Swiss Re reports a net income of USD 2.6 billion for the first half of 2025

Ad hoc announcement pursuant to Article 53 LR

• Property & Casualty Reinsurance (P&C Re) net income of USD 1.2 billion; combined ratio of 81.1%¹
• Disciplined P&C Re June and July 2025 renewals, with price increase of 2.3% achieved
• Corporate Solutions net income of USD 430 million; combined ratio of 88.2%²
• Life & Health Reinsurance (L&H Re) net income of USD 839 million
• Return on investments (ROI) of 4.1%; recurring income yield of 4.1%

Zurich, 14 August 2025 – Swiss Re reported a profit of USD 1.3 billion in the second quarter of 2025, resulting in a net income of USD 2.6 billion and a return on equity (ROE) of 23.0% for the first half of the year. The Group's financial performance was driven by healthy underwriting margins across all Business Units, supported by a solid investment result.

Swiss Re's Group Chief Executive Officer Andreas Berger said: "The Group delivered a strong result for the first half of 2025 while supporting our clients through peak risks, particularly in the first quarter. The performance reflects our continued focus on underwriting quality, meticulous portfolio management and a prudent investment strategy."

Swiss Re's Group Chief Financial Officer Anders Malmström said: "The Group's disciplined capital allocation continues to support earnings resilience. We are pleased that healthy new business contractual service margins are being maintained into 2025, despite a more challenging property and casualty pricing environment."

Group result driven by strong underwriting margins and increased investment result
Swiss Re reported a net income of USD 2.6 billion and an ROE of 23.0% for the first half of 2025, compared with a net income of USD 2.1 billion³ and an ROE of 19.6%⁴ for the same period in 2024. The increase in net income was driven by strong underwriting margins in both P&C businesses and a higher investment result.

The insurance service result, which reflects the underwriting profit earned in the period, was USD 3.0 billion, compared with USD 2.9 billion in the first half of 2024.

Insurance revenue for the Group amounted to USD 20.9 billion, compared with USD 22.2 billion⁵ for the same period in 2024.

The Group's new business contractual service margin (CSM), which reflects the profitability of new business written in the period, was USD 3.1 billion, up slightly from USD 3.0 billion in the prior-year period.

Swiss Re's ROI for the first half of 2025 was 4.1%, up from 4.0% for the same period in 2024, driven by higher recurring income and realised gains from the sale of a minority equity position in the first quarter of 2025. The recurring income yield for the period was 4.1%, compared with 4.0% for the prior-year period. The reinvestment yield for the second quarter of 2025 was 4.3%.

Strong capital position
Swiss Re's capital position continues to be strong with an estimated Group Swiss Solvency Test (SST) ratio of 264%⁶ as of 1 July 2025, above the target range of 200–250%.

P&C Re performance supported by disciplined underwriting
P&C Re reported a net income of USD 1.2 billion for the first half of 2025, compared with USD 992 million for the same period in 2024³. The result benefited from disciplined underwriting, low large natural catastrophe claims experience in the second quarter, favourable prior-year reserve development and a solid investment result.

The insurance service result reached USD 1.6 billion for the first half of 2025, compared with USD 1.4 billion for the prior-year period.

Large natural catastrophe claims amounted to USD 556 million in the first half of 2025, mainly related to the Los Angeles wildfires. In addition, large man-made losses totalled USD 213 million.

P&C Re achieved a combined ratio of 81.1%, improved from 84.3%⁵ for the prior-year period, and targets a combined ratio of below 85% for the full year.

Insurance revenue for the first half of 2025 was USD 8.9 billion, compared with USD 9.7 billion⁵ for the same period in 2024. The decrease reflects pruning actions taken in casualty and increased revenue seasonality between the first and second half of the year⁷.

June and July P&C Re renewals
P&C Re renewed contracts with USD 4.5 billion in treaty premium volume at the mid-year renewals. This represents a 5.9% volume decrease compared with the business that was up for renewal, reflecting continued pruning of casualty lines. On a year-to-date basis, P&C Re achieved a treaty premium volume increase of 3.0%.

At the mid-year renewals, P&C Re achieved a price increase of 2.3%. Based on a prudent view on Inflation and updated loss models, loss assumptions increased by 4.6%. The resulting portfolio quality is consistent with the Group's 2025 financial targets.

P&C Re generated a new business CSM of USD 2.2 billion for the first half of 2025, in line with the prior-year period.

Corporate Solutions continues to deliver strong results
Corporate Solutions reported a net income of USD 430 million for the first half of 2025, compared with USD 441 million for the same period in 2024³. The continued strong result reflects a consistent underlying business performance, despite elevated man-made claims experience in the first six months of the year, supported by a solid investment result.

The insurance service result reached USD 515 million in the first half of 2025, in line with the prior-year period.

