Swiss Re reveals full-year monetary outcomes

Swiss Re has reported a rise in its internet revenue – 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 improve to US$6.80 per share. Looking ahead, Swiss Re has set a goal internet revenue of over US$3.6 billion for 2024 beneath IFRS accounting requirements.

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

Swiss Re’s internet premiums earned and price revenue 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 overseas alternate charges, this represents a 4.9% improve.

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

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

Swiss Re phase outcomes

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

During the January renewals, P&C Re efficiently elevated its premium quantity by 9% to US$13.1 billion, with a worth improve of 9% and up to date loss assumptions on account of inflation and mannequin changes.

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

Corporate Solutions continued its robust efficiency streak with a internet revenue of US$678 million in 2023, up from US$486 million within the earlier yr, attributed to improved portfolio resilience and a better funding outcome.

Net premiums earned remained regular at US$5.5 billion, with an adjusted improve 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 back on a successful 2023. We achieved all our financial targets in a year that was characterized by geopolitical turbulence and continued economic uncertainty,” CEO Christian Mumenthaler stated.

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