Group 1 - The article discusses the role of buy-side hedge professionals who conduct fundamental, income-oriented, long-term analysis across various sectors globally in developed markets [1] - It emphasizes the importance of engaging in discussions about investment ideas and strategies among professionals in the field [1] Group 2 - The analyst has disclosed a beneficial long position in the shares of SSREY and SSREF, indicating a personal investment interest in these stocks [2] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned, ensuring an independent perspective [2]

Group 1 - The article discusses the role of buy-side hedge professionals who conduct fundamental, income-oriented, long-term analysis across various sectors globally in developed markets [1] - It emphasizes the importance of sharing ideas and engaging in discussions among professionals in the investment community [1] Group 2 - The analyst has disclosed a beneficial long position in the shares of SSREY and SSREF, indicating a personal investment interest in these stocks [2] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned, ensuring an independent viewpoint [2]

Financial Data and Key Metrics Changes - The company reported a net income of $3.2 billion for 2024, achieving a return on equity of 15% [4][21] - The company added $3.1 billion to U.S. liability reserves throughout 2024, positioning overall P&C reserves at the 90th percentile of the best estimate range [5][6] - The combined ratio for P&C Re was reported at 89.9%, missing the target of less than 87% due to reserving actions [22] Business Line Data and Key Metrics Changes - P&C Re achieved a volume growth of 7% driven by increases in property and specialty lines, with nominal price increases of approximately 2.8% [6][7] - Corporate Solutions outperformed its combined ratio target of less than 93% by achieving a combined ratio of 89.7% [8][25] - Life & Health Re delivered a net income of $1.5 billion despite negative impacts from assumption strengthening and experience variances [10][26] Market Data and Key Metrics Changes - The company reported actual large natural catastrophe losses of $1 billion in 2024, significantly below the budgeted expectation of $2 billion [23] - The preliminary estimate for losses from the LA wildfires is less than $700 million, based on an industry market loss of approximately $40 billion [16][60] Company Strategy and Development Direction - The company aims to deliver a net income of more than $4.4 billion in 2025, with a focus on becoming a leaner and more effective firm [14][31] - A dividend increase of 8% is proposed, aligning with the objective of growing dividends by at least 7% per year over the next three years [13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 targets despite the impact of the LA wildfires, indicating that the market remains disciplined [39][44] - The company is focused on improving profitability and resilience, with a commitment to consistent delivery on stated objectives [116] Other Important Information - The capital position remains strong with a group SST ratio of 257%, above the target range of 200% to 250% [30] - The company anticipates a $300 million reduction in operating costs by 2027, with $100 million expected to be achieved in 2025 [15] Q&A Session All Questions and Answers Question: Impact of LA wildfires on 2025 targets - Management remains confident in achieving the $4.4 billion target despite the LA wildfires, indicating that the cat budget remains supportive for pricing [39][44] Question: Drivers of lower natural catastrophe losses - The disciplined underwriting approach and avoidance of secondary perils contributed to lower than expected natural catastrophe losses [41][46] Question: Details on negative experience variances in Life & Health Re - Negative experience variances were primarily from EMEA health and smaller Asia portfolios, totaling about $800 million [52][56] Question: Process for estimating California wildfire losses - The estimate was based on detailed information from primary clients and loss adjusters, with a focus on insured structures and additional damages [58][60] Question: Capital generation and SST ratio expectations - Management expects positive momentum in the SST ratio, aligning with the $4.4 billion earnings target [70][72] Question: Insights on renewals and pricing - The company achieved double-digit price increases for nonproportional casualty and maintained a disciplined approach to risk exposure [74][76] Question: Normalized run rate for Corporate Solutions - The combined ratio of 89.7% is seen as sustainable, with confidence in achieving the target of better than 91% [123][125] Question: Comfort with Life & Health assumptions - Management remains comfortable with the Life & Health assumptions despite the reduction in CSM, indicating a proactive approach to adjustments [146]

