Swiss Re, a leading reinsurance company based in Switzerland, aims to achieve a net income exceeding $4.4 billion as part of its financial objectives for 2025. The company will emphasize maintaining cost discipline, enhancing efficiency, and driving growth and profitability. In a recent announcement, Swiss Re also adjusted its financial targets for various business units for 2025.
The company is targeting a reported combined ratio of less than 85%, and under 91% for its property and casualty reinsurance and corporate solutions divisions. For its life and health reinsurance sector, Swiss Re expects to generate $1.6 billion in net income. Looking ahead to 2024, the reinsurer projects a group net income surpassing $3 billion. Group Chief Executive Officer Andreas Berger stated, "We have taken decisive actions in 2024 to increase the resilience of our business.
As we look ahead to 2025, we expect P&C reinsurance pricing to remain strong, with growing demand for protection driven by an elevated risk environment." Berger also mentioned that commercial insurance pricing is stabilizing at appealing levels, while positive trends in the life insurance market and favorable mortality rates in the U.S.
are enhancing the performance of the life and health reinsurance segment. Analysts from RBC Capital Markets noted, "The 2025 target broadly meets consensus expectations, with the main variance attributed to a downturn in L&H Re due to a negative assumption update. $4.4 billion implies roughly a ~19% return on equity against a target of over 14%.
[Swiss Re's] earnings outlook should now be clear from casualty reserve risks following additional actions taken under its new CEO." Furthermore, the reinsurer intends to raise its dividend per share by at least 7% annually over the next three years, while still striving for an IFRS return on equity exceeding 14% over the long term. As of late Friday morning, Swiss Re's stock experienced an increase of nearly 4% in Zurich..