This article first appeared on GuruFocus .
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Net Income:$4 billion for the first nine months of 2025.
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Annualized Return on Equity:22.5%.
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Insurance Revenue:$32 billion for the first nine months, down from $33.7 billion last year.
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P&C RE Combined Ratio:71.3% in Q3, 77.6% for the first nine months.
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Corporate Solutions Combined Ratio:87.1% for the first nine months.
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Life and Health RE Net Income:$1.1 billion for the first nine months.
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New Business CSM:$3.9 billion for the first nine months, down from $4.2 billion last year.
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Return on Investment:4.1% for the first nine months, up from 3.9% last year.
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SST Ratio:Estimated at 268% as of October 1, 2025.
Release Date: November 14, 2025
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 ) reported a strong net income of $4 billion for the first nine months of 2025, with an annualized return on equity of 22.5%.
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The company benefited from exceptionally strong Property & Casualty (P&C) results in the third quarter, with large claims amounting to only $200 million, well below expectations.
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Life and Health Reinsurance (REIT) net income stands at $1.1 billion, contributing significantly to the group's earnings.
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The group's investment return was strong, with a return on investment of 4.1%, supported by recurring income of $3.0 billion.
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Swiss Re AG ( SSREF ) maintained a robust Swiss Solvency Test (SST) ratio of 268% as of October 1, 2025, indicating strong capital adequacy.
Negative Points
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Life and Health REIT's results have been volatile, with negative assumption updates impacting the P&L by around $400 million for the first nine months.
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The company's insurance revenue declined to $32 billion from $33.7 billion last year, driven by portfolio pruning and non-renewals.
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New business CSM generation was slightly down to $3.9 billion from $4.2 billion last year, reflecting a challenging pricing environment.
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Corporate Solutions experienced a slight increase in large man-made claims, which were slightly above expectations, partially offsetting favorable NATCAT experience.
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The expense ratio in Corporate Solutions rose due to restructuring costs and a shift towards more volume-driven commissions.
Q & A Highlights
Q: Can you clarify the expected impact on Life and Health REIT in Q4 compared to Q3? A: The impact in Q4 is expected to be similar to the $250 million seen in Q3. We are finalizing reviews of smaller portfolios, and by year-end, we should be done with these assessments. The focus is on addressing noise in smaller portfolios, which are modest in total but need attention.
Q: What led to the change in insurance revenue expectations for the second half of the year? A: The $1.7 billion year-over-year decline in revenue is due to several factors, including pruning options in P&C RE, termination of an external retro transaction in Life and Health RE, non-renewal of the Irish Med-Tax business, and the sale of P&C in IPTQ. These actions reflect our focus on portfolio quality rather than top-line growth.
Q: How will the recent adjustments in Life and Health REIT affect the run rate into 2026? A: The adjustments aim to reduce volatility and ensure all business units contribute healthily to the group's portfolio. We are in the final phase of addressing smaller portfolios, and we will provide an update on targets and expected run rates at the management dialog.
Q: Can you provide more details on the deterioration in health portfolios and the potential for further adjustments? A: The deterioration is mainly in health portfolios in EMEA and APAC, with Australia being a significant area due to unsustainable market conditions. We paused new business there. We expect no further significant impacts beyond the $250 million already accounted for in Q3.
Q: What is the outlook for new business CSM in Life and Health, and how are you managing expense ratios in Corporate Solutions? A: We expect growth in new business CSM in areas like US mortality and longevity in EMEA. The increase in expense ratios in Corporate Solutions is due to restructuring costs and volume-driven commissions. We are on track to achieve cost savings targets, with a focus on maintaining healthy margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
