Swiss Re reports a first-quarter IFRS net income of USD 1.1 billion

Swiss Re Ltd / Key word(s): Quarter Results
Swiss Re reports a first-quarter IFRS net income of USD 1.1 billion

16-May-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

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Ad hoc announcement pursuant to Article 53 LR

  * Property & Casualty Reinsurance (P&C Re) net income of USD 552 million;
    combined ratio of 84.7%(1)

  * Successful P&C Re April 2024 renewals, with price increase of 12%
    achieved

* Life & Health Reinsurance (L&H Re) net income of USD 412 million

  * Corporate Solutions net income of USD 194 million; combined ratio of
    89.9%(2)

* Return on investments (ROI) of 4.0%; recurring income yield of 3.9%

* Swiss Re plans to withdraw from iptiQ business

Zurich, 16 May 2024 - Swiss Re posted a net income of USD 1.1 billion for
the first quarter of 2024. The result benefitted from underwriting
discipline and strong investment income. Swiss Re is reporting its results
under IFRS for the first time after transitioning from US GAAP as of 1
January 2024.

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "Swiss
Re had a good start to the year, with all our main businesses posting strong
results. This reflects continued underwriting discipline, a strong return on
investments and effective management of operating expenses."

Swiss Re's Group Chief Financial Officer John Dacey said: "The transition to
IFRS from US GAAP represents an excellent opportunity to demonstrate the
economic value of our businesses. The IFRS framework is also more closely
aligned with how we steer the company internally and brings to the fore the
earnings power of our leading Life & Health Reinsurance franchise."

Strong first-quarter profit of USD 1.1 billion

Swiss Re reported a net income of USD 1.1 billion and a return on equity
(ROE) of 21.3% for the first quarter of 2024. As Swiss Re is reporting under
IFRS for the first time, this result is not comparable to the 2023
first-quarter result under US GAAP. Swiss Re is publishing limited unaudited
IFRS consolidated financial information for 2023 comparatives in the
Investor and Analyst Presentation.

Insurance revenue(3) for the Group reached USD 11.7 billion for the first
quarter of 2024. The insurance service result(4), reflecting the
profitability of the underwriting activity, was USD 1.4 billion.

As announced at Investors' Day in December 2023, Swiss Re started to include
a reserving uncertainty allowance on new business written across its
property and casualty businesses, which is estimated to reduce the Group's
post-tax earnings by approximately USD 0.5 billion in 2024.

Strong ROI and shareholders' equity

The Group achieved an ROI of 4.0% in the first quarter, driven by continued
increases in recurring income. The recurring income yield for the first
three months of 2024 was 3.9%, while the fixed income reinvestment yield
stood at 5.0%, continuing to benefit from higher interest rates.

The Group's IFRS shareholders' equity amounted to USD 21.1 billion at the
end of the first quarter of 2024. This represents a significant increase
compared with the US GAAP shareholders' equity of USD 16.1 billion reported
at the end of 2023.

P&C Re benefits from disciplined underwriting

P&C Re reported a net income of USD 552 million for the first quarter. This
was primarily driven by disciplined underwriting and a low large natural
catastrophe experience in the current period, supported by a solid
investment result. The insurance revenue in the first three months of 2024
reached USD 5.0 billion.

P&C Re selectively increased reserves for specific large prior-year natural
catastrophe and man-made events, and increased reserves on casualty lines.

P&C Re achieved an insurance service result of USD 704 million and a
combined ratio of 84.7% in the first quarter. P&C Re targets a combined
ratio below 87% for the full year.

Successful P&C Re April renewals

P&C Re renewed contracts with USD 2.5 billion in treaty premium volume on 1
April 2024. This represents a 6% volume increase compared with the business
that was up for renewal. Overall, P&C Re achieved a price increase of 12% in
this renewal round. Based on a continued prudent view on inflation and
updated loss models, loss assumptions increased by 12%. The resulting
portfolio quality is consistent with the Group's 2024 financial targets.

L&H Re reports a solid first-quarter result

L&H Re reported a net income of USD 412 million for the first quarter of
2024. This result reflects US mortality experience in line with expectations
and a higher investment result driven by increased yields.

L&H Re achieved an insurance revenue of USD 4.8 billion in the first quarter
of 2024, with an insurance service result of USD 434 million.

L&H Re targets a net income of approximately USD 1.5 billion for 2024.

Corporate Solutions with a good start to the year

Corporate Solutions reported a net income of USD 194 million for the first
three months of 2024, confirming its successful trajectory.

The result reflects a sustainable underlying business performance due to
continued disciplined underwriting, complemented by lower-than-expected
large man-made losses and a strong investment result. Large natural
catastrophe losses of USD 66 million were mainly driven by the Noto
earthquake in Japan.

Insurance revenue for the first quarter was USD 1.8 billion, benefitting
from the good rate environment in most segments and new business growth.

