Swiss Re soars in Zurich, 2025 above expectations and new buy back

(Il Sole 24 Ore Radiocor) - Swiss Re is shining on the Zurich Stock Exchange thanks to better-than-expected 2025 results, accompanied by a new buy back totalling $1.5 billion. The Swiss reinsurance giant's share price jumped 4.4 per cent, while the Smi index rose about one point. Swiss Re posted a record 2025 net profit of $4.8 billion, up 47% and slightly above expectations. The performance was driven by the strength of its non-life business, which also benefited from a lower loss ratio.

The division realised a net profit of $2.8bn from $1.2bn in 2024 and the combined ratio improved to 79.4% from 89.9% in 2024. Catastrophe losses amounted to $813m from $1bn in 2024 and mainly related to claims from the Los Angeles wildfires and Hurricane Melissa, which hit several Caribbean islands in October. Large-scale damage caused by human actions also amounted to $345 million. The Corporate Solutions segment also performed well, with a net profit of EUR 988 million from EUR 829 million and a combined ratio of 86.5% from 89.7%.

Still indistress, by contrast, was the Life division, which suffered a 17% drop in net profit to USD 1.3 billion 'due to the portfolio review that ended in 2025' and which 'as a result' caused the division to miss the target set at around USD 1.6 billion. The 'non-performing' portfolios in Australia, Israel and South Korea, which were negatively impacted by USD 0.65bn, were also a factor. In October, Swiss Re announced the suspension of all new life and health policies in Australia, following a strong increase in claims for mental health problems and permanent disability among young policyholders.

Group revenues fell by 5% to CHF 43.14 billion and among the main indicators are the only ones to come in below expectations, while the other figures are generally above expectations, traders note. The Swiss Solvency ratio is 250% as at 1 January 20226. The board proposes a dividend of $8 per share, up 9% from $7.35 the previous year. For 2026, management confirms the financial targets communicated in December, namely a net profit of $4.5 billion and a Combined Ratio of less than 85% for Non-Life and 91% for Corporate Solutions.

Swiss Re also announced the launch of a $1.5bn share buyback programme, after obtaining the necessary legal and regulatory approvals. The programme will run until 31 December and includes '$500m as part of the group's sustainable annual buyback programme', which was announced in December. The Swiss giant also disclosed that Jean-Jacques Henchoz, the former CEO of rival Hannover Re, the world's third-largest insurance company, which he led from 2019 to 2025, will join the board of directors to replace Larry Zimpleman, who will not stand again after serving on Swiss Re's supervisory board since 2018. Swiss Re's additional $1bn buyback, on top of the $500m programme outlined in December, increases earnings per share by 2%, RBC Capital Markets said in a note, pointing out that this estimate does not take into account the strengthening of the Swiss franc against the dollar.