Swiss Re has continued to grow across its natural catastrophe, property and specialty lines business through renewals this year so far, with 3% volume growth at the mid-year renewals, against a backdrop of continued price increases, but with rising loss assumptions, meaning a net price change of -2.4% at June and July.The global reinsurance firm has continued to be selective though, pulling back through further portfolio actions in casualty risks at the mid-year renewal season.Swiss Re reported $2.6 billion of net income for the first-half of 2025 this morning, with property and casualty reinsurance driving $1.2 billion on the back of a 81.1% combined ratio.With positive net income across the businesses Corporate Solutions and Life and Health arms as well, Swiss Re reported a $1.3 billion net profit for the second-quarter of the year and a return on equity (ROE) of 23% for H1 2025.

Both H1 net income and ROE are up on 2024’s $2.1 billion and 19.6%, with analysts responding positively to Swiss Re’s start to 2025.Swiss Re’s Group Chief Executive Officer Andreas Berger commented, “The Group delivered a strong result for the first half of 2025 while supporting our clients through peak risks, particularly in the first quarter.The performance reflects our continued focus on underwriting quality, meticulous portfolio management and a prudent investment strategy.” Swiss Re’s Group Chief Financial Officer Anders Malmström added, “The Group’s disciplined capital allocation continues to support earnings resilience.

We are pleased that healthy new business contractual service margins are being maintained into 2025, despite a more challenging property and casualty pricing environment.” Strong underwriting margins in P&C insurance and reinsurance are a key driver, as well as a strong investment result of 4.1%, the company said.In the first half, large natural catastrophe claims were $556 million, with the California wildfires the main driver, while man-made losses came out at $213 million for the period.The P&C reinsurance combined ratio of 81.1% was improved on the prior year’s 84.3%, while the target remains to achieve below 85% for the full-year.

Insurance revenue for the P&C reinsurance business was down at $8.9 billion, compared to $9.7 billion a year ago, but Swiss Re noted that this was due to reductions in casualty lines, as well as revenue seasonality.At the June and July reinsurance renewals, Swiss Re wrote $4.5 billion of treaty business, which was a 5.9% volume decrease compared with the business that was up for renewal due to casualty line pruning.However, year-to-date through renewals Swiss Re has grown +5% in property and specialty at the mid-year, continuing to expand in areas it feels confident to do so in the higher rate environment.

Casualty was down -26.6% by comparison.Prices increased 2.3% in the mid-year renewal book for Swiss Re, but loss assumptions rose 4.6%, resulting in a net price change of -2.4% for June and July business.Year-to-date, Swiss Re has grown its natural catastrophe volumes by 3%, its property volumes by 17% and specialty by 7%, while casualty volumes were -7%.

It’s worth noting that nat cat volumes were flat after the first-quarter, suggesting this growth came from April and the mid-year renewal seasons.The net price change across year-to-date P&C reinsurance renewals has increased slightly from -1.5% after the April renewals to now -1.8% after June and July.In nat cat business, Swiss Re said that in 2025 increased exposure was partly offset by rate changes, but importantly notes that discipline on terms and structures was maintained so far this year.

On the outlook for the rest of the year, CEO Berger said: “Swiss Re has had a strong first half and we maintain our full-year targets.Given the broad geopolitical and macroeconomic uncertainty, and as we enter the peak of the wind season, we remain vigilant.Looking ahead, we continue to focus on disciplined underwriting and cost efficiency to support the delivery of consistent results.”.

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