Swiss Re’s net income rises by 73% to $727m

Written by Adam Cadle

20/02/2020

Swiss Re’s net income increased 73% to US$727m from US$421m in 2018, according to its full-year results for 2019.

Property & Casualty Reinsurance (P&C Re) net income rose 7% to US$396m, with net premiums earned up 20%. Return on equity (ROE) was recorded at 4.4%.

Life & Health Reinsurance (L&H Re) net income rose 18% to US$899m and ROE was recorded at 12.4% which was above target range.

The reinsurer’s corporate solutions arm recorded a net loss of US$647m reflecting decisive management actions to address underperformance as well as increased claims in the US casualty business.

Swiss Re’s capital position remained “very strong” with a Group Swiss Solvency Test (SST) ratio above the 220% target level.

Moody’s senior vice president Brandan Holmes said: “Adverse development in Swiss Re’s US casualty reserves is credit negative for the group, following an extended period of weak profitability over the past three years. Despite this, the insurer’s very strong capitalisation and leading global market position still support its credit profile.

“Continued adverse reserve development at Swiss Re’s Corporate Solutions division highlights the extent of its underwriting difficulties and the challenges the group faces in repositioning this business.”

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