Swiss Re Ltd / CH0126881561

Swiss Re targets an IFRS net income of more than USD 3.6 billion for 2024

Swiss Re Ltd / Key word(s): Strategic Company Decision


01-Dec-2023 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

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Ad hoc announcement pursuant to Article 53 LR Ahead of its transition from US GAAP to the IFRS accounting standard, Swiss Re announces new financial targets for 2024 Property & Casualty Reinsurance (P&C Re) targets a reported combined ratio of less than 87% Life & Health Reinsurance (L&H Re) targets a net income of USD 1.5 billion Corporate Solutions targets a reported combined ratio of less than 93% The Group targets a multi-year IFRS return on equity (ROE) of more than 14% Zurich, 1 December 2023 – Swiss Re announces new IFRS targets, including a net income of more than USD 3.6 billion for 2024 and a multi-year ROE of more than 14%. Swiss Re Group Chief Executive Officer Christian Mumenthaler said: "Our hard work to increase earnings resilience is paying off with significantly improved profitability in all of our core businesses. Swiss Re is well positioned to benefit from the more economic view provided by the IFRS accounting standard, which is reflected in the targets published today." Better reflection of earnings power and higher equity The transition from US GAAP to IFRS provides Swiss Re with an opportunity to demonstrate the value of its business. The new accounting basis will have a positive impact on the bottom line by better reflecting L&H Re's earnings power, and on its balance sheet by eliminating systemic accounting mismatches under US GAAP. As a result, the shareholders' equity position will be significantly higher. The Group targets an IFRS net income of more than USD 3.6 billion for 2024, of which L&H Re is expected to contribute USD 1.5 billion. P&C Re targets an IFRS reported combined ratio of less than 87% for 2024[1]. Corporate Solutions targets an IFRS reported combined ratio of less than 93% for 2024[1,2]. Swiss Re aims at a multi-year IFRS ROE of more than 14%. A changing reserving philosophy and sustainable dividend growth The announced financial targets are reflective of Swiss Re's objective to be sustainably positioned at the higher end of the best estimate reserving range across its P&C businesses. This will be supported by the introduction of a reserving uncertainty allowance for new business. The implementation is expected to have a negative impact on profit after tax in 2024 of approximately USD 0.5 billion[3]. Swiss Re maintains its capital management priorities, with the aim of returning to sustainable dividend growth. The Group's robust SST ratio of 314%[4] will not be materially affected by the change in accounting standard. Swiss Re will report under IFRS as of 2024.  

Investors' Day webcast Swiss Re's 2023 Investors' Day will be held today from 10:30 to 15:30 CET. Media are able to follow the event via live webcast. For additional information on the event, including the agenda and presentation slides, please click here.  

 

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[1] Compared to US GAAP, IFRS reported combined ratios reflect discounting of claims and certain methodological differences.

[2] Compared to P&C Re, Corporate Solutions' IFRS reported combined ratio definition reflects lower discounting and methodological benefits.

[3]  Impact expected to come from new business uncertainty allowances affecting the 2024 current year result in P&C Re and Corporate Solutions.

[4] As of 1 July 2023.

For further information please contact Swiss Re Media Relations: + 41 (0)43 285 7171 or [e-mail].
Please use this link to access Swiss Re's press releases.

Swiss Re
The Swiss Re Group is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. It anticipates and manages risk – from natural catastrophes to climate change, from ageing populations to cyber crime. The aim of the Swiss Re Group is to enable society to thrive and progress, creating new opportunities and solutions for its clients. Headquartered in Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group operates through a network of around 80 offices globally. Cautionary note on forward-looking statements
Certain statements and illustrations contained herein are forward-looking. These statements (including as to plans, objectives, targets, and trends) and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical fact or current fact. Further information on forward looking statements can be found in the Legal Notice section of Swiss Re's website.

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End of Inside Information

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Language:	English
Company:	Swiss Re Ltd
	Mythenquai 50/60
	8022 Zurich
	Switzerland
Phone:	[phone]
E-mail:	[e-mail]
Internet:	www.swissre.com
ISIN:	CH0126881561
Valor:	12688156
Listed:	SIX Swiss Exchange
EQS News ID:	1787051

End of Announcement	EQS News Service

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1787051  01-Dec-2023 CET/CEST