Healthy underwriting margins across property and casualty (P&C) and life and health (L&H) reinsurance, as well as a solid investment result, helped reinsurance giant Swiss Re generate a 24% year-on-year rise in net income to $2.6 billion for the first half of 2025 with an ROE of 23%, compared with $2.1 billion and 19.6%, respectively, in the first half of 2024.
The reinsurer’s ROI for the first six months of 2025 increased to 4.1% from 4% in 2024, driven by higher recurring income and realised gains from the sale of a minority equity position in the first quarter of 2025.
Within P&C reinsurance, net income increased by 21% year-on-year to $1.2 billion for H1’25, benefiting from disciplined underwriting, low large natural catastrophe claims experience in the second quarter, favourable prior-year reserve development, and a solid investment result.
Large nat cat claims totalled $556 million in the first half of 2025, driven by the Los Angeles wildfires, while large man-made losses amounted to $213 million.
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The P&C insurance service result rose 14% year-on-year to $1.6 billion for H1’25, as the combined ratio strengthened to 81.1% from 84.3% a year earlier, with a target of below 85% for the full year.
Insurance revenue in P&C did fall from $9.7 billion in the first half of 2024 to $8.9 billion this year, which Swiss Re says reflects pruning actions taken in casualty lines and “increased revenue seasonality between the first and second half of the year.”
At the mid-year renewals, Swiss Re renewed contracts with $4.5 billion in treaty volume, which is a 5.9% decrease in volume compared to what was up for renewal, reflecting further pruning of casualty lines. However, year-to-date, P&C Re achieved a treaty premium volume increase of 3%, highlighting continued growth of the portfolio through the year.
P&C Re achieved a price increase of 2.3% at the mid-year reinsurance renewals, while loss assumptions increased by 4.6%.
All in all, the P&C Re operations generated a new business CSM of $2.2 billion for the first half of 2025, in line with the prior-year period.
At L&H Re, net income fell slightly from $883 million in the first half of 2024 to $839 million in the first half of 2025, reflecting a strong contribution from the segment’s large in-force book, supported by steady investment income.
The segment’s underwriting profit declined by $100 million to $900 million, but on a like-for-like basis, Swiss Re says that the 2025 result was in line with last year, reflecting a lower CSM release due to the assumption review carried out at the end of 2024, offset by lower adverse experience variance.
The L&H Re new business CSM increased to $569 million for H1’25 from $562 million in H1’24, and the CSM balance increased by $410 million since the end of 2024, hitting $17.8 billion, mostly as a result of the weakening of the US dollar.
L&H Re insurance revenue for H1’25 decreased by 6% to $8 billion for the first half of 2025, driven mostly by the termination of an external retrocession transaction. For full year 2025, Swiss Re’s L&H Re business maintains its net income target of $1.6 billion.
Swiss Re Corporate Solutions, the commercial insurance arm, generated a net income of $430 million for H1’25 compared with $441 million in H1’24. The company highlights the segment’s consistent underlying business performance in spite of the elevated man-made claims experience, as well as a solid investment result.
The business produced an insurance service result of $515 million, which is in line with 2024, with a combined ratio of 88.2% for H1’25, slightly down on the prior year’s 88.7%. Swiss Re Corporate Solutions is targeting a combined ratio of less than 91% for full year 2025.
Large man-made losses within the business hit $193 million, while large natural catastrophe losses totalled $60 million, driven by the Los Angeles wildfires and Tropical Cyclone Alfred in Australia.
Insurance revenue in H1’25 was in line with the prior year at $3.7 billion, and Corporate Solutions delivered a new business CSM of $262 million, an increase on H1’24’s $223 million.
“The Group delivered a strong result for the first half of 2025 while supporting our clients through peak risks, particularly in the first quarter. The performance reflects our continued focus on underwriting quality, meticulous portfolio management and a prudent investment strategy,” said Andreas Berger, Group CEO.
“The Group’s disciplined capital allocation continues to support earnings resilience. We are pleased that healthy new business contractual service margins are being maintained into 2025, despite a more challenging property and casualty pricing environment,” added Group Chief Financial Officer, Anders Malmström.
Swiss Re’s capital position remains strong, with the firm reporting an estimated Group Swiss Solvency Test ratio of 264% as of July 1st, 2025, which is above the target range of 200-250%.
“Swiss Re has had a strong first half and we maintain our full-year targets. Given the broad geopolitical and macroeconomic uncertainty, and as we enter the peak of the wind season, we remain vigilant. Looking ahead, we continue to focus on disciplined underwriting and cost efficiency to support the delivery of consistent results,” said Berger.
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