Swiss Re reports a first-quarter net income of USD 1.3 billion

Ad hoc announcement pursuant to Article 53 LR

• Property & Casualty Reinsurance (P&C Re) net income of USD 527 million; combined ratio of 86.0%^[1]
• Successful P&C Re April 2025 renewals, with price increase of 1.5% achieved
• Corporate Solutions net income of USD 208 million; combined ratio of 88.4%^[2]
• Life & Health Reinsurance (L&H Re) net income of USD 439 million
• Return on investments (ROI) of 4.4%; recurring income yield of 4.1%

Zurich, 16 May 2025 – Swiss Re reported a net income of USD 1.3 billion and a return on equity (ROE) of 22.4% for the first quarter of 2025. The impact of large claims from natural catastrophes and man-made events was offset by strong underlying performance across the Group's businesses. The Group also benefitted from favourable investment and tax impacts.

Swiss Re's Group Chief Executive Officer Andreas Berger said: "The first quarter of 2025 was marked by significant large loss events in our property and casualty businesses. Despite this, all Business Units posted robust results, highlighting the resilience of the Group and underscoring our ability to support clients by acting as a shock absorber for peak risks."

Swiss Re's Group Chief Financial Officer Anders Malmström said: "The main driver for Swiss Re's first-quarter results was continued disciplined underwriting, which was supported by our investment performance. We have maintained our strong capital position and remain well-placed to support our clients."

Group result driven by contributions from all Business Units
Swiss Re reported a net income of USD 1.3 billion and an ROE of 22.4% for the first quarter of 2025, compared with a net income of USD 1.1 billion and an ROE of 20.7% for the same period in 2024. The result was driven by resilient underwriting results across the Group's businesses and supported by healthy investment returns and a favourable tax rate of 14%^[3].

Insurance revenue for the Group amounted to USD 10.4 billion, compared with USD 11.7 billion for the same period in 2024. The reduction was primarily driven by non-recurring IFRS transition effects and the termination of an external retrocession transaction in L&H Re, both of which had a positive effect on the prior-year period, as well as unfavourable foreign exchange impacts.

The insurance service result, which reflects the profitability of underwriting activity, was USD 1.3 billion, compared with USD 1.4 billion in the first quarter of 2024.

Increased recurring investment income
Swiss Re's ROI for the first quarter of 2025 was 4.4%, up from 4.0% for the same period in 2024. The increase was driven by a higher recurring income alongside realised gains from the sale of a minority equity position in March 2025 amounting to USD 209 million. This gain was partially offset by realised losses from targeted sales of fixed income securities. The recurring income yield for the period was 4.1%, compared with 3.9% for the prior-year period. The reinvestment yield for the quarter was 4.5%.

Strong capital position
Swiss Re's capital position continues to be strong with an estimated Group SST ratio of 254%^[4] as of 1 April 2025, above the target range of 200–250%.

Cancellation of surplus treasury shares
Swiss Re plans to cancel approximately 18.7 million surplus treasury shares, which are not eligible for dividends, by 30 June 2025, in accordance with the capital band set out in its Articles of Association. Upon completion of the cancellation, the total number of shares of Swiss Re Ltd will be 298.8 million, comprising approximately 294.8 million shares outstanding and eligible for dividends and approximately 4.0 million treasury shares held primarily for share-based compensation plans.

P&C Re delivers resilient performance despite large losses
P&C Re reported a net income of USD 527 million for the first quarter of 2025, compared with USD 555 million for the same period in 2024. P&C Re absorbed elevated large loss activity during the period, while the gain from the sale of a minority equity position supported the result.

Large natural catastrophe claims amounted to USD 570 million in the first quarter of 2025, accounting for 29% of the full-year large natural catastrophe claims budget, mainly related to the Los Angeles wildfires. In addition, large man-made losses totalled USD 140 million.

P&C Re achieved an insurance service result of USD 575 million, compared with USD 704 million in 2024, and a combined ratio of 86.0%. P&C Re targets a combined ratio below 85% for the full year.

Insurance revenue for the first quarter of 2025 was USD 4.5 billion, compared with USD 5.0 billion for the same period in 2024. The decrease was driven by positive non-recurring IFRS transition effects which affected the prior-year period, unfavourable foreign exchange impacts and pruning actions taken in casualty lines.

