Swiss Re reports net income of $2.5bn

Written by Adam Cadle

03/11/2023

Swiss Re has reported a net income of US$2.5bn in the first nine months of 2023, with a profit of US$1bn in the third quarter.

This compares with a net loss of US$285m and an ROE of -2.1% for the first nine months of 2022. The firm said the significant improvement was mainly driven by the underwriting performance in P&C Re and L&H Re, supported by increasing investment results.

The group achieved a return on investments of 3.5% in the first nine months of 2023, compared with 1.6% in the prior-year period. In the third quarter, Swiss Re said the ROI was “exceptional” at 4.8%, supported by net realised gains stemming from real-estate sales, which were partially offset by losses from targeted sales of lower-yielding fixed-income securities. Overall, the investment portfolio continues to benefit from higher interest rates.

Swiss Re’s capital position remained very strong, with a group Swiss Solvency Test (SST) ratio of 314% as of 1 July 2023.

Swiss Re's group chief financial officer, John Dacey, said: "With interest rates continuing to rise, we see improvements in the recurring income yield and in our overall investment results. Combined with the improved underwriting performance, this has significantly strengthened the group's earnings capacity."

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