Latest update from Swiss Re;
Swiss Re reported a profit of USD 804 million in the second quarter of 2023, resulting in a net income of USD 1.4 billion and a return on equity (ROE) of 22.8% for the first half of the year. All businesses contributed to the solid result. Swiss Re maintains its guidance for full-year targets.
Half-year net income increases by USD 1.3 billion year-on-year
Swiss Re reported a net income of USD 1.4 billion and an ROE of 22.8% for the first half of 2023, compared with a net income of USD 157 million and an ROE of 1.6% for the same period in 2022. Main drivers for this result were contained natural catastrophe losses in the first half of the year, L&H Re’s performance returning to pre-pandemic levels and a strong result for Corporate Solutions.
Net premiums earned and fee income for the Group increased 4.4% to USD 22.1 billion, compared with USD 21.2 billion for the same period last year. At constant foreign exchange rates, net premiums earned and fee income grew by 6.6%.
The Group’s return on investments stood at 2.8%, compared to 1.2% in the first half of last year. The ROI continues to benefit from higher income with the recurring income yield increasing to 3.3%, up from 2.6% for the full year 2022. Investments during the second quarter of 2023 contributed to an accretive fixed income reinvestment yield of 4.6%.
Swiss Re’s capital position remained very strong, with the Group Swiss Solvency Test (SST) ratio well above the 200–250% target range.
P&C Re benefits from low natural catastrophe burden in the second quarter
P&C Re reported a net income of USD 904 million in the first half of 2023, compared with USD 316 million in the same period in 2022. This increase was driven by a solid investment result and low level of large natural catastrophe claims in the second quarter.
The large natural catastrophe losses of USD 634 million[2] in the first half of 2023 relate to the earthquake in Turkey and Syria, Cyclone Gabrielle and flooding in New Zealand, all of which occurred in the first quarter. Large man-made losses amounted to USD 76 million in the first half of 2023.
Net premiums earned stood at USD 11.4 billion, up from USD 10.6 billion in the prior-year period, reflecting the strong performance during renewals in January and April. Net premiums earned grew by 9.6% at constant foreign exchange rates.
P&C Re’s combined ratio for the first half of 2023 improved to 94.7%
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