Group 1 - Swiss Re Limited is a provider of wholesale reinsurance, insurance, and risk transfer solutions, offering a wide range of products including casualty, property, aviation, agriculture, and life and health insurance [2][3] - The company serves various clients including stock and mutual insurance companies, mid-to-large-sized corporations, governmental entities, and public sector organizations, operating through a global network [3] - The report on Swiss Re's tech activities highlights its digital transformation strategies, innovation programs, and technology initiatives, providing insights into partnerships, product launches, investments, and acquisitions [4][5] Group 2 - The report covers key topics such as digital transformation strategy, technology focus, and major ICT budgets, along with details on technology initiatives and the company's executive team [6] - Insights into Swiss Re's technology themes and objectives are provided, detailing the benefits of each initiative [4][5] - The report aims to offer comprehensive insights into Swiss Re's tech operations and strategies, making it a valuable resource for understanding the company's innovation landscape [5][6]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|----------------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | 9M 2024 Results | | | | | | | | | | | | Swiss Re investor and analyst presentation Zurich, 14 November 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9M 2024 result driven by resilient underwriting and investment ...

Financial Data and Key Metrics Changes - The group net income for the first nine months of 2024 stands at $2.2 billion, with a third-quarter profit of $102 million, despite significant reserving actions [13][8] - The P&C Re's nine-month combined ratio is 92.8%, reflecting resilient underwriting results, including a net negative impact of $2.8 billion from reserve strengthening [14][8] - The return on investments for the first nine months is strong at 3.9%, driven by higher recurring income contributions, which increased by about $400 million year-over-year [21][8] Business Line Data and Key Metrics Changes - Life & Health Re reported net income of $1.2 billion for the first nine months, driven by enforced margins and recurring investment income, with a target of approximately $1.5 billion for the full year [17][19] - Corporate Solutions achieved a nine-month combined ratio of 89.4%, reflecting strong underlying business performance, and is on track to exceed the full-year target of less than 93% [20][8] - P&C Re's large Nat Cat claims for the first nine months were a little over $800 million, compared to a budget of about $1.35 billion [14][15] Market Data and Key Metrics Changes - The company has pruned its book by 21% at this year's renewals due to cautiousness regarding new business in the US liability market [5][8] - The company expects robust demand for reinsurance driven by significant catastrophe activity, which will remind primary companies of the need to buy reinsurance [29][8] Company Strategy and Development Direction - The company aims to position itself at the higher end of the best estimate range for P&C reserves, specifically at the 90th percentile, to enhance overall resilience [6][8] - The decision to withdraw from iptiQ and sell iptiQ EMEA P&C to Allianz Direct is part of the strategy to maximize value for the group [9][8] - The company plans to announce financial targets for 2025 during the Management Dialogue event on December 13 [10][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a group net income exceeding $3 billion for 2024, assuming normal loss activity for the remainder of the year [24][8] - The management remains vigilant and proactive regarding new business, particularly in light of the adverse developments in US liability costs [7][8] - The management acknowledged the need for rate increases in the US liability lines to accommodate ultimate losses and find equilibrium in the market [96][8] Other Important Information - The company has significantly strengthened its US liability reserves, adding $2.4 billion in Q3, bringing total prior year US liability reserve additions to $3.1 billion for the first nine months [3][8] - The capital position remains strong with a group SST ratio of 284%, above the top end of the targeted long-term range [22][8] Q&A Session All Questions and Answers Question: How much should we read into the nine-month result when thinking about next year? - Management indicated that while the nine-month results are strong, the exact renewals for P&C Re and portfolio updates for Corporate Solutions remain uncertain [28][8] Question: What was the motivation to change the SST methodology? - The motivation was to align with regulatory expectations and reduce volatility related to interest rates, leading to a more prudent position [33][8] Question: How much of the reserve addition was driven by increasing the percentile versus higher ultimate outcomes? - The majority of the $2.4 billion reserve addition in Q3 was for incurred but not reported (IBNR) claims, reflecting a more prudent position [37][8] Question: What is the current SST ratio? - Management did not provide a quarterly update but indicated that the reserve impacts would not materially affect the SST ratio due to strong performance in other areas [41][8] Question: Are you comfortable with the state of the Life & Health reserves? - Management expressed confidence in the Life & Health reserves, noting adjustments made in previous years and a strong position overall [77][8] Question: What is the expected impact of the Trump presidency on the business? - Management indicated that primary insurance is state-regulated, and any potential impact would likely be related to macroeconomic conditions rather than direct regulatory changes [92][8]

