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Swiss Re (SSREY)
OTHER OTC:SSREY
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Swiss Re
(OTC:SSREY)
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Rating:73Outperform
Price Target:
$45.00
▼(-2.47% Downside)
Action:ReiteratedDate:11/15/25
Swiss Re's overall stock score is driven by strong earnings call performance and positive technical indicators, despite challenges in revenue growth and the Life & Health segment. The company's valuation remains balanced with a reasonable P/E ratio and attractive dividend yield.
Positive Factors
P&C underwriting strength
Sustained low combined ratios in P&C demonstrate disciplined underwriting and pricing power versus peers. Over the next 2–6 months this structural advantage supports predictable underwriting margins, capital retention after losses, and a durable earnings base through cycles.
High return on equity
A strong ROE indicates efficient use of shareholder capital and robust profitability generation. Persistently high ROE enables reinvestment in business lines, supports dividend capacity and capital buffers, and signals lasting capital efficiency relative to many insurers.
Positive free cash flow generation
Consistent positive FCF and near 1:1 cash conversion of net income provide durable funding for claims, retrocession, and capital returns without frequent external financing. This strengthens financial flexibility and resilience across underwriting cycles.
Negative Factors
Sharp revenue contraction
A pronounced revenue decline erodes scale and diversifying revenue streams, limiting the firm’s ability to spread fixed costs and absorb large-loss variability. Over months this can constrain investment in growth initiatives and reduce underwriting leverage in key markets.
Life & Health portfolio stress
Material adverse assumption updates and claim volatility in Life & Health create earnings unpredictability and reserve pressure. Structurally, this segment can drag group returns, complicate capital planning and require pricing or product redesign to restore sustainable profitability.
Low equity ratio / reliance on liabilities
A relatively low equity ratio increases sensitivity to underwriting losses and market shocks; reliance on liabilities can raise solvency risk under stress. Over several months this may necessitate capital management actions or higher reinsurance costs to maintain regulatory and rating agency metrics.
Swiss Re (SSREY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.04B
Dividend Yield4.42%
Average Volume (3M)6.68K
Price to Earnings (P/E)11.1
Beta (1Y)0.52
Revenue Growth-1.26%
EPS GrowthN/A
CountryUS
Employees15,000
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)0.57
Shares Outstanding1,195,046,900
10 Day Avg. Volume9,895
30 Day Avg. Volume6,678
Financial Highlights & Ratios
PEG Ratio4.11
Price to Book (P/B)1.92
Price to Sales (P/S)0.95
P/FCF Ratio14.14
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit1.73
Enterprise Value/Ebitda6.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4
Revenue Forecast (FY)$43.76B
Swiss Re Business Overview & Revenue Model
Company DescriptionSwiss Re (SSREY) is a leading global reinsurance and insurance company headquartered in Zurich, Switzerland. Established in 1863, Swiss Re operates primarily in the reinsurance sector, providing a wide range of products and services, including property and casualty reinsurance, life and health reinsurance, and insurance solutions. The company also offers risk management and advisory services, catering to clients in various industries worldwide, including financial services, healthcare, and natural resources.
How the Company Makes MoneySwiss Re generates revenue primarily through its reinsurance operations, which involve underwriting and assuming risk from insurance companies for a fee. The company earns premiums from its clients in exchange for taking on the risk of large losses, and it invests the premiums it collects, generating investment income. Key revenue streams include property and casualty reinsurance, life and health reinsurance, and specialty insurance products. Significant partnerships with insurance companies and a diversified global presence enhance Swiss Re's ability to manage risk and capitalize on market opportunities, thereby contributing to its earnings.
Swiss Re Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive picture: Swiss Re delivered record earnings (USD 4.8 billion) and strong underwriting results (P&C Re combined ratio 79.4%), executed tangible capital returns (9% higher ordinary dividend plus USD 1.5 billion in buybacks) and strengthened reserves and resilience (loss picks +4.6%, added reserves, IBNR reallocation). Major negatives were concentrated in Life & Health where assumption updates and adverse experience reduced 2025 earnings (approx. USD 950 million combined impact across updates and experience), a meaningful top-line decline (USD 43.1bn vs USD 45.6bn) and increased direct nat cat exposure following reduced retrocession. On balance the positive operational and capital achievements, clear cost-savings targets and strong solvency metrics outweigh the lower‑order and addressable headwinds, supporting a constructive outlook.Q4-2025 Updates
Positive Updates
Record Group Net Income and Strong ROE
Group net income of USD 4.8 billion in 2025 (above the USD 4.4 billion target) with an ROE of 20%, driven by disciplined underwriting, strong recurring investment income and a low burden of large losses outside Q1.
