Swiss Re reveals net income of $2.6 billion for the first half of the year
Swiss Re Reports Strong Financial Performance in H1 2025
In a positive development for the reinsurance industry, Swiss Re has announced a significant improvement in its financial performance for the first half of 2025. The company reported a net income of USD 2.6 billion and a return on equity (ROE) of 23.0%, up from USD 2.1 billion and 19.6% in the same period last year.
The P&C Reinsurance division was a major contributor to this growth, achieving an attractive combined ratio of 81.1%. This impressive figure reflects strong underwriting discipline, low large natural catastrophe claims in Q2, notably from the Los Angeles wildfires, and favourable prior-year reserve development. The division generated a net income of about USD 1.2 billion, up 21% year-on-year.
The Corporate Solutions unit also maintained a favourable underwriting performance with a combined ratio of 88.2%. This was supported by stringent portfolio management and focused growth, delivering stable net income around USD 430 million.
Life & Health (L&H) Reinsurance posted a strong net income of USD 839 million, slightly down from the previous year due to lower contractual service margin releases but supported by stable new business margins and investment contributions.
The overall insurance service result (underwriting profit) increased to USD 3.0 billion from USD 2.9 billion in H1 2024, despite a decrease in insurance revenue to USD 20.9 billion from USD 22.2 billion.
The improved investment result included recurring income plus realized gains from the sale of a minority equity stake in Q1 2025, contributing to the higher return on investment (ROI) and net income overall.
Swiss Re's Group Chief Executive Officer, Andreas Berger, stated that the Group delivered a strong result for the first half of 2025 while supporting clients through peak risks. He maintains the company's full-year targets and remains vigilant given broad geopolitical and macroeconomic uncertainty, especially during the peak of the wind season.
Swiss Re's capital position is strong with an estimated Group Swiss Solvency Test (SST) ratio of 264% as of 1 July 2025, above the target range of 200-250%. The Group's net income of USD 2.6 billion and an ROE of 23.0% for the first half of 2025 is an increase compared to the same period in 2024.
Swiss Re's Group Chief Financial Officer, Anders Malmström, mentioned that the Group's disciplined capital allocation continues to support earnings resilience. The CSM balance increased by USD 410 million since year-end 2024, reaching USD 17.8 billion, primarily driven by the weakening of the US dollar.
In other news, Swiss Re's withdrawal from iptiQ is proceeding as planned, with the sale of the iptiQ EMEA P&C business to Allianz Direct completed in July 2025.
L&H Re maintains its net income target of USD 1.6 billion for 2025. The increase in net income was driven by strong underwriting margins in both P&C businesses and a higher investment result.
In conclusion, Swiss Re's H1 2025 results reflect robust financial health driven by disciplined underwriting across its key reinsurance businesses and resilient investment performance amid a moderate claims environment and prudent portfolio management.
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