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 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]
Buy Swiss Re To Mitigate Market Risk