Swiss Re Targets Net Income of More Than US$4.4 billion for 2025

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Swiss Re is targeting a net income of more than US$4.4 billion for 2025 and aims to grow the ordinary dividend per share by 7% or more per year over the next three years while maintaining its multi-year IFRS ROE target of more than 14%.

“As we look ahead to 2025, we expect P&C reinsurance pricing to remain strong, with growing demand for protection driven by an elevated risk environment,” commented Swiss Re’s Group Chief Executive Officer Andreas Berger, in a statement.

P&C Re is aiming for a combined ratio of less than 85%, while Corporate Solutions will target a combined ratio of less than 91%. L&H Re will target a net income of US$1.6 billion for the year. (A combined ratio below 100 indicates an underwriting profit).

“Commercial insurance pricing is plateauing at attractive levels, while the growing life insurance market and favourable mortality experience in the US are underpinning L&H Re’s performance,” Berger added. “This is supported by a significant positive contribution from investment income. With a continued focus on disciplined underwriting and costs, Swiss Re is well-placed to benefit from this conducive outlook.”

Berger said Swiss Re has taken decisive actions this year to increase the resilience of the group’s business.

“We achieved our goal of positioning overall P&C reserves at the higher end of the best-estimate range,” commented Swiss Re’s Group Chief Executive Officer Andreas Berger, in a statement. “We refocused on our core capabilities, made good progress on the withdrawal from iptiQ and are aligning our fee-generating business across the group.”

All business units are aiming for more ambitious targets in 2025 compared with 2024, the group said.

Swiss Re expects that its ongoing focus on cost discipline and efficiency will lead to a reduction in run-rate operating expenses of approximately US$300 million by 2027.

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Topics USA Profit Loss

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