Source: insurancebusinessmag.com

Swiss Re reported a net income of US$1.3 billion for the first quarter of 2025, up from US$1.1 billion in the same period last year. The group posted a return on equity (ROE) of 22.4%, compared with 20.7% in Q1 2024. The company attributed the result to consistent underwriting performance across its businesses, supported by investment income and a 14% tax rate.

Group insurance revenue was US$10.4 billion, down from US$11.7 billion a year earlier. The decline was mainly due to non-recurring effects related to the transition to IFRS accounting standards and the termination of an external retrocession arrangement in the life and health reinsurance (L&H Re) segment, both of which had contributed positively to 2024 figures.

Property and casualty reinsurance (P&C Re) revenue for the quarter was US$4.5 billion, down from US$5.0 billion, due to prior-year IFRS transition impacts, currency effects, and portfolio adjustments in casualty lines. Q1 2025 net income of US$527 million, compared to US$555 million last year.

The unit absorbed US$570 million in natural catastrophe losses, representing 29% of its full-year catastrophe claims budget. Most of these losses were tied to the Los Angeles wildfires. Man-made losses totaled US$140 million.

The business reported a combined ratio of 86.0%, with a full-year target of below 85%. On April 1, 2025, P&C Re renewed US$2.2 billion in treaty premium volume, a 2.8% increase compared to expiring business. The renewal round brought a 1.5% price increase. Swiss Re raised loss assumptions by 3.7% in line with updated inflation views and revised loss models.

L&H Re generated a insurance revenue fell to US$4.1 billion from US$4.8 billion in Q1 2024, primarily due to the discontinued retrocession arrangement, IFRS transition effects, and foreign exchange impacts. Net income of US$439 million, up from US$412 million a year earlier. Swiss Re cited the performance of its in-force business and investment income.

The group’s insurance service result, which represents underwriting profitability, was US$1.3 billion, slightly lower than US$1.4 billion in the prior-year quarter. The P&C Re insurance service result was US$575 million, compared with US$704 million in the first quarter of 2024. The L&H Re insurance service result rose 5% to US$456 million, compared with US$434 million in the prior-year period. L&H Re reported steady margins on new business and is targeting US$1.6 billion in net income for the full year.

Group CEO Andreas Berger said that the start of the year had been turbulent but the company remained focused on maintaining operational stability. “Thanks to the decisive actions we took in 2024, all our businesses are well-positioned and have delivered a robust performance in the first quarter. Alongside our continued focus on cost discipline and efficiency, this gives us confidence in our 2025 targets despite a challenging environment,” Berger said.