Swiss Re Q1 2025: 16% Net Income Growth Amid Revenue Decline and Catastrophe Losses

Swiss Re reported a net income of $1.27 billion for the first quarter of 2025, marking a 16% increase compared to $1.09 billion in the same period the previous year. This growth was driven by positive underwriting results across its business segments and solid investment returns. Despite the increase in net income, the company experienced an 11% decrease in insurance revenue to $11.6 billion, influenced by non-recurring IFRS transition effects, termination of an external retrocession transaction in Life & Health Reinsurance, and adverse foreign exchange impacts.

The Swiss Re Group's book value per share rose 7% to $79.51, while the insurance service result decreased 6% to $1.27 billion. Segment-wise, property and casualty (P&C) reinsurance revenues fell 10% to $4.4 billion, corporate solutions declined 4% to $1.7 billion, and life and health reinsurance revenues were down 15% to $4.05 billion. The company plans to cancel approximately 18.7 million surplus treasury shares by mid-2025, reducing the total share count and concentrating dividend eligibility.

The quarter saw significant loss events impacting the P&C segment, with natural catastrophe claims totaling $570 million, including losses from Los Angeles wildfires. Corporate Solutions reported $147 million in man-made losses and $60 million in natural catastrophe losses related to the wildfires and Tropical Cyclone Alfred in Queensland, Australia. These losses accounted for a sizeable portion of the annual budget for such claims.

Swiss Re’s leadership highlighted the resilience of the group amid these losses, noting the company’s capacity to support clients as a risk mitigator. The firm's CEO emphasized continued vigilance and cost discipline, crediting decisive measures taken in 2024 for positioning the business well to meet its 2025 targets despite a challenging market environment.

Additionally, Swiss Re is progressing with its planned exit from its digital insurance platform iptiQ. Recent divestments include the Americas Sales Solutions segment through a management buyout and the sale of Australian operations to Hannover Re. These moves align with the company’s strategic focus on core business and operational efficiency.