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1. Company Snapshot

1.a. Company Description

Swiss 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.

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1.b. Last Insights on SREN

Swiss Re AG faced challenges due to severe winter storms in the US, which are expected to result in significant losses for property owners, automobiles, and infrastructure. However, the reinsurer recently announced a $1 billion buyback plan, signaling a more aggressive stance on capital returns. This move is likely to boost shareholder value. The company's quarterly results, paired with the surprise buyback, led to a notable increase in its shares. According to recent reports, Swiss Re's fundamentals remain strong, which may help mitigate the impact of short-term headwinds.

1.c. Company Highlights

2. Swiss Re's 2025 Results Exceed Expectations

Swiss Re's 2025 results were impressive, with a record group net income of $4.8 billion, exceeding the target of $4.4 billion. The company's earnings per share (EPS) came in at $6.97, significantly higher than analyst estimates of $5.32. The return on equity (ROE) was 20%, indicating strong profitability. The company's Property & Casualty Reinsurance (P&C Re) business achieved a combined ratio of 79.4%, driven by disciplined underwriting and low large losses. The Corporate Solutions segment delivered a combined ratio of 86.5%, meeting its target.

Publication Date: Mar -01

📋 Highlights
  • Record Net Income:: Swiss Re achieved a group net income of $4.8 billion in 2025, exceeding its $4.4 billion target and marking a 9% increase in ROE to 20%.
  • Strong P&C Re Performance:: The P&C Re combined ratio dropped to 79.4%, driven by disciplined underwriting and low large losses, aligning with strategic cost savings of over $100 million.
  • Enhanced Shareholder Returns:: Capital repatriation rose with a $8/share dividend (9% increase) and a $1 billion extraordinary buyback, alongside a $500 million sustainable buyback.
  • Life & Health Re Resilience:: Despite adverse experience, Life & Health Re delivered $1.3 billion net income, supported by reserve strengthening and portfolio reviews to mitigate future volatility.
  • 2026 Outlook Confidence:: Swiss Re targets $4.5 billion group net income for 2026, with a normalized combined ratio below 85% and a 250% SST ratio, emphasizing prudence and cycle management.

Business Unit Performance

The Life & Health Re segment reported a net income of $1.3 billion, despite assumption updates and adverse experience. The company's management has taken targeted actions to address underperforming portfolios and strengthen reserves. The P&C Re business continued to demonstrate resilience, with a strong combined ratio and low large losses. The company's catastrophe budget was increased by 5% to $2.1 billion, driven by growth, not changes in retrocession.

Capital Management and Shareholder Returns

Swiss Re increased its capital repatriation to shareholders, with a proposed dividend of $8 per share, up 9%, and a $1 billion extraordinary buyback, in addition to a $500 million sustainable buyback. The group's Solvency II (SST) ratio remains strong at 250%. The company's management is focused on maintaining a stable capital position while returning excess capital to shareholders.

Outlook and Guidance

Swiss Re targets a group net income of $4.5 billion for 2026, driven by confidence in its business units' resilience and disciplined underwriting. The company expects a normalized combined ratio below 85%, reflecting prudence, with reserve releases and expense actions continuing. Analysts estimate next year's revenue growth at 2.4%. With a Price-to-Book Ratio (P/B) of 2.23 and a Dividend Yield of 4.38%, the stock appears reasonably valued.

Valuation and Conclusion

Considering the company's strong financial performance and guidance, the current valuation metrics appear reasonable. The P/B Ratio of 2.23 is slightly above the industry average, but the Dividend Yield of 4.38% is attractive. As per Anders Malmstrom, the company's net capital generation is expected to remain strong, guiding around 25 percentage points. Overall, Swiss Re's resilience and disciplined underwriting position it well for future growth.

3. NewsRoom

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Swiss Re AG (SSREF) Full Year 2025 Earnings Call Highlights: Record Net Income and Strategic ...

Feb -27

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Swiss Re Shares Jump After Reinsurer Tops Up Returns With $1 Billion Buyback

Feb -27

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A Winter Storm Is on Track to Hit Insurers. Why the Damage Could Be Huge.

Jan -24

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Will Weakness in Swiss Re AG's (VTX:SREN) Stock Prove Temporary Given Strong Fundamentals?

