Swiss Re (SSREY) AI Stock Analysis

• Market Cap: $47.99B
• Dividend Yield: 4.17%
• Average Volume (3M): 3.59K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.50
• Revenue Growth: -1.26%
• EPS Growth: N/A
• Country: US
• Employees: 15,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 1.11
• Shares Outstanding: 1,195,046,900
• 10 Day Avg. Volume: 1,350
• 30 Day Avg. Volume: 3,586
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 13.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• 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 Business Overview & Revenue Model

Company Description

Swiss 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 Money

Swiss 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 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.

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.

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.

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: Neutral
• Last Price: 44.51
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSREY, the sentiment is Neutral. The current price of 44.51 is below the 20-day moving average (MA) of 45.26, below the 50-day MA of 45.06, and above the 200-day MA of 41.08, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 33.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSREY.

Swiss Re Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	83 Outperform	$11.33B	6.14	18.75%	0.66%	23.19%	-22.42%
HG	82 Outperform	$2.43B	6.47	15.86%	―	28.86%	-11.22%
SSREY	73 Outperform	$47.99B	13.88	17.36%	4.17%	-1.26%	―
EG	72 Outperform	$14.26B	17.71	5.52%	2.36%	10.40%	-71.67%
Sector *	68 Neutral	$17.80B	11.94	9.89%	3.74%	9.69%	1.17%
RGA	67 Neutral	$12.77B	16.81	7.07%	1.87%	1.53%	-10.27%
SPNT	66 Neutral	$2.19B	21.12	4.82%	―	-4.56%	-55.48%