Swiss Re reported a 3% increase in net income to $4.2bn for the first nine months of 2026, compared with $4.0bn in the same period last year, supported by strong contributions across its business units. Return on equity remained unchanged at 22.5%. The reinsurer attributed its performance to strong underwriting results from Property & Casualty Reinsurance (P&C Re) and Corporate Solutions, as well as healthy in-force margins and favourable US mortality experience in Life & Health Reinsurance (L&H Re). Lower-than-expected large natural catastrophe losses also supported the results. Swiss Re maintained its full-year 2026 net income target of $4.5bn.
The Group's insurance service result increased to $5.1bn from $4.8bn a year earlier, while insurance revenue declined to $31.2bn from $32.0bn. Its new business contractual service margin, which measures the profitability of newly written business, fell to $2.8bn from $3.9bn, reflecting competitive pricing conditions in P&C renewals and lower contributions from L&H Re. Meanwhile, Swiss Re achieved an investment return on investment of 4.0%, supported by $3.1bn in recurring investment income. Its recurring income yield rose to 4.2% from 4.1% in the prior-year period.
P&C Re recorded net income of $2.2bn, down 6% from $2.3bn a year earlier, with a combined ratio of 77.3%, compared with 77.6%. Corporate Solutions, meanwhile, increased net income to $714m from $693m, while its combined ratio improved to 86.4% from 87.1%. Swiss Re said both businesses benefited from strong underwriting performance and lower-than-expected catastrophe losses. The group also maintained an estimated Swiss Solvency Test ratio of 259% as of 1 October 2026, above its target range of 200% to 250%.
Swiss Re Group Chief Financial Officer Anders Malmström said current earnings reflected disciplined underwriting and portfolio management, although lower margins on new business highlighted the competitive P&C pricing environment. He added that the group's simplification initiatives were bringing it closer to clients and supporting its cost reduction targets. Swiss Re remains on track to reduce operating costs by $500m by 2028, while continuing investments in underwriting, client-facing capabilities, data and artificial intelligence. Malmström also said the execution of the group's $1.5bn share buyback programme, announced in February, was nearly complete.