Robust Capital Returns and Strong Solvency
Board proposes USD 8 per share ordinary dividend (9% increase). Announced capital actions include a USD 500 million sustainable buyback and an additional USD 1 billion extraordinary buyback, implying total payout of USD 3.9 billion (~80% of 2025 earnings). Group SST ratio after actions remains strong at 250%.
Excellent P&C Re Underwriting Performance
P&C Re delivered an insurance service result of USD 3.6 billion and a combined ratio of 79.4% for 2025 (well under the <85% target), supported by favorable experience variance and large nat cat losses coming in USD 1.2 billion below expectations.
Solid Corporate Solutions Outcome
Corporate Solutions achieved a full-year combined ratio of 86.5% (comfortably below its <91% target) and insurance service result increased to USD 1.2 billion (up ~USD 200 million year-on-year); like-for-like combined ratio would be ~80%.
Life & Health Re Earnings and Resilience
Life & Health Re delivered net income of USD 1.3 billion for 2025 despite portfolio reviews and assumption updates; management expects improved visibility and targets USD 1.7 billion net income for 2026.
Investment Returns and Recurring Yield
Return on investments (ROI) of 4.0% with recurring investment yield of 4.2% and a reinvestment yield of ~4.4%, providing a stable recurring investment contribution (recurring investment income ~USD 4 billion).
Progress on Cost Savings and Expense Discipline
Achieved more than USD 100 million of cost savings in 2025 and on track for targeted USD 300 million reduction in operating cost run rate by 2027 (additional USD 200 million planned over next two years).
Prudent Reserving and Resilience Measures
Increased initial loss assumptions by 4.6%, added ~USD 200 million to current-year reserves and ~USD 100 million to prior-year reserves (nominal), and recycled close to USD 1 billion of short-tail reserve redundancies into longer-tail IBNR to strengthen resilience.
Renewals and Premium Renewal Volume
Renewed treaty contracts representing USD 12.4 billion of gross premium; nominal pricing broadly flat with mid-single-digit improvements in casualty offset by mid-single-digit declines in property (notably nat cat). After updated loss assumptions (+4.6%), reported a net price decrease of 4.3%.
Capital Generation and Flexibility
Generated ~USD 4.7 billion of SST capital in 2025; management reiterated flexibility to deploy excess capital (extraordinary buybacks) when qualitative and quantitative criteria are met rather than as a recurring commitment.
Progress on iptiQ Exit
Substantial progress on iptiQ withdrawal — most parts sold and remaining EMEA Life & Health book placed into runoff; management expects continued runoff management and no acceleration in previously communicated guidance.
Negative Updates
Life & Health Assumption Updates and Earnings Impact
Detailed reviews of underperforming Life & Health portfolios led to negative assumption updates of ~USD 650 million for the full year (approx. USD 250 million in Q4), focused on Australia, Israel and South Korea, reducing the insurance service result for 2025.
Adverse Experience in Life & Health
Adverse experience negatively impacted the Life & Health insurance service result by approximately USD 300 million for 2025 (around USD 200 million attributable to the markets subject to reviews).
Decline in Insurance Revenue
Group insurance revenue decreased to USD 43.1 billion in 2025 from USD 45.6 billion in 2024 (down ~USD 2.5 billion, roughly -5.3%), reflecting portfolio disposals, renewals and FX effects; management emphasizes earnings quality over top-line growth.
Higher New Business Loss Component Than Expected
New business loss (day-one strain) was elevated in 2025 (~3% reported) versus prior guidance/expectations (management had referenced ~1.5–2% as a typical range and 2.5% in 2024), contributing to pressure on reported insurance service results in the period.
Increased Nat Cat Exposure via Reduced Retrocession
Management reduced external retrocession for nat cat at 1/1 renewals (as flagged earlier), increasing Swiss Re's direct nat cat exposure and thus potential volatility despite being a deliberate strategic underwriting choice.
Q4 Group Items and iptiQ-related Loss
Q4 group items included an approximately USD 100 million negative amount related to the sales of iptiQ, larger than some had anticipated and affecting quarterly results.
Expense Ratio and Short-term Cost Noise
Reported expense ratio increased from 4.8% to 5.4% (approx. +0.6 percentage points) with management attributing part of the jump to year-end accruals and one-off/project costs; full-year basis is recommended for normalized comparison.
Corporate Solutions Large Man-made Losses
Corporate Solutions experienced large man-made claims of USD 351 million that were slightly above expectations, partially offsetting favorable nat cat outcomes (large nat cat claims USD 148 million below expectations).
Top-line Volatility and Negative New Business Growth
Management noted volatility in top-line and new business flows: references made to negative growth of ~5% in certain measures for 2025 (partly FX and disposals-driven), complicating forecasting of insurance revenue even as earnings focus remains primary.
