Research Update: Swiss Re 'AA-' Ratings Affirmed On Continued Positive Underwriting Performance; Outlook Remains Negative

The Swiss Re group has maintained the profitability of its non-life business in line with our expectations, supported by a better pricing environment and corrective underwriting actions in recent years. Its non-life business had an overall combined (loss and expense) ratio of 97.3% in the first half of 2022, which is more in line with the performance of its peer group. In common with the insurance sector as a whole, the group's shareholders' equity reduced at the end of the first half of 2022, reaching $14.8 billion from $23.6 billion at year-end 2021. This reflects mark-to-market movements from interest rate increases and widening credit spreads. However, its regulatory ratio (which is more reflective of the group's economic position) has improved

...- The Swiss Re group has maintained the profitability of its non-life business in line with our expectations, supported by a better pricing environment and corrective underwriting actions in recent years. Its non-life business had an overall combined (loss and expense) ratio of 97.3% in the first half of 2022, which is more in line with the performance of its peer group. - In common with the insurance sector as a whole, the group's shareholders' equity reduced at the end of the first half of 2022, reaching $14.8 billion from $23.6 billion at year-end 2021. This reflects mark-to-market movements from interest rate increases and widening credit spreads. However, its regulatory ratio (which is more reflective of the group's economic position) has improved over the first half. - Based on our 2022-2024 earnings expectations for the group, coupled with recent management actions, we expect Swiss Re to maintain its capital adequacy at the '##' level over 2022-2023, despite the material reduction...

Research Update