Swiss Re Just Quietly Crushed Q1--And It's Sitting on a Fortress of Capital

Khac Phu Nguyen

Fri, May 16, 2025, 1:47 PM 2 min read

Swiss Re (SSREY) conscionable reminded the marketplace wherefore it's inactive a heavyweight successful planetary reinsurance. Despite softer top-line numbers and a barrage of ample claimsfrom Los Angeles wildfires to large man-made lossesthe steadfast pulled successful $1.3 cardinal successful nett income for Q1 2025, up 16% from past year. Its Swiss Solvency Test ratio? A towering 254%, meaning it holds much than treble the superior required to screen risks. That benignant of buffer isn't conscionable strongit's fortress-like. With instrumentality connected equity hitting 22.4% and each concern units successful the black, Swiss Re appears to beryllium leaning into a disciplined, shock-absorber relation successful a volatile world.

• Warning! GuruFocus has detected 8 Warning Signs with SSREY.

P&C Reinsurance took connected implicit $700 cardinal successful claims but inactive brought location $527 cardinal successful profit, with a coagulated 86% combined ratio. Corporate Solutions chipped successful $208 million, adjacent aft absorbing dense man-made losses. And Life & Health Re kept things dependable with $439 cardinal successful nett income, helped by sticky margins and recurring concern gains. Investment income was different agleam spot, driven by a recurring output of 4.1% and a $209 cardinal equity merchantability that padded results. Even with gross declining year-on-yearblame accounting transitions and FX dragsSwiss Re's halfway profitability remained intact. April renewals besides came successful with humble premium maturation and improved pricing discipline.

Debt has been steadily shrinking since 2021and it's stayed low. Cash, connected the different hand, peaked successful 2019 and hasn't bounced back, hovering astatine much humble levels. That combo points to a institution that's trimmed fiscal abdominous and is putting superior to work, not conscionable parking it. With a 254% solvency buffer backing it up, Swiss Re looks similar it's built for discipline, not drama.

Combine that with a 254% solvency ratio and you're looking astatine a concern built to instrumentality hits and support moving. For semipermanent investors eyeing unchangeable returns successful a choppy macro environment, this mightiness beryllium 1 worthy watching closely.

This nonfiction archetypal appeared connected GuruFocus.