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Swiss Re (SSREY)
OTHER OTC:SSREY
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Swiss Re
(OTC:SSREY)
76Outperform
Swiss Re (SSREY) vs. S&P 500 (SPY)
Market Cap
$47.39B
Dividend Yield2.58%
Average Volume (3M)16.67K
Price to Earnings (P/E)16.3
Beta (1Y)0.62
Revenue Growth3.93%
EPS GrowthN/A
CountryUS
Employees14,408
SectorFinancial
Sector Strength77
IndustryInsurance
Share Statistics
EPS (TTM)3.13
Shares Outstanding1,269,989,300
10 Day Avg. Volume15,453
30 Day Avg. Volume16,671
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Swiss Re Business Overview & Revenue Model
Company DescriptionSwiss Re (SSREY) is a leading global reinsurer, providing reinsurance and insurance solutions that enable risk-taking essential to enterprise and progress. Founded in 1863 and headquartered in Zurich, Switzerland, Swiss Re operates through three business segments: Reinsurance, Corporate Solutions, and Life Capital. The company offers a wide range of products to manage and mitigate risk, including property and casualty reinsurance, life and health reinsurance, and various insurance-based capital solutions for clients worldwide.
How the Company Makes MoneySwiss Re makes money primarily through its reinsurance operations, which involve underwriting insurance policies for other insurance companies to help them manage risk. In the property and casualty segment, Swiss Re earns premiums by providing coverage for a variety of risks such as natural disasters, accidents, and liability. The life and health segment generates revenue through premiums by offering reinsurance solutions for mortality, morbidity, and longevity risks. Additionally, the Corporate Solutions segment provides direct commercial insurance to large corporations, contributing to Swiss Re's revenue through premium income. Swiss Re also engages in investment activities, managing a substantial portfolio to generate returns and maintain financial stability. Strategic partnerships with insurers and governments, along with a strong focus on risk assessment and management, further bolster its earnings.
Swiss Re Financial Statement Overview
Summary
Swiss Re demonstrates solid financial health with strong profitability and cash flow growth. The company faces a slight revenue decline but maintains effective cost management. The balance sheet shows moderate leverage, posing some risk, but the overall financial position is stable and capable of supporting future growth.Income Statement
Swiss Re shows strong profitability with a net profit margin of 7.1% in 2023, significantly improved from previous years. The EBIT margin also improved to 10.2%, indicating efficient operational management. However, revenue has slightly declined over the past year, indicating potential challenges in top-line growth.78
Positive
Balance Sheet
The balance sheet reveals a healthy equity ratio of 9.0%, but the debt-to-equity ratio at 0.65 is moderately high, indicating reliance on debt financing. The return on equity of 19.9% is strong, showcasing effective use of shareholder funds to generate profits.72
Positive
Cash Flow
Swiss Re's cash flow performance is solid, with a growing free cash flow, evidenced by a 40.7% increase from the previous year. The operating cash flow to net income ratio of 1.27 indicates robust cash generation relative to net income, which supports sustainable operations.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 57.64B | 45.00B | 46.04B | 45.94B | 43.63B | 49.16B | Gross Profit |
| 57.64B | 45.00B | 46.04B | 45.94B | 43.63B | 49.16B | EBIT |
| 25.19B | 4.60B | 1.21B | 1.82B | -1.02B | 1.19B | EBITDA |
| 23.13B | 4.93B | 1.64B | 2.49B | 115.00M | 1.72B | Net Income Common Stockholders |
| 3.85B | 3.21B | 472.00M | 1.44B | -878.00M | 727.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 91.89B | 88.38B | 85.61B | 97.81B | 98.66B | 77.16B | Total Assets |
| 207.57B | 179.58B | 170.68B | 181.57B | 182.62B | 238.57B | Total Debt |
| 10.13B | 10.43B | 11.04B | 11.19B | 11.74B | 11.64B | Net Debt |
| 4.15B | 5.84B | 6.96B | 6.13B | 6.27B | 4.08B | Total Liabilities |
| 178.84B | 163.21B | 157.87B | 157.89B | 155.36B | 207.53B | Stockholders Equity |
| 27.93B | 16.15B | 12.70B | 23.57B | 27.14B | 29.25B |
| Cash Flow | Free Cash Flow | ||||
| 2.61B | 4.09B | 2.90B | 4.15B | 7.93B | 4.40B | Operating Cash Flow |
| 2.61B | 4.09B | 2.93B | 4.10B | 5.39B | 4.40B | Investing Cash Flow |
| -1.39B | -362.00M | -2.34B | -2.14B | -7.72B | 2.46B | Financing Cash Flow |
| -1.37B | -3.22B | -1.24B | -2.10B | -2.50B | -2.64B |
Swiss Re Technical Analysis
Positive
40.94
Price Trends
38.42
Positive
36.66
Positive
34.33
Positive
Market Momentum
0.84
Negative
61.72
Neutral
81.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSREY, the sentiment is Positive. The current price of 40.94 is above the 20-day moving average (MA) of 39.84, above the 50-day MA of 38.42, and above the 200-day MA of 34.33, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 81.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSREY.
