Swiss Re records $285m net loss for first nine months of 2022

Written by Michael Griffiths

28/10/2022

Swiss Re has reported a net loss of $285m for the first nine months of 2022, driven by a $442m net loss in the third quarter.

The group also reported a return on equity (ROE) of –2.1% for the first nine months of 2022, compared with a net income of $1.3bn and an ROE of 6.6% for the same period last year.

The decline was mainly driven by significantly lower investment results, large natural catastrophe claims of $2.7bn, as well as Q1 reserves of $283m related to the war in Ukraine.

While P&C Re was impacted by Hurricane Ian and an increase in small and mid-sized claims in Q3, however, L&H Re and Corporate Solutions continued to deliver strong results and remain on track to meet their full-year targets, Swiss Re stated.

Swiss Re group CEO, Christian Mumenthaler, said: "The first nine months of this year were marked by a confluence of events affecting Swiss Re's financial performance: from turbulence in the financial markets, to an increase in natural catastrophe claims, surging inflation and the war in Ukraine.

“While P&C Re has been significantly affected by these headwinds, all other businesses are performing well and are on track to reach their 2022 financial targets.”

Swiss Re also reported that its net premiums earned and fee income for the group climbed 1.3% to $32.4bn in the first nine months of 2022, compared with the same period in 2021. This growth was negatively affected by adverse foreign exchange developments, Swiss Re stated, while at stable foreign exchange rates, the increase amounts to 5.2%.

Group chief financial officer, John Dacey, added: “We have bolstered reserves by $0.7bn over the past 12 months to address the impact of economic inflation. Rising interest rates are already helping to compensate for this impact, with the recurring contribution from our fixed-income portfolio rising by around USD $100m in the third quarter alone.

“Most importantly, despite the challenges this year, we have maintained our very strong capital position and remain committed to our capital management priorities.”

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