The reinsurer sees a dramatic improvement in performance in the first nine months of 2023. In the third quarter alone, it posted a profit of $1 billion.

Major domestic reinsurance giant Swiss Re posted a profit of $1 billion US dollars in the third quarter of 2023, corresponding to a profit of $2.5 billion in the first nine months of the year and a return on equity of 25.9  percent, according to a media release issued Friday. A year earlier, Swiss reported a net loss of $285 million and a return on equity of minus 2.1 percent.

The significant improvement came on the back of its underwriting performance at its property and casualty (P&C Re) and life and health (L&H Re)  businesses. It was also helped by improved investment results.

Net premiums and fee income rose by 4.2 percent to $33.7 billion (at constant foreign exchange rates they were up 5.3 percent).

Improving ROI

The group also managed to achieve a return on investment (ROI) of 3.5 percent, up from the 1.6 percent recorded a year earlier. In the third quarter, Swiss Re indicated the ROI performance was «exceptional» and supported by gains from the sale of real estate although that was partly offset by the sale of lower-yielding fixed income. It indicated more generally that the investment portfolio continues to benefit from higher interest rates.

The P&C Re business posted a profit of $1.5 billion in the first nine months of the year, a significant improvement from the loss of $283 million a year earlier. Net premiums rose to $17.4 billion from $16.6 billion in the same timeframe.

Targets Reconfirmed

The L&H Re business posted a profit of $241 million in the third quarter. It saw «elevated large individual» claims, although these were offset by the strong investment performance. In the first nine months of the year, profit was up substantially at $634 million from $221 million a year earlier, with much of the improvement due to falling mortality claims related to COVID-19.

According to Swiss Re chief executive officer Christian Mumenthaler, the group is maintaining its financial targets which foresee net income of more than $3 billion. 

«We continue to focus on our disciplined underwriting strategy that provides a strong base for the future,» he indicated in the release.