Swiss Re reveals full-year monetary outcomes

Swiss Re has reported a rise in its internet earnings – reaching US$3.2 billion for the yr 2023, with the fourth quarter contributing US$748 million to this complete.

The agency additionally famous a sturdy return on fairness (ROE) of twenty-two.3% for a similar interval. In mild of those optimistic monetary outcomes, the board of administrators intends to suggest a dividend enhance to US$6.80 per share. Wanting ahead, Swiss Re has set a goal internet earnings of over US$3.6 billion for 2024 beneath IFRS accounting requirements.

The reinsurer’s monetary outcomes characterize a major enchancment from the earlier yr’s figures of US$472 million internet earnings and a 2.6% ROE. This turnaround, Swiss Re defined, was pushed by higher underwriting margins and an increase in funding earnings resulting from elevated rates of interest.

Swiss Re’s internet premiums earned and price earnings additionally noticed development of 4.4% to US$45.0 billion in 2023, up from US$43.1 billion the earlier yr. Adjusted for fixed international change charges, this represents a 4.9% enhance.

The corporate’s funding return for the yr jumped to three.4% from 2.0% in 2022, with recurring earnings yield rising to three.6% from 2.6% the earlier yr, benefitting from the upper rate of interest setting. By the fourth quarter, the recurring earnings yield had elevated to three.9%, with the reinvestment yield reaching 5.0%.

Swiss Re maintained a robust capital place all year long, supported by strong earnings and the optimistic results of upper rates of interest, with the Group Swiss Solvency Check (SST) ratio comfortably exceeding its 200–250% goal vary as of January 1, 2024.

Swiss Re section outcomes

The property and casualty reinsurance (P&C Re) division reported a internet earnings of US$1.9 billion for 2023, up from US$312 million within the earlier yr, due to what the agency described as resilient underwriting and disciplined renewals. The division managed to maintain giant pure disaster claims at US$1.3 billion, under the budgeted US$1.7 billion, regardless of important occasions such because the earthquake in Turkey and Syria, Hurricane Otis in Mexico, and numerous storms and floods in Europe.

P&C Re’s internet premiums earned rose by 3.9% to US$22.9 billion, and its mixed ratio for the yr was 94.8%, attaining the goal of lower than 95%.

Throughout the January renewals, P&C Re efficiently elevated its premium quantity by 9% to US$13.1 billion, with a value enhance of 9% and up to date loss assumptions resulting from inflation and mannequin changes.

The life and well being reinsurance (L&H Re) section additionally surpassed its internet earnings goal, reporting US$976 million for 2023, up from US$416 million within the earlier yr. This end result was supported by strategic portfolio administration and powerful funding efficiency, the corporate stated, regardless of larger mortality claims within the US. The section’s internet premiums earned and price earnings rose by 4.4% to US$15.6 billion.

Company Options continued its sturdy efficiency streak with a internet earnings of US$678 million in 2023, up from US$486 million within the earlier yr, attributed to improved portfolio resilience and the next funding end result.

Internet premiums earned remained regular at US$5.5 billion, with an adjusted enhance of seven.3% when excluding the offered elipsLife enterprise. The division’s mixed ratio was 91.7%, surpassing the goal of lower than 94%.

“Swiss Re can look again on a profitable 2023. We achieved all our monetary targets in a yr that was characterised by geopolitical turbulence and continued financial uncertainty,” CEO Christian Mumenthaler stated.

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