Swiss Re hits $2.1 billion net income in H1 2024

Swiss Re hits $2.1 billion net income in H1 2024 | Insurance Business Australia

Reinsurance

Swiss Re hits $2.1 billion net income in H1 2024

Giant reinsurer has maintained its full year targets

Reinsurance

By
Kenneth Araullo

Swiss Re reported a profit of $996 million for the second quarter of 2024, contributing to a net income of $2.1 billion and a return on equity (ROE) of 20.1% for the first half of the year.

The company’s financial performance was supported by strong contributions from all business units, and Swiss Re affirmed that it remains on track to meet its full-year targets.

The group’s net income of $2.1 billion and an ROE of 20.1% for the first half of 2024 were primarily driven by disciplined underwriting, low natural catastrophe claims, and strong investment income.

Insurance revenue for the group amounted to $22.5 billion, and the insurance service result, reflecting the profitability of underwriting activities, was $2.9 billion.

Swiss Re achieved a return on investments (ROI) of 4.0%, with the recurring income yield for the first half of 2024 also at 4.0%. The reinvestment yield for the second quarter stood at 4.8%, benefiting from the higher interest rates.

P&C Re reported a net income of $989 million for the first half of 2024, driven by disciplined underwriting and a low incidence of large natural catastrophes, along with strong investment income. The insurance revenue for P&C Re in this period was $9.8 billion.

Despite reserve additions and an uncertainty load applied to all lines since the beginning of the year, P&C Re achieved an insurance service result of $1.4 billion and a combined ratio of 84.5%. The unit targets a combined ratio below 87% for the full year.

P&C Re’s July renewals saw $4.5 billion in treaty premium volume, marking a 7% increase compared to the business up for renewal. The renewal round achieved an 8% price increase, while loss assumptions increased by 10% based on inflationary pressures and updated loss models. The resulting portfolio quality aligns with Swiss Re’s 2024 financial targets.

L&H Re, corporate results

L&H Re recorded a net income of $883 million in the first half of 2024, bolstered by positive US mortality experience and higher investment income, partially offset by unfavorable developments in the EMEA region. The unit’s insurance revenue was $8.7 billion, with an insurance service result of $1.0 billion. L&H Re continues to target a full-year net income of approximately $1.5 billion.

Corporate Solutions reported a net income of $435 million for the first half of 2024. This performance was driven by strong underlying business results, benign claims experience, and robust investment income.

Insurance revenue for Corporate Solutions reached $3.8 billion, with nominal rates increasing by approximately 3%, remaining flat on a risk-adjusted basis. The unit reported an insurance service result of $509 million and a combined ratio of 88.7%, targeting a full-year combined ratio below 93%.

iptiQ, Swiss Re’s digital insurance platform, reported a net loss of $182 million for the first half of 2024, including one-off impairments of goodwill and intangibles totaling $111 million related to the planned withdrawal from the business announced in May 2024.

Swiss Re’s group chief executive officer Andreas Berger (pictured above) stated that the first half of 2024 demonstrated the company’s focus on delivering consistent results.

He noted that Swiss Re continues to enhance its resilience through disciplined underwriting and close monitoring of loss trends across its in-force portfolios.

Looking ahead, Berger also reiterated the company’s commitment to its 2024 targets, including a group net income of more than $3.6 billion.

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