Swiss Re’s Performance in 2024
Swiss Re has demonstrated resilience in the face of escalating climate disruption and persistent economic uncertainty, delivering a significant dividend increase for 2024 while managing claims exceeding $37 billion across the Group. This was highlighted by Jacques de Vaucleroy, Chairman of the Board of Directors, and Andreas Berger, Group Chief Executive Officer, in their recent Letter to shareholders.
In 2024, the reinsurer reported a robust full-year net income of $3.2 billion and a 15% return on equity (ROE). This strong result was achieved during a year in which Swiss Re took decisive action to boost overall Property & Casualty reserves to the higher end of its best-estimate range.
Dividend Increase and Capital Position
The Group’s earnings power and strong capitalisation supported the Board of Directors’ decision to propose an 8% dividend increase. The dividend increase, reaching $7.35 per share, signals confidence in the company’s ability to face challenges, though it raises questions about the long-term sustainability of such payouts in a world of increasing catastrophic events.
Swiss Re‘s strong capital position, with a Swiss Solvency Test (SST) ratio of 257%, provides a buffer against future shocks. However, the company’s warnings about the “turbulent start to 2025,” citing the Los Angeles wildfires and European winter storms, suggest that the challenges are far from over.
Investment and Asset Management
Swiss Re’s full-year return on investments (ROI) saw a substantial increase, rising to 4.0% in 2024 from 3.2% in 2023. This improvement was fueled by a continued contribution from recurring income, where the yield rose to 4.0% from 3.5% in 2023.
As part of its asset management activities, Swiss Re also stated its commitment to sustainability with the achievement of a 50% reduction in the carbon intensity of its investment portfolio.
Business Performance
Despite robust underwriting performance, Property & Casualty Reinsurance (P&C Re) was impacted by net prior-year reserve additions of $2.6 billion for 2024. Nevertheless, the Business Unit reported net income of $1.2 billion, compared with $1.5 billion in 2023.
Corporate Solutions and Life & Health Reinsurance (L&H Re) also delivered strong performances in 2024. Corporate Solutions saw its net income increase 26% and L&H Re achieved its net income target of $1.5 billion.
Strategic Focus and Future Outlook
Swiss Re announced its withdrawal from the iptiQ digital insurance platform, aligning with its focus on core businesses. The company’s commitment to sustainability remains a priority, with the publication of its Climate Transition Plan in the Sustainability Report 2024.
Berger and de Vaucleroy stated: “Our businesses have begun the year in a strong position, and we remain focused on delivering on our 2025 financial targets announced in December 2024. The Group aims for a net income of more than $4.4 billion, while L&H Re targets a net income of $1.6 billion.”
P&C reinsurance pricing is expected to remain attractive, with growing demand for protection in an elevated risk environment. On 1 January 2025, P&C Re renewed treaty contracts resulting in $13.3 billion in premium volume, reflecting a 7% volume increase compared to the business up for renewal.
“For 2025, Swiss Re is continuing its focus on improving profitability through underwriting excellence and cost discipline. We are resolute in our commitment to strengthening key processes, boosting our efficiency and serving our clients’ needs as we work toward extending Swiss Re’s role as a reinsurance industry leader,” Berger and de Vaucleroy concluded.
