Swiss Re has announced its financial targets for 2025, setting a goal of more than USD 4.4 billion in group net income. The company also plans to increase its ordinary dividend per share by at least 7% annually over the next three years and maintains its multi-year IFRS return on equity (ROE) target of over 14%.
The company provided specific targets for each business unit. Property & Casualty Reinsurance (P&C Re) is aiming for a reported combined ratio below 85%. Life & Health Reinsurance (L&H Re) is targeting a net income of USD 1.6 billion, while Corporate Solutions seeks a reported combined ratio under 91%.
Andreas Berger, Group Chief Executive Officer of Swiss Re, commented on the outlook: "We have taken decisive actions in 2024 to increase the resilience of our business. We achieved our goal of positioning overall P&C reserves at the higher end of the best-estimate range. We refocused on our core capabilities, made good progress on the withdrawal from iptiQ and are aligning our fee-generating business across the Group.
"As we look ahead to 2025, we expect P&C reinsurance pricing to remain strong, with growing demand for protection driven by an elevated risk environment. Commercial insurance pricing is plateauing at attractive levels, while the growing life insurance market and favourable mortality experience in the US are underpinning L&H Re's performance. This is supported by a significant positive contribution from investment income. With a continued focus on disciplined underwriting and costs, SwissRe is well-placed to benefit from this conducive outlook."
All business units are pursuing more ambitious goals compared to previous years. L&H Re’s net income target stands at USD 1.6 billion for 2025; P&C Re aims for a combined ratio under 85%; Corporate Solutions sets its target at below 91%. Swiss Re expects that maintaining cost discipline and efficiency will reduce run-rate operating expenses by about USD 300 million by 2027.
Swiss Re’s management will discuss these targets during their Management Dialogue webcast today, which includes a Q&A session with executives.
Key dates on Swiss Re’s financial calendar include full-year results for 2024 scheduled for February 27, publication of the Annual Report on March 13, and its Annual General Meeting set for April 11.