Swiss Re's profit soars by 24% in a six-month period, reaffirming financial objectives
Swiss Re, the global reinsurance giant, has announced a robust performance for the first half of 2025, with a net profit of $2.6 billion, marking a significant 24% increase from the same period last year.
The impressive growth can be attributed to a combination of factors. Healthy underwriting margins across Property & Casualty (P&C) and Life & Health (L&H) reinsurance, solid investment results, disciplined underwriting, and favourable claims experience have all contributed to Swiss Re's strong showing.
In the P&C sector, net income increased by 21%, largely due to fewer large claims in the second quarter and favourable reserve development. The Life & Health division also saw underwriting profit growth, with the insurance service result rising to $3 billion from $2.9 billion.
The company's solid investment income was also a key factor, with the return on investment (ROI) increasing to 4.1% from 4.0%. This boost was aided by realised gains such as the sale of a minority equity stake in Q1 2025.
Swiss Re's Corporate Solutions unit also demonstrated stability, despite facing $213 million in man-made losses. The unit managed to maintain net income close to the prior year, with an improved combined ratio.
In addition to these factors, Swiss Re is implementing cost-reduction initiatives targeting $300 million savings by 2027 to sustain profitable growth.
Regarding midyear contract renewals, while the available data does not provide explicit comparative figures with Munich Re and Hannover Re, Swiss Re is progressing with divestments such as the sale of iptiQ units, which may indirectly affect renewal volumes. The company's reaffirmation of its full-year targets amid geopolitical and macroeconomic uncertainties suggests disciplined underwriting and contract management.
However, the data does not detail comparative renewal performance with peers. The net price decrease in Swiss Re's midyear contract renewals was in line with price drops at top competitors Munich Re and Hannover Re.
Swiss Re reported a hit from the Los Angeles wildfires for the first quarter of 2025, but no specific details about the investment result for the first half of 2025 were provided. The article does not mention any specific natural catastrophes affecting Swiss Re in the second quarter.
Analysts expected Swiss Re's net profit for the first half of 2025 to be $2.472 billion, but the company's actual net profit of $2.605 billion was better than expected. The article does not mention any specific natural catastrophes in the second quarter.
Swiss Re maintained its targets for the full year, aiming to continue its strong performance through the remainder of 2025. The company did not provide details about the performance in any other sector for the first half of 2025.
The financial success of Swiss Re in the first half of 2025 is primarily attributed to a combination of factors, including robust underwriting margins across P&C and L&H reinsurance, favorable investment results, disciplined underwriting, and favorable claims experience.
The solid performance of Swiss Re is also aided by cost-reduction initiatives targeting $300 million savings by 2027 to sustain profitable growth.
