Swiss Re reported its highest-ever annual profit for its 2025 results, as the world's second-largest reinsurance group capitalized on disciplined underwriting and benign natural catastrophe activity to post a 47% jump in net income to US$4.8 billion.
The result comfortably exceeded the Zurich-based reinsurer's own target of more than US$4.4 billion and came alongside a proposed US$1.5 billion share buyback and a 9% dividend increase to US$8.00 per share – a signal that Swiss Re believes it has capital to spare even as reinsurance pricing softens heading into 2026.
"Group net income reached the highest level in our history, reflecting disciplined underwriting, strong investment returns and low large loss activity outside of the first quarter," group CEO Andreas Berger said.
The milestone, however, does not hand Swiss Re the crown among its European peers. Munich Re, reporting its own 2025 results a day earlier, disclosed net income of €6.1 billion – roughly US$6.5 billion – marking a fifth consecutive year of outperformance against guidance, its annual report stated.
Hannover Re confirmed group net income of €2.64 billion in its year-end release, meeting a target it had raised in the fourth quarter.
Where Swiss Re did pull ahead was on return on equity. The group posted an ROE of 19.6%, up from 15.0% in 2024, surpassing Munich Re's 18.3% as disclosed in the German reinsurer's annual filing. Hannover Re had reported an annualized ROE of 22% through its first nine months, which if sustained for the full year would place it at the top of the peer group.
Swiss Re's P&C Re division drove much of the improvement, with net income surging to US$2.8 billion from US$1.2 billion and a combined ratio of 79.4%. Munich Re's P&C reinsurance combined ratio came in even lower at 73.5%, though its normalized figure of 80.1% sits closer to Swiss Re's level.
Large natural catastrophe claims for Swiss Re totaled US$813 million, primarily from the Los Angeles wildfires and Hurricane Melissa.
Group insurance revenue fell to US$43.1 billion from US$45.6 billion – a decline that echoes trends across the sector. Munich Re's insurance revenue also dropped, a movement the company attributed to currency effects and the deliberate shedding of business that no longer met return thresholds, its annual report stated. At the January 1, 2026 renewals, Munich Re's written volume fell 7.8% to €13.7 billion as it opted not to renew underperforming treaties.
L&H Re was the one soft spot for Swiss Re, with net income slipping to US$1.3 billion from US$1.5 billion after a US$650 million hit from assumption updates on underperforming portfolios in Australia, Israel, and South Korea. Berger said the comprehensive review of those books has now been completed, positioning all three business units for more consistent performance.
On capital returns, Swiss Re's US$1.5 billion buyback is dwarfed by Munich Re's announcement of a share repurchase of up to €2.25 billion paired with a 20% dividend increase, its filings show. Hannover Re took a different tack, raising its dividend payout ratio to approximately 55% of group net income from 2025 onward, the reinsurer confirmed earlier.
Group CFO Anders Malmström said Swiss Re's buyback reflects "our strong capital generation and position, our focus on managing the property and casualty pricing cycle, and the increased resilience of the Group." The estimated SST ratio stood at 250% as of January 1, 2026.
For 2026, all three reinsurance majors are projecting modest growth; Swiss Re targeting US$4.5 billion, Munich Re guiding for €6.3 billion, and Hannover Re expecting at least €2.7 billion.
