Global reinsurer Swiss Re generated net income of $1.3 billion for the first quarter of 2025, an increase of 16% year on year with a solid performance across life and health (L&H) and property and casualty (P&C) reinsurance, despite the latter absorbing elevated large loss activity in the period.
Within P&C Re, large natural catastrophe claims of $570 million in Q1’25 account for 29% of Swiss Re’s full-year budget for these types of claims, mainly driven by the California wildfires in January.
Additionally, large man-made losses totalled $140 million in the quarter, but the impact of these large natural and man-made events was offset by strong underlying performance across the Group.
Group-wide net income rose from the $1.1 billion reported a year earlier, as the return on equity improved to 22.4% from 20.7% in Q1 2024, driven by a “resilient underwriting result” across the business.
In fact, the insurance service result, which reflects underwriting profitability, only fell by 6% year on year to $1.3 billion for Q1’25, as insurance revenue decreased 11% year on year to $10.4 billion. Swiss Re attributes the dip in insurance revenue to non-recurring IFRS transition effects and the termination of an external retrocession transaction in L&H Re, as well as unfavourable foreign exchange impacts.
Within P&C Re, net income amounted to $527 million in Q1’25, down slightly on Q1’24’s $555 million, as a gain from the sale of a minority equity position partially offset the aforementioned elevated large claims experience in the period.
In light of the active quarter for large claims, P&C Re’s insurance service result decreased from $704 million in Q1’24 to $575 million in Q1’25, reflecting a 1 percentage point increase in the combined ratio to 86%, with the segment targeting a combined ratio of below 85% for the full year.
Insurance revenue for P&C Re dipped by $500 million year on year to $4.5 billion, driven by positive non-recurring IFRS transition effects, unfavourable foreign exchange impacts, and pruning actions taken in casualty lines.
As well as a strong opening quarter, P&C Re had a solid April renewals, renewing contracts with $2.2 billion in treaty premium volume, representing growth of 2.8% compared with the business that was up for renewal. Further, P&C Re achieved a price increase of 1.5% in the April 1 renewal round.
However, the reinsurer explains that, “Based on a prudent view on inflation and updated loss models, loss assumptions increased by 3.7%,” so the net price change was actually -2.3% at the April renewals.
“The resulting portfolio quality is supportive of the Group’s 2025 financial targets,” says the company.
Turning to L&H Re’s Q1’25 performance, and net income rose from $412 million in Q1’24 to $439 million in Q1’25, as the insurance service result increased by 5% year on year to $456 million. However, insurance revenue fell from $4.8 billion to $4.1 billion, mainly driven by the aforementioned termination of an external retrocession transaction and positive non-recurring IFRS transition effects which benefitted the prior-year period, as well as unfavourable foreign exchange impacts.
During the quarter, Swiss Re notes that L&H Re achieved solid margins on new business and is targeting net income of $1.6 billion for full year 2025.
Within Swiss Re Corporate Solutions, the firm’s commercial insurance arm, net income increased to $208 million from $195 million, reflecting a strong underlying business performance despite elevated man-made losses, supported by a solid investment result.
The segment’s insurance service result rose to $240 million from $213 million, despite large man-made losses of $147 million and large natural catastrophe losses of $60 million, mainly driven by the California wildfires and Tropical Cyclone Alfred in Australia. The business generated a combined ratio of 88.4% for Q1’25 and targets a combined ratio of less than 91% for full year 2025. Corporate Solutions’ insurance revenue amounted to $1.8 billion in Q1’25, in line with the comparable prior year quarter.
On the asset side of the balance sheet, Swiss Re’s return on investments for Q1’25 rose to 4.4% from 4% in Q1’24, driven by a higher recurring income alongside realised gains from the sale of a minority equity position in March 2025 amounting to $209 million. This gain was partially offset by realised losses from targeted sales of fixed income securities.
Swiss Re’s capital position remains strong, with an estimated Group SST ratio of 254% as of April 1st, 2025, above the target range of 200–250%.
“The first quarter of 2025 was marked by significant large loss events in our property and casualty businesses. Despite this, all Business Units posted robust results, highlighting the resilience of the Group and underscoring our ability to support clients by acting as a shock absorber for peak risks,” said Swiss Re’s Group Chief Executive Officer, Andreas Berger.
Anders Malmström, Swiss Re’s Group Chief Financial Officer, added: “The main driver for Swiss Re’s first-quarter results was continued disciplined underwriting, which was supported by our investment performance. We have maintained our strong capital position and remain well-placed to support our clients.”
Despite the impacts of large losses, Q1’25 was a strong quarter for Swiss Re, one of the world’s largest reinsurers, with the carrier beating analyst consensus on the P&C Re combined ratio, Group net income, return on investment, and STT.
