Global reinsurer Swiss Re generated net income of $1.5 billion in the first quarter of 2026, an increase of 19% on the prior year’s $1.3 billion, driven by a stronger performance in each business segment, lower catastrophe losses, and a robust investment result.
Group-wide, return on equity increased to 23.6% in Q1’26 from 22.4% a year earlier, as insurance revenue fell by roughly $400 million to $10 billion, driven by lower revenues in property and casualty (P&C) reinsurance, while the ongoing withdrawal from the iptiQ business also contributed, partially offset by favourable foreign exchange movements.
The Group insurance service result rose to $1.7 billion in Q1’26 from $1.3 billion in Q1’25, while the new business contractual service margin (CSM) hit $1.2 billion, down from $1.7 billion last year, driven by the impact of P&C Re renewals in January, and a lower contribution from life and health (L&H) reinsurance, mainly due to lower transaction activity.
The Group ROI increased to 4.6% from 4.4%, which reflects strong recurring income of $1 billion, supported further by realised gains from real estate sales, explains the reinsurer.
During the first quarter, Swiss Re maintained its strong capital position with an estimated Group Swiss Solvency Test (SST) ratio of 252% as of April 1st, 2026.
Within the firm’s P&C Re segment, net income increased to $795 million in Q1’26 compared with $527 million in Q1’25, which Swiss Re says is a reflection of continued disciplined underwriting and a low large natural catastrophe experience, as well as solid investment income.
The P&C Re insurance service result increased to $795 million from $575 million. The segment booked large natural catastrophe losses of $133 million in the opening quarter of the year, driven by Storm Kristin in Portugal. Large man-made losses for the quarter totalled $41 million.
For Q1’26, P&C Re produced a combined ratio of 79.5%, an improvement on the prior year’s 86%. The unit’s insurance revenue for Q1’26 hit $4.1 billion, down on the prior year’s $4.5 billion, driven by the overall renewals outcome and reduced volumes written by cedents, somewhat offset by favourable foreign exchange movements.
P&C Re’s new business CSM deceased to $1 billion in Q1’26 from $1.4 billion in Q1’25, which the firm says reflects a more challenging pricing environment.
At the recent April renewals, Swiss Re’s P&C Re arm renewed treaty contracts resulting in $2.3 billion in premium volume, which is an 8% decrease on the business which was up for renewal.
“The outcome reflects continued discipline and active cycle management amid a more challenging pricing environment, with a continuation of the trends seen in January,” says the firm.
P&C Re saw a nominal price decrease of 2.5% in the April renewal round, while terms and conditions were stable. “Based on a prudent view on inflation and updated loss models, loss assumptions increased by 3.6%, resulting in a net price decrease of 6.1%,” continues Swiss Re.
Turning to L&H Re, net income increased to $491 million in Q1’26 compared with $439 million a year earlier, which reflects the underwriting margins of the segment’s large in-force book, which was supported by a favourable US mortality experience.
The segment’s insurance service result increased to $547 million from $456 million, as insurance revenue jumped to $4.3 billion from $4.1 billion a year earlier. The segment’s new business CSM decreased to $164 million from $344 million, driven mostly by lower transaction activity.
In Corporate Solutions, net income increased to $262 million from $208 million, reflecting disciplined underwriting and low large claims experience. Large man-made losses in Q1’26 were just $21 million, while the business did not experience any large natural catastrophe losses in the quarter.
Corporate Solutions’ insurance service result increased to $286 million in Q1’26 from $240 million a year earlier. The business produced a combined ratio of 85.1%, an improvement on the prior year’s 88.4%. Insurance revenue for the quarter decreased by $100 million to $1.7 billion.
Swiss Re’s Group Chief Executive Officer, Andreas Berger, commented: “Our first- quarter performance shows strong earnings generation, reflecting the strategic actions taken in recent years to reinforce our businesses. In a more challenging market environment, we are focused on active cycle management in our P&C businesses, as well as underwriting discipline and efficiency across the Group.”
“L&H Re made a strong start to the year following the completion of the portfolio review in 2025, while our P&C businesses continued to benefit from high- quality business written in recent years. We also took a prudent approach to managing current geopolitical volatility, including setting aside additional reserves for potential inflationary impacts of the ongoing Middle East conflict,” said Swiss Re’s Group Chief Financial Officer, Anders Malmström.
“Swiss Re delivered strong earnings in the first quarter, putting us on a good path towards our 2026 financial targets. Against an uncertain macroeconomic backdrop and an increasingly challenging market environment, our P&C businesses continue to prioritise disciplined underwriting. We expect L&H Re to make a growing contribution to balance the Group’s overall performance going forward. At the same time, we are firmly focused on cost efficiency. Our goals remain: delivering on our financial targets and on the Group’s overall resilience,” added Berger.
