Swiss Re beats 2024 combined ratio consensus, discloses $700 million wildfire loss

ReutersFeb 27, 2025 7:22 AM

Swiss Re reports $700 million loss from California wildfires
Full-year P&C reinsurance combined ratio of 89.9% beats consensus of 90.4%
The division’s $1.8 billion insurance service result was down 33% year on year
Group insurance revenue rises to $45.6 billion (FY 2023: $43.9 billion)
Group insurance service result drops to $4.3 billion (FY 2023: $4.7 billion)
Corporate Solutions reports 89.7% FY combined ratio, beating 93% target
Swiss Re proposes 8% dividend increase to $7.35 per share

By Scott Vincent

Feb 27 - (The Insurer) - Swiss Re disclosed a $700 million loss estimate for January’s California wildfires alongside its 2024 annual results on Thursday morning, with its 2025 combined ratio target of less than 85% unchanged from December.

The wildfire estimate was based on an industry loss of around $40 billion, and follows a catastrophe bill of $1.34 billion across the group's P&C reinsurance and Corporate Solutions divisions in 2024.

P&C reinsurance accounted for $1.0 billion of that total, with the division reporting net income of $1.2 billion for the full year, down 20% from $1.5 billion in 2023.

The unit’s combined ratio deteriorated to 89.9% from 85% in 2023, with the 2024 result impacted by the $2.6 billion U.S. liability reserve additions made in the third quarter, which added 10.2 percentage points to its combined ratio.

This meant P&C reinsurance missed its combined ratio target of less than 87% for 2024. However, it did beat the 90.4% consensus of 18 analysts compiled by Vara Research as a result of lower-than-expected catastrophe losses.

At the 1.1 renewals, Swiss Re said it grew premium volume by 7% to $13.3 billion, achieving price increases of 2.8% although loss assumptions were up 4.2%.

Corporate Solutions reported a combined ratio of 89.7% for 2024, beating its 93% target. The division's net income rose 26% to $829 million, with large natural catastrophe losses totalling $344 million.

At group level, Swiss Re reported full-year net income of $3.2 billion, which included $1.06 billion in the fourth quarter. P&C reinsurance reported a combined ratio of 80.9% for the quarter.

Alongside its results, Swiss Re announced a proposed dividend increase of 8% to $7.35 per share.

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