Dec -10

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Swiss Re AG (SSREF) Q3 2025 Earnings Call Highlights: Strong Net Income Amid Revenue Challenges

Nov -14

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Swiss Re Says Low Natural-Catastrophe Losses Lift Results

Nov -14

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Results: Swiss Re AG Exceeded Expectations And The Consensus Has Updated Its Estimates

Aug -17

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BofA Sees Beaten Down Insurance Stocks Primed for Rebound

Aug -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.85%)

6. Segments

Property & Casualty Reinsurance

Expected Growth: 2.5%

Swiss Re AG's Property & Casualty Reinsurance growth of 2.5 is driven by increased demand for reinsurance coverage, favorable pricing conditions, and the company's diversified portfolio. Strong relationships with primary insurers and expertise in risk assessment also contribute to growth. Additionally, Swiss Re's innovative solutions and adaptation to evolving regulatory requirements support its expansion in this segment.

Life & Health Reinsurance

Expected Growth: 3.5%

Swiss Re AG's Life & Health Reinsurance growth of 3.5% is driven by increasing demand for risk management solutions, expanding product offerings, and strategic partnerships. The segment benefits from Swiss Re's expertise in underwriting and data analytics, enabling informed decision-making and effective risk assessment. Favorable market trends and prudent capital management also contribute to growth.

Corporate Solutions

Expected Growth: 2.0%

Swiss Re AG's Corporate Solutions growth of 2.0 is driven by strategic focus on large-scale risks, digitalization, and innovation. The segment benefits from increased demand for customized risk management solutions, favorable pricing conditions, and disciplined underwriting. Expansion into new markets and improved operational efficiency also contribute to growth.

Group Items

Expected Growth: 1.8%

Swiss Re AG's 1.8% growth is driven by increased premiums in Life & Health Reinsurance and Property & Casualty Reinsurance segments, improved investment results, and disciplined risk management. Favorable market conditions and strategic business decisions also contributed to this growth.

Consolidation

Expected Growth: 0.0%

The 0.0% growth in Swiss Re AG's consolidation suggests a stable and mature market with limited expansion opportunities. Fundamental drivers include a strong brand presence, stable regulatory environment, and potentially saturated market with minimal room for growth, indicating a focus on maintaining market share and optimizing operations.

7. Detailed Products

Reinsurance

Swiss Re provides reinsurance solutions to insurance companies, helping them to manage and mitigate risk, and improve their capital efficiency.

Insurance-Linked Securities (ILS)

Swiss Re offers ILS solutions, which allow investors to invest in insurance-related risks, providing a new source of capital for the insurance industry.

Corporate Solutions

Swiss Re provides customized risk management solutions to large corporations, helping them to identify, assess, and mitigate risks.

Life and Health Reinsurance

Swiss Re offers life and health reinsurance solutions to insurance companies, helping them to manage mortality, morbidity, and longevity risks.

Property and Casualty Reinsurance

Swiss Re provides property and casualty reinsurance solutions to insurance companies, helping them to manage property, liability, and specialty risks.

Advisory Services

Swiss Re provides advisory services to insurance companies, helping them to improve their risk management, capital efficiency, and business strategy.

8. Swiss Re AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Swiss Re AG is medium, as there are alternative products and services available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Swiss Re AG is low, as customers have limited options and are not highly concentrated.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Swiss Re AG is medium, as suppliers have some bargaining power due to the specialized nature of their products and services.

Threat Of New Entrants

The threat of new entrants for Swiss Re AG is low, as there are significant barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Swiss Re AG is high, as the reinsurance industry is highly competitive, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.81%
Debt Cost 7.79%
Equity Weight 62.19%
Equity Cost 7.98%
WACC 7.91%
Leverage 60.80%

11. Quality Control: Swiss Re AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 9.4

Momentum: 8.0

Volatility: 8.7

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A-Score: 7.4/10

Value: 6.4

Growth: 9.2

Quality: 5.9

Yield: 7.5

Momentum: 9.5

Volatility: 6.0

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Erste Bank

A-Score: 6.4/10

Value: 5.1

Growth: 5.4

Quality: 5.4

Yield: 6.9

Momentum: 9.5

Volatility: 6.3

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Munich Re

A-Score: 6.2/10

Value: 5.3

Growth: 3.3

Quality: 7.9

Yield: 6.9

Momentum: 5.5

Volatility: 8.3

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Hannover Rück

A-Score: 5.9/10

Value: 4.3

Growth: 4.4

Quality: 7.8

Yield: 5.0

Momentum: 5.0

Volatility: 9.0

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Swiss Re

A-Score: 5.8/10

Value: 3.0

Growth: 3.0

Quality: 6.1

Yield: 8.8

Momentum: 5.5

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

128.0$

Current Price

128$

Potential

-0.00%

Expected Cash-Flows