Swiss Re: Former Watchdog Chief to Retire
Profitability was at the core of the Swiss reinsurer's focus last year – the 2024 annual results confirm success. Additionally, the Group's Chief Risk Officer and former Finma head will retire at the end of September 2025. According to Swiss Re, the succession process is underway.
Swiss Re achieved a profit of $3,2 billion in 2024, with a return on equity (ROE) of 15,0 percent. These figures were released on Thursday. In the fourth quarter alone, the profit amounted to $1,1 billion.
In the previous year, the profit was $3,1 billion, with a return on equity of 16,2 percent.
As recently as last November, the company had to revise its profit target of $3,6 billion downward due to an in-depth review of reserves related to the U.S. liability business.
Dividend to Be Substantially Increased
According to a company statement, the key drivers of the result were disciplined underwriting in new business and contributions from the investment portfolios across all business units. Partially offsetting these gains was the increase in reserves related to the U.S. liability business of P&C Re in the third quarter.
«We have achieved strong profits and a high return on equity while meeting our objective of positioning total reserves in the property and casualty segments at the upper end of our best-estimate range,» said CEO Andreas Berger.
The Board of Directors is proposing a dividend of $7,35 per share, representing an 8 percent increase.
$1 Billion in Losses Due to Natural Catastrophes
The underwriting result, which reflects the profitability of underwriting activities, stood at $4,3 billion, compared to $4,7 billion in the previous year. The group's insurance revenue increased from $43,9 billion in 2023 to $45,6 billion in 2024.
Major losses from natural catastrophes totaled $1,0 billion in 2024. These were primarily caused by hurricanes Milton, Debby, and Helene, the severe hailstorm in Calgary, Canada, Storm Boris in Europe, and flooding in the Gulf region.
In the third quarter, P&C Re significantly strengthened reserves for losses from previous years related to the U.S. liability business. These reserve increases were partially offset by releases in other segments, resulting in a net reserve increase of $2.6 billion for prior-year losses in 2024.
Price Increases Had an Impact
Swiss Re also benefited from price increases last year. The reinsurer renewed contracts as of January 1, 2025, with a premium volume of $13,3 billion, marking a 7,0 percent increase compared to the business up for renewal. Overall, P&C Re achieved a price increase of 2,8 percent in this renewal round.
Estimates for Los Angeles Wildfires
For 2025, Swiss Re aims for a profit of more than $4,4 billion. Additionally, the dividend is expected to increase by at least 7 percent.
Swiss Re estimates its preliminary losses from the Los Angeles wildfires at less than $700 million, which will impact the group's results in the first quarter of 2025. The company estimates the total insured market loss from these fires at approximately $40 billion.
Former Finma Chief to Retire
Swiss Re also announced on Thursday that Kera McDonald, currently Chief Underwriting Officer at Swiss Re Corporate Solutions, will be appointed Group Chief Underwriting Officer effective June 1, 2025, subject to regulatory approval.
Additionally, Group Chief Risk Officer and former Finma head Patrick Raaflaub will retire at the end of September 2025. According to Swiss Re, the succession process is underway.
