Swiss Re (SREN) Q4 2024 earnings summary

Executive summary

• Net income reached USD 3.2 billion in 2024, with a 15% ROE, supported by disciplined underwriting, strong investment income, and decisive reserving actions in P&C Re.

• Board proposes an 8% dividend increase to USD 7.35 per share for 2024, in line with long-term growth aspirations.

• P&C reserves were strengthened by USD 3.1 billion in 2024, positioning them at the 90th percentile of best estimate range and addressing prior year drag on earnings.

• Achieved 7% volume growth and 2.8% price increases in January renewals, locking in 53% of the P&C Re treaty book.

• Life & Health Re met its USD 1.5 billion net income target despite assumption strengthening and negative experience variances.

Financial highlights

• Group net income was USD 3.2 billion for 2024, with a 15% ROE and $1.1 billion in Q4.

• Insurance revenue rose to USD 45.6 billion from USD 43.9 billion in 2023.

• Return on investments improved to 4.0% in 2024, with recurring income up USD 0.5 billion year-over-year.

• Book value per share increased to USD 74.44 from USD 70.49 at year-end 2023.

• EPS was USD 10.88, up from USD 10.50 in 2023.

Outlook and guidance

• 2025 net income target set at over USD 4.4 billion, with L&H Re targeting USD 1.6 billion.

• P&C Re aims for a combined ratio below 85%, Corporate Solutions below 91%.

• Multi-year IFRS ROE target remains above 14%; dividend per share growth of at least 7% annually for 2025-2027.

• Operating cost run rate expected to reduce by USD 300 million by 2027, with USD 100 million reduction anticipated in 2025.