Swiss Re has announced robust financial results for the first quarter of 2025, reporting a net income of $1.3bn (£975m) and a return on equity (ROE) of 22.4%.
These results marked an improvement from the same period in 2024, when the company posted a net income of $1.1bn (£825m) and an ROE of 20.7%.
The group’s performance remained strong despite significant claims from natural catastrophes and man-made events, supported by favourable investment outcomes, and a beneficial tax rate of 14%.
Andreas Berger, Swiss Re’s group chief executive officer, 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.”
Anders Malmström, Swiss Re’s group chief financial officer, 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.”
The group generated $10.4bn (£7.8bn) in insurance revenue, compared with $11.7bn (£8.7bn) for the same quarter in 2024.
This decrease was attributed to non-recurring accounting effects from the transition to IFRS, the conclusion of an external retrocession deal in Life & Health Reinsurance (L&H Re), and adverse foreign exchange movements.
The insurance service result, reflecting the profitability of underwriting activities, stood at $1.3bn (£975m), slightly down from $1.4bn (£1bn) in the previous year.
Investment income saw notable growth, with Swiss Re achieving a return on investments (ROI) of 4.4%, up from 4.0% a year earlier.
This increase was largely due to a higher recurring income yield of 4.1% and a $209m gain from the sale of a minority equity position in March 2025.
These gains were partially offset by targeted fixed income asset sales that incurred losses. The reinvestment yield for the period was 4.5%, further supporting the Group’s earnings.
Swiss Re’s capital position remains robust, with an estimated Swiss Solvency Test (SST) ratio of 254% as of 1 April 2025, well above the target range of 200% to 250%.
In addition, the company plans to cancel approximately 18.7 million surplus treasury shares, which are ineligible for dividends.
Once completed by 30 June 2025, this move will reduce the total number of shares to 298.8 million, of which 294.8 million will be eligible for dividends.
In the Property & Casualty Reinsurance (P&C Re) segment, Swiss Re reported a net income of $527m, compared to $555m in the first quarter of 2024.
Despite facing elevated claims of $570m from natural catastrophes – including the Los Angeles wildfires – and $140m from man-made events, P&C Re delivered an insurance service result of $575m.
The segment achieved a combined ratio of 86.0% and is targeting a full-year ratio below 85%.
Insurance revenue decreased to $4.5bn from $5.0bn, mainly due to non-recurring benefits in the prior-year period, foreign exchange headwinds, and portfolio adjustments in casualty lines.
P&C Re also completed successful April renewals, increasing treaty premium volume by 2.8% to $2.2bn.
A price improvement of 1.5% and updated loss assumptions contributed to portfolio enhancements aligned with Swiss Re’s 2025 financial goals.
Berger added: “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.”
