Switzerland's Swiss Re 9M net income rises on lower catastrophe losses

Overview

• Switzerland reinsurance provider's 9M net income rose 3% to $4.2 bln

• Insurance revenue for 9M fell 3% due to lower P&C Re volumes

• Company nearly completed $1.5 bln share buyback program

Outlook

• Swiss Re targets 2026 Group net income of $4.5 bln

• P&C Re targets full-year combined ratio of less than 85%

• Corporate Solutions targets full-year combined ratio of less than 91%

Result Drivers

• LOWER CATASTROPHE LOSSES - Co said results were helped by lower-than-expected natural catastrophe losses across business units

• DISCIPLINED UNDERWRITING - Co attributed earnings to disciplined underwriting and portfolio management, per CFO Anders Malmström

• FAVOURABLE US MORTALITY - Co said L&H Re results benefited from favourable US mortality experience

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and 11 "sell" or "strong sell"

• The average consensus recommendation for the reinsurance peer group is "buy."

• Wall Street's median 12-month price target for Swiss Re AG is CHF125.00, about 19.9% below its November 4 closing price of CHF156.10

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Nov 3 - Insurer American Financial Group's Q3 adj EPS beats on underwriting and premium growth

• Nov 2 - CNA Financial Q3 net income falls, catastrophe losses rise

• Nov 3 - International General Insurance Q3 net income falls due to lower energy line premiums

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)