Global: Swiss Re's net income surges by 580% to $3.2bn
Source: Middle East Insurance Review | Mar 2024
Zurich-headquartered Swiss Re has reported a net income of $3.214bn and an ROE of 22.3% for the full year 2023, compared with a net income of $472m and an ROE of 2.6% in 2022, according to statements released by the reinsurer.
The result was supported by improved underwriting margins while higher interest rates drove an increase in investment income. The reinsurer’s statement showed:
- P&C reinsurance net income of $1.9bn (2022: $312m); combined ratio of 94.8%.
- L&H reinsurance net income of $976m (2022: $416m).
- Corporate solutions net income of $678m (2022: $486m); combined ratio of 91.7%.
Net premiums earned and fee income for the group rose 4.4% to $45bn in 2023, compared with $43.1bn in the previous year. At constant foreign exchange rates, net premiums earned and fee income increased by 4.9%.
Swiss Re group CEO Christian Mumenthaler said, “Improved price adequacy in our property and casualty businesses following strong renewals and our underwriting discipline helped us to manage elevated industry losses from natural catastrophes, while L&H re achieved a solid result, benefitting from active in-force portfolio management and strong investment performance.”
Swiss Re expects profit to rise in 2024 to more than $3.6bn, said the statement. Mr Mumenthaler said that the “priority for now and going forward is to make sure that we lower the cost of equity by having fewer volatile results, by being more cautious”.
Swiss Re group CFO John Dacey said, “Our businesses are well positioned to benefit from the current market environment, while the higher interest rate environment supports recurring investment income… This positive earnings momentum gives us confidence to increase the pay-out to investors.”
P&C Re renewed treaty contracts that resulted in $13.1bn in premium volume on 1 January 2024. This represents a 9% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 9% in this renewal round. M