Swiss Re AG Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kamran Hossain - JPMorgan Chase & Co - Analyst : A couple of questions. The first one is just on the left side. I think the commentary given around quantum in Q4 versus Q3 is helpful. I just wanted to clarify a few things. When you say it's not going to be a much larger quantum than Q3, I'm just trying to understand whether you mean the $250 million you flagged or the $450 million negative experience in Q3 standalone, because there's quite a difference from the two numbers. Any clarification on what that comment meant slightly more precisely? The second question is, in terms of portfolios left to review, can you maybe talk through the proportion you've got left to review, what proportion this is of life reserves, how meaningful is this? I'm hoping you're going to say a low number, but I just wanted to hear what you say on that. Thank you.

Question: Andrew Baker - Goldman Sachs Group Inc - Analyst : Please go ahead. Great. Thank you for taking my questions. First one, just on the insurance revenues. So, I hear what you're saying on you don't manage the top line. Are you able to give a bit more detail on which areas of the business has led for the, I guess, slight change in view in the second half? Obviously, you previously said it was sort of 1.5 billion. You were expecting it to be higher than the first, and now it seems like slightly below that. So, just any more color there would be really helpful. And then secondly, are you able just to confirm how much of the uncertainty allowance you've added so far this year and what you expect this to be by the end of the year?

Question: Shanti Kang - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Yeah, thanks for taking my question. So, it's just mainly on the life and health side. So, I understand that the LNH missed today won't derail the group net result target, but I think it does raise a couple of questions about the run rate into 2026. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2025 / 12:30PM, SRENH.S - Q3 2025 Swiss Re AG Earnings Call So, I'm just curious whether or not the adjustments today will adjust the forward view on the run rate of the life and health book, i.e., if that's like a structural concern today that we should be thinking about. And then, just given the fact that the last six quarters, we've had a number of assumption. updates, I get that you're saying that you'll complete that in the full year, this year, but do we need to take some more caution on our assumptions for those into the next year, i.e., can we get a bit more comfortable, do you think, about there being no more updates or repeats in the future? Thank you.

Question: Ivan Bokhmat - Barclays Services Corp - Analyst : Hi, good afternoon. Thank you very much. My first question would be on life and health as well. Maybe you could talk in a bit more detail about the underlying reasons for deterioration in those health portfolios. Maybe there are any common drivers in these markets that develop negatively and what would make them unique compared to the better performing ones just to see if there's some trends that we can monitor from our side. My second question, considering you suggested that the Q4 adjustment will be smaller than. 250 and your run rate is still quite comfortably getting you above 4.4, I was just wondering if you consider taking any additional steps to add prudence in Q4 beyond the run rate that you have shown so far. Maybe if you could just highlight a bit more color on the movements and reserves that you have done year to date by portfolios. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2025 / 12:30PM, SRENH.S - Q3 2025 Swiss Re AG Earnings Call

Question: Iain Pearce - Exane SA - Analyst : Hi, afternoon everyone. Thanks for taking my question. They are all on new business here. When I look at the new business CSM to the non-life divisions, if I just look at Q3 standalone, they are down by 30% to 35%. I am just wondering if you could run through why this is such a big move. I know it is not a massive quarter for PNC Re, but of course it is seemingly quite a big quarter on new business CSM. Why are they down so much on Q3 standalone? Same for the life business, where clearly ex-MedEx, it still looked like the new business. CSM would be down quite a lot. Just trying to understand that as well. Any comments would be really useful. Thank you.

Question: James Shuck - Citi Infrastructure Investments LLC - Analyst : Thank you and good afternoon. I am probably going to go over a couple of areas again, if you do not mind. On life and health re, I think on the call last time, Anders, I was asking you about the outlook for the experience variances and loss components, which have been negative previously. Obviously, we have got the same thing coming through just now. You previously indicated you expect those trends to zero. I presume that the actions you are taking today means that that trend should actually accelerate. Really just getting an insight into that glide path to getting to zero. Should we expect 2026 to be a clean slate in terms of the experience variance? Linked to that, the CSM amortization rate is much higher than the 8%. I think when I asked previously, you suggested that it would come down. It was not clear to me why it would come down. Obviously, you have guided 8%. It is running around 10%. I just came to get an outlook for the amortization, please. Secondly, it was also actually on the P&C new business CSM, which is obviously down very sharply in the third quarter as Ian highlighted. I understand what you are saying about not having top-line targets. On the other hand, margins are very good and should be able to deploy the capital incrementally. If I look at your target capital over time in recent years, you have not actually managed to deploy any incremental capital over the last two or three years. I am wanting to get an insight, particularly on that P&C really new business CSM in terms of the outlook there. I appreciate you might return to this at the management dialog today. I think it is an important point to try and get this feel for are you still able to grow your earnings through a soft cycle.

Question: Vinit Malhotra - Mediobanca - Analyst : Good afternoon. Thank you. Some of these topics have been addressed. I will try to answer them. Some of these topics have been addressed. I will just have one theoretical question. The fact that we have had two good quarters on tax means that the targets are achievable. It is easier. I would say, was that one of the reasons why this life and health review was initiated? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2025 / 12:30PM, SRENH.S - Q3 2025 Swiss Re AG Earnings Call Or actually, you would have initiated that even if 2Q and 3Q were normal QAC quarters? Because in that instance, it might have been that the targets would have been a bit more difficult to reach. I am just curious about that. Also, one question if I can ask on corporate solutions where the price cuts. It is a bit worse, minus seven on this quick check of 3Q. Could you comment on how the inflation or business mix or something else is changing to get good numbers on CORSO, which obviously are held by cash, but I understand even the underlying is good. Could you explain a little bit about the margin management at CORSO with minus 7% pricing?

Question: Ben Cohen - RBC Capital Markets Inc - Analyst : Hi there. Thanks for taking my questions. I had two questions, please. Firstly, on the life and health side, could you talk a bit more about the areas where you did see new business CSM growth? I think you flagged US mortality and health and longevity in EMEA, and specifically, I guess, the reasons why you feel confident to kind of grow those business lines, but perhaps particularly with regards to longevity. My second question was in core certainty and seeing, I think, on a nine-month view, the expense ratios rose reasonably materially year over year. Were there some one-off features in there? Do you need to do more to address costs because of the top-line pressures that you're seeing?