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Swiss Re AG (CH:SREN)
:SREN
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Swiss Re AG
(OTC:SREN)
72Outperform
Swiss Re AG (SREN) vs. S&P 500 (SPY)
Market Cap
$42.05B
Dividend Yield4%
Average Volume (3M)1.11M
Price to Earnings (P/E)15.1
Beta (1Y)0.86
Revenue Growth-0.56%
EPS GrowthN/A
CountryCH
Employees15,000
SectorFinancial
Sector Strength83
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)9.51
Shares Outstanding317,497,300
10 Day Avg. Volume875,743
30 Day Avg. Volume1,106,187
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$147.04Price Target Upside1.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Swiss Re AG Business Overview & Revenue Model
Company DescriptionSwiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, other insurance-based forms of risk transfer, and other insurance-related services worldwide. The company operates through Property & Casualty Reinsurance, Life & Health Reinsurance, and Corporate Solutions. The Property & Casualty Reinsurance segment underwrites property reinsurance, including property, credit and surety, engineering, aviation, marine, agriculture, retakaful, and facultative reinsurance solutions; and casualty reinsurance, such as liability, motor, worker's compensation, personal accident, management and professional liability, cyber, and facultative reinsurance solutions. The Life & Health Reinsurance segment underwrites life and health insurance products. The Corporate Solutions segment offers standard risk transfer covers and multi-line programs to customized solutions. It serves stock and mutual insurance companies, public sector and governmental entities, mid-sized and large corporations, and individuals. Swiss Re AG was founded in 1863 and is headquartered in Zurich, Switzerland.
How the Company Makes MoneySwiss Re AG makes money primarily through the underwriting of reinsurance policies and investment income. The company's revenue model is based on collecting premiums from insurance companies in exchange for assuming a portion of their risk. This includes property and casualty reinsurance, which covers natural disasters, accidents, and liability risks, as well as life and health reinsurance, which involves mortality, longevity, and morbidity risks. In addition to underwriting income, Swiss Re generates significant investment income by managing its own investment portfolio, which includes bonds, equities, and alternative investments. The company also engages in risk advisory services and solutions through its Corporate Solutions unit, providing tailor-made insurance solutions to large and multinational corporations. Strategic partnerships with insurers and financial institutions further enhance Swiss Re's revenue-generating capabilities, as these collaborations expand its reach and product offerings in various markets.
Swiss Re AG Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 49.73B | 46.04B | 46.74B | 43.34B | 49.33B | Gross Profit |
| 49.46B | 46.04B | 46.74B | 43.34B | 49.33B | EBIT |
| 4.66B | 1.21B | 2.40B | -495.00M | 1.51B | EBITDA |
| -23.00M | 1.64B | -573.00M | 115.00M | -644.00M | Net Income Common Stockholders |
| 3.21B | 472.00M | 1.44B | -878.00M | 727.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 88.38B | 85.61B | 4.15B | 4.70B | 6.30B | Total Assets |
| 179.58B | 170.68B | 181.57B | 182.62B | 238.57B | Total Debt |
| 9.82B | 11.04B | 11.19B | 11.74B | 11.64B | Net Debt |
| 5.23B | 6.96B | 7.04B | 7.04B | 5.34B | Total Liabilities |
| 163.21B | 157.87B | 10.32B | 11.58B | 10.14B | Stockholders Equity |
| 16.15B | 12.70B | 23.57B | 27.14B | 29.25B |
| Cash Flow | Free Cash Flow | |||
| 4.09B | 2.93B | 4.10B | 5.39B | 4.40B | Operating Cash Flow |
| 4.09B | 2.93B | 4.10B | 5.39B | 4.40B | Investing Cash Flow |
| -362.00M | -2.34B | -2.14B | -7.72B | 2.46B | Financing Cash Flow |
| -3.22B | -1.24B | -2.10B | -2.50B | -2.64B |
Swiss Re AG Technical Analysis
Positive
144.80
Price Trends
139.08
Positive
133.95
Positive
121.83
Positive
Market Momentum
1.15
Negative
58.13
Neutral
88.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SREN, the sentiment is Positive. The current price of 144.8 is above the 20-day moving average (MA) of 139.23, above the 50-day MA of 139.08, and above the 200-day MA of 121.83, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 88.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SREN.
Swiss Re AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Performance Comparison
CH:SREN
Swiss Re AG
144.80
48.75
50.75%
CH:BALN
Baloise Holding AG
184.20
46.10
33.38%
CH:HELN
Helvetia Holding AG
180.70
66.94
58.84%
SWSDF
Swiss Life Holding AG
961.50
294.41
44.13%
ZFSVF
Zurich Insurance Group
678.00
224.73
49.58%
DE:VAHB
Vaudoise Assurances Holding SA
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Swiss Re AG Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 4.67% | Next Earnings Date: May 16, 2025
Earnings Call Sentiment Positive
Swiss Re demonstrated strong financial performance in 2024, with significant net income and return on equity. The company's strategic actions in strengthening reserves and achieving healthy renewals bolster its position. However, the impact of natural catastrophes such as the LA wildfires and adjustments in Life & Health Re assumptions present challenges. Overall, the highlights outweigh the lowlights, indicating a positive trajectory with some areas for caution.Highlights
Strong Overall Results
Swiss Re reported a net income of US$3.2 billion for 2024 with a return on equity of 15%. Corporate Solutions achieved an 89.7% combined ratio, outperforming its target of less than 93%.