Group 1 - The article discusses the potential for initiating a long position in SSREY within the next 72 hours, indicating a positive outlook for the stock [1] - The author emphasizes the importance of conducting due diligence and research before making any investment decisions, highlighting the risks associated with short-term trading and options trading [2] - It is noted that past performance does not guarantee future results, and no specific investment recommendations are provided [3] Group 2 - The article clarifies that the author does not have any current stock or derivative positions in the mentioned companies but may consider purchasing in the near future [1] - The author owns European/Scandinavian and Canadian tickers of the companies discussed, which may influence their perspective [2] - The article warns investors about the specific risks associated with investing in European/Non-US stocks, particularly regarding withholding tax implications [2]

Core Viewpoint - Swiss Re is a leading global reinsurance company with strong performance and growth prospects, making it an attractive investment opportunity in a volatile market [3][4][11] Company Overview - Swiss Re is based in Switzerland and has a significant international presence, with 51.4% of its premiums collected in the USA, 30.6% in EMEA, and 18% from other regions [1] - The company operates through three divisions: P&C (Property & Casualty) reinsurance (51.4% of premiums), L&H (Life & Health) reinsurance (34.4%), and corporate solutions (14.2%) [1][2] Financial Performance - Swiss Re's stock has increased by 21% year-to-date, reaching CHF 118.3, the highest since 2007, outperforming European peers [3] - Q2 2024 results showed net income of $2.088 billion, a 16.8% year-over-year increase, driven by a 46.2% increase in net income from the L&H Re division [3] - The P&C Re sector's net profit remained stable at $989 million, with a combined ratio of 84.4%, better than the consensus estimate [3] Growth Prospects - The global insurance market is projected to grow at an annual rate of 5.5%, with Swiss Re's net premiums expected to grow at a 5.7% CAGR over the next decade [4] - EPS is estimated to grow at a 4% CAGR, with a net margin stabilizing at 6% in the medium term [4] Dividend and Valuation - Swiss Re paid a CHF 6.21 dividend for 2023, yielding 5.4%, with expectations for further increases in annual dividends [5] - The company has a strong financial position with a solvency ratio of 306% at the end of 2023 [6] - A DCF model suggests a target price of CHF 133/share ($160.9/share), reflecting a 16.6% upside from the recent closing price [7] Market Sentiment - Analysts remain cautious with 6 Buy, 7 Hold, and 3 Sell recommendations, but have raised price targets for Swiss Re, indicating underestimated strength [8]

Core Viewpoint - Swiss Re has demonstrated positive operating performance in recent quarters, but its valuation appears fair with limited upside potential at this time [1][6]. Financial Performance - Swiss Re's net income for H1 2024 was slightly above $2 billion, reflecting a 17% year-over-year increase, and the company is on track to exceed its annual net income goal of $3.6 billion for 2024, indicating at least 12.5% annual growth [3][4]. - The company's insurance revenue reached $22.5 billion in H1 2024, up by 3.2% year-over-year, primarily driven by the life & health segment [4]. - Investment income surged to $2.2 billion in H1 2024, an increase of 89% from the same period in 2023, attributed to higher returns on investments [4]. Market Conditions - The reinsurance industry has seen improved operating conditions since mid-2022 due to tighter funding conditions and increased pricing from higher catastrophe losses [3]. - Swiss Re's combined ratio in the P&C segment was 84.5% in H1 2024, better than its target of less than 87% for the year, indicating strong profitability [5]. Strategic Decisions - Swiss Re has decided to exit its digital insurance business iptiQ, which reported an annual loss of approximately $250 million in 2023, as it was unable to achieve profitability [5]. - The company aims for a net profit of about $1.5 billion in the life segment for 2024, which appears achievable based on H1 2024 performance [5]. Capitalization and Dividends - Swiss Re's capital ratio was approximately 300% at the end of 2023, indicating a strong capital position, which supports its dividend growth and sustainability [5]. - The annual dividend for 2023 was $6.80 per share, a 65% increase year-over-year, resulting in a dividend yield of about 5.4% [5]. Valuation - Swiss Re is currently trading at 10x earnings, in line with its historical average, but at a slight discount compared to peers trading at 11x earnings, suggesting limited upside potential after recent share price increases [6].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|------------------------|-------------------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Zurich, 22 August 2024 | Half-year 2024 Results Swiss Re investor and analyst presentation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Strong H1 2024 res ...