Half Year 2026 Swiss Re AG Earnings Call Transcript
Key Points
- Swiss Re AG (SSREF) reported a strong net income of USD2.8 billion for H1 2026, exceeding 60% of its full-year target of USD4.5 billion.
- The Group achieved an excellent 23% return on equity, driven by strong underwriting results across all three core businesses.
- P&C Reinsurance posted an excellent combined ratio of 76.7%, well below its full-year target of below 85%, supported by low large NatCat losses and favorable reserve releases.
- Life & Health Re delivered a strong result with two consecutive quarters of clean earnings, driven by favorable US mortality experience and strong in-force margins.
- The company increased its operating cost reduction target to USD500 million by 2028, reflecting strong progress and further efficiency opportunities.
- Swiss Re AG (SSREF) maintains a very strong capital position with an estimated group SST ratio of 264%, comfortably above its target range.
- The company is making good progress on its USD1.5 billion share buyback, having executed approximately 60% by the end of July.
- Corporate Solutions continued its strong performance with a combined ratio of 86.1%, supported by favorable experience and strategic growth in focus areas.
- The company announced exclusive strategic partnerships in Mexico and India, strengthening its global capabilities and presence in attractive growth markets.
- Swiss Re AG (SSREF) achieved volume growth of 11% at mid-year renewals, driven by new business wins in proportional property and selected specialty lines.
- Competition remains pronounced in non-proportional property, with nominal pricing down by high-single digits year-to-date.
- New business CSM for P&C Re decreased to USD1.6 billion from USD2.2 billion in the prior year, reflecting higher loss picks and a modest impact from the facultative book.
- Life & Health Re new business CSM declined to USD338 million from USD569 million, primarily due to lower transaction activity.
- Corporate Solutions experienced a risk-adjusted commercial rate decline of around 6% across the portfolio during the first half of the year.
- The company increased loss assumptions by 4.4% year-to-date, almost entirely explaining the risk-adjusted price decline of 4.6%.
- Swiss Re AG (SSREF) took a reserve increase in Q2 related to business in runoff from the former Life Capital unit, impacting group items.
- The expense ratio for P&C Re has been trending upwards, partly due to lower revenues and FX impacts.
- The company expects to not achieve 100% CSM sustainability in Life & Health Re this year, indicating a shortfall in new business generation.
- The market environment remains competitive, with risk-adjusted commercial rates down across the portfolio, particularly in non-proportional property.
- The company faces potential headwinds from the peak of the hurricane season, which could impact results in the second half of the year.
Good morning or good afternoon. Welcome to Swiss Re's half-year results publication conference call and live webcast. Please note that today's conference call is being recorded.
At this time, I would like to turn the conference over to Andreas Berger, Group CEO. Please go ahead.
Thank you very much, and good morning, and also, good afternoon for everybody who's dialing in. I appreciate you taking the time to join us today.
Before Anders Malmstrom, our Group CFO, walks you through the details of our H1 results, I'd like to start with some brief remarks. Today, we're pleased to report a strong net income of USD2.8 billion for the first half of 2026. This represents more than 60% of our full-year net income target of USD4.5 billion, which positions us well for the remainder of the year.
We're proud to operate three core businesses. They're our passion, each one is a leading value creator in its respective market. Together, Life &
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