Successful P&C Re April renewals
P&C Re renewed contracts with USD 2.2 billion in treaty premium volume on 1 April 2025. This represents a 2.8% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 1.5% in this renewal round. Based on a prudent view on Inflation and updated loss models, loss assumptions increased by 3.7%. The resulting portfolio quality is supportive of the Group's 2025 financial targets.

Corporate Solutions maintains performance with strong first quarter
Corporate Solutions reported a net income of USD 208 million for the first quarter of 2025, compared with USD 195 million for the same period in 2024. The result reflects a robust underlying business performance despite elevated man-made loss experience, supported by a solid investment income.

The insurance service result reached USD 240 million in the first quarter of 2025, compared with USD 213 million for the first quarter of 2024. Large man-made losses in the quarter amounted to USD 147 million. Large natural catastrophe losses of USD 60 million were mainly driven by the Los Angeles wildfires and Tropical Cyclone Alfred, which affected Queensland, Australia.

Corporate Solutions achieved a combined ratio of 88.4% for the first quarter and targets a combined ratio of below 91% for the full year.

Insurance revenue amounted to USD 1.8 billion for the first quarter of 2025, in line with the same period in 2024. Stringent portfolio steering and focused growth partly compensated for the previously announced non-renewal of the Irish Medex business, non-recurring IFRS transition effects in the prior-year period and unfavourable foreign exchange developments.

L&H Re reports solid first-quarter result
L&H Re reported a net income of USD 439 million in the first quarter of 2025, up slightly from USD 412 million for the prior-year period. The result demonstrates the underwriting margins of L&H Re's large in-force book, complemented by the investment result.

Insurance revenue amounted to USD 4.1 billion, compared with the 2024 result of USD 4.8 billion. The reduction compared to the previous year was mainly driven by the termination of an external retrocession transaction and positive non-recurring IFRS transition effects which benefitted the prior-year period, alongside unfavourable foreign exchange impacts. The insurance service result for the first quarter was USD 456 million, up 5% from USD 434 million in 2024.

L&H Re achieved solid margins on new business. The Business Unit targets a net income of USD 1.6 billion for 2025.

Withdrawal from iptiQ proceeding as planned
The withdrawal from iptiQ is proceeding as planned. In April 2025, Swiss Re completed the sale of the iptiQ Americas Sales Solutions business through a management buyout and announced the sale of iptiQ's Australian business to Hannover Re.

Outlook
Swiss Re's Group Chief Executive Officer Andreas Berger said: "With a turbulent start to the year, we remain vigilant and focused on maintaining our strong foundations. Thanks to the decisive actions we took in 2024, all our businesses are well-positioned and have delivered a robust performance in the first quarter. Alongside our continued focus on cost discipline and efficiency, this gives us confidence in our 2025 targets despite a challenging environment."

Details of Q1 2025 performance 

Media conference call

Swiss Re will hold a media conference call this morning at 08:30 CEST. To participate, please dial in 10 minutes prior to the start using the following numbers:

Switzerland/Europe:  +41 (0) 58 310 50 00
United Kingdom:  +44 (0) 207 107 06 13
United States:   +1 (1) 631 570 56 13

For additional local dial-in numbers, please click here.

Investor and analyst call

Swiss Re will hold an investors' and analysts' webcast at 14:00 CEST, which will focus exclusively on Q&A. The investor and analyst presentation can be found here.

^[1] P&C Re combined ratio is defined as [(insurance service expense + amounts recoverable from reinsurers for incurred claims) / (insurance revenue + allocation of reinsurance premiums)].

^[2] Corporate Solutions combined ratio is defined as [(insurance service expense + allocation of reinsurance premiums + amounts recoverable from reinsurers for incurred claims + non-directly attributable expenses) / insurance revenue].

^[3] The Group normally expects a tax rate in the range of 21–23%.

^[4] Estimated Group SST ratio as of 1 April 2025. The SST ratio as of 1 January 2025 was filed with FINMA in April and is subject to regular review by FINMA.

^[5] Including net income/loss attributable to non-controlling interests of USD 4 million for the Group in Q1 2024 (whereof USD 3 million in P&C Reinsurance and USD 1 million in Corporate Solutions) and USD 8 million for the Group in Q1 2025 (whereof USD 8 million in Corporate Solutions).

^[6] Q1 2024 reflects revised 2023 shareholders’ equity as published in the 2024 Annual Report.