Ad hoc announcement pursuant to Article 53 LR

• Property & Casualty Reinsurance (P&C Re) net income of USD 369 million; combined ratio of 97.2%1
• Successful P&C Re April 2023 renewals, with price increase of 19% achieved
• Life & Health Reinsurance (L&H Re) net income of USD 174 million
• Corporate Solutions net income of USD 168 million; combined ratio of 90.3%1
• Return on investments (ROI) of 2.8%; recurring income yield of 3.1%

Zurich, 4 May 2023 – Swiss Re reported a net income of USD 643 million for the first quarter of 2023 as improved profitability in all main businesses absorbed large natural catastrophe losses and seasonally higher mortality in winter months.

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "The first-quarter results demonstrate the resilience of all our main businesses, supported by adequate pricing, higher investment returns and cost discipline."

Swiss Re's Group Chief Financial Officer John Dacey said: "The return on investments of 2.8% that we achieved in a turbulent quarter demonstrates the quality of our asset portfolio. On the liability side, we absorbed multiple large losses, while maintaining underwriting profitability."

Solid first-quarter profit of USD 643 million
Swiss Re reported a net income of USD 643 million and a return on equity (ROE) of 19.1% for the first quarter of 2023, compared with a net loss of USD 248 million for the prior-year period.
 
Net premiums earned and fee income for the Group increased by 4.1% to USD 11.1 billion in the first quarter of 2023, while at constant foreign exchange rates, the increase amounted to 7.5%.

The ROI increased to 2.8% compared with 0.7% in the prior-year period, while the recurring income yield rose to 3.1%, continuing the positive trajectory of the previous quarters. The fixed income reinvestment yield continues to benefit from higher interest rates and stood at 4.7% for the first quarter of 2023.

P&C Re improves profitability in the first quarter
P&C Re reported a net income of USD 369 million for the first quarter, compared with USD 85 million in the same period in 2022, despite large natural catastrophe claims. These were driven mostly by the earthquake in Turkey and Syria, for which P&C Re booked USD 426 million in net claims based on a market loss estimate of USD 5.3 billion, as well as by Cyclone Gabrielle and flooding in New Zealand.

The increase in net income was driven by robust price improvements and higher investment results. Net premiums earned increased by 8.5% to USD 5.8 billion from USD 5.3 billion in the same period last year. Calculated at constant foreign exchange rates, the increase of net premiums earned amounted to 11.3%.

The combined ratio was 97.2%¹ for the first quarter. P&C Re confirms its full-year target of achieving a combined ratio below 95%, as the business earns the majority of its natural catastrophe premiums in the second half of the year.²

Successful April P&C Re renewals in an elevated risk environment
P&C Re renewed contracts with USD 2.6 billion in treaty premium volume on 1 April 2023. This represents a 5% volume increase compared with the business that was up for renewal. Overall, P&C Re achieved a price increase of 19% in this renewal round. This more than offset higher loss assumptions of 13%, which continue to reflect a prudent view on economic inflation and loss model updates.

L&H Re achieves solid first-quarter result
L&H Re reported a net income of USD 174 million for the first quarter of 2023, compared with a net loss of USD 230 million for the same period in 2022. The result benefitted from a strong decline in COVID-19 claims and a higher investment income.

Net premiums earned and fee income remained unchanged at USD 3.8 billion. Calculated at constant foreign exchange rates, net premiums earned and fee income increased by 5.2%.

Considering the seasonally elevated mortality during the winter months, L&H Re confirms its target for a net income of approximately USD 900 million for 2023.

Corporate Solutions had an excellent start to the year
For the first quarter of 2023, Corporate Solutions reported a strong net income of USD 168 million, compared with USD 81 million in the prior-year period. The result was driven by a sustainable underlying business performance due to continued disciplined underwriting, careful risk selection and adequate pricing.

Net premiums earned decreased to USD 1.3 billion in the first quarter of 2023 from USD 1.4 billion in the same period last year, reflecting the partial sale of the elipsLife business in mid-2022. At constant foreign exchange rates and excluding the impact of the elipsLife sale, the comparative increase was 6.8%.

Corporate Solutions' combined ratio was 90.3%¹ for the first quarter of 2023, well on track towards the target of achieving a combined ratio below 94% for the full year.

iptiQ focuses on driving sustainable growth
In the first quarter of 2023, iptiQ reached gross premiums written of USD 218 million. This slight decrease of 5.2% from USD 230 million in the prior-year period was mainly due to the business shifting its focus to achieving profitability. At constant foreign exchange rates, the decrease amounted to 1.6%.

Outlook
Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "In an uncertain macroeconomic environment, we continue to focus on achieving our ambitious profit target of more than USD 3 billion for the Group in 2023. The successful P&C Re renewals so far this year and a good start in L&H Re and Corporate Solutions underpin our confidence, supported by rising interest rates, cost discipline and a very strong capital position. Swiss Re also successfully transitioned to a new structure as of April 2023, creating a simpler and nimbler organisation and bringing us closer to clients."

1 The Group has prospectively, as from Q1 2023, revised the methodology used to calculate the combined ratio to include interest on funds withheld.

Media conference call

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

Switzerland/Europe: +41 (0) 58 310 5000
United Kingdom:  +44 (0) 207 107 0613
United States:   +1 (1) 631 570 5613
Germany:   +49 (0) 69 5050 0082
France:   +33 (0) 1 7091 8706
Hong Kong:  +852 5808 1769

Investor and analyst call

Swiss Re will hold an investors' and analysts' call at 14:00 CEST, which will focus exclusively on Q&A. The investor and analyst presentation can be accessed here. You are kindly requested to dial into the conference call 10–15 minutes prior to the start using the following numbers:

Switzerland:   +41 (0) 58 310 5000
United Kingdom:  +44 (0) 207 107 0613
United States:   +1 (1) 631 570 5613
Germany:   +49 (0) 69 5050 0082
France:   +33 (0) 1 7091 8706