Swiss Re posted a Q2 2025 profit of US$1.3 billion, bringing net income for the first half of the year to US$2.6 billion, with a return on equity (ROE) of 23.0%.
For the first half of 2025, net income rose from US$2.1 billion and an ROE of 19.6% in the same period in 2024.
The insurance service result reached US$3 billion, compared with US$2.9 billion a year earlier, while insurance revenue totaled US$20.9 billion, down from US$22.2 billion. The contractual service margin (CSM) for new business was US$3.1 billion, slightly higher than US$3.0 billion in the prior-year period.
Supporting its first-half results, Swiss Re previously reaffirmed its 2025 full-year net income goal of more than US$4.4 billion. The group also aims to increase its ordinary dividend per share by at least 7% annually through 2027 and maintain an IFRS ROE above 14%.
To support these objectives, management is pursuing a cost-reduction plan to lower run-rate operating expenses by about US$300 million by 2027.
Investment return on investments (ROI) for the first half was 4.1%, up from 4% in 2024, reflecting higher recurring income and gains from selling a minority equity stake in Q1 2025.
The recurring income yield matched the ROI at 4.1%, while the Q2 reinvestment yield was 4.3%. Swiss Re reported an estimated Group Swiss Solvency Test ratio of 264% as of July 1, 2025, above its 200–250% target range.
CEO Andreas Berger (pictured above) said the half-year results showed the company’s focus on underwriting quality and portfolio management.
“The performance reflects our continued focus on underwriting quality, meticulous portfolio management and a prudent investment strategy,” he said.
P&C Re recorded US$1.2 billion in net income for the first half, up from US$992 million a year earlier. This was aided by disciplined underwriting, low large natural catastrophe claims in Q2, favorable prior-year reserve development, and investment gains.
The unit’s insurance service result was US$1.6 billion, compared with US$1.4 billion in the prior-year period. Large natural catastrophe claims totaled US$556 million, largely from the Los Angeles wildfires, while large man-made losses were US$213 million.
The combined ratio improved to 81.1% from 84.3%, with a full-year target of under 85%. Insurance revenue was US$8.9 billion, down from US$9.7 billion, reflecting reductions in casualty lines and seasonal revenue shifts.
In Q1 2025, P&C Re’s performance was shaped by elevated catastrophe activity. The segment reported US$527 million in net income, down from US$555 million in the prior-year quarter, as it absorbed US$570 million in large natural catastrophe losses and US$140 million in man-made losses.
Despite the claims impact, P&C Re renewed US$2.2 billion in treaty premiums during the January cycle, securing a 1.5% average price increase. Loss assumptions rose by 3.7% due to updated inflation forecasts and model revisions, reflecting the company’s cautious approach to risk and capital deployment.
Mid-year renewals for P&C Re generated US$4.5 billion in treaty premium volume, 5.9% lower than the expiring business, due to casualty portfolio cuts. Year-to-date treaty premium volume was up 3.0%.
Pricing increased 2.3%, with loss assumptions rising 4.6% on inflation and updated loss models. New business CSM stood at US$2.2 billion, unchanged from the prior-year period.
Corporate Solutions posted US$430 million in net income for the first half, slightly below the US$441 million reported a year earlier. The business maintained consistent performance despite US$193 million in large man-made losses and US$60 million in large natural catastrophe losses, mainly from the Los Angeles wildfires and Tropical Cyclone Alfred in Queensland.
Insurance service result remained at US$515 million, with a combined ratio of 88.2% compared with 88.7% a year earlier. Insurance revenue was steady at US$3.7 billion, with growth offsetting the non-renewal of the Irish Medex business. New business CSM increased to US$262 million from US$223 million in 2024.
L&H Re reported US$839 million in net income, down from US$883 million in the prior-year period, supported by earnings from its in-force portfolio and steady investment income. Insurance service result was US$900 million, compared with US$1.0 billion, reflecting lower CSM release after a 2024 assumption review and improved experience variance.
Insurance revenue fell to US$8 billion from US$8.5 billion, mainly due to the end of an external retrocession deal that had boosted prior-year revenue. New business CSM was US$569 million, up from US$562 million, and the CSM balance rose by US$410 million since year-end to US$17.8 billion, aided by a weaker US dollar. The unit’s 2025 net income target remains US$1.6 billion.
Swiss Re’s exit from its iptiQ unit is progressing, with the sale of its Australian business to Hannover Re and a management buyout of its Americas Sales Solutions arm completed in April 2025. The sale of its EMEA P&C business to Allianz Direct closed in July 2025.
Looking ahead, Berger said the company is maintaining its full-year targets but remains cautious amid geopolitical and macroeconomic uncertainty and the approaching peak of the wind season.
“We continue to focus on disciplined underwriting and cost efficiency to support the delivery of consistent results,” he said.
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