Swiss Re Profit Beats Estimates as Reinsurer Boosts Cost Cuts
Swiss Re AG’s first-half profit beat estimates as the reinsurer saw all key business units perform in line with targets, while the firm announced a fresh round of cost cuts.
Profit for the second quarter was $1.3 billion, resulting in net income of $2.8 billion for the six months to June, the Zurich-based company said in a statement Thursday. Return on the group’s investment portfolio was 4% for the first half of the year, aided by realized gains from real estate sales in the first quarter.
Swiss Re announced that it is raising its operating-cost reduction target to $500 million by 2028, up from a prior goal of $300 million by 2027. The expanded target will primarily streamline non-client-facing operations.
Lower major catastrophe losses supported Swiss Re’s profits in the period, though pricing pressure across the industry is expected to continue into next year. Inflation and macro-economic uncertainty are also challenging for insurers; Swiss Re set aside $400 million earlier this year in additional reserves.
In its key property and casualty re-insurance business, Swiss Re reported $1.4 billion in net income in the first half, up 18% on a year earlier. Swiss Re warned of continued “challenging” market conditions for the segment.
Read more: Insurers Are ‘Actively Evaluating’ New Catastrophe Risks as Europe Burns
In its life & health re-insurance business, Swiss Re posted a net income of $1 billion, up 21%. The business, which had been suffering for some time with profit falling quarter after quarter, has seen a turnaround. The unit missed its net income yearly target for 2025.
Earlier this year Swiss Re announced a new share buyback program. The firm will repurchase up to $1.5 billion of its own shares in 2026, including $500 million as part of its sustainable annual buyback program.
Photograph: Swiss Re AG’s headquarters in Zurich; photo credit: Philipp Schmidli/Bloomberg
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Topics
Profit Loss
Reinsurance
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