Swiss Re (SSREY) AI Stock Analysis

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Swiss Re

(OTC:SSREY)

Rating:73Outperform

Price Target:―

Swiss Re is positioned moderately well with a solid financial foundation and positive technical indicators. Strengths include strong profitability and a reasonable valuation. The earnings call highlights a robust outlook, despite revenue contraction and external challenges. The overall score reflects a balanced view of strengths and potential risks.

Swiss Re (SSREY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$50.25B

Dividend Yield4.01%

Average Volume (3M)2.52K

Price to Earnings (P/E)17.1

Beta (1Y)0.54

Revenue Growth1.69%

EPS GrowthN/A

CountryUS

Employees15,000

SectorFinancial

Sector Strength72

IndustryInsurance - Reinsurance

Share Statistics

EPS (TTM)1.08

Shares Outstanding1,195,046,900

10 Day Avg. Volume3,356

30 Day Avg. Volume2,515

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)2.22

Price to Sales (P/S)0.00

P/FCF Ratio15.48

Enterprise Value/Market Cap1.03

Enterprise Value/Revenue0.26

Enterprise Value/Gross ProfitN/A

Enterprise Value/Ebitda8.68

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Swiss Re Business Overview & Revenue Model

Company DescriptionSwiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, other insurance-based forms of risk transfer, and other insurance-related services worldwide. The company operates through Property & Casualty Reinsurance, Life & Health Reinsurance, and Corporate Solutions. The Property & Casualty Reinsurance segment underwrites property reinsurance, including property, credit and surety, engineering, aviation, marine, agriculture, retakaful, and facultative reinsurance solutions; and casualty reinsurance, such as liability, motor, worker's compensation, personal accident, management and professional liability, cyber, and facultative reinsurance solutions. The Life & Health Reinsurance segment underwrites life and health insurance products. The Corporate Solutions segment offers standard risk transfer covers and multi-line programs to customized solutions. It serves stock and mutual insurance companies, public sector and governmental entities, mid-sized and large corporations, and individuals. Swiss Re AG was founded in 1863 and is headquartered in Zurich, Switzerland.

How the Company Makes MoneySwiss Re makes money primarily through its reinsurance operations, where it provides insurance coverage to other insurance companies for risks they cannot or do not want to bear alone. Revenue is generated by charging premiums for these reinsurance policies. The Corporate Solutions segment contributes to earnings by offering insurance products tailored to the specific needs of corporations, including property and casualty, financial, and specialty lines. Additionally, Swiss Re manages portfolios of life insurance policies through its Life Capital segment, earning income from premiums and investment returns on assets under management. The company's financial performance is also influenced by its investment activities, where it invests the premiums collected into a diversified portfolio of assets, generating investment income. Strategic partnerships with other insurance companies and participation in global insurance syndicates further support Swiss Re's revenue streams.

Swiss Re Earnings Call Summary

Earnings Call Date:May 16, 2025

(Q1-2025)

% Change Since: 2.33%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted a strong start to the year with solid net income and return on equity, alongside positive investment returns and cost management. However, challenges were noted in the form of large losses in the P&C segment, a decline in insurance revenue, and some pressure on combined ratios.

Q1-2025 Updates

Positive Updates

Strong Net Income and Return on Equity

Achieved a first quarter net income of $1.3 billion and a return on equity of 22%.

Life and Health Re Solid Performance

Life and Health Re produced a net income of $439 million, slightly above the target of $400 million, with positive overall claims experience.

Resilient Investment Returns

Strong investment results with a return on investment of 4.4%, up from 4.0% the previous year.

Cost Reduction Initiatives on Track

Admin costs are in line with targets, aiming to reduce the cost run rate by at least $100 million this year.

Corporate Solutions Strong Start

Corporate Solutions achieved an 88.4% combined ratio, better than the target of less than 91% for the full year.

Negative Updates

Large Losses in P&C Segment

Large losses amounted to $900 million, with the LA wildfires contributing around two-thirds of that total.

Decline in Insurance Revenue

Group's insurance revenue declined to $10.4 billion from $11.7 billion the previous year due to IFRS transition effects and FX impacts.

P&C Re Combined Ratio Slightly Above Target

P&C Re's Q1 combined ratio of 86% is just above the target of less than 85%.

Experience Variance and Uncertainty

Experience variance in P&C Re was negative $140 million due to large nat cat losses and higher than expected man-made claims.

Company Guidance

In Swiss Re's first quarter 2025 financial data conference call, the company reported a strong start to the year with a net income of $1.3 billion and a return on equity of 22%. Despite facing significant large losses totaling $900 million, primarily due to the LA wildfires, the Property & Casualty (P&C) Re and Corporate Solutions divisions maintained resilient results. The P&C Re new business Contractual Service Margin (CSM) remained steady at $1.4 billion, and the division achieved a combined ratio of 86%, slightly above the target of less than 85%. Corporate Solutions saw a combined ratio of 88.4%, well below the 91% target. Life and Health Re reported a net income of $439 million, surpassing the pro rata target of $400 million, with a CSM release of $432 million. The group's insurance revenue was $10.4 billion, affected by non-recurring IFRS transition effects and FX impacts. The investment return on equity was robust at 4.4%, and the group's Swiss Solvency Test (SST) ratio was estimated at 254%. Swiss Re remains focused on maintaining healthy risk-adjusted margins and a high-quality portfolio, despite the uncertain macroeconomic environment.

