Swiss Re AG’s Earnings Call Highlights Robust Performance

Swiss Re AG ((SSREY)) has held its Q3 earnings call. Read on for the main highlights of the call.

Swiss Re AG’s recent earnings call painted a picture of robust financial health, underscored by strong performances in the Property & Casualty (P&C) and Corporate Solutions segments. The company reported a solid investment return, although challenges persist in the Life & Health segment, potentially impacting net income targets due to unfavorable assumption updates and claims variability. The decline in insurance revenues and new business CSM highlights the challenging market conditions Swiss Re is navigating.

Strong Net Income and Return on Equity

Swiss Re reported a net income of USD 4 billion for the first nine months of 2025, achieving an impressive annualized return on equity of 22.5%. This performance positions the company on track to meet its full-year net income target of over USD 4.4 billion, reflecting effective financial management and strategic execution.

Exceptional P&C Results

The P&C segment delivered outstanding results with a combined ratio of 71.3% in Q3, contributing to a 77.6% ratio for the first nine months. This performance significantly surpassed the target of 85%, driven by lower-than-expected large natural catastrophe losses, showcasing Swiss Re’s adept risk management.

Corporate Solutions Performance

Corporate Solutions reported a combined ratio of 87.1% for the first nine months, outperforming the target of less than 91%. This achievement was propelled by higher in-force margins and a favorable large loss experience, highlighting the segment’s resilience and strategic focus.

Strong Investment Return

Swiss Re’s investment return stood at 4.1% for the first nine months, surpassing last year’s 3.9%. This was supported by strong recurring income of USD 3.0 billion, reflecting the company’s prudent investment strategies and market positioning.

Solid Group SST Ratio

The Group’s SST ratio was estimated at 268% as of October 1, 2025, an increase of 11 points from the beginning of the year. This improvement underscores Swiss Re’s commitment to maintaining financial resilience and prudent risk management.

Life & Health Re Net Income Shortfall

The Life & Health Re segment reported a net income of USD 1.1 billion after three quarters, falling short of the USD 1.6 billion full-year target. This shortfall was attributed to negative assumption updates and claims experience, reflecting ongoing challenges in this segment.

Decline in Insurance Revenue

Insurance revenue for the first nine months amounted to USD 32 billion, down from USD 33.7 billion the previous year. This decline was influenced by pruning actions and the nonrenewal of certain businesses, indicating a strategic shift in focus.

Challenges in Health Portfolios

Negative assumption updates and claims experience in Health portfolios, particularly in the EMEA and ANZ regions, resulted in a USD 400 million negative impact for the first nine months. This highlights the ongoing challenges in managing health-related risks.

Decline in New Business CSM

The new business CSM was USD 3.9 billion for the first nine months, down from USD 4.2 billion last year. This decline reflects a challenging pricing environment and a focus on portfolio quality, emphasizing Swiss Re’s strategic priorities.

Forward-Looking Guidance

Swiss Re provided optimistic forward-looking guidance, emphasizing their confidence in meeting the full-year net income target of over USD 4.4 billion. The P&C units are expected to continue their strong performance, with a combined ratio well below the target. Despite challenges in the Life & Health segment, the company remains focused on disciplined underwriting and strong investment returns. The increased SST ratio to 268% further reflects Swiss Re’s commitment to financial resilience and strategic growth.

In conclusion, Swiss Re’s earnings call highlighted a strong overall financial performance, driven by exceptional results in the P&C and Corporate Solutions segments. While challenges persist in the Life & Health segment, the company’s strategic focus on disciplined underwriting and investment returns positions it well for future growth. Investors can take confidence in Swiss Re’s robust financial health and strategic direction, despite the challenging market environment.