JPMorgan downgrades Swiss Re stock to Neutral on valuation concerns

Published 24/09/2025, 09:00
JPMorgan downgrades Swiss Re stock to Neutral on valuation concerns

Investing.com - JPMorgan downgraded Swiss Re (SIX:SREN) stock rating from Overweight to Neutral while lowering its price target to CHF160.00 from CHF170.00. The insurance giant, with a market capitalization of $52 billion, has shown strong momentum with a 31% return over the past year. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.

The downgrade comes after Swiss Re has undergone a major business transition in recent years, making the company more resilient and dependable, according to JPMorgan.

The firm noted that Swiss Re has set guidance on a more conservative and achievable basis and aligned its reserving practices with industry peers since the introduction of IFRS17 accounting standards.

JPMorgan highlighted that the new CEO swiftly resolved the US casualty overhang that had affected the company since 2020, demonstrating determination to address legacy issues.

While acknowledging Swiss Re’s significant achievements, JPMorgan pointed to the stock’s material re-rating, noting it now trades at a premium to Munich Re and only a small discount to Hannover Re, despite those competitors having longer track records of delivery.

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