Swiss Re Reports Full-Year 2019 Net Income of $727M, Driven by a Strong L&H Re Result, Excellent Investment Performance
The Group's capital position remains very strong with a Group Swiss Solvency Test (SST) ratio above the 220% target level. Taking into account the Group's sustained capital generation,
P&C Re profit impacted by large natural catastrophe claims
P&C Re reported a net income for the full year of
The large natural catastrophe losses in 2019 were driven mainly by typhoons Hagibis and Faxai in
The P&C Re combined ratio was 107.8% in 2019, compared with 104.0% reported for 2018. The normalised/1 combined ratio was in line with previous estimates and is expected to improve to 97% for 2020.
January P&C Re renewals show healthy growth in natural catastrophe business
P&C Re achieved a nominal price increase of 5% in this renewal round. Risk-adjusted price quality was unchanged, reflecting lower interest rates and more conservative loss assumptions. Business in many loss-affected regions, such as
L&H Re continues to deliver strong results; ROE above target range
L&H Re reported a strong net income for 2019 of
Return on equity for L&H Re improved to 12.4% from 11.1% in 2018 and was above the business segment's target range of 10-12%.
The underwriting result included a negative adjustment to the carrying value of an existing treaty, which had to be fair valued following the acquisition of
Corporate Solutions result impacted by decisive management actions to address underperformance as well as US casualty deterioration
Corporate Solutions reported a net loss of
Net premiums earned rose 6.1% to
The Business Unit is making progress in actively managing risk exposure to ensure a more focused and profitable portfolio going forward. The strong pricing momentum experienced in 2019 has continued into early 2020, with Corporate Solutions achieving price increases of 14% in
As announced on
Net premiums earned and fee income increased to
The foregoing and the 2019 Financial Review of the
Media conference and call
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- Group net income increased 73% to
- Property & Casualty Reinsurance (P&C Re) net income rose 7% to
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- Life & Health Reinsurance (L&H Re) net income rose 18% to
- Corporate Solutions net loss of
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- Excellent return on investments (ROI) of 4.7%; running yield at 2.8%
- Board of Directors to propose a dividend increase of 5% to
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See table and footnote here (https://www.swissre.com/media/news-releases/nr-20200220-fy-2019-news-release.html)
Footnotes:
1/ Assuming an average large natural catastrophe loss burden and excluding prior-year reserve developments and impact of an Adverse Development Cover with Corporate Solutions.
2/ Gross cash generation is the estimated net cash arising from business activity within the Life Capital Business Unit during the reporting period, taking into account both surplus development and certain capital actions. It is calculated gross across both
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