(AOF) – Swiss Re shares fell 2.51% to 101 Swiss francs after revealing an annual net profit slightly lower than consensus. The reinsurer published net profit of $3.214 billion in 2023 compared to only $472 million in 2022. Even if its profit increased sharply, analysts hoped for even better at $3.26 billion. The increase in profits resulted from improved underwriting margins, while rising interest rates led to an increase in investment income.
Jefferies highlights that general reinsurance disappointed while life and health exceeded expectations.
In detail, property reinsurance, its largest division, recorded a net profit of $1.9 billion in 2023, compared to $312 million in 2022. It displays a combined ratio of 94.8% in line with the The objective of a ratio lower than 95% and lower than that of 2022: 102.4%. Below 100, the lower this indicator, the more profitable the insurance activity.
Losses from large natural disasters totaled $1.3 billion in 2023, below the budget of $1.7 billion for the full year.
In L&H Re (life and health), net profit stood at $976 million for 2023, compared to $416 million.
Net premiums earned and commissions received by the reinsurer increased by 4.4% to reach $45 billion in 2023.
Given the improvement in Swiss Re’s profitability, which posts a return on equity of 22.6%, the board of directors will propose a dividend increase of 6% to $6.80 per share.
Swiss Re has finally confirmed the financial objectives communicated during its investor day in December 2023. For 2024, the Swiss reinsurer is targeting a net result of more than $3.6 billion under IFRS standards. Swiss Re targets a return on equity above 14%.
© 2024 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
This is a Smartvoice article: see legal notices