Swiss Re lauds ‘strong result’ for first nine months of 2023
Swiss Re has reported a net income of US$2.5 billion in the first nine months of 2023, with a profit of US$1 billion in the third quarter, marking a “significant improvement” from 2022.
The group’s return on equity (ROE) was 25.9% for the first nine months of this year, which compares favourably with a net loss of US$ 285 million and an ROE of –2.1% for the first nine months of 2022. Improvements were mainly driven by the underwriting performance in property and casualty (P&C) and life and health (L&H), supported by increasing investment results, the reinsurer said.
Net premiums earned and fee income for the group increased by 4.2% to US$33.7 billion in the first nine months of 2023, compared with US$32.4 billion in the same period a year earlier. At constant foreign exchange rates, net premiums earned and fee income grew by 5.3%, Swiss Re reported.
P&C revealed a net income of US$1.5 billion, with a combined ratio of 94.3% in the first nine months of the year. For the same period, the L&H business reported net income of US$634 million, while the Corporate Solutions business brought in a net income of US$492 million, with a combined ratio of 91.3%.
The reinsurance group also reported a return on investments (ROI) of 3.5% in the first nine months, compared with 1.6% in the same period the year before.
In Q3 specifically, the reinsurer said ROI was “exceptional” at 4.8%. This was supported by net realised gains from real-estate sales, which were partly offset by losses from targeted sales of lower-yielding fixed-income securities. Another positive for the group was an increase in Q3 recurring income yield to 3.7%.
Group CEO Christian Mumenthaler said: "Swiss Re's performance in the first nine months of 2023 is the result of our continued focus on underwriting quality. This has enabled us to navigate a heightened risk environment that continues to be characterised by significant loss events for the insurance industry."
Swiss Re's group chief financial officer John Dacey said: "With interest rates continuing to rise, we see improvements in the recurring income yield and in our overall investment results. Combined with the improved underwriting performance, this has significantly strengthened the group's earnings capacity."
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