Swiss Re, one of the world’s largest reinsurance companies, has reported a robust Q1 net income of $643 million, compared to a loss of $248 million for the same period last year.
The property and casualty (P&C) reinsurance combined ratio improved despite elevated natural catastrophe (nat cat) activity. Swiss Re’s group-wide net premiums earned and fee income rose by 4.1% to $11.1 billion in Q1 2023, while the return on equity improved significantly to 19.1%, and the return on investments strengthened to 2.8%.
Christian Mumenthaler, Swiss Re’s CEO, attributed the Q1 results to “adequate pricing, higher investment returns and cost discipline.” Swiss Re’s P&C reinsurance business has confirmed its full-year target of achieving a combined ratio of under 95%, as it earns most of its nat cat premiums in H2.
Swiss Re hopes to hit $900 million net income target in 2023
At the April 1st reinsurance renewals, P&C Re renewed contracts with $2.6 billion in treaty premium volume, which represents a 5% volume increase compared to the business that was up for renewal. P&C Re achieved a price increase of 19% at the April renewals, which more than offset higher loss assumptions of 13%.
Within the company’s L&H reinsurance business, net income reached $174 million, compared with a loss of $230 million a year earlier. Swiss Re highlighted a strong decline in COVID-19 claims and also higher investment income.
Net premiums earned and fee income remained unchanged, year-on-year, at $3.8 billion. Swiss Re’s L&H Re confirmed its target to achieve net income of approximately $900 million for 2023, considering the seasonally elevated mortality during the winter months.
Corporate Solutions reported an increase in net income from $81 million to $168 million, driven by a sustainable underlying business performance. Net premiums earned fell slightly from $1.4 billion to $1.3 billion, which reflects the partial sale of elipsLife business in mid-2022. The segment’s combined ratio was 90.3% for Q1 2023, so on track to achieve the target combined ratio of 94% for the full year.
Finally, at iptiQ, gross premiums written fell by 5.2% to $218 million, which Swiss Re attributed to a shift in business mix to achieve profitability.
“In an uncertain macroeconomic environment, we continue to focus on achieving our ambitious profit target of more than USD 3 billion for the Group in 2023. The successful P&C Re renewals so far this year and a good start in L&H Re and Corporate Solutions underpin our confidence, supported by rising interest rates, cost discipline and a very strong capital position. Swiss Re also successfully transitioned to a new structure as of April 2023, creating a simpler and nimbler organisation and bringing us closer to clients,” said Mumenthaler
Join Swiss Re at Insurtech Insights USA 2023
To find out more about Swiss Re’s latest strategies and innovations, join their panel of experts at Insurtech Insights USA 2023 on June 7th and 8th, at the Javits Center in New York. Swiss Re’s speakers at the event are:
- Sebastian Bert, Co-Chair, Americas, Inclusion and Diversity
- Jillian Badanes, Lead Product and Proposition Development
- Sarah Parker, VP of Customer Insights and Propositions
- Adam Gladsden, SVP, Head of Cyber Solutions
To find out more, click here
