Here are some highlights from the latest financial update from Swiss Re. It’s been a busy and profitable second quarter during 2024, with a net income of over $2billion;
Swiss Re reported a profit of USD 996 million in the second quarter of 2024, resulting in a net income of USD 2.1 billion and a return on equity (ROE) of 20.1% for the first half of the year. The Group’s financial performance was supported by strong contributions from all Business Units, and Swiss Re maintains its full-year targets.
Swiss Re’s Group Chief Executive Officer Andreas Berger said: “Swiss Re’s performance in the first half of 2024 reflects our focus on delivering consistent results. We continue to increase the overall resilience of the firm through a disciplined approach to underwriting new business while remaining on top of loss trends across our in-force portfolios.”
Swiss Re’s Group Chief Financial Officer John Dacey said: “These results highlight our focus on capital allocation discipline and quality across our underwriting and investment portfolios. Additionally, higher interest rates continue to benefit our investment income.”
Group result benefits from disciplined underwriting and strong investment income
Swiss Re reported a net income of USD 2.1 billion and an ROE of 20.1% for the first half of 2024. The main drivers for this result were disciplined underwriting, low natural catastrophe claims and strong investment income. Insurance revenue for the Group amounted to USD 22.5 billion. The insurance service result, which reflects profitability of the underwriting activity, was USD 2.9 billion.
The Group achieved a strong return on investments (ROI) of 4.0%, driven by contributions from recurring income. The recurring income yield for the first half of 2024 was 4.0%, while the reinvestment yield for the second quarter stood at 4.8%, continuing to benefit from higher interest rates.
P&C Re maintains performance with disciplined underwriting
P&C Re reported a net income of USD 989 million in the first half of 2024. This was primarily driven by disciplined underwriting and low large natural catastrophe experience, alongside strong investment income. The insurance revenue for the first half of 2024 was USD 9.8 billion.
In property and specialty lines, the low reported natural catastrophe claims in the first half of the year were partially offset by selected additions across natural catastrophe and man-made loss reserves, the large majority of which were in the form of incurred-but-not-reported reserves. P&C Re also increased reserves on specific casualty lines.
P&C Re achieved an insurance service result of USD 1.4 billion and a combined ratio of 84.5%, despite the additions to reserves and the uncertainty load introduced on all lines since the beginning of this year. P&C Re targets a combined ratio below 87% for the full year.
Successful July P&C Re renewals
P&C Re renewed contracts with USD 4.5 billion in treaty premium volume on 1 July 2024. This represents a 7% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 8% in this renewal round. Based on a continued prudent view on inflation and updated loss models, loss assumptions increased by 10%. The resulting portfolio quality is consistent with the Group’s 2024 financial targets.
L&H Re performance supported by improved US mortality experience
L&H Re reported a net income of USD 883 million in the first half of 2024, reflecting positive US mortality experience and higher investment income. This was partially offset by unfavourable developments in the EMEA region. L&H Re achieved an insurance revenue of USD 8.7 billion and an insurance service result of USD 1.0 billion. Following a successful first half of 2024, L&H Re continues to target a net income of approximately USD 1.5 billion for the full year.
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