Swiss Re (SREN) Status Update summary

Strategic priorities and transformation

• Addressed recurring earnings drags by cleaning underperforming portfolios, increasing U.S. casualty reserves, and reinforcing technical underwriting, data-driven decision-making, and talent initiatives.

• Implemented a four-phase strategy, including immediate actions like iptiQ withdrawal, comprehensive reserve review, and a midterm ambition to set a new strategic North Star.

• Focused on cost efficiency, targeting $300 million in operating cost savings by 2027, with $100 million realized by 2025.

• Prioritized capital strength, maintaining a robust SST ratio and aiming for a 7%+ annual dividend per share increase over the next three years.

• Maintained strong capitalisation and financial flexibility, with a focus on superior capital management.

Financial guidance and targets

• Set a 2025 net income target of more than $4.4 billion, up from the previous $3.6 billion for 2024, reflecting a 22% increase.

• Improved combined ratio targets for 2025: P&C Reinsurance to 85 or better, Corporate Solutions to better than 91.

• Life & Health earnings target raised to $1.6 billion for 2025, with CSM release guidance adjusted to 8%.

• Long-term return on equity aspiration remains above 14%.

• No additional capital return (e.g., share buybacks) planned in the near term, focusing on dividend growth and business investment.

Portfolio management and reserving actions

• Reduced exposure to U.S. casualty and large corporate risks, with total reserves for U.S. liability increasing from $10 billion to $13 billion in nine months and $3.1 billion added in 9M 2024.

• Adopted a prudent reserving approach, positioning at the 90th percentile of best estimate range and maintaining an uncertainty load, especially in P&C Re.

• No net prior year reserve releases expected in 2025; uncertainty load for P&C Re to be about $500 million.

• iptiQ EMEA P&C business sold to Allianz Direct, with other iptiQ portfolios in runoff or under review, reducing net loss to ~$50m by 2027.

• Business mix shifting toward shorter-tail lines, benefiting combined ratio over time.