In This Article:
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Net Income: $2.2 billion for the first nine months of 2024; $102 million profit in Q3.
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P&C Re Combined Ratio: 92.8% for the first nine months, including $2.8 billion reserve strengthening.
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Large Net Cat Losses: $800 million for the first nine months; $750 million in Q3.
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Life & Health Re Net Income: $1.2 billion for the first nine months.
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Corporate Solutions Combined Ratio: 89.4% for the first nine months.
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Return on Investments: 3.9% for the first nine months.
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Recurring Income Yield: 4% for the first nine months; 4.6% reinvestment yield in Q3.
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Group SST Ratio: 284%, above the targeted long-term range.
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2024 Net Income Outlook: Expected to exceed $3 billion, assuming normal loss activity.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Swiss Re AG (SSREF) reported a group net income of $2.2 billion for the first nine months of 2024, with a third-quarter profit of $102 million, despite significant reserving actions.
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The company has strengthened its P&C Re's US liability reserves by $3.1 billion for the first nine months, positioning itself at the 90th percentile of the best estimate range, enhancing overall resilience.
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Swiss Re AG (SSREF) expects its group net income to exceed $3 billion for the full year 2024, assuming normal natural catastrophe experience.
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Corporate Solutions continues its strong performance with a nine-month combined ratio of 89.4%, reflecting favorable premium volume developments and benign man-made experience.
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The company's capital position remains robust with a group SST ratio of 284%, above the top end of its targeted long-term range, indicating strong financial stability.
Negative Points
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Swiss Re AG (SSREF) had to significantly strengthen its US liability reserves, adding $2.4 billion in Q3, reflecting adverse future scenarios and industry-wide loss developments.
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The company faced a number of significant natural catastrophe events in the third quarter, resulting in large Net Cat losses of approximately $750 million.
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Life & Health Re reported some headwinds from out-of-period adjustments, impacting the insurance service result by about $80 million in the third quarter.
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The company has been cautious on new business, evidenced by a 21% pruning of its book at this year's renewals, due to ongoing loss developments in the US liability sector.
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Swiss Re AG (SSREF) had to adjust its financial targets, acknowledging that the $3.6 billion income target for the full year is no longer valid due to the reserving actions.