Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. Switzerland
  4. Swiss Exchange
  5. Swiss Re Ltd
  6. News
  7. Summary
    SREN   CH0126881561


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

EQS-News : Swiss Re posts strong profit of USD 1.0 billion in first half 2021

07/30/2021 | 01:02am EDT
EQS Group-News: Swiss Re Ltd / Key word(s): Quarter Results 
Swiss Re posts strong profit of USD 1.0 billion in first half 2021 
2021-07-30 / 07:00 
Ad hoc announcement pursuant to Article 53 LR 
  . Excluding COVID-19 losses, Group net income of USD 1.7 billion and return on equity (ROE) of 13.4% 
  . Property and Casualty Reinsurance (P&C Re) net income of USD 1.2 billion 
  . Successful July 2021 P&C Re renewals at attractive margins 
  . Life and Health Reinsurance (L&H Re) net loss of USD 119 million; excluding COVID-19 losses, net income of 
    USD 530 million 
  . Corporate Solutions net income of USD 262 million 
  . Strong return on investments (ROI) of 3.2% 
Zurich, 30 July 2021 - Swiss Re reported a Group net income of USD 1.0 billion and an ROE of 8.2% in the first half of 
2021, with very strong performance in the property and casualty businesses amid diminishing COVID-19-related impacts. 
Excluding COVID-19-related losses, Swiss Re's net income was USD 1.7 billion, compared with USD 865 million in the same 
period of the prior year. 
Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: 'We are very pleased with the improved 
profitability achieved by the Group in the first half of this year. The focus on portfolio quality at P&C Re is 
delivering very strong results, and we are reaping the fruits of our decisive actions that brought Corporate Solutions 
back on track. Although L&H Re is still impacted by claims related to COVID-19 as we support our clients and society 
during this pandemic, its underlying business continues to perform well. All our businesses are growing, and our very 
strong capital position allows us to pursue attractive opportunities across all lines of business.' 
Swiss Re's Group Chief Financial Officer John Dacey said: 'Our property and casualty businesses are on track to deliver 
on their ambitious combined ratio goals for this year. At L&H Re, we currently believe that the progress of the global 
vaccination programmes will lead to diminishing COVID-19 losses over the coming quarters. Swiss Re's asset management 
continues to successfully navigate financial markets and deliver strong returns for the Group.' 
Swiss Re reports solid premium growth and strong investment performance 
Net premiums earned and fee income for the Group increased by 7.6% year on year to USD 20.8 billion. The increase was 
driven by growth across many property and casualty lines and significant transactions completed in L&H Re. At constant 
foreign exchange rates, premiums and fees increased by 3.2%. 
Swiss Re achieved an ROI of 3.2% in the first half of 2021. The investment result was largely driven by recurring 
income as well as equity valuation gains. The Group continues to actively manage the portfolio while prioritising the 
preservation of sustainable income in the persistent low-yield environment. 
COVID-19 losses decreased to USD 870 million in the first half of 2021 from USD 2.5 billion in the same period of 2020. 
The vast majority of the current losses are attributable to the L&H Re business, while the impact on the property and 
casualty businesses was minimal in the first six months of 2021. Swiss Re expects COVID-19-related losses in its 
property and casualty businesses of less than USD 200 million for the remainder of 2021. 
While highly uncertain at this time, preliminary assessments of two significant events in July - flooding in Europe and 
social unrest in South Africa - currently indicate a combined mid-triple-digit million US dollar loss for Swiss Re. 
This amount remains within the Group's large-loss expectations for the third quarter. 
Swiss Re completed the streamlining of the Group's legal entity structure, which was announced in September 2020. Since 
1 July 2021, Swiss Reinsurance Company Ltd is the sole direct wholly-owned operating subsidiary of Swiss Re Ltd and 
holds separate holding companies for the Reinsurance and Corporate Solutions Business Units, as well as the iptiQ 
division. The management structure remains unchanged. 
P&C Re reports very strong results 
P&C Re reported a net income of USD 1.2 billion in the first half of 2021, compared with a net loss of USD 519 million 
in the same period last year. This result reflected disciplined underwriting, continued price improvements, 
significantly diminishing COVID-19 impacts as well as strong investment results. The ROE was 27.2%. P&C Re's net 
premiums earned grew by 8.9% to USD 10.5 billion, driven by volume and price increases as well as favourable foreign 
exchange developments. 
Natural catastrophe losses were largely in line with expectations and amounted to USD 521 million, mainly related to US 
winter storm Uri in the first quarter, while large man-made losses were at USD 100 million. 
The combined ratio improved to 94.4% from 115.8% in the first half of 2020. As a result of disciplined underwriting and 
improving margins, P&C Re is on track to achieve its normalised^[1]^ combined ratio estimate of less than 95% in 2021. 
Successful July P&C Re renewals 
P&C Re achieved a nominal price increase of 4% in year-to-date renewals, while the volume of treaty contracts remained 
largely stable at USD 16 billion. Overall price quality improved, more than offsetting the impact of decreased interest 
rates and adjustments to loss assumptions. In the July treaty renewals, premium volumes slightly increased, with growth 
in attractive natural catastrophe business in the US. 
L&H Re delivers good underlying profitability 
In the first half of 2021, L&H Re reported a net loss of USD 119 million in light of the continued COVID-19-related 
losses. These losses markedly lessened over the course of the second quarter from the first quarter. For the remainder 
of the year a further decrease is expected as the global vaccination programmes progress. 
Excluding COVID-19 losses of USD 810 million, L&H Re's underlying business performed well, achieving a net income of 
USD 530 million and an ROE of 15.5%. This was primarily driven by a strong underwriting performance across all regions 
and favourable investment results. 
Net premiums earned and fee income increased by 12.6% to USD 7.5 billion, primarily driven by longevity transactions in 
the EMEA region and favourable foreign exchange developments. 
Corporate Solutions continues its resurgence with high profitability and pricing momentum 
Corporate Solutions reported a net income of USD 262 million in the first half of 2021, following the successful 
turnaround in 2020. This reflects a significant improvement compared with a COVID-19-driven net loss of USD 312 million 
in the prior-year period^[2] and was achieved in spite of large natural catastrophe losses of USD 155 million, relating 
to US winter storm Uri in the first quarter. 
Net premiums earned rose 3.3% to USD 2.6 billion, thanks to realised rate increases and selective new business growth, 
while the impact of the previous portfolio pruning actions is diminishing. Year to date, Corporate Solutions achieved 
risk-adjusted price increases of 13%^[3], as the strong pricing momentum continued. 
The ROE was 21.1% and the combined ratio was 92.7%, supported by favourable prior-year development. As a result of 
disciplined underwriting, strict expense management and continued rate increases, Corporate Solutions is on track to 
achieve its targeted normalised^[4] combined ratio of less than 97% in 2021. 
Continued dynamic growth at iptiQ 
iptiQ continued to deliver strong growth in the first half of 2021. Compared with the same period last year, gross 
premiums written for the core business rose by 133% to USD 333 million, with good contributions across all businesses 
and particularly dynamic growth in its property and casualty business in the EMEA region, which was launched in 2020. 
Likewise, iptiQ's gross income^[5], excluding COVID-19-related losses of USD 5 million, increased by 53% compared with 
the first half of 2020 to USD 26 million in the first half of 2021. 
Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: 'The first half of 2021 has demonstrated the 
strength of our business model as we see our underwriting actions deliver results. While we remain in an uncertain 
pandemic situation, we are confident that all our businesses are well positioned to continue to perform strongly.' 
Details of H1 2021 performance 
                                                          H1 2020[6]  H1 2020      H1 2021    H1 2021 
                                                                      Excluding               Excluding 
USD millions, unless otherwise stated                                 COVID-19[7]             COVID-19^[7] 
Consolidated        Net premiums earned and fee income    19 329                   20 800 
Group (total) 
                    Net income/loss                       -1 135      865          1 046      1 735 
                    Return on equity                      -7.9        5.8          8.2        13.4 
                    (%, annualised) 
                    Return on investments (%, annualised) 3.2                      3.2 
                    Recurring income yield                2.5                      2.3 
                    (%, annualised) 
                    31.12.20                                                       30.06.21 
                    Shareholders' equity                  27 135                   23 805 
                    Book value per share (USD)            93.90                    82.36 
                                                          H1 2020^[6] H1 2020      H1 2021    H1 2021 
                                                                      Excluding               Excluding 
                                                                      COVID-19^[7]            COVID-19^[7] 
P&C Reinsurance     Net premiums earned                   9 601                    10 453 
                    Net income/loss                       -519        646          1 248      1 278 

