FINANCIALS: Swiss Re: Results Good, Credit Positive

Swiss Re (SRENVX: A2/A) results look good with its experience of losses lower than some peers at the same time as the business appears to be experiencing pricing improvements. Spreads have done relatively well through recent volatility so perhaps tough to see further tightening immediately but these appear credit positive figures, we feel.

• Credit stats: obviously a very high quality credit but notable shareholders’ equity was ahead of expectations and the obvious key measures of the combined ratio were also better than expected, at least in part due to lower NatCat losses.
• Revenues are slightly behind expectations but the indications on renewal price changes (+8%) alongside better loss experience and improved investment returns have combined for a big (21%) pre-tax beat.
• If the industry view is that NatCat incidence has risen (per Munich Re) and there’s a market expectation of a tough 2H24 hurricane season (BBG reports), then pricing should firm further from here, underpinning positive momentum and returns. FY24 targets are not, at this stage, being upgraded, however. 

Conf call is 1300 (London time) at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=znUpvfEK