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Swiss Re (SSREY)
OTHER OTC:SSREY
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Swiss Re
(OTC:SSREY)
Rating:73Outperform
Price Target:―
Swiss Re (SSREY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.18B
Dividend Yield4.31%
Average Volume (3M)905.00
Price to Earnings (P/E)15.9
Beta (1Y)0.56
Revenue Growth1.69%
EPS GrowthN/A
CountryUS
Employees15,000
SectorFinancial
Sector Strength82
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)1.08
Shares Outstanding1,195,046,900
10 Day Avg. Volume2,715
30 Day Avg. Volume905
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.54
Price to Sales (P/S)0.00
P/FCF Ratio2.38
Enterprise Value/Market Cap0.29
Enterprise Value/Revenue0.07
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda2.34
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: -3.13%|
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
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.65
Positive
Balance Sheet
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.72
Positive
Cash Flow
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.70
Positive
| 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
Positive
43.30
Price Trends
43.77
Negative
41.98
Positive
38.22
Positive
Market Momentum
-0.18
Negative
53.55
Neutral
87.87
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 43.3 is above the 20-day moving average (MA) of 42.69, below the 50-day MA of 43.77, and above the 200-day MA of 38.22, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 87.87 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.20B | 6.71 | 14.07% | ― | 35.36% | -3.34% | |
76 Outperform | $13.07B | 16.71 | 7.60% | 1.81% | 1.47% | -7.47% | |
73 Outperform | $47.18B | 15.92 | 16.65% | 4.31% | 1.69% | ― | |
73 Outperform | $11.72B | 7.67 | 16.30% | 0.68% | 32.10% | -30.52% | |
71 Outperform | $14.35B | 17.02 | 6.12% | 2.39% | 12.81% | -70.56% | |
71 Outperform | $2.31B | 19.91 | 7.20% | ― | -5.57% | -44.54% | |
58 Neutral | $12.97B | 5.12 | -2.61% | 5.35% | 5.83% | -54.44% |
* Financial Sector Average
Performance Comparison
SSREY
Swiss Re
43.30
13.42
44.91%
EG
Everest Group
337.48
-27.50
-7.53%
RGA
Reinsurance Group
197.79
-4.45
-2.20%
RNR
Renaissancere Holdings
240.90
24.56
11.35%
SPNT
SiriusPoint
19.80
7.67
63.23%
HG
Hamilton Insurance Group, Ltd. Class B
21.39
5.71
36.42%
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.