Ad hoc announcement pursuant to Article 53 LR

• Property & Casualty Reinsurance (P&C Re) net income of USD 552 million; combined ratio of 84.7%[1]
• Successful P&C Re April 2024 renewals, with price increase of 12% achieved
• Life & Health Reinsurance (L&H Re) net income of USD 412 million
• Corporate Solutions net income of USD 194 million; combined ratio of 89.9%[2]
• Return on investments (ROI) of 4.0%; recurring income yield of 3.9%
• Swiss Re plans to withdraw from iptiQ business

Zurich, 16 May 2024 – Swiss Re posted a net income of USD 1.1 billion for the first quarter of 2024. The result benefitted from underwriting discipline and strong investment income. Swiss Re is reporting its results under IFRS for the first time after transitioning from US GAAP as of 1 January 2024.

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "Swiss Re had a good start to the year, with all our main businesses posting strong results. This reflects continued underwriting discipline, a strong return on investments and effective management of operating expenses."

Swiss Re's Group Chief Financial Officer John Dacey said: "The transition to IFRS from US GAAP represents an excellent opportunity to demonstrate the economic value of our businesses. The IFRS framework is also more closely aligned with how we steer the company internally and brings to the fore the earnings power of our leading Life & Health Reinsurance franchise."

Strong first-quarter profit of USD 1.1 billion

Swiss Re reported a net income of USD 1.1 billion and a return on equity (ROE) of 21.3% for the first quarter of 2024. As Swiss Re is reporting under IFRS for the first time, this result is not comparable to the 2023 first-quarter result under US GAAP. Swiss Re is publishing limited unaudited IFRS consolidated financial information for 2023 comparatives in the Investor and Analyst Presentation.

Insurance revenue[3] for the Group reached USD 11.7 billion for the first quarter of 2024. The insurance service result[4], reflecting the profitability of the underwriting activity, was USD 1.4 billion.

As announced at Investors' Day in December 2023, Swiss Re started to include a reserving uncertainty allowance on new business written across its property and casualty businesses, which is estimated to reduce the Group's post-tax earnings by approximately USD 0.5 billion in 2024.

Strong ROI and shareholders' equity

The Group achieved an ROI of 4.0% in the first quarter, driven by continued increases in recurring income. The recurring income yield for the first three months of 2024 was 3.9%, while the fixed income reinvestment yield stood at 5.0%, continuing to benefit from higher interest rates.

The Group's IFRS shareholders' equity amounted to USD 21.1 billion at the end of the first quarter of 2024. This represents a significant increase compared with the US GAAP shareholders' equity of USD 16.1 billion reported at the end of 2023.

P&C Re benefits from disciplined underwriting

P&C Re reported a net income of USD 552 million for the first quarter. This was primarily driven by disciplined underwriting and a low large natural catastrophe experience in the current period, supported by a solid investment result. The insurance revenue in the first three months of 2024 reached USD 5.0 billion.

P&C Re selectively increased reserves for specific large prior-year natural catastrophe and man-made events, and increased reserves on casualty lines.

P&C Re achieved an insurance service result of USD 704 million and a combined ratio of 84.7% in the first quarter. P&C Re targets a combined ratio below 87% for the full year.

Successful P&C Re April renewals

P&C Re renewed contracts with USD 2.5 billion in treaty premium volume on 1 April 2024. This represents a 6% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 12% in this renewal round. Based on a continued prudent view on inflation and updated loss models, loss assumptions increased by 12%. The resulting portfolio quality is consistent with the Group's 2024 financial targets.

L&H Re reports a solid first-quarter result

L&H Re reported a net income of USD 412 million for the first quarter of 2024. This result reflects US mortality experience in line with expectations and a higher investment result driven by increased yields.

L&H Re achieved an insurance revenue of USD 4.8 billion in the first quarter of 2024, with an insurance service result of USD 434 million.

L&H Re targets a net income of approximately USD 1.5 billion for 2024.

Corporate Solutions with a good start to the year

Corporate Solutions reported a net income of USD 194 million for the first three months of 2024, confirming its successful trajectory.

The result reflects a sustainable underlying business performance due to continued disciplined underwriting, complemented by lower-than-expected large man-made losses and a strong investment result. Large natural catastrophe losses of USD 66 million were mainly driven by the Noto earthquake in Japan.

Insurance revenue for the first quarter was USD 1.8 billion, benefitting from the good rate environment in most segments and new business growth.

Corporate Solutions achieved an insurance service result of USD 213 million and a combined ratio of 89.9% for the first quarter. Corporate Solutions targets a combined ratio below 93% for the full year.

Swiss Re plans to withdraw from iptiQ business

Following a strategic review of its digital white-label platform, Swiss Re plans to withdraw from the iptiQ business and will consider options for the different entities in a manner and timeframe that maximises value for the Group, subject to applicable regulatory approvals and notifications.

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "The market environment today is vastly different from the one when iptiQ was created. Given these changed conditions and Swiss Re's strategic priorities, we've concluded we are not the best owners of this business going forward."

Outlook

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "The strong earnings in the first quarter have given Swiss Re a positive start to the year as we continue to focus on our 2024 targets, including a net income of more than USD 3.6 billion. Underwriting discipline, coupled with a favourable market environment, underpin our confidence."

Details of Q1 2024 performance

Financial calendar

22 August 2024 Half-year 2024 results
14 November 2024 Nine-month 2024 results
27 February 2025 Full-year 2024 results
13 March 2025 Publication of the Annual Report 2024

Media conference call

Swiss Re will hold a media conference call this morning at 08:30 CEST. To participate, please dial in 10 minutes prior to the start using the following numbers:

Switzerland/Europe: +41 (0) 58 310 50 00
United Kingdom:  +44 (0) 207 107 06 13
United States:  +1 (1) 631 570 56 13

For additional local dial-in numbers, please click here.

Investor and analyst call

Swiss Re will hold an investors' and analysts' webcast at 14:00 CEST, which will focus exclusively on Q&A. The investor and analyst presentation can be accessed here.

[1] P&C Re combined ratio is not comparable with previous quarters as the definition under IFRS
[–Insurance service expense (net) / Insurance revenue (net)] differs from that under US GAAP.

[2] Corporate Solutions combined ratio is not comparable with previous quarters as the definition under IFRS [–(Insurance service expense (gross) + Reinsurance result + Non-directly attributable expenses) / Insurance revenue (gross)] differs from that under US GAAP.

[3] Insurance revenue (gross) reflects the expected discounted claims and expenses, release of risk capital costs, as well as release of expected profit for the services provided in a period.

[4] Insurance service result reflects the discounted underwriting profit earned from providing insurance coverage in a given period: comprises insurance revenue (gross) less insurance service expenses (gross) plus reinsurance result.