&C Re contract renewals in line with targets
• Life & Health Reinsurance (L&H Re) H1 2024 net income of USD 883 million
• Corporate Solutions: H1 2024 net income of $435 million, combined ratio of 88.7%(2)
• Return on investment (ROI) of 4.0%; Recurring income yield of 4.0%

Zurich, 22 August 2024 – Swiss Re reported a profit of USD 996 million in the second quarter of 2024, resulting in net income of USD 2.1 billion and a return on equity (ROE) of 20.1% in the first half of the year. The Group’s financial results were supported by strong contributions from all business units, and Swiss Re maintains its full-year targets.

Andreas Berger, Group CEO of Swiss Re, said: “Swiss Re’s performance in the first half of 2024 reflects our focus on delivering consistent results. We continue to enhance the overall resilience of the business through a disciplined approach to new business acquisitions, while remaining on top of loss trends in our active portfolios.”

Swiss Re Group Chief Financial Officer John Dacey said: “These results underscore our focus on capital allocation discipline and quality across our underwriting and investment portfolios. In addition, higher interest rates continue to support our investment income.”

The group’s results benefit from disciplined risk assessment and high investment returns.
Swiss Re reported net income of USD 2.1 billion and a return on equity (ROE) of 20.1% for the first half of 2024. The main drivers of this performance were disciplined risk assessment, low natural catastrophe claims and high investment income.

Insurance revenues (3) for the Group amounted to USD 22.5 billion. The result from insurance services (4), which reflects the profitability of the underwriting business, amounted to USD 2.9 billion.

The Group delivered a strong return on investment (ROI) of 4.0%, driven by contributions from recurring income. The return on recurring income in the first half of 2024 was 4.0%, while the return on reinvestment in the second quarter was 4.8%, continuing to benefit from higher interest rates.

P&C Re maintains results through risk discipline

P&C Re reported net income of $989 million in the first half of 2024. This was primarily driven by disciplined underwriting and low large catastrophe experience, as well as strong investment income. Insurance revenue in the first half of 2024 was $9.8 billion.

In property and specialty lines, low reported natural catastrophe claims in the first half of the year were partially offset by selected additions to natural catastrophe and man-made loss reserves, the vast majority of which were incurred but not reported. P&C Re also increased reserves in certain casualty lines.

P&C Re achieved an underwriting result of $1.4 billion and a combined ratio of 84.5%, despite the addition of reserves and uncertainty charges introduced across all lines since the beginning of the year. P&C Re is targeting a combined ratio below 87% for the full year.

Successful P&C insurance renewals in July

P&C Re renewed contracts with a treaty premium volume of $4.5 billion on July 1, 2024. This represents a 7% increase in volume compared to the business that was ready for renewal. Overall, P&C Re achieved an 8% price increase in this round of renewals. Based on a continued cautious assessment of inflation and updated loss models, loss assumptions increased by 10%. The resulting portfolio quality is in line with the Group’s 2024 financial targets.

L&H Re Results Supported by Improved US Mortality Experience
L&H Re reported net income of $883 million in the first half of 2024, reflecting a positive mortality experience in the US and higher investment income. This was partially offset by unfavorable developments in the EMEA region.

L&H Re’s insurance revenues amounted to USD 8.7 billion, and the result from insurance services amounted to USD 1.0 billion.

Following a successful first half of 2024, L&H Re still plans to achieve net income of around USD 1.5 billion for the full year.

Corporate solutions continue to deliver strong results
Corporate Solutions reported net income of $435 million in the first half of 2024. The continued strong performance reflects consistent underlying business performance, further strengthened by a soft claims experience in the first six months of the year and supported by strong investment income. Underwriting revenues in the first half of 2024 were $3.8 billion. Nominal rates increased by approximately 3% in the first half of the year, remaining flat on a risk-adjusted basis.

Strong portfolio management and disciplined underwriting resulted in strong inforce and new business margins complemented by low man-made losses. Large natural catastrophe losses of $138 million were primarily due to the Noto earthquake in Japan and Tropical Cyclone Megane in Australia.

Corporate Solutions achieved insurance services income of $509 million and a combined ratio of 88.7% in the first half of 2024. Corporate Solutions expects a combined ratio below 93% for the full year.

iptiQ drug recall is proceeding as planned
iptiQ reported a net loss of $182 million for H1 2024, including one-time pre-tax impairments of $111 million of goodwill and intangible assets related to the exit from operations announced in May 2024.

Perspectives

Swiss Re Group CEO Andreas Berger said: “After a strong start in the first half of the year, we maintain our 2024 targets, including group net income of over USD 3.6 billion. In the face of 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 us to deliver consistent results.”

Details of results for H1 2024

		First half of 2024
USD millions unless otherwise noted
Consolidated Group (total)
	Net income	2,088
	Insurance revenues (gross)	22 479
	Insurance service result	2 858
	Return on equity (%, annualized)	20.1
	Return on investment (%, annualized)	4.0
	Recurring revenue rate (%, annualized)	4.0
		06/30/24
	Equity capital	20 436
	Book value per share (USD)	70.05
		First half of 2024
Property and personal reinsurance
	Net income	989
	Insurance revenues (gross)	9 779
	Insurance service result	1 411
	Combined factor (%)	84.5
Third party liability and accident insurance reinsurance
	Net income	883
	Insurance revenues (gross)	8 687
	Insurance service result	1 007
Corporate Solutions
	Net income	435
	Insurance revenues (gross)	3 797
	Insurance service result	509
	Combined factor (%)	88.7