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Swiss Re (SSREY) just reminded the market why it's still a heavyweight in global reinsurance. Despite softer top-line numbers and a barrage of large claimsfrom Los Angeles wildfires to major man-made lossesthe firm pulled in $1.3 billion in net income for Q1 2025, up 16% from last year. Its Swiss Solvency Test ratio? A towering 254%, meaning it holds more than double the capital required to cover risks. That kind of buffer isn't just strongit's fortress-like. With return on equity hitting 22.4% and all business units in the black, Swiss Re appears to be leaning into a disciplined, shock-absorber role in a volatile world.
P&C Reinsurance took on over $700 million in claims but still brought home $527 million in profit, with a solid 86% combined ratio. Corporate Solutions chipped in $208 million, even after absorbing heavy man-made losses. And Life & Health Re kept things steady with $439 million in net income, helped by sticky margins and recurring investment gains. Investment income was another bright spot, driven by a recurring yield of 4.1% and a $209 million equity sale that padded results. Even with revenue declining year-on-yearblame accounting transitions and FX dragsSwiss Re's core profitability remained intact. April renewals also came in with modest premium growth and improved pricing discipline.
Debt has been steadily shrinking since 2021and it's stayed low. Cash, on the other hand, peaked in 2019 and hasn't bounced back, hovering at more modest levels. That combo points to a company that's trimmed financial fat and is putting capital to work, not just parking it. With a 254% solvency buffer backing it up, Swiss Re looks like it's built for discipline, not drama.
Combine that with a 254% solvency ratio and you're looking at a business built to take hits and keep moving. For long-term investors eyeing stable returns in a choppy macro environment, this might be one worth watching closely.
This article first appeared on GuruFocus.