The latest results from Swiss Re;
The company reported a net income of USD 472 million for 2022, with a net income of USD 757 million in the fourth quarter.
Based on Swiss Re’s very strong capital position, the Board of Directors will propose a dividend of USD 6.40 per share. For 2023, the Group targets a net income of more than USD 3 billion, supported by successful P&C Re renewals, an expected decline in COVID-19 claims, higher interest rates and cost discipline.
Swiss Re’s Group Chief Executive Officer Christian Mumenthaler said:
“2022 was a challenging year, marked by the war in Ukraine, surging inflation, the tail end of the COVID-19 pandemic and elevated natural catastrophe losses. We have focused on addressing these challenges proactively, all while maintaining our very strong capital position. This has enabled us to take advantage of attractive market conditions at the January renewals, while continuing our commitment to the ordinary dividend.”
Swiss Re’s Group Chief Financial Officer John Dacey said: “Throughout the year, Swiss Re took measures to add USD 1.1 billion in reserves to address the risk of higher claims due to economic inflation across our property and casualty businesses. Higher interest rates are already helping to compensate for this impact, with the contribution from our fixed-income portfolio rising by USD 170 million in the fourth quarter compared with the prior-year period. After absorbing a significant impact from COVID-19 in the early part of 2022, L&H Re has returned to attractive levels of profitability. Corporate Solutions continued to deliver resilient results and outperformed its full-year target. We are pleased to end the year with a solid fourth-quarter result that was driven by strong operational performance from our main businesses.”
Solid fourth-quarter performance supports Group result
Swiss Re reported a net income of USD 472 million and a return on equity (ROE) of 2.6% for the full-year 2022, supported by a net income of USD 757 million in the fourth quarter. This compares with a net income of USD 1.4 billion and an ROE of 5.7% for 2021. The decline was driven by the impact of economic inflation on actual and expected claims in the property and casualty businesses, mark-to-market impacts on listed equity investments and large natural catastrophe claims above expectations.
Net premiums earned and fee income for the Group rose 0.9% to USD 43.1 billion in 2022 compared with the previous year. Growth was negatively affected by adverse foreign exchange developments, while at stable foreign exchange rates, the increase amounted to 5.3%.
Financial targets and outlook
For 2023, the Group targets a net income of more than USD 3 billion, supported by attractive market conditions, an expected decline in COVID-19 claims, higher interest rates and cost discipline. Swiss Re aims to maintain its very strong capitalisation in 2023, with a Group SST ratio materially above the target range, given the level of geopolitical and macroeconomic uncertainty. The Group also confirms its multi-year targets of 10% annual growth in economic net worth per share and 14% return on equity4 in 2024.
P&C Re will move away from its normalisation approach to target a reported combined ratio of less than 95% for 2023; L&H Re will aim for a net income of approximately USD 900 million; and Corporate Solutions will target a reported combined ratio of less than 94%.
Swiss Re’s Group Chief Executive Officer Christian Mumenthaler said: “2023 has started well, with successful January renewals reflecting our ambition to drive profitability and create value for shareholders, while continuing to support clients. Our investment portfolio is well-positioned to benefit from rising interest rates, and we do not expect a return of high COVID-19 claims that we had seen over the past years. Despite the uncertain macroeconomic environment, we are confident in the Group’s ability to deliver on the new ambitious targets.”
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