@Swiss Re.
Swiss Re, one of Europe’s big reinsurers, has released its H1 2024 results and presented a $2.1 billion net income for the period. For Q2, there was a profit of $996 million.
“These results highlight our focus on capital allocation discipline and quality across our underwriting and investment portfolios,” said Swiss Re's Group Chief Financial Officer, John Dacey, in the company’s press release on the results. “Additionally, higher interest rates continue to benefit our investment income," he said.
In June, the Swiss National Bank lowered interest rates. Earlier this month, the other Swiss-based industry giant Zurich said in its press release on results for H1 2024 that it had a “record operating profit” for similar reasons.
“Encouraging July renewals plus the continued high yield on reinvestment
add up to an optimistic outlook for the rest of 2024."
Elsewhere in Europe, other big re/insurance players had the same reasoning. Allianz said its asset management business saw “Good operating profit and strong net inflows”.
Allianz operates from Germany, a Eurozone country. The European Central Bank cut rates earlier this year, which caused a flurry of market activity in response.
Many other European and North American results have already been released.
One of Swiss Re’s main rivals, Munich Re, said in its H1 results earlier this month that it generated a profit of €3,76 billion. “Encouraging July renewals plus the continued high yield on reinvestment add up to an optimistic outlook for the rest of 2024,” said Joachim Wenning, Chair of the Board of Management, in the company’s statement on the results.
Swiss Re’s press release assed that the group result benefited from “disciplined underwriting” and “strong investment income”.
It listed the main drivers for this result as disciplined underwriting, low natural catastrophe claims and strong investment income.
“The Group achieved a strong return on investments (ROI) driven by contributions from recurring income,” it said. “The recurring income yield for the first half of 2024 was 4.0%, while the reinvestment yield for the second quarter stood at 4.8%, continuing to benefit from higher interest rates.”
It also specified that the group’s P&C Re division reported a net income of $989 million in H1. “This was primarily driven by … low large natural catastrophe experience, alongside strong investment income,” it said.
"We continue to increase the overall resilience of the firm
through a disciplined approach."
The Life and Health Re segment results of $883 million net income in H1 were also partly driven by “higher investment income” it said. However, this was “partially offset by unfavourable developments in the EMEA region.”
“We continue to increase the overall resilience of the firm through a disciplined approach to underwriting new business while remaining on top of loss trends across our in-force portfolios,” said the Group CEO Andreas Berger in the statement.
In February, Swiss Re released its ad hoc results for 2023, which saw the company achieve a return on investments (ROI) of 3.4% for 2023, with recurring income yield increasing to 3.9% in the fourth quarter.
