- Property and Casualty Reinsurance (P&C Re) net income of USD 1.5 billion; strong combined ratio of 97.5% as impacts from large-loss events were contained by disciplined underwriting
- Corporate Solutions net income of USD 425 million; very strong combined ratio of 91.1%
- Life and Health Reinsurance (L&H Re) net loss narrowed to USD 62 million; excluding COVID-19 losses, net income of USD 899 million
- Strong return on investments (ROI) of 3.0%
- Very strong capital position with a Group Swiss Solvency Test (SST) ratio of 234% as of 1 July 2021
- Excluding COVID-19 losses, Group net income of USD 2.3 billion and return on equity (ROE) of 11.7%
Driven by the performance of its property and casualty businesses, Swiss Re reported a Group net income of USD 1.3 billion in the first nine months of 2021, despite significant large-loss events, particularly in the third quarter. Swiss Re’s capital position remained very strong, with a Group SST ratio of 234% as of 1 July 2021.
Swiss Re’s Group Chief Executive Officer Christian Mumenthaler said: “Thanks to the Group’s sustained focus on portfolio quality and disciplined underwriting, our property and casualty businesses delivered excellent results in the first nine months of 2021. At the same time, we were able to support communities impacted by natural catastrophes and the COVID-19 pandemic.“
Swiss Re’s Group Chief Financial Officer John Dacey said: “P&C Re and Corporate Solutions are delivering on their ambitious targets for this year, with a combined net income of just below USD 2 billion in the first nine months. We are also pleased with the underlying performance of L&H Re, which offset the impact from the pandemic, resulting in a reported profit for the second consecutive quarter.“
Swiss Re significantly improves profitability across businesses
Swiss Re achieved strong results for the first nine months of 2021 and reported an ROE of 6.6%, against the background of the continued COVID-19 pandemic and large natural catastrophe events. Net premiums earned and fee income for the Group rose by 5.9% to USD 32.0 billion in the first nine months of 2021 compared with the same period last year, with all businesses reporting increases. Swiss Re’s net income excluding COVID-19 increased by 38% year on year to USD 2.3 billion.
Swiss Re achieved a return on investments of 3.0% in the first nine months of 2021. The investment result was largely driven by recurring income as well as equity valuation gains, combined with no credit impairments, as Swiss Re successfully navigated the low-yield environment.
P&C Re reports strong profit despite large natural catastrophe losses
P&C Re reported a net income of USD 1.5 billion in the first nine months of 2021, compared with a net loss of USD 201 million in the same period last year. This result was achieved while the business absorbed large natural catastrophe losses and reflects the improved quality of the portfolio, dramatically lower COVID-19 impacts as well as strong investment results. P&C Re’s net premiums earned grew by 6.0% to USD 16.4 billion, reflecting the continued price momentum as well as favourable foreign exchange developments.
Large natural catastrophe losses for the first nine months of the year amounted to USD 1.7 billion – higher than expected, but still below the premiums earned for this class of business. The losses mainly related to Hurricane Ida and the floods in Europe in the third quarter, as well as the US winter storm Uri in the first quarter. In addition, large man-made losses amounted to USD 272 million year to date.
The combined ratio significantly improved to 97.5% for the first nine months of 2021 from 110.3% in the same period last year. On a normalised1 basis, P&C Re achieved a combined ratio of 94.0% and is well on track to meet its target of less than 95% for the full year.