Swiss Re posts US$1.5bn Q1 profit on strong underwriting, low catastrophe losses

Swiss Re reported a net income of $1.5bn and a return on equity (ROE) of 23.6% for the first quarter of 2026, driven by increased contributions from all business units, supported by low natural catastrophe experience and a strong investment contribution.

The net income was 19% higher than what was recorded a year earlier, while ROE was higher than the 22.4% recorded in the same period.

Swiss Re Group CEO Andreas Berger said, "Our first-quarter performance shows strong earnings generation, reflecting the strategic actions taken in recent years to reinforce our businesses. In a more challenging market environment, we are focused on active cycle management in our P&C businesses, as well as underwriting discipline and efficiency across the Group."

Swiss Re Group Chief Financial Officer Anders Malmström said, "L&H Re made a strong start to the year following the completion of the portfolio review in 2025, while our P&C businesses continued to benefit from high-quality business written in recent years. We also took a prudent approach to managing current geopolitical volatility, including setting aside additional reserves for potential inflationary impacts of the ongoing Middle East conflict."

Both P&C businesses achieved good underwriting results, further supported by low large-loss experience in the quarter, while L&H Re's result reflected in-force underwriting margins and favourable US mortality experience.

Insurance revenue for the Group amounted to $10bn, compared with $10.4bn for the same period in 2025. Lower revenues in P&C Re represented the main driver of the reduction. In addition, the Group's ongoing withdrawal from its iptiQ business contributed to the decline. This was partly offset by favourable foreign exchange movements.

The insurance service result, which reflects the underwriting profit earned in the period, was $1.7bn, compared with $1.3bn in the first quarter of 2025.

The Group's new business contractual service margin (CSM), which reflects the profitability of new business written in the period, was $1.2bn, compared with $1.7bn for the first quarter of 2025. The reduction reflects the impact of P&C Re renewals in January, as well as a lower contribution from L&H Re mainly due to lower transaction activity. Corporate Solutions' new business CSM was broadly in line with the prior-year period.

P&C Re

P&C Re delivered a net income of $754m for the first quarter of 2026, an increase of 43% from $527m in the prior-year period. The result reflects continued disciplined underwriting and low large natural catastrophe experience in the first quarter, supported by solid investment income.

L&H Re

L&H Re reported a net income of $491m in the first quarter of 2026, a 12% increase from $439m in the prior-year period, reflecting the underwriting margins of L&H Re's large in-force book. This was supported by favourable US mortality experience.

Continued strong capital position

Swiss Re maintained its strong capital position with an estimated Group Swiss Solvency Test (SST) ratio of 252% as of 1 April 2026, above the target range of 200–250%.

Mr Berger added, "Swiss Re delivered strong earnings in the first quarter, putting us on a good path towards our 2026 financial targets. Against an uncertain macroeconomic backdrop and an increasingly challenging market environment, our P&C businesses continue to prioritise disciplined underwriting. We expect L&H Re to make a growing contribution to balance the Group's overall performance going forward. At the same time, we are firmly focused on cost efficiency. Our goals remain: delivering on our financial targets and on the Group's overall resilience."

Details of Q1 2026 performance