Swiss Re AG

Swiss Re reported H1 2026 net income of USD 2.8 billion, representing more than 60% of its full-year target of USD 4.5 billion, and a 23% return on equity. P&C Reinsurance delivered an insurance service result of USD 1.8 billion, with a combined ratio of 76.7%; current-service experience was about USD 350 million, mainly from large nat cat losses coming in USD 676 million below expectations, and past-service experience was about USD 350 million, including more than USD 1 billion of short-tail reserve releases. Corporate Solutions reported a combined ratio of 86.1% and an insurance service result of USD 578 million. Life & Health Re posted net income of just over USD 1 billion and an insurance service result of USD 1.2 billion, with USD 758 million of CSM release and an annualized release rate of around 9%. The group’s estimated SST ratio was 264%, up 14 percentage points since January 1, 2026, and it had executed about 60% of the USD 1.5 billion share buyback by the end of July. For forward guidance, management reiterated confidence in achieving the USD 1.7 billion 2026 net income target for Life & Health Re and said P&C Re remains comfortable staying below its full-year combined ratio target of 85%; the operating cost reduction target was increased to USD 500 million by 2028, fully reflected in the 2029 full-year run rate.

Alexander Andreas Berger framed the quarter as evidence that Swiss Re’s diversified model and cycle management are working, highlighting disciplined underwriting, prudent reserving, and capital management. He said the group is maintaining portfolio quality while selectively growing in attractive areas, citing midyear renewals that were broadly consistent with earlier renewals and a stable overall market position. His tone was confident but measured, emphasizing resilience even as competition remains strong and hurricane season is entering its peak.

Anders Malmstrom emphasized that the first-half results were supported by favorable experience variance, including roughly USD 350 million from current services and roughly USD 350 million from past services in P&C Re, plus more than USD 1 billion of short-tail reserve releases. He noted P&C Re’s combined ratio of 76.7%, Corporate Solutions’ 86.1% combined ratio, Life & Health Re’s USD 1.2 billion insurance service result, and investment portfolio ROI of 4.0% with USD 2 billion recurring income. On capital, he said the estimated SST ratio was 264%, and he pointed to good progress on the USD 1.5 billion buyback. He also said the cost reduction plan is being expanded to USD 500 million by 2028, with the lower run rate fully reflected in 2029.

Analysts focused on how much of the reserve release and new business CSM decline was structural versus prudential. Management said the short-tail reserve releases reflect both low nat cat losses and the benefits of the more prudent reserving philosophy put in place earlier, while the added long-tail IBNR was described as precautionary rather than a sign of deterioration. On pricing, management said the sequential changes in loss picks were mainly a business-mix effect, not a change in underwriting view, and described casualty as still prudent despite rate increases. In Life & Health, management acknowledged new business CSM can be lumpy and said the business should be back to a more normal run rate in the second half, while not expecting a return to 100% CSM sustainability for the full year.