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Swiss Re AG (SSREY)
:SSREY
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Swiss Re
(OTC:SSREY)
Select Model
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Rating:74Outperform
Price Target:
$52.00
▲(13.56% Upside)
Swiss Re's overall stock score reflects strong technical momentum and positive earnings call highlights, including robust net income and cost management. Financial performance is solid, though tempered by revenue decline and reliance on debt. Valuation is fair with an attractive dividend yield.
Swiss Re (SSREY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.68B
Dividend Yield4.05%
Average Volume (3M)2.25K
Price to Earnings (P/E)14.6
Beta (1Y)0.49
Revenue Growth-1.26%
EPS GrowthN/A
CountryUS
Employees15,000
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)1.13
Shares Outstanding1,195,046,900
10 Day Avg. Volume1,838
30 Day Avg. Volume2,252
Financial Highlights & Ratios
PEG Ratio4.11
Price to Book (P/B)1.92
Price to Sales (P/S)5.07
P/FCF Ratio14.14
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit1.91
Enterprise Value/Ebitda12.16
Forecast
1Y Price Target
$52.00Price Target Upside13.56% Upside
Rating ConsensusHold
Number of Analyst Covering2
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 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:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
Swiss Re's earnings call highlights strong financial performance and disciplined cost management, with significant progress in P&C and investment results. However, challenges persist with declining insurance revenue and negative experience variance in Life & Health Re, as well as pressure on P&C rates.Q2-2025 Updates
Positive Updates
Strong Net Income and ROE
Swiss Re reported a strong net income of USD 2.6 billion for the first half of 2025, resulting in an annualized ROE of 23%.
Resilient P&C Business
P&C Re's new business CSM of USD 2.2 billion in the first 6 months of the year is unchanged from the same period a year ago, showing solid performance despite market challenges.
Cost Reduction Progress
The company is on track to reduce its cost run rate by around USD 100 million this year, contributing to the overall target of USD 300 million by 2027.
Improved Combined Ratios
P&C Re's combined ratio for the first half was 81.1% compared to a target of 85%, and Corporate Solutions achieved 88.2% against a target of less than 91%.
Strong Investment Results
The return on investment was 4.1%, slightly ahead of last year's 4%, driven by realized gains and healthy recurring income.
Negative Updates
Decline in Insurance Revenue
Group's insurance revenue amounted to USD 20.9 billion in the first half, down from USD 22.2 billion last year, driven by the termination of transactions and nonrenewals.
Negative Experience Variance in Life & Health Re
Experience variance and other amounted to a negative USD 197 million, reflecting selective assumption updates in onerous business and volume updates.
Pressure on P&C Rates
Despite some positive developments, there is pressure on rates across P&C business, with some rate reductions observed.
Challenges in Small Life & Health Portfolios
Smaller portfolios in Life & Health continue to present challenges, with experience lagging expectations and requiring assumption updates.
Company Guidance
During Swiss Re's Half Year 2025 Results Conference Call, the company reported a strong net income of USD 2.6 billion for the first half, with an annualized ROE of 23%. The company achieved 60% of its full-year net income target of over USD 4.4 billion, largely driven by a robust underwriting performance in its P&C businesses, which benefited from a relatively calm second quarter with respect to large losses. The P&C Re business saw a nominal reserve release of around USD 250 million and a first-half combined ratio of 81.1%, well below the 85% target. Meanwhile, Life & Health Re reported a net income of USD 839 million, slightly above the pro-rated target. Swiss Re maintained its focus on underwriting discipline and cost management, targeting a reduction in its cost run rate by around USD 100 million in 2025, contributing to an overall target of USD 300 million by 2027. The company also highlighted a solid investment result with an ROI of 4.1% and estimated a Group SST ratio of 264% as of July 2025, up by 7 points since the beginning of the year.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.67B | 8.72B | 43.64B | 46.04B | 46.74B | 43.34B |
| Gross Profit | 32.45B | 8.72B | 49.46B | 46.04B | 46.74B | 43.34B |
| EBITDA | 5.10B | 4.27B | -23.00M | 1.64B | 3.07B | 115.00M |
| Net Income | 3.74B | 3.24B | 3.21B | 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
45.79
Price Trends
45.45
Positive
44.78
Positive
42.53
Positive
Market Momentum
0.46
Positive
48.14
Neutral
19.54
Positive
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 45.79 is below the 20-day moving average (MA) of 46.15, above the 50-day MA of 45.45, and above the 200-day MA of 42.53, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 19.54 is Positive, 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 |
|---|---|---|---|---|---|---|---|
85 Outperform | $11.85B | 6.43 | 18.75% | 0.63% | 23.19% | -22.42% | |
82 Outperform | $2.34B | 6.24 | 15.86% | ― | 28.86% | -11.22% | |
74 Outperform | $50.68B | 14.63 | 17.36% | 4.05% | -1.26% | ― | |
72 Outperform | $14.30B | 17.76 | 5.52% | 2.29% | 10.40% | -71.67% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $12.43B | 16.36 | 7.07% | 1.91% | 1.53% | -10.27% | |
65 Neutral | $2.07B | 19.76 | 4.82% | ― | -4.56% | -55.48% |
* Financial Sector Average
SSREY
Swiss Re
45.79
12.96
39.48%
EG
Everest Group
349.13
-26.59
-7.08%
RGA
Reinsurance Group
187.74
-25.28
-11.87%
RNR
Renaissancere Holdings
250.95
-29.85
-10.63%
SPNT
SiriusPoint
17.64
3.67
26.27%
HG
Hamilton Insurance Group, Ltd. Class B
23.74
5.04
26.95%
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.