Swiss Re’s P&C reinsurance result delivers, despite competitive market weighing

Swiss Re has reported on-target results for its property and casualty (P&C) reinsurance division for the first nine months of this year, as lower than anticipated natural catastrophe losses and strong underwriting performance both served to offset the effects of the competitive and softened market environment.

Swiss Re reported that its P&C reinsurance division delivered insurance revenue of $12.8 billion for 2026 so far, which is bang on analyst consensus for the company.

But as soft market conditions weigh, this was down on the $14 billion from the prior year, due to “overall renewals outcome and reduced volumes written by cedents,” the company explained.

But, with a combined ratio of just 77.3%, which beat the analyst consensus of 78.5%, Swiss Re still managed to deliver $2.2 billion of net income in the P&C reinsurance division, only 6% down on 9-month 2025.

However, where competitive and softer reinsurance market conditions are most evident is in Swiss Re’s new business contractual service margin (CSM), which reflects the profitability of new business under written in the period.

For P&C reinsurance this came in at $1.8 billion for Swiss Re, down meaningfully from $2.5 billion in the prior year, which the company said is reflective of “a competitive year-to-date market environment.”

As we all know, the competition is likely to get even fiercer going forwards, while pricing is expected to soften further as well, meaning the profitability of new underwriting business will likely decline further across the reinsurance sector.

Lower natural catastrophe losses have also helped Swiss Re’s result, in addition to which a higher contribution from life and health reinsurance offset the impact of competitive P&C conditions for the company.

Large natural catastrophe losses reached $640 million and man-made losses $301 million for the first nine months of 2026. The nat cat loss budget was higher and the consensus for nat cat was also higher at $649 million.

Across the group, Swiss Re has reported a net income of $1.3 billion for Q3 2026, net income of $4.2 billion and a return on equity (ROE) of 22.5% for the first nine months of the year. Both of the net income figures are again above the analysts consensus figures.

Swiss Re’s Group Chief Executive Officer Andreas Berger commented, “Our result for the first nine months reflects disciplined underwriting and the deliberate decisions we have made over recent quarters to strengthen our portfolio and build a more resilient business. We are applying the same long-term approach as P&C market conditions shift, combining underwriting discipline and greater cost efficiency with commercial ambition, working closely with clients and brokers to identify attractive opportunities. At a time when risks are becoming increasingly complex and interconnected, Swiss Re is well positioned to support clients with the expertise, capacity and solutions they ask for.”

Group Chief Financial Officer Anders Malmström added, “Our strong current earnings reflect disciplined underwriting and portfolio management, while lower margins on new business reflect the competitive P&C pricing environment we are seeing today. Our focus on simplifying Swiss Re and directing resources where they create the greatest value is bringing us closer to clients and driving progress towards our cost reduction targets. At the same time, L&H Re’s large in-force portfolio, consistently strong performance from Corporate Solutions and healthy recurring investment income continue to provide important support to Group profitability. From a capital management perspective, the execution of our USD 1.5 billion share buyback programme, announced in February, is nearly complete.”

Looking ahead, Berger added, “We maintain our two priorities: delivering on our financial targets and the Group’s overall resilience. Our performance in the first nine months puts us firmly on track to meet both goals. Looking beyond 2026, our robust foundations and the diversification provided by our three Business Units give us confidence in our ability to navigate different market cycles successfully. We continue to see attractive opportunities across our businesses and are pursuing them with ambition and discipline.”