In the first quarter of 2024, Swiss Re achieved a net income of $1.1 billion, representing the company’s initial reporting period under International Financial Reporting Standards (IFRS), having transitioned from US Generally Accepted Accounting Principles (US GAAP) starting January 1, 2024.
As such, Swiss Re notes that these figures are presented without direct comparability to the previous year’s results under US GAAP.
During the quarter, the company’s insurance revenues reached $11.7 billion, with an underwriting result of $1.4 billion. The Property & Casualty Reinsurance (P&C Re) segment reported a net income of $552 million, primarily due to disciplined underwriting practices and a relatively low incidence of large natural catastrophes.
The segment’s insurance revenue for the period was $5.0 billion, achieving a combined ratio of 84.7%.
Christian Mumenthaler, Swiss Re’s group chief executive officer, reflected on the quarter’s achievements.
“Swiss Re had a good start to the year, with all our main businesses posting strong results. This reflects continued underwriting discipline, a strong return on investments and effective management of operating expenses,” Mumenthaler said.
John Dacey, Swiss Re’s Group chief financial officer, noted the strategic benefits of the new accounting standards.
“The transition to IFRS from US GAAP represents an excellent opportunity to demonstrate the economic value of our businesses. The IFRS framework is also more closely aligned with how we steer the company internally and brings to the fore the earnings power of our leading Life & Health Reinsurance franchise,” Dacey said.
In leadership news, Ivan Gonzalez will take over as CEO of Corporate Solutions starting July 1, 2024, succeeding Andreas Berger.
Gonzalez’s extensive leadership within Swiss Re, including roles in Beijing, Singapore, New York, São Paulo, and Zurich, equips him well for his new role, as per the firm.
“I am pleased that we were able to appoint such a strong internal successor to lead Corporate Solutions,” Mumenthaler said. “Ivan has deep knowledge of Corporate Solutions, after spending 10 years in leadership roles there and helping to reposition the business from a generalist capacity provider to a specialized risk partner.”
Additionally, Moses Ojeisekhoba will be stepping down as CEO of Global Clients and Solutions on August 31, 2024, to explore new opportunities.
“Over the past 12 years Moses made great contributions to the success of Swiss Re. After significantly growing our business in Asia in his first years with the company, he was instrumental in ensuring that our reinsurance businesses are in a strong position today,” Mumenthaler said.
Read More: Swiss Re CEO optimistic on China prospects
“Moses was the architect behind our reinsurance solutions unit, which is gaining traction, and played a key role in making the group’s 2023 reorganization a success. On behalf of the entire executive team, I would like to thank Moses for his exceptional leadership, dedication and commitment. We wish him all the best for the future,” Mumenthaler said.
Swiss Re also disclosed plans to exit its iptiQ business, citing a shift in market conditions and strategic focus.
“The market environment today is vastly different from the one when iptiQ was created. Given these changed conditions and Swiss Re’s strategic priorities, we’ve concluded we are not the best owners of this business going forward,” Mumenthaler said.
These developments come as Swiss Re continues to target a 2024 financial goal of a net income exceeding $3.6 billion, driven by ongoing underwriting discipline and favorable market conditions.
What are your thoughts on this story? Please feel free to share your comments below.
