Swiss Re, the Swiss reinsurer, has reiterated its financial targets for the fiscal year 2025, projecting a financial hit of under $700 million due to claims linked to the wildfires that occurred in Los Angeles in January. This recent filing on a Thursday indicates that despite these challenges, the company is on a solid path to deliver a net income exceeding $4.4 billion in 2025, alongside an anticipated annual dividend growth of 7% or more between 2025 and 2027.
Furthermore, Swiss Re has assured stakeholders of its multi-year IFRS return on equity goal of more than 14%. In its financial reporting for the year ending December 31, 2024, Swiss Re reported a net income of $3.24 billion, a notable increase from the previous year's $3.11 billion. This improvement can be attributed to disciplined underwriting practices in new business as well as positive investment contributions across all business units.
The property and casualty reinsurance division specifically generated a net income of $1.23 billion, a decline from the $1.54 billion collected the year prior. Meanwhile, the life and health reinsurance segment experienced a rise in earnings to $1.53 billion, an increase from $1.44 billion. Additionally, the Corporate Solutions sector reported a net income of $829 million, improving from the previous $658 million.
Swiss Re's group insurance revenue has risen to $45.60 billion, up from $43.90 billion, with all three segments contributing positively to this growth. Andreas Berger, the Group Chief Executive Officer, remarked, 'Our results for the period reflect this and show that we are on the right track: we have delivered strong net income and ROE, while achieving our goal of positioning overall P&C reserves at the higher end of our best-estimate range.' In light of its robust performance, the board intends to propose a dividend of $7.35 per share at the upcoming annual general meeting scheduled for April 11, marking an increase from last year’s distribution of $6.80 per share.
Analysts from RBC Capital Markets express optimism regarding Swiss Re’s potential to restore its earnings trajectory following its reaffirmation of 2025 targets. They noted, 'SREN's earnings outlook should now be clear from Casualty reserve risks following further actions taken under its new CEO.
It can now look to rebuild its earnings track record starting with the >$4.4bn target for 2025 but the shares have already re-rated to a level which looks fair relative to peers.' On Thursday, shares of Swiss Re saw an increase of over 2% during the late morning session..