Swiss Re Ltd. has announced a significant profit increase for the fiscal year of 2023. This increase was supported by improved underwriting margins and a higher investment income due to increased interest rates. The company also saw an increase in its net premiums earned and fee income from the previous year.
Despite its impressive financial performance, Swiss Re's shares in Switzerland saw a 2.4% decrease, trading at 101.15 Swiss Francs.
CEO Christian Mumenthaler attributes their financial success to meeting all financial targets amidst political turbulence and economic uncertainty. In the future, the company plans to emphasis underwriting discipline amidst their successful January renewals. A transition from US GAAP to IFRS accounting is also expected to bolster the company's earnings and overall balance sheet strength.
The company is expected to exceed a net income of $3.6 billion under IFRS in 2024, higher than its income of the previous year. The Life & Health Reinsurance sector targets a net income of $1.5 billion, and Property & Casualty Reinsurance is aiming for a combined ratio of less than 87 percent. Meanwhile, Corporate Solutions targets a reported combined ratio of less than 93 percent under IFRS.
The Board of Directors plans to propose a 6% dividend increase to $6.80 per share at the upcoming Annual General Meeting on April 12.
For the fiscal year 2023, Swiss Re net income increased to $3.21 billion from the previous year's $472 million. Particularly, in the last quarter, the net income was $748 million.
Property & Casualty Reinsurance net income increased markedly to $1.9 billion from $312 million, with strong margins and positive reserve developments in property and speciality lines helping offset reserve strengthening in the casualty business.
Life & Health Reinsurance and Corporate Solutions also saw an increase in net income, achieving $976 million and $678 million respectively.
In 2023, total net premiums earned and fee income rose by 4.4% to $45.00 billion, increasing 4.9% when accounting for constant foreign exchange rates.
The company's ROI also saw a substantial increase, rising to 3.4% in 2023 from 2.0% in 2022. The recurring income yield also increased to 3.6% in 2023 from 2.6% the previous year.
