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Jun 2025

Global: Swiss Re's strong performance offsets large claims impact in 1Q 2025

Source: Middle East Insurance Review | Jun 2025

The impact of large claims from Nat CAT and man-made events was offset by strong underlying performance across the group’s businesses, said the global reinsurer in a press release. 
 
The group also benefitted from favourable investment and tax impacts. Swiss Re’s group CEO 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 CFO 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 $1.3bn and an ROE of 22.4% for the first quarter of 2025, compared with a net income of $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%3.
 
Insurance revenue for the group amounted to $10.4bn, compared with $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 $1.3bn, compared with $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 $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%4 as of 1 April 2025, above the target range of 200–250%. M 
 
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