It’s an impressive revenue stream during Q2 for Swiss Re;
Swiss Re reported a net income of USD 1.3 billion for the second quarter of 2026, bringing first-half net income to USD 2.8 billion. The result demonstrates improved earnings generation across all three Business Units, putting Swiss Re well on track towards its 2026 financial targets.
Swiss Re’s Group Chief Executive Officer Andreas Berger said: “Swiss Re delivered a strong result for the first half of 2026 while supporting our clients with more than USD 17 billion in claims payments. This demonstrates the strength of our diversified Group, with each Business Unit contributing to the resilience of our earnings. P&C Re continues to focus on disciplined underwriting and active cycle management; L&H Re provides important earnings stability through its large in-force portfolio; and Corporate Solutions is selectively expanding in strategic growth markets. We also continue to improve efficiency across Swiss Re and are announcing a more ambitious cost reduction target.”
Swiss Re’s Group Chief Financial Officer Anders Malmström said: “Each Business Unit delivered increased net income in the first half. Our P&C businesses achieved strong underwriting results, supported by low large natural catastrophe experience, while L&H Re’s performance reflects healthy underwriting margins and favourable US mortality experience. A solid investment result in a highly volatile market further underpinned the resilience of our earnings. We are also making good progress on the USD 1.5 billion share buyback which we announced in February, having completed approximately 60% through the end of July.”
Group result driven by strong contributions from all Business Units
Swiss Re delivered a net income of USD 2.8 billion in the first half of 2026, achieving a year-on-year increase of 9% and placing the Group well on track towards its USD 4.5 billion full-year target.
ROE was 22.7% for the first half of the year, compared with 23.0% for the prior-year period. Both P&C Business Units continued to deliver strong underwriting results, supported by low large natural catastrophe experience in the first half of the year. L&H Re’s performance reflects healthy in-force margins and favourable US mortality experience.
The insurance service result, which reflects the underwriting profit earned in the period, was USD 3.5 billion, compared with USD 3.0 billion in the first half of 2025.
Insurance revenue for the Group amounted to USD 20.3 billion, compared with USD 20.9 billion for the same period in 2025. Lower revenues in P&C Re were partly offset by increased revenues in L&H Re, supported by favourable foreign exchange movements.
The Group’s new business contractual service margin (CSM), which reflects the profitability of new business written in the period, was USD 2.1 billion, compared with USD 3.1 billion for the first half of 2025. This result reflects continued challenging market conditions impacting P&C Re renewals, as well as a lower contribution from L&H Re mainly due to lower transaction activity.
Swiss Re achieved an ROI of 4.0% for the first half of 2026. The result reflects strong recurring income of USD 2.0 billion, supported by realised gains from real estate sales in the first quarter. The recurring income yield increased to 4.2%, up from 4.1% for the prior-year period. The reinvestment yield for the second quarter of 2026 rose to 5.2%.
Swiss Re increases cost reduction target to USD 500 million by 2028
Swiss Re has increased its operating cost reduction target to USD 500 million by 2028. The increase reflects strong progress towards Swiss Re’s previous reduction target of USD 300 million by 2027, as well as further opportunities to simplify how the Group operates, focusing on non-client facing teams.
Continued strong capital position
Swiss Re maintained its strong capital position with an estimated Group Swiss Solvency Test (SST) ratio of 264%3 as of 1 July 2026, above the target range of 200–250%.
P&C Re result driven by strong underwriting performance
P&C Re delivered a net income of USD 1.4 billion for the first half of 2026, an increase of 18% from USD 1.2 billion for the prior-year period. Strong underwriting performance was supported by low large natural catastrophe experience.
The insurance service result was USD 1.8 billion for the first half of 2026, compared with USD 1.6 billion for the same period in 2025. Large natural catastrophe claims amounted to USD 169 million in the first half of 2026, driven by Storm Kristin, which made landfall in Portugal in January.4 Large man-made losses for the period amounted to USD 129 million.
P&C Re achieved a combined ratio of 76.7% for the first half of 2026, compared with 81.1% for the prior-year period. The Business Unit targets a combined ratio of less than 85% for the full year.
Insurance revenue for the first half of 2026 was USD 8.2 billion, compared with USD 8.9 billion for the same period in 2025. The decrease was primarily driven by the overall renewals outcome in 2025 and reduced volumes written by cedents.
P&C Re generated a new business CSM of USD 1.6 billion in the first half of 2026, compared with USD 2.2 billion in the prior-year period, reflecting a challenging market environment.
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