Swiss Re - Net Income of US$2.1bn for the First Half of 2024
In the first half of 2024, Swiss Re has reported a strong financial performance with a net income of US$2.1bn. This result reflects the company’s disciplined approach to underwriting and strong investment returns, which are key factors driving its success. The reinsurance giant achieved a return on equity (ROE) of 20.1%, underscoring the firm's focus on achieving consistent financial results and resilience across its portfolios.
Highlights of H1 2024 Performance
Swiss Re’s Property & Casualty (P&C) Reinsurance division was a significant contributor to the group’s profitability. The P&C Reinsurance unit posted a net income of USD 989 million for the first half of 2024, driven by disciplined underwriting and a low incidence of large natural catastrophe claims. The unit achieved a combined ratio of 84.5%, further reflecting strong performance despite the uncertain market conditions. This combined ratio is well within the company’s target of staying below 87% for the full year. The P&C Re segment also recorded insurance revenue of US$9.8bn.
Swiss Re’s Life & Health (L&H) Reinsurance division also performed well, reporting a net income of US$883mn for the first half of 2024. This performance was driven by positive mortality experience in the United States and higher investment income. However, unfavourable developments in the Europe, Middle East, and Africa (EMEA) region somewhat offset these gains. Despite this, the L&H Re unit achieved insurance revenue of USD 8.7 billion and an insurance service result of US$1bn.
Corporate Solutions, Swiss Re’s primary commercial insurance division, continued to deliver strong results in the first half of 2024. The division recorded a net income of US$435mn and a combined ratio of 88.7%, benefitting from benign claims experience and a robust investment income. Corporate Solutions also reported insurance revenue of US$3.8 billion, with nominal rates increasing by approximately 3% year-on-year. The unit aims to maintain a combined ratio below 93% for the full year.
Investments and Performance
Swiss Re’s investment strategy was a key driver of its financial performance in the first half of 2024. The company achieved a return on investments (ROI) of 4.0%, driven by recurring income, with the reinvestment yield for the second quarter standing at 4.8%. Higher interest rates have provided a significant tailwind, contributing to the group's strong investment performance.
Looking ahead, Swiss Re remains committed to its full-year targets, which include achieving a group net income of more than US$3.6bn for 2024. The company’s Group Chief Executive Officer, Andreas Berger says: "Swiss Re's performance in the first half of 2024 reflects our focus on delivering consistent results. We continue to increase the overall resilience of the firm through a disciplined approach to underwriting new business while remaining on top of loss trends across our in-force portfolios."
Strategic Performance
Swiss Re’s investment strategy was a key driver of its financial performance in the first half of 2024. The company achieved a return on investments (ROI) of 4.0%, driven by recurring income, with the reinvestment yield for the second quarter standing at 4.8%. Higher interest rates have provided a significant tailwind, contributing to the group's strong investment performance.
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