Swiss Re profit beats estimates on lower catastrophe losses, underwriting gains

Published 14/08/2025, 07:20

Investing.com -- Swiss Re on Thursday reported a net income of $2.6 billion for the first half of 2025, up 24% from $2.1 billion a year earlier and about 11% ahead of consensus.

The company said results were supported by lower catastrophe claims, stronger underwriting margins and higher investment income.

“In light of recent announcements from peers, we know that catastrophe losses were materially lower than consensus anticipated, and far below budget,” said analysts at Jefferies in a note. 

Return on equity rose to 23% from 19.6%. The Swiss Solvency Test ratio stood at 264% as of July 1, above the company’s 200-250% target range and six percentage points higher than consensus. Group insurance revenue declined 6% to $20.9 billion, while the insurance service result increased 5% to $3 billion. 

The return on investments was 4.1%, compared with 4.0% a year earlier, supported by recurring income and realized equity gains.

Property and Casualty Reinsurance posted a net income of $1.2 billion, up from $992 million. 

The combined ratio improved to 81.1% from 84.3%. Insurance revenue declined to $8.9 billion from $9.7 billion. 

Large natural catastrophe losses totaled $556 million, below consensus expectations of $770 million, mainly from the Los Angeles wildfires. Large man-made losses reached $213 million. 

At the June and July renewals, treaty premium volume fell 5.9% to $4.5 billion, while prices rose 2.3%.

Corporate Solutions reported a net income of $430 million, compared with $441 million a year earlier. The combined ratio improved to 88.2% from 88.7%. Insurance revenue was $3.7 billion, nearly unchanged from the prior year. 

The unit recorded $193 million in man-made losses and $60 million in catastrophe losses, mainly from the Los Angeles wildfires and Tropical Cyclone Alfred.

Life and Health Reinsurance posted a net income of $839 million, missing consensus estimates by 3.1%. Insurance revenue declined to $8 billion from $8.5 billion. The insurance service result fell to $900 million from $1 billion. 

The new business contractual service margin increased to $569 million from $562 million, with the overall balance rising to $17.8 billion, partly due to currency effects.

Swiss Re said its withdrawal from iptiQ is proceeding, with sales completed in Australia and EMEA in 2025. 

“Given the broad geopolitical and macroeconomic uncertainty, and as we enter the peak of the wind season, we remain vigilant. Looking ahead, we continue to focus on disciplined underwriting and cost efficiency to support the delivery of consistent results,” said chief executive Andreas Berger in a statement.

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