Swiss Re Financial Statement Overview

Summary

Swiss Re maintains strong profitability margins and effective cash generation. However, a sharp decline in revenue and moderate reliance on debt pose concerns. The company's ability to generate free cash flow supports financial stability, but improvements in revenue growth and leveraging assets for optimal equity use are necessary.

Income Statement

Positive

Swiss Re shows a mixed performance on its income statement. The Gross Profit Margin is 100% due to revenue and cost being essentially the same, indicating a lack of traditional cost of goods sold. The Net Profit Margin for 2024 is approximately 37.14%, which is strong, although the Revenue Growth Rate shows a significant drop of about 80.62% from 2023 to 2024, indicating a contraction in revenue. The EBIT Margin for 2024 is 0% due to EBIT being zero, but the EBITDA Margin is robust at 48.91%, highlighting strong operational cash flows before interest, tax, depreciation, and amortization.

Balance Sheet

Positive

The balance sheet reflects a stable financial structure with a Debt-to-Equity Ratio of 0.31 in 2024, indicating moderate leverage. Return on Equity (ROE) is strong at 14.02%, reflecting efficient use of equity to generate profit. However, the Equity Ratio stands at 18.16%, suggesting a high reliance on liabilities to fund assets, which could pose risks if liabilities increase significantly.

Cash Flow

Positive

Swiss Re's cash flow statement indicates a decline in Operating Cash Flow from 2023 to 2024 by approximately 23.37%, but the Free Cash Flow remains positive at 3.13 billion in 2024. The Operating Cash Flow to Net Income Ratio is 0.97, showing good cash conversion from income. The Free Cash Flow to Net Income Ratio is 0.97, indicating effective cash generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.72B	49.73B	46.04B	46.74B	43.34B
Gross Profit	8.72B	49.46B	46.04B	46.74B	43.34B
EBITDA	4.27B	-23.00M	1.64B	-573.00M	115.00M
Net Income	3.24B	3.21B	472.00M	1.44B	-878.00M
Balance Sheet
Total Assets	127.23B	179.58B	170.68B	181.57B	182.62B
Cash, Cash Equivalents and Short-Term Investments	88.64B	88.38B	85.61B	4.15B	4.70B
Total Debt	7.26B	9.82B	11.04B	11.19B	11.74B
Total Liabilities	103.99B	163.21B	157.87B	10.32B	11.58B
Stockholders Equity	23.11B	16.15B	12.70B	23.57B	27.14B
Cash Flow
Free Cash Flow	3.13B	4.09B	2.93B	4.10B	5.39B
Operating Cash Flow	3.13B	4.09B	2.93B	4.10B	5.39B
Investing Cash Flow	-407.00M	-362.00M	-2.34B	-2.14B	-7.72B
Financing Cash Flow	-2.97B	-3.22B	-1.24B	-2.10B	-2.50B

Swiss Re Technical Analysis

Technical Analysis Sentiment

Positive

Last Price45.74

Price Trends

50DMA

43.83

Positive

100DMA

42.98

Positive

200DMA

39.09

Positive

Market Momentum

MACD

0.78

Negative

RSI

66.47

Neutral

STOCH

92.60

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSREY, the sentiment is Positive. The current price of 45.74 is above the 20-day moving average (MA) of 44.38, above the 50-day MA of 43.83, and above the 200-day MA of 39.09, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 66.47 is Neutral, neither overbought nor oversold. The STOCH value of 92.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSREY.

Swiss Re Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	81 Outperform	$11.54B	7.55	18.88%	0.66%	22.66%	-21.87%
HG	80 Outperform	$2.19B	6.68	14.07%	―	35.36%	-3.34%
RGA	76 Outperform	$12.81B	16.62	7.60%	1.84%	1.47%	-7.47%
SSREY	73 Outperform	$50.25B	17.10	16.65%	4.01%	1.69%	―
SPNT	71 Outperform	$2.28B	19.69	7.20%	―	-5.57%	-44.54%
EG	69 Neutral	$14.12B	16.94	6.12%	2.41%	12.81%	-70.56%
Sector *	61 Neutral	C$15.12B	7.06	23.28%	5.39%	33.61%	-23.38%

* Financial Sector Average

Performance Comparison

SSREY

Swiss Re

46.08

16.25

54.48%

Everest Group

336.86

-37.80

-10.09%

RGA

Reinsurance Group

196.55

-21.28

-9.77%

RNR

Renaissancere Holdings

239.00

15.91

7.13%

SPNT

SiriusPoint

19.79

5.41

37.62%

Hamilton Insurance Group, Ltd. Class B

21.28

4.15

24.23%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 20, 2025