Yahoo Finance

• Net Income: USD 3.2 billion for 2024.

• Return on Equity: 15% for 2024.

• P&C Reserves: USD 3.1 billion added throughout 2024, positioned at the 90th percentile of best estimate range.

• Volume Growth: 7% in January renewals, driven by property and specialty lines.

• Combined Ratio (Corporate Solutions): 89.7%, outperforming the target of less than 93%.

• Life & Health Re Net Income: USD 1.5 billion for 2024.

• CSM Balance Reduction (Life & Health Re): 6% reduction due to assumption updates.

• Dividend Increase Proposal: 8% increase proposed for the upcoming AGM.

• 2025 Net Income Target: More than USD 4.4 billion.

• Operating Cost Reduction Target: USD 300 million reduction by 2027, with USD 100 million reduction anticipated in 2025.

• Catastrophe Loss Estimate (LA Wildfires): Less than USD 700 million.

• Return on Investments: Increased from 3.2% in 2023 to 4.0% in 2024.

• Group SST Ratio: 257% as of January 1, 2025.

• Warning! GuruFocus has detected 6 Warning Signs with WBD.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Swiss Re AG (SSREF) reported a net income of USD 3.2 billion for 2024, with a return on equity of 15%, indicating strong financial performance.

• The company achieved a 7% volume growth in new business generation during the January renewals, driven by increases in property and specialty lines.

• Corporate Solutions outperformed its combined ratio target by achieving an 89.7% combined ratio, marking the 18th consecutive quarter of strong performance.

• Life & Health Re met its USD 1.5 billion net income target for 2024, despite challenges, showing resilience in its operations.

• Swiss Re AG (SSREF) proposed an 8% dividend increase, reflecting confidence in its earnings power and commitment to shareholder returns.

Negative Points

• The company faced a significant challenge with the LA wildfires, estimating a loss of less than USD 700 million, which is a substantial portion of the annual catastrophe budget.

• P&C Re missed its target of a combined ratio of less than 87%, reporting a full-year combined ratio of 89.9% due to reserving actions.

• Life & Health Re experienced a 6% reduction in its CSM balance due to assumption updates, indicating potential volatility in future earnings.

• The SST ratio decreased to 257% from 284% midyear, partly due to reserving actions and foreign exchange impacts, which could affect capital strength.

• The company remains cautious about US liability exposure due to ongoing social inflation, which could limit growth opportunities in this segment.