Swiss Re Group

The negative outlook reflects that Swiss Re's underwriting performance, and consequently earnings, may not be in line with our expectations. This may influence our view of the group's competitive position, which we currently see as excellent. We could lower the rating by one notch over the 18 months if: Underwriting performance of the P/C business does not align with our projections over 2021-2022; or The group's capital drops below the 'AA' confidence level for a sustained period. We could lower the ratings on the subsidiaries of the CorSo business unit if we note signs of reduced commitment from the parent to the business unit, indicating it is less than core to the group's strategy. We could revise the outlook to

...S&P Global Ratings expects the Swiss Re group will maintain its top tier position within the global reinsurance sector. As of Dec. 31, 2020, about 51% of Swiss Re's net premiums earned (NPE) emanates from the non-life reinsurance business unit, 34% from life and health reinsurance, 10% from corporate solutions (CorSo; primary non-life business), and 5% from life capital (primary business). As of 2020, the group is also present in many significant markets, and generates about 48% of its NPE and fee income in the Americas; 32% in Europe, the Middle East, and Africa; and 20% in Asia-Pacific. Pandemic-led losses hit operating performance in 2020, but we expect a recovery of group earnings over 2021-2022. Based on 2020 results, the group remains a negative outlier relative to close peers with a reported combined (loss and expense) ratio of 109% for P/C reinsurance (P/C Re) and 116.5% for CorSo. However, the first-quarter 2021 results were strong, with improved underwriting performance demonstrated...

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