Swiss Re reports net income of $1.4bn for 1H 2023

Swiss Re has reported a profit of $804m in the second quarter of 2023, resulting in a net income of $1.4bn for the first half of the year, compared to net income of $157m for the same period in 2022. The reinsurer said that all businesses contributed to the solid result, with Corporate Solutions reporting a 47% increase in net income for the first half of 2023. Swiss Re’s group chief executive officer Christian Mumenthaler said: “The overall result in the first half of 2023 reflects the good positioning of Swiss Re, as well as the quality of our new business. The performance of P&C Re and Corporate Solutions contributed to a solid second quarter.” Swiss Re’s group chief financial officer John Dacey said: “In spite of macro-economic volatility, higher interest rates and steadily increasing recurring income contributed to an improved investment result. We have maintained our very strong capital position, which allows us to take advantage of attractive business opportunities.” Swiss Re reported a net income of $1.4bn for the first half of 2023, compared with a net income of $157m for the same period in 2022. The main drivers for this result were contained natural catastrophe losses in the first half of the year, L&H Re's performance returning to pre-pandemic levels and a strong result for Corporate Solutions. Net premiums earned and fee income for the group increased 4.4% to $22.1bn, compared with $21.2bn for the same period last year. L&H Re net income increased from $2m to $2393m for the first half of 2023. P&C Re reported a net income of $904m in the first half of 2023, compared with $316m in the same period in 2022. This increase was driven by a solid investment result and low level of large natural catastrophe claims in the second quarter. The large natural catastrophe losses of $634m in the first half of 2023 relate to the earthquake in Turkey and Syria, Cyclone Gabrielle and flooding in New Zealand, all of which occurred in the first quarter. Net premiums earned for P&C Re stood at $11.4bn, up from $10.6bn in the prior-year period, reflecting the strong performance during renewals in January and April. P&C Re’s combined ratio for the first half of 2023 improved to 94.7%. Corporate Solutions reported a net income of $323m for the first half of 2023, compared with $220m in the prior-year period. Swiss Re said: “This strong result was achieved despite increased man-made claims activity in the second quarter of 2023, confirming the improved resilience of the business and disciplined underwriting. In addition, Corporate Solutions benefitted from higher investment income.” Net premiums earned for Corporate Solutions decreased to $2.6bn in the first half of 2023 from $2.9bn in the prior-year period, reflecting the partial sale of the elipsLife business in mid-2022. Corporate Solutions’ combined ratio for the first half of 2023 improved to 91.0%. Mumenthaler said: “An increased risk awareness and rising interest rates are contributing to a strong market for our industry. As we enter the second half of the year, our transition to a simpler organisational structure, which we began implementing in April 2023, is well underway. Given the positive contribution of all our main businesses, we are focused on achieving our profit target of more than $3bn for the year.”

Swiss Re reports net income of $1.4bn for 1H 2023

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