(MORE TO FOLLOW) Dow Jones Newswires

July 30, 2021 01:01 ET (05:01 GMT)

All news about SWISS RE LTD
09/17SWISS REINSURANCE COMPANY : UBS remains a Sell rating
09/14SWISS RE : enters partnership with BlaBlaCar and L'olivier Assurance to launch innovative ..
09/14Swiss Re enters partnership with BlaBlaCar and L'olivier Assurance to launch innovative..
09/14Swiss Re Enters Partnership with BlaBlaCar and L’Olivier Assurance to Launch Innovative..
09/10SWISS REINSURANCE COMPANY : Buy rating from Barclays
09/10NEWS HIGHLIGHTS : Top Financial Services News of the Day
09/09SWISS REINSURANCE COMPANY : Buy rating from Berenberg
09/09EUROPEAN MIDDAY BRIEFING : Stocks Under Pressure Ahead of ECB
09/09SWISS RE : Global non-life premiums to rise 10% above pre-pandemic levels this year - Swis..
09/09SWISS RE : Expects Non-Life Insurance Premiums by 2021-End to Top Pre-Pandemic Levels
More news
Analyst Recommendations on SWISS RE LTD
More recommendations
Financials (USD)
Sales 2021 42 380 M - -
Net income 2021 2 038 M - -
Net Debt 2021 6 429 M - -
P/E ratio 2021 12,6x
Yield 2021 7,55%
Capitalization 25 091 M 25 076 M -
EV / Sales 2021 0,74x
EV / Sales 2022 0,73x
Nbr of Employees 13 605
Free-Float 90,7%
Duration : Period :
Swiss Re Ltd Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SWISS RE LTD
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 19
Last Close Price 86,83 $
Average target price 100,62 $
Spread / Average Target 15,9%
EPS Revisions
Managers and Directors
Christian Mumenthaler Group Chief Executive Officer
John Robert Dacey Group Chief Financial Officer
Sergio P. Ermotti Independent Non-Executive Chairman
Anette Bronder Group Chief Operating Officer
Guido FŘrer Group Chief Investment Officer
Sector and Competitors