Corporate Solutions achieved an insurance service result of USD 213 million
and a combined ratio of 89.9% for the first quarter. Corporate Solutions
targets a combined ratio below 93% for the full year.

Swiss Re plans to withdraw from iptiQ business

Following a strategic review of its digital white-label platform, Swiss Re
plans to withdraw from the iptiQ business and will consider options for the
different entities in a manner and timeframe that maximises value for the
Group, subject to applicable regulatory approvals and notifications.

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "The
market environment today is vastly different from the one when iptiQ was
created. Given these changed conditions and Swiss Re's strategic priorities,
we've concluded we are not the best owners of this business going forward."

Outlook

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "The
strong earnings in the first quarter have given Swiss Re a positive start to
the year as we continue to focus on our 2024 targets, including a net income
of more than USD 3.6 billion. Underwriting discipline, coupled with a
favourable market environment, underpin our confidence."


Details of Q1 2024 performance

                                                               Q1 2024
   USD millions, unless
   otherwise stated
   Consolidated Group (total)
                                 Net income                    1 092
                                 Insurance revenue (gross)     11 676
                                 Insurance service result      1 352
                                 Return on equity (%,          21.3
                                 annualised)
                                 Return on investments (%,     4.0
                                 annualised)
                                 Recurring income yield (%,    3.9
                                 annualised)

                                                               31.03.2024
                                 Shareholders' equity          21 140
                                 Book value per share (USD)    72.79

                                                               Q1 2024
   P&C Reinsurance
                                 Net income                    552
                                 Insurance revenue (gross)     4 964
                                 Insurance service result      704
                                 Combined ratio (%)            84.7
   L&H Reinsurance
                                 Net income                    412
                                 Insurance revenue (gross)     4 794
                                 Insurance service result      434
   Corporate Solutions
                                 Net income                    194
                                 Insurance revenue (gross)     1 836
                                 Insurance service result      213
                                 Combined ratio (%)            89.9

Financial calendar

22 August 2024 Half-year 2024 results
14 November 2024 Nine-month 2024 results
27 February 2025 Full-year 2024 results
13 March 2025 Publication of the Annual Report 2024

Media conference call

Swiss Re will hold a media conference call this morning at 08:30 CEST. To
participate, please dial in 10 minutes prior to the start using the
following numbers:

Switzerland/Europe: +41 (0) 58 310 50 00
United Kingdom: +44 (0) 207 107 06 13
United States: +1 (1) 631 570 56 13

For additional local dial-in numbers, please click here.

Investor and analyst call

Swiss Re will hold an investors' and analysts' webcast at 14:00 CEST, which
will focus exclusively on Q&A. The investor and analyst presentation can be
accessed here.

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(1) P&C Re combined ratio is not comparable with previous quarters as the
definition under IFRS
(-Insurance service expense (net) / Insurance revenue (net)) differs from
that under US GAAP.

(2) Corporate Solutions combined ratio is not comparable with previous
quarters as the definition under IFRS (-(Insurance service expense (gross) +
Reinsurance result + Non-directly attributable expenses) / Insurance revenue
(gross)) differs from that under US GAAP.

(3) Insurance revenue (gross) reflects the expected discounted claims and
expenses, release of risk capital costs, as well as release of expected
profit for the services provided in a period.

(4) Insurance service result reflects the discounted underwriting profit
earned from providing insurance coverage in a given period: comprises
insurance revenue (gross) less insurance service expenses (gross) plus
reinsurance result.

For further information please contact Swiss Re Media Relations: + 41 (0)43
285 7171 or Media_Relations@Swissre.com.
Please use this link to access Swiss Re's press releases.

Swiss Re
The Swiss Re Group is one of the world's leading providers of reinsurance,
insurance and other forms of insurance-based risk transfer, working to make
the world more resilient. It anticipates and manages risk - from natural
catastrophes to climate change, from ageing populations to cyber crime. The
aim of the Swiss Re Group is to enable society to thrive and progress,
creating new opportunities and solutions for its clients. Headquartered in
Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group
operates through a network of around 80 offices globally.

Cautionary note on forward-looking statements
Certain statements and illustrations contained herein are forward-looking.
These statements (including as to plans, objectives, targets, and trends)
and illustrations provide current expectations of future events based on
certain assumptions and include any statement that does not directly relate
to a historical fact or current fact. Further information on forward looking
statements can be found in the Legal Notice section of Swiss Re's website.


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End of Inside Information

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   Language:       English
   Company:        Swiss Re Ltd
                   Mythenquai 50/60
                   8022 Zurich
                   Switzerland
   Phone:          +41 (0) 43 285 71 71
   E-mail:         Media_Relations@swissre.com
   Internet:       www.swissre.com
   ISIN:           CH0126881561
   Valor:          12688156
   Listed:         SIX Swiss Exchange
   EQS News ID:    1904387

End of Announcement EQS News Service
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1904387 16-May-2024 CET/CEST