Swiss Re reports full-year 2017 net income of USD 331 million

By: Swiss Re

Swiss Re reports full-year 2017 net income of USD 331 million despite USD 4.7 billion of natural catastrophe losses

Highlights

  • Group net income of USD 331 million despite the large natural catastrophes, making 2017 one of the costliest years for the re/insurance sector in history
  • Combined estimated claims from large natural catastrophes for Swiss Re amounted to USD 4.7 billion in 2017
  • Property & Casualty Reinsurance net loss USD 413 million; estimated natural catastrophe insurance claims of USD 3.7 billion
  • Strong Life & Health Reinsurance net income USD 1.1 billion; ROE of 15.3%
  • Corporate Solutions net loss USD 741 million; estimated natural catastrophe insurance claims of USD 1.0 billion
  • Life Capital net income USD 161 million; strong gross cash generation of USD 998 million
  • Very strong investment performance; ROI 3.9% and 2.9% running yield
  • January 2018 renewals premium volume up 8%; prices increased by 2%
  • Board of Directors to propose a higher dividend of CHF 5.00 per share; share buy-back 2017 completed; Swiss Re to seek authorisation for a new public share buy-back programme

 

Swiss Re’s full-year net income declined to USD 331 million in 2017. The result includes estimated insurance claims, net of retrocession and before tax, of USD 4.7 billion from large natural catastrophes, such as Cyclone Debbie in Australia, Atlantic hurricanes Harvey, Irma and Maria, the Mexican earthquakes, and the wildfires in California. Both Property & Casualty Reinsurance (P&C Re) and Corporate Solutions results were significantly affected by these events. P&C Re posted a full-year net loss of USD 413 million in 2017, and Corporate Solutions incurred a net loss of USD 741 million. Life & Health Reinsurance (L&H Re) increased its net income to USD 1.1 billion, driven by solid underwriting results and strong investment performance. Life Capital generated gross cash of USD 998 million. Swiss Re’s investment performance for 2017 was very strong, with a return on investment (ROI) of 3.9%. Despite the high losses in 2017, Swiss Re Group’s economic solvency remains very strong and comfortably above the Group’s respectability level of 220%.

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