Global reinsurer Swiss Re generated a net income of $1.3 billion for the third quarter of 2026 and $4.2 billion for the first nine months of the year, with a return on equity of 22.5% for the nine month period, and a P&C combined ratio of 77.3%.
After a solid first nine months of the year, Swiss Re says it is “well on track” towards its 2026 financial targets, as the Group’s financial performance benefited from strong contributions from all businesses, as well as lower than expected catastrophe losses, and a robust investment result.
For 9M’26, net income increased by $200 million year-on-year to the aforementioned $4.2 billion, with Swiss Re targeting Group net income of $4.5 billion for full year 2026.
The insurance service result, which reflects underwriting profit, increased by $300 million to $5.1 billion for the first nine months of 2026, although insurance revenue decreased by $800 million to $31.2 billion, amid lower P&C reinsurance revenue of $12.8 billion and higher L&H reinsurance revenue of $12.9 billion.
Swiss Re’s new business contractual service margin (CSM) fell from $3.9 billion in 9M’25 to $2.8 billion in 9M’26, reflecting the impact of a continued competitive P&C renewals environment during the period, and a lower contribution from L&H reinsurance.
The Group return on investment was 4% for the first nine months, which the firm says reflects strong recurring income of $3.1 billion.
Within P&C reinsurance, net income decreased by 6% year-on-year to $2.2 billion for 9M’26, again a reflection of the competitive operating environment amid an abundance of capital.
The P&C Re insurance service result decreased by $200 million to $2.7 billion. Large losses amounted to $941 million for the nine month period. $624 million of the losses came in the third quarter, and $640 million of the nine month total related to natural catastrophes, driven by the earthquake in Colombia in August and Storm Kristin. Large man-made losses for 9M’26 totalled $301 million.
P&C Re targets a combined ratio of below 85% for the full year 2026, and for the nine month period, the combined ratio strengthened slightly to 77.3%, compared to 77.6% a year earlier.
The previously mentioned fall in insurance revenue for the period was primarily a result of the overall renewals outcome and reduced volumes written by cedents, explains the firm, while the new business CSM was $1.8 billion, down on the prior year’s $2.5 billion.
Turning to L&H reinsurance, net income increased by $400 million year-on-year to $1.5 billion, with a continued contribution from the segment’s large in-force portfolio. For the full year 2026, L&H Re targets a net income of $1.7 billion.
The segment’s insurance service result increased by $500 million to $1.6 billion, and the new business CSM reached $488 million, so down on the prior year’s $833 million, driven by fewer large transactions and a more selective approach to new business.
Swiss Re Corporate Solutions, the firm’s commercial insurance arm, delivered a net income of $714 million for 9M’26, an increase on the prior year’s $693 million, driven by a strong underwriting performance, supported by lower-than-expected large natural catastrophe losses. The business generated an insurance service result of $863 million for 9M’26, up on 2025’s $832 million.
At Swiss Re Corporate Solutions, large man-made losses in 9M’26 amounted to $219 million, with $150 million in the third quarter. Large nat cat losses totalled $54 million for 9M’26, mainly driven by the earthquake in Colombia in August, storm Fern, and a tornado in Texas.
The business delivered a combined ratio of 86.4% for 9M’26, compared to 87.1% a year earlier, and targets a combined ratio of less than 91% for the full year 2026.
Insurance revenue for the period totalled $5.5 billion, down by $200 million on the prior year. The new business CSM for the business was $418 million, down on the prior year’s $500 million.
Swiss Re’s Group Chief Financial Officer, Anders Malmström, commented: “Our strong current earnings reflect disciplined underwriting and portfolio management, while lower margins on new business reflect the competitive P&C pricing environment we are seeing today. Our focus on simplifying Swiss Re and directing resources where they create the greatest value is bringing us closer to clients and driving progress towards our cost reduction targets.
“At the same time, L&H Re’s large in-force portfolio, consistently strong performance from Corporate Solutions and healthy recurring investment income continue to provide important support to Group profitability. From a capital management perspective, the execution of our USD 1.5 billion share buyback programme, announced in February, is nearly complete.”
Swiss Re says that it remains on track towards its target of reducing operating costs by $500 million by 2028. Further, the company maintained its strong capital position with an estimated Group Swiss Solvency Test ratio of 259% as of October 1st, 2026.
“We maintain our two priorities: delivering on our financial targets and the Group’s overall resilience. Our performance in the first nine months puts us firmly on track to meet both goals. Looking beyond 2026, our robust foundations and the diversification provided by our three Business Units give us confidence in our ability to navigate different market cycles successfully. We continue to see attractive opportunities across our businesses and are pursuing them with ambition and discipline,” said Andreas Berger, Swiss Re’s Group Chief Executive Officer.