P&C Reserves Strengthened
P&C reserves were positioned at the 90th percentile of the best estimate range due to decisive actions, including a US$2.4 billion addition to U.S. liability reserves.
Healthy January Renewals
January renewals saw a volume growth of 7% and a nominal price increase of around 3%, with a 4.2% increase in loss pick.
Dividend Increase
Swiss Re proposed an 8% dividend increase, aligning with its objective to grow the dividend by at least 7% per year over the next three years.
Improved Investment Returns
Return on investments rose from 3.2% in 2023 to 4.0% in 2024, driven by a substantial increase in recurring income.
Lowlights
Impact of LA Wildfires
The devastating LA wildfires are estimated to cause a loss of less than US$700 million for Swiss Re, based on a market loss of approximately US$40 billion.
Missed P&C Re Target
P&C Re missed its target of less than 87% combined ratio, achieving 89.9% due to reserving actions in the third quarter.
Life & Health Re Assumption Updates
Assumptions updates in Life & Health Re resulted in a 6% reduction of CSM balance, highlighting volatility in smaller portfolios.
Foreign Exchange Impact
The strengthening of the U.S. dollar in the fourth quarter negatively impacted the CSM by US$600 million.
Company Guidance
During Swiss Re's 2024 conference call, the company reported a net income of $3.2 billion and a return on equity of 15%, following a robust fourth quarter performance. The Property & Casualty (P&C) reserves were positioned at the 90th percentile of the best estimate range, with $2.4 billion added to U.S. liability reserves in the third quarter and $3.1 billion throughout 2024. P&C Re experienced a 7% volume growth during January renewals, with a 2.8% price increase and a 4.2% loss pick, reflecting inflation considerations. Corporate Solutions achieved an 89.7% combined ratio against a target of less than 93%, marking its 18th consecutive quarter of consensus beat. Life & Health Re met its $1.5 billion net income target, despite a 6% reduction in the CSM balance due to assumption updates. The company proposed an 8% dividend increase, aligning with its goal of growing dividends by at least 7% annually over the next three years. Looking ahead, Swiss Re aims for a net income of over $4.4 billion in 2025, with an anticipated $300 million reduction in operating costs by 2027, including a $100 million reduction in 2025.Swiss Re AG Corporate Events
Swiss Re Appoints New Group Chief Risk Officer
Apr 22, 2025
Swiss Re has announced the appointment of Bernhard Kaufmann as the new Group Chief Risk Officer, effective October 1, 2025, succeeding Patrick Raaflaub who is retiring. Kaufmann brings extensive experience in risk management from his previous roles at Helvetia, NN Group, and Munich Re Group, positioning Swiss Re to navigate the complex risk and regulatory landscape effectively. This leadership change is expected to strengthen Swiss Re’s operations and industry standing.
Swiss Re Releases 2024 Financial Condition Report
Apr 14, 2025
Swiss Re has released its Financial Condition Report 2024, detailing the financial health and Swiss Solvency Test ratios of the group and its supervised entities in Switzerland. This publication, mandated by the Insurance Supervision Ordinance, provides stakeholders with insights into the company’s regulatory compliance and financial stability, reinforcing Swiss Re’s commitment to transparency and resilience in the insurance industry.
Swiss Re Shareholders Approve Key Proposals at 2025 AGM
Apr 11, 2025
Swiss Re’s shareholders approved all proposals at the 2025 Annual General Meeting, including a dividend of 7.35 USD per share, reflecting the company’s strong capital position. New board members Morten Hübbe and George Quinn were elected, and all existing board members were re-elected, signaling stability and continuity in leadership. The approval of various reports and compensation packages underscores Swiss Re’s commitment to transparency and stakeholder engagement, while the extension of the capital band indicates strategic financial planning.
Swiss Re Joins GAM as Co-Investment Manager for ILS Funds
Apr 7, 2025
Swiss Re, through its subsidiary SRILIAC, will become the Co-Investment Manager of GAM’s Insurance-Linked Security (ILS) fund range, effective May 7, 2025. This partnership allows Swiss Re to share its extensive risk knowledge and expertise in the Cat Bond market with GAM’s investors, enhancing the attractiveness and diversification of the asset class. The collaboration is expected to drive growth in the Cat Bond market, which is gaining momentum due to increasing demand for risk transfer solutions amid economic development and climate change.
Swiss Re Proposes Dividend Increase and Board Changes Amid Strong Performance
Mar 13, 2025
Swiss Re has announced a proposed dividend of 7.35 USD per share, reflecting an 8% increase, supported by a strong capital position and solid business results for 2024. The company also published its Annual and Sustainability Reports for 2024, highlighting its commitment to sustainability with a new Climate Transition Plan aimed at achieving net-zero emissions by 2050. Additionally, Swiss Re is nominating Morten Hübbe and George Quinn for election to its Board of Directors, bringing extensive industry experience to the team.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.