This article first appeared on GuruFocus .
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Group Net Income:USD 4.8 billion, exceeding the target of more than USD 4.4 billion.
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Return on Equity (ROE):20%.
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Cost Savings:More than USD 100 million in 2025, targeting USD 300 million reduction by 2027.
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P&C Re Combined Ratio:79.4%, below the target of 85%.
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Corporate Solutions Combined Ratio:86.5%, below the target of 91%.
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Gross Premium Volume:USD 12.4 billion for treaty contracts renewed.
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Life & Health Re Net Income:USD 1.3 billion for 2025.
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Return on Investments:4% with a recurring income yield of 4.2%.
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Insurance Revenue:USD 43.1 billion, compared to USD 45.6 billion in the prior year.
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Dividend Proposal:USD 8 per share, a 9% increase.
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Extraordinary Buyback:USD 1 billion, in addition to a USD 500 million sustainable buyback.
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SST Ratio:250% after announced capital actions.
Release Date: February 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Swiss Re AG ( SSREF ) achieved a record group net income of USD 4.8 billion, surpassing their target of USD 4.4 billion.
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The company reported a strong return on equity (ROE) of 20%, reflecting disciplined underwriting and strong investment income.
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P&C Re achieved a combined ratio of 79.4%, well below its target of 85%, indicating strong underwriting performance.
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Corporate Solutions delivered a combined ratio of 86.5%, comfortably meeting its target of below 91%.
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Swiss Re AG ( SSREF ) achieved more than USD 100 million in cost savings in 2025, on track to meet their USD 300 million reduction target by 2027.
Negative Points
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The company experienced a net price decrease of 4.3% due to increased loss assumptions by 4.6%, reflecting a cautious approach to inflation.
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Life & Health Re's insurance service result was impacted by negative assumption updates, resulting in a USD 650 million hit to the P&L.
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The insurance revenue for the group decreased to USD 43.1 billion from USD 45.6 billion in the prior year.
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Large man-made claims were slightly above expectations, partially offsetting favorable nat cat experience.
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The company reduced its external retro for nat cat, increasing its exposure and potential volatility.
Q & A Highlights
Q: Can you help clarify the starting point for the 2026 combined ratio and the rationale behind buying less retro year-on-year? A: The starting point for the combined ratio after renewals is between 84% and 84.5%, incorporating prudent assumptions and expense actions. Regarding retro, Swiss Re relies on its strong balance sheet and underwriting, choosing to retain margins in-house rather than depending on retro, which also avoids adding capacity to a declining market.
Q: How should we interpret the extraordinary buyback in light of previous comments about sustainability and consistency? A: The extraordinary buyback reflects the exceptional nature of 2025, which should not be seen as a new normal. The decision was based on managing cycles and maintaining rate adequacy, with the understanding that market dynamics can change with significant loss events.
Q: Can you provide insights into the prudence added to reserves and the specialty lines that were most attractive for growth? A: Reserve prudence involved moving close to USD1 billion from short-tail to long-tail lines, strengthening resilience. Growth in specialty lines focused on engineering and aviation, while being cautious in marine and energy. Casualty growth was driven by positive rate developments, particularly in motor portfolios.
Q: How do you reconcile the 5% increase in the nat cat budget with PML losses increasing by 20-30%? A: The 5% increase in the nat cat budget to USD2.1 billion is a natural adjustment and does not impact expected nat cat losses, which are more influenced by tail events. The reduction in retro affects capacity rather than expected losses.
Q: What are the priorities for M&A, and how do you see the return on investments evolving in 2026? A: Swiss Re focuses on bolt-on acquisitions in Corporate Solutions, particularly in decorrelated areas like credit and surety. The return on investments is expected to remain stable, with a slight positive impact from reinvestment yields, depending on maturities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
