Swiss Re, one of Europe’s big four reinsurers, recorded net income of more than $4 billion for the first nine months of 2025, an increase of 85% on the prior year’s $2.2 billion, as the property and casualty (P&C) reinsurance result improved significantly amid lower natural catastrophe losses and a solid investment result.
Across the Group, the insurance service result, which reflects underwriting profit, increased by 64% year-on-year to $4.8 billion for 9M’25, as insurance revenue decreased by 5% to $32 billion.
Swiss Re’s Group new business contractual service margin (CSM), a reflection of the profitability of new business written, fell from $4.2 billion in 9M’24 to $3.9 billion in 9M’25.
On the asset side of the balance sheet, the Group return on investment (ROI) was 4.1% for 9M’25 compared with 3.9% a year earlier, driven by higher recurring income and realised gains from the sale of a minority equity position in Q1’25.
Andreas Berger, Swiss Re’s Chief Executive Officer, commented: “We have two priorities: delivering on our financial targets and increasing the resilience of the Group. Our results for the first nine months of 2025 reflect this. After significant large loss events in the first quarter, the second and third quarters benefited from low natural catastrophe losses. This provided a substantial tailwind to our property and casualty businesses, supported further by our continued focus on underwriting quality. In L&H Re, we are accelerating efforts to improve the resilience of the in-force book.”
Within P&C Re, net income increased by a huge 278% to $2.3 billion for 9M’25, compared with $607 million for 9M’24, as large natural catastrophe claims fell to $611 million, mainly related to the Los Angeles wildfires, as man-made large losses hit $277 million.
The P&C Re insurance service result increased by 187% year-on-year to $2.9 billion for 9M’25, supported by lower losses from nat cats, while the prior year period was also impacted by significant reserving.
As a result, the P&C Re combined ratio strengthened significantly to 77.6% for 9M’25 compared with 92.8% for the prior year period, with the business on track to meet its target of a combined ratio of 85% or below for full year 2025.
P&C Re insurance revenue hit $14 billion for 9M’25, down slightly on the prior year period’s $15 billion, with Swiss Re highlighting pruning actions in casualty lines as the largest driver of the decrease.
The business produced a new business CSM of $2.5 billion for 9M’25 compared with $2.7 billion for 9M’24.
“Alongside a strong underwriting result for the first nine months of the year in our property and casualty businesses, we have maintained healthy margins on new business written in the period. Additionally, all Business Units continue to benefit from robust recurring investment income,” said Swiss Re’s Group Chief Financial Officer, Anders Malmström.
Turning to the life and health (L&H) reinsurance segment, net income decreased to $1.1 billion in 9M’25 from $1.2 billion in 9M’24, driven by a lower underwriting result.
The L&H Re insurance service result decreased by 15% to $1 billion for 9M’25 from $1.2 billion for 9M’24, with this year’s result reflecting a $400 million negative impact attributable to assumption strengthening for selected underperforming portfolios in the EMEA and ANZ regions, of which $250 million affected Q3’25. Claims experience for the largest portfolios, including US mortality, remained in line with expectations during the period, states the reinsurer.
Insurance revenue at L&H Re decreased by 3% to $12.2 billion for 9M’25 from $12.6 billion for 9M’24, driven mostly by the termination of an external retrocession transaction which positively affected insurance revenue for the prior-year period.
L&H Re’s new business CSM hit $833 million for 9M’25, compared with $894 million a year earlier, as the segment maintained its CSM balance of $17.4 billion.
While a solid quarter for L&H Re, Swiss Re says that the $1.1 billion net income generated after 9M’25 means it is not currently expected to meet its full year 2025 net income target of $1.6 billion.
Lastly, in Corporate Solutions, net income increased by 10% year-on-year to $693 million for 9M’25, which reflects a strong underwriting performance, lower-than-expected natural catastrophe losses, and a solid investment result.
The segment’s insurance service result increased by 13% to $832 million, while insurance revenue decreased by 2% to $5.7 billion for 9M’25.
Large man-made losses within Corporate Solutions in 9M’25 amounted to $282 million, while large natural catastrophe losses of $60 million were mainly driven by the Los Angeles wildfires and Tropical Cyclone Alfred, which affected Queensland, Australia.
The business delivered a combined ratio of 87.1% for 9M’25 compared with 89.4% a year earlier, and targets a combined ratio of less than 91% for the full year.
The Corporate Solutions new business CSM hit $500 million for 9M’25 compared with $594 million a year earlier.
“Thanks to the strong performance in the first nine months of 2025, we are well on- track to meet our Group net income target of more than USD 4.4 billion for the full year and our combined ratio targets for both of our property and casualty businesses. In L&H Re, we are taking decisive steps to increase resilience. These actions, together with our continued cost discipline, strengthen the core of our business,” added CEO Berger.
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