Large man-made losses in the first six months of the year amounted to USD 193 million. Large natural catastrophe losses of USD 60 million were mainly driven by the Los Angeles wildfires and Tropical Cyclone Alfred, which affected Queensland, Australia.

Corporate Solutions achieved a combined ratio of 88.2% for the first half of 2025, compared with 88.7% for the same period in 2024, and targets a combined ratio of below 91% for the full year.

Insurance revenue amounted to USD 3.7 billion for the first half of 2025, in line with the same period in 2024. Stringent portfolio steering and focused growth largely compensated for the previously announced non-renewal of the Irish Medex business⁸.

Corporate Solutions achieved a new business CSM of USD 262 million for the first half of 2025, up from USD 223 million in the same period in 2024.

L&H Re reports solid first-half result
L&H Re reported a net income of USD 839 million in the first half of 2025, compared with USD 883 million for the prior-year period. The result reflects a robust contribution from L&H Re's large in-force book, supported by steady investment income.

The insurance service result for the first half was USD 900 million, down from USD 1.0 billion for the same period in 2024. On a like-for-like basis, the result for the first half of 2025 was in line with the prior-year period⁹, and reflects a lower CSM release due to the assumption review carried out at the end of 2024, offset by lower adverse experience variance.

Insurance revenue for the first half of 2025 amounted to USD 8.0 billion, compared with USD 8.5 billion⁵ for the prior-year period. The change compared to the first half of 2024 was mainly driven by the termination of an external retrocession transaction which positively affected insurance revenue for the prior-year period¹⁰.

L&H Re maintained solid margins on new business, with a new business CSM of USD 569 million for the first half of 2025, compared with USD 562 million for the prior-year period. The CSM balance increased by USD 410 million since year-end 2024, reaching USD 17.8 billion, primarily driven by the weakening of the US dollar.

The Business Unit maintains its net income target of USD 1.6 billion for 2025.

Withdrawal from iptiQ proceeding as planned
The withdrawal from iptiQ is proceeding as planned. Swiss Re announced the sale of the iptiQ Australian business to Hannover Re and completed the management buyout of the iptiQ Americas Sales Solutions business in April 2025. The sale of the iptiQ EMEA P&C business to Allianz Direct was completed in July 2025.

Outlook
Swiss Re's Group Chief Executive Officer Andreas Berger said: "Swiss Re has had a strong first half and we maintain our full-year targets. Given the broad geopolitical and macroeconomic uncertainty, and as we enter the peak of the wind season, we remain vigilant. Looking ahead, we continue to focus on disciplined underwriting and cost efficiency to support the delivery of consistent results."

Details of H1 2025 performance

Financial calendar
14 November 2025 Nine months 2025 results

5 December 2025 Management Dialogue 2025

27 February 2026 Annual Results 2025

10 April 2026  162nd Annual General Meeting

Media conference call

Swiss Re will hold a virtual media conference this morning at 10:30 CEST. To attend, please register in advance here.

Investor and analyst call

Swiss Re will hold an investors' and analysts' webcast at 14:00 CEST, which will focus exclusively on Q&A. The investor and analyst presentation can be found here.

^[1] P&C Re combined ratio is defined as [(insurance service expense + amounts recoverable from reinsurers for incurred claims) / (insurance revenue + allocation of reinsurance premiums)].

^[2] Corporate Solutions combined ratio is defined as [(insurance service expense + allocation of reinsurance premiums + amounts recoverable from reinsurers for incurred claims + non-directly attributable expenses) / insurance revenue].

^[3] Including net income/loss attributable to non-controlling interests of USD 9 million for the Group in H1 2024 (USD 3 million in P&C Re and USD 6 million in Corporate Solutions) and USD 9 million for the Group in H1 2025 (USD 1 million in P&C Re and USD 8 million in Corporate Solutions).

^[4] H1 2024 reflects revised 2023 shareholders' equity as published in the 2024 Annual Report.

^[5] H1 2024 was revised to reflect modelling improvements with regard to non-distinct investment component (NDIC) features. Insurance revenue and insurance service expense were reduced by USD 270 million for the Group (USD 122 million in P&C Re and USD 148 million in L&H Re).

^[6] Estimated Group SST ratio as of 1 July 2025. The SST ratio as of 1 January 2025 was filed with FINMA in April and is subject to regular review by FINMA.

^[7] Negative impact of USD 0.4 billion in the first half of 2025 compared to the prior-year period.

^[8] The non-renewal of the Irish Medex business accounted for a reduction of USD 0.2 billion in the first half of 2025 compared to the prior-year period.

^[9] H1 2024 reflects positive out-of-period adjustments of net USD 125 million.

^[10] The termination of an external retrocession transaction accounted for non-recurring additional revenue of USD 0.4 billion in the first half of 2024.