Swiss Re Corporate Solutions boosts income by 23% as rates flatten

Swiss Re Corporate Solutions saw its net income jump 26% last year to $829m as all of its key numbers improved, including a 6.6% rise in insurance revenue to $8.08bn despite rates flattening. This helped parent group Swiss Re shake off big Q3 reserve strengthening for US liability reinsurance, to increase its net income by 3%. Swiss Re currently thinks that its claims from the recent wildfires in Los Angeles will be below $700m. This is based on its preliminary insured market loss of around $40bn. The losses will impact the group’s first quarter 2025 numbers. Corporate Solutions said its “strong” 2024 results reflect a “consistent underlying business performance throughout the year, supported by strong investment income”. The company said the rise in insurance revenue comes off the back of new business growth in its focused portfolios and earn-through of previously realised rate increases. Nominal rates improved by 2% in 2024 but were down 1% on a risk-adjusted basis. The unit’s insurance service, or underwriting, result was up 23% to $1.02bn last year. Corporate Solutions said this reflects robust in-force and new business margins complemented by lower-than-expected man-made losses. Its large natural catastrophe losses hit $344m in 2024, mainly driven by Tropical Cyclone Megan in Australia, Hurricanes Milton and Helene in the US, and the Calgary hailstorm. Corporate Solutions achieved a combined ratio of 89.7% last year, outperforming its 93% target and down from 91.7% for 2023. The business helped parent company Swiss Re increase its net income by 3% for full year and boost its revenue 4% to $45.6bn. The group insurance service result fell 8% to $4.3bn. Swiss Re said the group result continues to benefit from disciplined underwriting and recurring investment income. The company’s P&C RE division reported net income of $1.23bn last year, down 20% from $1.54bn in 2023. The company said “robust underwriting results” were impacted by prior-year US liability reserve additions offset by strong investment performance. P&C Re added that the reserve additions for US liability were partly offset by releases in other lines of business, resulting in a net prior-year reserve strengthening of $2.6bn for the full year 2024. “This positions overall P&C reserves at the higher end of Swiss Re’s best-estimate range, which, coupled with the uncertainty allowance on new business, continues to support reserving strength going forward,” it said. P&C Re’s large natural catastrophe claims totalled $1bn last year. These claims were mainly related to hurricanes Milton, Debby and Helene, the severe hailstorm that affected Calgary in Canada, Storm Boris in Europe and flooding in the Gulf region. P&C Re achieved an insurance service result of $1.84bn, down 33% from $2.75bn in 2023, and a combined ratio of 89.9% from 85%. The net impact of Q3 reserve strengthening accounted for 10.2 percentage points of the full-year combined ratio. As a result, P&C Re missed its combined ratio target of less than 87%. P&C Re’s insurance revenue was pretty much flat at $19.77bn compared with $19.59bn in 2023. “Insurance revenue was supported by strong margins, continued price increases and targeted growth in property and specialty. Pruning of casualty lines continued in 2024,” the unit said. It achieved 2.8% price increases at 1 January renewals. Swiss Re CEO Andreas Berger said: ”Our focus in 2024 was on profitability and resilience. Our results for the period reflect this and show that we are on the right track: we have delivered strong net income and ROE, while achieving our goal of positioning overall P&C reserves at the higher end of our best-estimate range.” Swiss Re has confirmed its 2025 financial targets of group net income above $4.4bn, and a combined ratio below 91% for Corporate Solutions and 85% for P&C Re.

Swiss Re Corporate Solutions boosts income by 23% as rates flatten

Swiss Re delivers slightly higher 2024 profit despite $2.6bn reserve strengthening

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