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Swiss Re AG (SSREY)
OTHER OTC:SSREY
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Swiss Re
(OTC:SSREY)
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Rating:73Outperform
Price Target:
$54.00
▲(17.04% Upside)
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
Strong Net Income and ROE
A strong net income and high ROE indicate effective management and profitability, enhancing the company's ability to reinvest in growth and maintain financial stability.
Exceptional P&C Results
The strong performance in the P&C segment underscores Swiss Re's competitive advantage in risk management, contributing to sustained profitability and market leadership.
Solid Group SST Ratio
A high SST ratio reflects Swiss Re's robust capital position, providing resilience against market volatility and enabling strategic investments.
Negative Factors
Life & Health Re Net Income Shortfall
Underperformance in the Life & Health segment could signal structural challenges, potentially impacting future profitability and strategic focus.
Decline in Insurance Revenue
A decline in insurance revenue suggests potential issues in market demand or competitive positioning, which could affect long-term growth prospects.
Challenges in Health Portfolios
Challenges in health portfolios highlight potential risks in underwriting accuracy, affecting profitability and necessitating strategic adjustments.
Swiss Re (SSREY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.42B
Dividend Yield4.42%
Average Volume (3M)6.68K
Price to Earnings (P/E)12.5
Beta (1Y)0.54
Revenue Growth-1.26%
EPS GrowthN/A
CountryUS
Employees15,000
SectorFinancial
Sector Strength70
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)1.17
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 Cap1.34
Enterprise Value/Revenue1.24
Enterprise Value/Gross Profit1.78
Enterprise Value/Ebitda6.75
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 27, 2026
Earnings Call Sentiment Neutral
The earnings call was characterized by strong overall financial performance, particularly in P&C and Corporate Solutions, along with a robust investment return. However, challenges remain in the Life & Health segment, with a potential shortfall in net income targets due to negative assumption updates and claims variability. The decline in insurance revenues and new business CSM also reflects a challenging market environment.Q3-2025 Updates
Positive Updates
Strong Net Income and Return on Equity
Swiss Re reported a net income of USD 4 billion for the first 9 months of 2025, with an annualized return on equity of 22.5%, on track to meet the full-year net income target of over USD 4.4 billion.
Exceptional P&C Results
P&C reported a very strong combined ratio of 71.3% in Q3, resulting in 77.6% for the first 9 months, well below the 85% target. This was aided by lower-than-expected large nat cat losses.
Corporate Solutions Performance
Corporate Solutions achieved a 9-month combined ratio of 87.1%, below the target of less than 91%, driven by higher in-force margins and favorable large loss experience.
Strong Investment Return
The investment return was 4.1% for the first 9 months, ahead of last year's 3.9%, supported by strong recurring income of USD 3.0 billion.
Solid Group SST Ratio
Swiss Re's SST ratio was estimated at 268% as of October 1, 2025, up 11 points from the start of the year.
Negative Updates
Life & Health Re Net Income Shortfall
Life & Health Re net income reached USD 1.1 billion after 3 quarters, likely falling short of the USD 1.6 billion full-year target due to negative assumption updates and claims experience.
Decline in Insurance Revenue
Insurance revenue amounted to USD 32 billion for the first 9 months, down from USD 33.7 billion last year, impacted by pruning actions and nonrenewal of certain businesses.
Challenges in Health Portfolios
Negative assumption updates and claims experience in Health portfolios, particularly in EMEA and ANZ regions, led to a USD 400 million negative impact for the first 9 months.
Decline in New Business CSM
New business CSM was USD 3.9 billion for the first 9 months, down from USD 4.2 billion last year, reflecting a challenging pricing environment and focus on portfolio quality.
Company Guidance
During the call, Swiss Re provided detailed guidance on their financial performance for the first nine months of 2025. The Group reported a net income of USD 4 billion, with a strong annualized return on equity of 22.5%, positioning them well to meet their full-year net income target of over USD 4.4 billion. The Property & Casualty (P&C) units exceeded expectations with a combined ratio of 71.3% in Q3 and 77.6% for the first nine months, significantly below the 85% target, largely due to lower-than-expected large claims and favorable nat cat experience. Corporate Solutions also reported a strong 9-month combined ratio of 87.1%, below their target of less than 91%. Life & Health Reinsurance, however, faced challenges with a net income of USD 1.1 billion, below its full-year target, due to negative assumption updates and claims experience, particularly in certain Health portfolios. Despite these challenges, Swiss Re remains confident in meeting their overall net income target, supported by strong investment returns and disciplined underwriting, as evidenced by a new business CSM of USD 3.9 billion. The SST ratio increased to 268% as of October 1, 2025, reflecting the Group's ongoing focus on resilience and prudent financial management.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.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 | 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
Negative
46.14
Price Trends
43.17
Negative
44.36
Negative
44.08
Negative
Market Momentum
-0.57
Positive
35.84
Neutral
4.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSREY, the sentiment is Negative. The current price of 46.14 is above the 20-day moving average (MA) of 41.20, above the 50-day MA of 43.17, and above the 200-day MA of 44.08, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 4.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $2.65B | 6.14 | 17.62% | ― | 22.79% | -5.17% | |
77 Outperform | $12.89B | 7.59 | 14.98% | 0.57% | -3.96% | -48.08% | |
76 Outperform | $2.37B | 12.86 | 8.09% | ― | 7.87% | -4.68% | |
74 Outperform | $13.30B | 15.57 | 7.19% | 1.76% | 2.10% | 19.23% | |
73 Outperform | $43.42B | 12.51 | 17.36% | 4.42% | -1.26% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $14.19B | 24.72 | 3.59% | 2.37% | 8.62% | -78.92% |
* Financial Sector Average
SSREY
Swiss Re
40.41
5.73
16.53%
EG
Everest Group
338.10
-5.38
-1.57%
RGA
Reinsurance Group
202.44
-7.75
-3.69%
RNR
Renaissancere Holdings
279.51
27.82
11.05%
SPNT
SiriusPoint
20.33
6.03
42.17%
HG
Hamilton Insurance Group, Ltd. Class B
26.92
8.61
47.02%
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.