Swiss Re (SREN) Q4 2023 earnings summary

Executive summary

• FY 2023 net income was $3.214bn vs. $472m in 2022; ROE reached 22.3% vs. 2.6%. Preliminary, unaudited results.

• Improved underwriting margins and higher investment income supported results amid geopolitical turbulence and economic uncertainty.

Financial highlights

• FY premiums earned and fee income rose 4.4% to $45.003bn; growth was 4.9% at constant FX.

• Q4 net income was $748m vs. $757m in Q4 2022.

• ROI rose to 3.4% from 2.0%; annual recurring income yield was 3.6%, and Q4 yield was 3.9%.

• Shareholders’ equity increased to $16.146bn from $12.699bn; EPS was $11.09 and book value per share was $55.60.

Outlook and guidance

• 2024 targets under IFRS: Group net income above $3.6bn; P&C Re combined ratio below 87%; Corporate Solutions below 93%; L&H Re net income $1.5bn.

• Multi-year IFRS ROE target is above 14%, replacing the prior annual Economic Net Worth per-share growth target from 2024.

• Underwriting discipline, cost focus and closer client proximity remain priorities; IFRS transition is expected to benefit earnings and reported balance-sheet strength.