Insurance Swiss Re sets itself a higher profit target for 2025
Reinsurer Swiss Re wants to increase its profit in the coming year and is raising its targets for the individual lines of business at its Investor Day. It is offering shareholders the prospect of significant dividend growth.
13.12.2024, 07:29
SDA
Swiss Re is forecasting a profit of USD 4.4 billion for 2025, as the financial group announced on Friday morning ahead of its "Management Dialogue 2024" event. The insurer had lowered its profit forecast for the current year to USD 3 billion a month ago following high provisions for the US liability business.
Swiss Re has set itself a higher target for property and casualty reinsurance (P&C Re) than a year ago: it is now aiming for a combined ratio of less than 85 percent compared to 87 percent in the previous year. The Group assumes that the price level in property and liability reinsurance will remain high.
Meanwhile, the insurance group is aiming for a combined ratio of "less than 91 percent (previously under 93 percent) for the Corporate Solutions division. In life and health reinsurance (L&H Re), a profit of 1.6 billion dollars is being targeted for the coming year, compared with 1.5 billion in the current year.
Meanwhile, the reinsurance group, which has been managed by Andreas Berger since the middle of the year, is leaving its longer-term profitability target unchanged: over several years, it wants to continue to achieve a return on equity of "more than 14 percent". It is also aiming for annual dividend growth per share of "7 percent or more".
The "continued focus on cost discipline and efficiency" will lead to a reduction in current operating expenses of around 300 million dollars by 2027, it added.