Company Guidance
Management confirmed 2026 guidance with a group net income target of USD 4.5bn and a Life & Health Re (L&H) net income target of USD 1.7bn, reaffirmed P&C Re’s combined‑ratio target below 85% (management estimates a normalized starting point of ~84–84.5% post‑renewals) and Corporate Solutions’ target below 91% (2025 reported 86.5%; like‑for‑like ~80%). They reiterated resilience measures and capital plans: P&C Re added ~USD 200m to current‑year and ~USD 100m to prior‑year reserves, recycled ~USD 1bn of short‑tail redundancy into IBNR, increased loss assumptions by 4.6% (yielding a net price decrease of 4.3% on USD 12.4bn of renewed treaty premium), set a nat‑cat budget of USD 2.1bn, and achieved >USD 100m of cost savings in 2025 on track to a USD 300m operating cost run‑rate reduction by 2027. Capital and financial metrics included a proposed dividend of USD 8/share (+9%), a USD 500m sustainable buyback and a USD 1bn extraordinary buyback (total payout ~USD 3.9bn, ~80% of 2025 earnings), ~USD 4.7bn of SST capital generated in 2025 and an SST ratio of ~250%; 2025 results included group net income USD 4.8bn (ROE 20%), insurance revenue USD 43.1bn, L&H CSM ~USD 17bn, investment ROI ~4.0% with a recurring yield ~4.2% (recurring investment income ~USD 4bn), and L&H assumption updates that hit P&L by ~USD 650m in 2025 (≈USD 250m in Q4) with ~USD 300m of adverse experience.Swiss Re Financial Statement Overview
Summary
Swiss Re demonstrates strong profitability margins and effective cash generation, with a robust EBITDA margin and positive free cash flow. However, the sharp decline in revenue and moderate reliance on debt are concerning factors.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.78B | 46.76B | 43.64B | 46.04B | 45.94B | 43.77B |
| Gross Profit | 32.56B | 43.14B | 40.32B | 38.24B | 37.70B | 35.54B |
| EBITDA | 8.61B | 4.27B | 4.26B | 1.65B | 3.07B | 115.00M |
| Net Income | 3.80B | 3.24B | 3.11B | 472.00M | 1.44B | -878.00M |
Balance Sheet | ||||||
| Total Assets | 135.34B | 127.23B | 179.58B | 170.68B | 181.57B | 182.62B |
| Cash, Cash Equivalents and Short-Term Investments | 96.26B | 88.64B | 88.38B | 85.61B | 4.15B | 4.70B |
| Total Debt | 9.58B | 7.26B | 9.82B | 11.04B | 11.19B | 11.74B |
| Total Liabilities | 111.27B | 103.99B | 163.21B | 157.87B | 157.89B | 155.36B |
| Stockholders Equity | 23.93B | 23.11B | 22.31B | 12.70B | 23.57B | 27.14B |
Cash Flow | ||||||
| Free Cash Flow | 3.60B | 3.13B | 4.09B | 2.93B | 4.10B | 5.39B |
| Operating Cash Flow | 3.60B | 3.13B | 4.09B | 2.93B | 4.10B | 5.39B |
| Investing Cash Flow | -1.64B | -407.00M | -362.00M | -2.34B | -2.14B | -7.72B |
| Financing Cash Flow | -1.51B | -2.97B | -3.22B | -1.24B | -2.10B | -2.50B |
Swiss Re Technical Analysis
Positive
46.14
Price Trends
40.91
Positive
42.94
Positive
43.72
Positive
Market Momentum
0.59
Negative
75.15
Negative
98.78
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 46.14 is above the 20-day moving average (MA) of 41.52, above the 50-day MA of 40.91, and above the 200-day MA of 43.72, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 75.15 is Negative, neither overbought nor oversold. The STOCH value of 98.78 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.13B | 5.46 | 22.39% | ― | 22.79% | -5.17% | |
80 Outperform | $13.15B | 5.40 | 23.79% | 0.57% | -3.96% | -48.08% | |
78 Outperform | $14.14B | 12.19 | 9.74% | 1.76% | 2.10% | 19.23% | |
75 Outperform | $13.55B | 8.87 | 10.85% | 2.37% | 8.62% | -78.92% | |
73 Outperform | $48.04B | 11.09 | 17.36% | 4.42% | -1.26% | ― | |
72 Outperform | $2.47B | 5.74 | 20.86% | ― | 7.87% | -4.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
SSREY
Swiss Re
42.92
3.11
7.80%
EG
Everest Group
339.63
-8.16
-2.35%
RGA
Reinsurance Group
216.97
21.69
11.11%
RNR
Renaissancere Holdings
307.03
67.30
28.07%
SPNT
SiriusPoint
21.49
6.37
42.13%
HG
Hamilton Insurance Group, Ltd. Class B
31.55
11.95
60.97%
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.