AM Best affirmed Swiss Re’s A+ Financial Strength Rating and “aa” Long-Term Issuer Credit Ratings, citing the reinsurer’s strongest-level balance sheet strength and conservative capital management. The outlook for all ratings is stable.
The decision covers Swiss Reinsurance Company Ltd and its rated operating affiliates, including Swiss Re Asia Pte. Ltd., Swiss Re Europe S.A., Swiss Re International SE, Swiss Re Life & Health America Inc., Swiss Reinsurance America Corporation, and several Corporate Solutions subsidiaries. Swiss Re America Holding Corporation retained a Long-Term ICR of “a” (Excellent), while Swiss Re Treasury (US) Corporation’s $500 million senior unsecured notes, due 2042, were affirmed at “aa-” (Superior).
AM Best also affirmed ratings for securities issued under Swiss Re’s $10 billion debt issuance program. These include “aa-” on senior unsecured notes, “a+” on senior subordinated notes, and “a” on junior subordinated notes. Swiss Re America Holding Corporation’s $600 million senior unsecured notes due 2026 and $350 million notes due 2030 were also reaffirmed at “a” (Excellent).
Swiss Re reported a net profit of $2.6 billion in the first half of 2025, up from $2.1 billion during the same period last year, producing a 23.0% return on equity. Second-quarter profit was $1.3 billion. The company recorded an insurance service result of $3.0 billion for the half-year, compared with $2.9 billion in 2024. Insurance service revenue totaled $45.6 billion in 2024.
Performance contributions came from all business units. Property and Casualty Reinsurance generated $1.2 billion in net income during the first half of 2025, with a combined ratio of 81.1%. Corporate Solutions earned $430 million over the same period, while Life & Health Reinsurance reported $839 million.
AM Best noted that Swiss Re has taken steps to address the performance of its US liability portfolio, including reserve strengthening and underwriting adjustments, and stated it will continue to monitor the outcome of these measures.
Looking ahead, Swiss Re has set a 2025 net income target of more than $4.4 billion and intends to raise its ordinary dividend by at least 7% annually over the next three years. The group continues to maintain financial targets for its business units, including a combined ratio of below 85% for P&C Re, below 91% for Corporate Solutions, and $1.6 billion in net income for L&H Re.
Do you think AM Best’s affirmation was aligned with Swiss Re’s first-half 2025 performance and stated financial targets? Share your opinion in the comments.
