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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 in its recent performance, driven by a decline in insurance revenue and difficulties in Life and Health portfolios. Despite robust net income and investment returns, the company's revenue growth was hindered. Low natural-catastrophe losses, however, contributed to a significant increase in net profit to $4 billion for the first nine months of the year. The prior year's results were impacted by increased U.S. liability reserves. The company's challenges in Life and Health portfolios may pose concerns.

1.c. Company Highlights

2. Swiss Re's Strong 9M 2025 Results Driven by P&C Performance

Swiss Re reported a net income of $4 billion for the first 9 months of 2025, with an annualized return on equity of 22.5%, positioning the company to exceed its full-year net income target of more than $4.4 billion. The company's Insurance revenue amounted to $32 billion, down from $33.7 billion last year, primarily due to pruning actions on the P&C Re side and the sale of the P&C EMEA IptiQ business. The actual EPS came out at $6.97, significantly higher than the estimated $5.32.

Publication Date: Nov -15

📋 Highlights
  • Net Income and ROE: Swiss Re reported $4B net income for 9 months 2025, with 22.5% annualized ROE, on track to exceed $4.4B full-year target.
  • Life & Health Re Challenges: Negative assumption updates caused a $400M P&L hit in the first 9 months, driven by resilience-strengthening efforts in underperforming portfolios.
  • SST Ratio Strength: Solvency (SST) ratio rose to 268% as of October 1, 2025, up 11 points YoY, reflecting balance sheet strengthening via risk adjustment releases.
  • Expense Management: Expense ratios increased 3% YoY in Q3 due to restructuring costs (e.g., Aviation exit), but $300M+ cost savings target remains on track with $100M expected in 2025.
  • New Business CSM Growth: Non-Life CSM dipped 30-35% in Q3, while Life & Health CSM rose in U.S. Mortality/Health and EMEA Longevity, driven by new contracts and classical mortality trends.

Segmental Performance

The Life & Health Re business unit reported a net income of $1.1 billion, impacted by negative assumption updates of around $400 million. However, the P&C segment delivered exceptionally good results, driven by low large claims burden. New business CSM generation remained resilient, with a new business CSM of $3.9 billion for the first 9 months, slightly down from last year's $4.2 billion.

Capital Management and Solvency

The company's SST ratio stood at 268% as of October 1, 2025, 11 points higher from the start of the year, indicating a strong capital position. The company is confident about growing its business lines, particularly Longevity, despite challenges in certain markets.

Expense Management

Expense ratios in certain segments rose year-over-year, mainly due to restructuring costs. However, the company is focused on managing costs and expects to achieve over $300 million in cost savings by 2027, with $100 million expected this year.

Valuation and Outlook

Swiss Re's P/B Ratio stands at 2.31, indicating that the market is pricing in a certain level of growth. With analysts estimating revenue growth at 1.3% next year, the company's valuation appears reasonable. The Dividend Yield of 4.09% is also attractive, making the stock a potentially interesting investment opportunity for income-seeking investors.

3. NewsRoom

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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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Swiss Re AG's (VTX:SREN) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?

Jul -01

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Swiss Re’s net income surges 16% to $1.27bn in Q1 2025

May -19

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Swiss Re AG (SSREF) Q1 2025 Earnings Call Highlights: Strong Net Income Amid Large Losses

May -17

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Swiss Re Just Quietly Crushed Q1--And It's Sitting on a Fortress of Capital

May -16

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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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BBVA

A-Score: 7.8/10

Value: 7.1

Growth: 9.2

Quality: 7.0

Yield: 8.1

Momentum: 9.5

Volatility: 6.0

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Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 10.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Erste Bank

A-Score: 6.8/10

Value: 6.4

Growth: 4.6

Quality: 6.2

Yield: 7.5

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

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Swiss Re

A-Score: 6.6/10

Value: 4.2

Growth: 3.0

Quality: 7.6

Yield: 8.1

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

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Munich Re

A-Score: 6.6/10

Value: 6.4

Growth: 4.4

Quality: 7.4

Yield: 6.9

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Hannover Rück

A-Score: 6.1/10

Value: 5.9

Growth: 5.9

Quality: 6.9

Yield: 5.0

Momentum: 4.0

Volatility: 9.0

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

129.45$

Current Price

129.45$

Potential

-0.00%

Expected Cash-Flows