Swiss Re Ltd.

The negative outlook reflects that Swiss Re's earnings may fail to reach our expectations, and this could in turn place pressure on the group's capitalization over the long term. This could also 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 12 months if we thought: Earnings were unlikely to reach our projection of a 9% normalized return on equity (ROE); or The group's capital was likely to drop below the 'AA' confidence level for a prolonged period. We could revise the outlook to stable in the next 12 months if the group demonstrated it could perform in line with our earnings and capital expectations

...Swiss Re will remain one of the dominant players in the global reinsurance sector. S&P Global Ratings expects Swiss Re will maintain its position among the top global reinsurers, benefitting from diversified business operations with about 52% of net premiums earned (NPE) from property/casualty (P/C) reinsurance, 35% from life and health reinsurance, and 13% from corporate solutions (CorSo; primary non-life business). As of 2021, in terms of geography, the group is present in many significant markets, and generates about 49% of its NPE and fee income in the Americas; 32% in Europe, the Middle East, and Africa; and 19% in Asia-Pacific. We continue to expect a recovery of group earnings over 2022-2023, after a challenging first quarter. In common with its peers, the group has been affected by its exposure to the Russia-Ukraine conflict, adverse COVID-19-related mortality, and natural catastrophe losses. In contrast to many of its peers the mark-to-market losses in its investment portfolio...

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