The Property & Casualty Reinsurance (P&C Re) segment led the way with a net income of US$1.5 billion and a combined ratio of 94.3%. Meanwhile, Life & Health Reinsurance (L&H Re) contributed a net income of $634 million, and Corporate Solutions reported a net income of USD 492 million with a combined ratio of 91.3%.
The Group’s Chief Executive Officer, Christian Mumenthaler, attributed the success to a continued focus on underwriting quality, allowing them to navigate a challenging risk environment marked by significant industry loss events. The Chief Financial Officer, John Dacey, highlighted the positive impact of rising interest rates on recurring income yield and overall investment results, reinforcing the Group’s earnings capacity.
The overall return on equity (ROE) for the first nine months of 2023 stood at an impressive 25.9%, compared to a net loss and negative ROE in the same period of 2022. The positive turnaround was largely driven by strong underwriting performances in P&C Re and L&H Re, supported by increasing investment results.
Net premiums earned and fee income for the Group increased by 4.2% to $33.7 billion, with a 5.3% growth at constant foreign exchange rates. The return on investments (ROI) for the first nine months of 2023 was 3.5%, rising to an exceptional 4.8% in the third quarter. The Group maintained a very strong capital position, boasting a Group Swiss Solvency Test (SST) ratio of 314% as of July 1, 2023.
P&C Re demonstrated resilient underwriting performance, reporting a net profit of $1.5 billion for the first nine months, a significant improvement from the prior-year period. Despite substantial natural catastrophe losses, the segment achieved a combined ratio of 93.7% in the third quarter.
L&H Re reported a third-quarter profit of $241 million, contributing to a net income of $634 million for the first nine months. Corporate Solutions also maintained strong business performance, with a net income of $492 million.
Looking ahead, Swiss Re remains confident in its full-year targets, emphasizing the positive impact of improved underwriting and investment performance on the Group’s earnings capacity.
Swiss Re’s Group Chief Executive Officer Christian Mumenthaler said: “In light of the good performance year to date, we maintain our targets for the full year including a Group net income of more than $3 billion. We continue to focus on our disciplined underwriting strategy that provides a strong base for the future.”
Author: Joanna England