Swiss Re Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $34.05B | 8.11 | 22.02% | ― | 26.24% | -3.87% | |
78 Outperform | $116.40B | 12.91 | 15.01% | 1.23% | 11.78% | 4.39% | |
76 Outperform | $47.39B | 16.29 | 16.96% | 2.58% | 3.93% | ― | |
74 Outperform | $58.09B | 11.08 | 22.64% | 1.95% | 1.21% | 24.08% | |
73 Outperform | $11.79B | 6.86 | 18.40% | 0.65% | 28.22% | -31.48% | |
71 Outperform | $48.43B | 16.18 | 7.10% | 1.90% | -28.56% | 1.14% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% |
* Financial Sector Average
Performance Comparison
SSREY
Swiss Re
40.94
10.26
33.44%
CB
Chubb
290.70
33.91
13.21%
AFL
AFLAC
106.27
24.18
29.46%
AIG
American International Group
81.63
7.37
9.92%
ACGL
Arch Capital Group
90.09
3.56
4.11%
RNR
Renaissancere Holdings
239.41
4.22
1.79%
Swiss Re Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 1.31% | Next Earnings Date: May 16, 2025
Earnings Call Sentiment Positive
Swiss Re demonstrated strong financial performance in 2024, with significant achievements in net income, return on equity, and segment performance. However, the company faced challenges in meeting certain targets due to reserving actions and external events like the LA wildfires. Overall, the positive aspects slightly outweigh the lowlights, indicating a strong but cautious outlook for the future.Highlights
Strong Net Income and Return on Equity
Swiss Re delivered a net income of US$3.2 billion for 2024, with a return on equity of 15%.
P&C Reserves and Renewals
Positioned P&C reserves at the 90th percentile of the best estimate range. Achieved 7% volume growth in January renewals, driven by property and specialty lines.
Corporate Solutions Performance
Corporate Solutions outperformed its combined ratio target, achieving 89.7%, marking the 18th consecutive quarter of consensus beat.
Life & Health Re Net Income Target
Delivered on the 2024 US$1.5 billion net income target despite negative impacts from assumption strengthening.
Return on Investments
Return on investments increased from 3.2% in 2023 to 4.0% in 2024, driven by a substantial increase in recurring income.
Dividend Increase Proposal
Proposed an 8% dividend increase for the upcoming AGM, delivering against the objective of growing the dividend by at least 7% per year.
Strong Capital Position
The group SST ratio was 257% as of January 1, 2025, above the target range of 200% to 250%.
Lowlights
Missed 2024 Net Income Target
Missed the initial target of US$3.6 billion for net income due to reserving charges in the third quarter.
P&C Re Combined Ratio Target Missed
P&C Re's combined ratio was 89.9%, missing the target of less than 87%.
Life & Health Re Assumption Updates
Life & Health Re experienced a 6% reduction in CSM balance due to assumption updates, impacting the financial outlook.
Los Angeles Wildfires Loss Estimate
Preliminary estimate foresees a loss of less than US$700 million due to the LA wildfires.
Company Guidance
During the Swiss Re Annual Results 2024 Conference Call, Group CEO Andreas Berger and Group CFO John Dacey provided detailed guidance on the company's financial performance and future outlook. Swiss Re reported a net income of $3.2 billion for 2024, with a return on equity of 15%. The company positioned its P&C reserves at the 90th percentile by adding $2.4 billion to U.S. liability reserves in Q3 and $3.1 billion throughout the year. P&C Re achieved volume growth of 7% and a nominal price increase of 2.8%, while Corporate Solutions attained an 89.7% combined ratio, surpassing its target. Life & Health Re reached a net income target of $1.5 billion, despite a 6% reduction in its CSM balance. For 2025, Swiss Re aims for a net income of over $4.4 billion and expects a $100 million reduction in operating costs. The company also plans an 8% dividend increase, aligning with their strategy to grow dividends by at least 7% per year over three years. Swiss Re is confident in achieving these targets, despite accounting for a preliminary loss of under $700 million from the LA wildfires, and anticipates a $300 million operating cost reduction by 2027.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.