Swiss Re (SREN) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was USD 1.3 billion, up from USD 1.1 billion year-over-year, with ROE rising to 22.4%; all business units contributed positively despite significant large losses in P&C, supported by strong investment and tax impacts.

• Large losses totaled USD 900 million, mainly from Los Angeles wildfires and other natural catastrophes, but bottom-line results remained resilient due to strong investment returns and positive reserving.

• Life and Health Re net income was USD 439 million, slightly above target, with positive claims experience and progress on cost reduction.

• Group SST ratio estimated at 254% as of 1 April 2025, above the 200-250% target range.

Financial highlights

• Group insurance revenue was USD 10.4 billion, down from USD 11.7 billion year-over-year due to non-recurring IFRS transition effects and FX impacts; like-for-like revenues are broadly flat.

• New business CSM for the group was USD 1.7 billion in Q1, marginally down from USD 1.8 billion last year.

• P&C Re CSM release was USD 710 million (down from USD 953 million), impacted by large cat losses and prudent reserving.

• Corporate Solutions CSM release was USD 196 million, stable with prior quarters; combined ratio at 88.4% (target <91%).

• Life and Health Re CSM release was USD 432 million, in line with last year; ROI at 4.4% (up from 4.0%).

Outlook and guidance

• Management remains confident in 2025 targets, with all business units on track; P&C Re targets a full-year combined ratio below 85%, Corporate Solutions below 91%, and L&H Re net income of USD 1.6 billion.

• Revenues are expected to remain stable for the rest of 2025, with Q1 being the peak of the revenue decline due to one-off effects.