Swiss Re Reports Sharp Increase in Net Profit for 2023
Zurich-based reinsurer, Swiss Re, has announced a significant rise in its net profit for the year 2023, primarily driven by an improved performance in its property-and-casualty reinsurance segment and lower-than-expected natural-catastrophe claims.
Impressive Profit Figures
Swiss Re has reported a net profit of $3.21 billion for 2023, an impressive leap from the $472 million recorded in 2022. The company had set a profit target of over $3 billion, but fell slightly short of analyst estimates, which projected a profit of $3.27 billion.
Dominance of Property-and-Casualty Segment
The property-and-casualty segment proved to be the major contributor to Swiss Re's profits, with a substantial figure of $1.86 billion. Furthermore, the life-and-health and corporate-solutions businesses also experienced an increase in profits.
Natural Catastrophe Claims Below Budget
Swiss Re's success can be attributed, in part, to a lower volume of natural-catastrophe claims, which totaled $1.3 billion for the year. This figure fell below the budgeted amount of $1.7 billion.
Growth in Premiums and Fees
Net premiums earned and fee income saw an uptick, reaching $45.00 billion, compared to the previous year's $43.12 billion.
Positive Treaty Contract Renewal
Swiss Re renewed treaty contracts valued at $13.1 billion on January 1st, representing a 9% volume increase compared to the previous business that was up for renewal. Additionally, the company achieved a price rise of 9%.
Steady Profit Target and Dividend Proposal
Swiss Re has maintained its profit target for 2024 of over $3.6 billion. In line with its strong performance, the board has proposed a dividend of $6.80 per share for 2023, reflecting a 6% increase from the previous year.
Analyst comment
Positive news. The improved performance and higher profits in Swiss Re’s property-and-casualty segment, along with increased profits in its other businesses, indicate strong financial growth. The renewal of treaty contracts and achieving a price rise also bode well for the market. Analysts predict the market will continue to thrive in the upcoming years, with Swiss Re maintaining its profit target for 2024 and proposing a higher dividend for shareholders.
