Andreas Berger, Chief Executive Officer, Swiss Re
Lower major catastrophe losses supported Swiss Re’s profits in the period, though pricing pressure across the industry is expected to continue into next year. Inflation and macro-economic uncertainty are also challenging for insurers; Swiss Re set aside $400 million earlier this year in additional reserves.
Swiss Re AG’s first-half profit beat estimates as the reinsurer saw all key business units perform in line with targets, while the firm announced a fresh round of cost cuts.
Profit for the second quarter was $1.3 billion, resulting in net income of $2.8 billion for the six months to June, the Zurich-based company said in a statement Thursday. Return on the group’s investment portfolio was 4% for the first half of the year, aided by realized gains from real estate sales in the first quarter.
Swiss Re’s Group Chief Executive Officer Andreas Berger said: “Swiss Re delivered a strong result for the first half of 2026 while supporting our clients with more than USD 17 billion in claims payments. This demonstrates the strength of our diversified group, with each business unit contributing to the resilience of our earnings.”
“P&C Re continues to focus on disciplined underwriting and active cycle management while L&H Re provides important earnings stability through its large in-force portfolio; and Corporate Solutions is selectively expanding in strategic growth markets. We also continue to improve efficiency across Swiss Re and are announcing a more ambitious cost reduction target,” he added.
Swiss Re announced that it is raising its operating-cost reduction target to $500 million by 2028, up from a prior goal of $300 million by 2027. The expanded target will primarily streamline non-client-facing operations.
Lower major catastrophe losses supported Swiss Re’s profits in the period, though pricing pressure across the industry is expected to continue into next year. Inflation and macro-economic uncertainty are also challenging for insurers; Swiss Re set aside $400 million earlier this year in additional reserves.
In its key property and casualty re-insurance business, Swiss Re reported $1.4 billion in net income in the first half, up 18% on a year earlier. Swiss Re warned of continued “challenging” market conditions for the segment.
In its life & health re-insurance business, Swiss Re posted a net income of $1 billion, up 21%. The business, which had been suffering for some time with profit falling quarter after quarter, has seen a turnaround. The unit missed its net income yearly target for 2025.
The firm has also appointed Velina Peneva, currently group chief investment officer, as chief executive officer Life & Health Re. She will succeed Paul Murray, who stepped down after more than 20 years at the company.
Earlier this year Swiss Re announced a new share buyback program. The firm will repurchase up to $1.5 billion of its own shares in 2026, including $500 million as part of its annual buyback program. Swiss Re said it is making good progress on the new program, having already completed approximately 60% through the end of July.
Bloomberg