Swiss Re reported third-quarter net income of USD 1,339 million on Thursday, 5 November, against USD 1,432 million a year earlier and a company-collected consensus of USD 1,149 million. Property and casualty reinsurance posted a quarterly combined ratio of 78.3% against 71.3% in the third quarter of 2025.
For the nine months the group earned USD 4,173 million, up 3% from USD 4,037 million, on a return on equity of 22.5%, the press release said. Earnings per share for the quarter were USD 4.60 against USD 4.53. "Our strong current earnings reflect disciplined underwriting and portfolio management, while lower margins on new business reflect the competitive P&C pricing environment we are seeing today," said Anders Malmström, Group Chief Financial Officer.
The results come three months after Swiss Re said at the half year that its July treaty renewals had cleared at a net price decrease of 5.3%, and two days after AIG reported a higher third-quarter combined ratio than a year earlier.
Key Takeaways
- P&C Re's third-quarter combined ratio deteriorated seven points year on year to 78.3%, still ahead of the 81.8% consensus, as net insurance revenue fell to USD 4,237 million.
- Nine-month large natural catastrophe losses of USD 640 million ran well under the USD 1,609 million budget, while man-made large losses of USD 301 million ran above expectation.
- L&H Re earned USD 482 million in the quarter against a USD 435 million consensus, lifting its nine-month net income 43% to USD 1,527 million on favourable US mortality.
- Group new business CSM fell to USD 2.8 billion for nine months from USD 3.9 billion, with P&C Re's contribution down to USD 1.8 billion from USD 2.5 billion.
- The estimated SST ratio was 259% at 1 October, above the 200% to 250% target range, with the USD 1.5 billion buyback about 95% executed.
P&C Re's third quarter
P&C Re earned USD 714 million in the quarter on an insurance service result of USD 917 million, the presentation's income statement shows. A year earlier the unit earned about USD 1.07 billion in the same quarter, a figure derived from the USD 2,296 million nine-month 2025 result less the USD 1,223 million the half-year release reported for the first half of 2025. Nine-month net income was USD 2,160 million, down 6%, which the release attributed to competitive market conditions.
Large losses in the unit totalled USD 941 million for nine months, USD 624 million of it in the third quarter, the release said. Of the nine-month total, USD 640 million related to natural catastrophes, mainly the earthquake in Colombia in August and Storm Kristin in Portugal in January.
The presentation puts that figure, which counts events over USD 20 million net of USD 28 million of reinstatement premiums, against a nine-month budget of USD 1,609 million. At the half year the nat cat figure had been USD 169 million against a USD 836 million budget, so most of the nine-month total was booked in the third quarter. Man-made large losses of USD 301 million for nine months were above the nine-month expectation, the presentation said.
The nine-month combined ratio was 77.3% against 77.6%, inside the sub-85% full-year target. The loss and commission ratio improved to 71.6 from 72.5 while the expense ratio rose to 5.7 from 5.1. Discounting on incurred claims contributed about 11.5 points of benefit. On past-service experience the presentation reported releases across short-tail lines, partly offset by reserve additions for long-tail lines and for potential inflationary effects of the Middle East conflict, both booked as IBNR. The change in risk adjustment carried a parameter-update benefit of USD 34 million, against USD 170 million in the first nine months of 2025.
Insurance revenue for the nine months fell 8.6% to USD 12,776 million, or 6.9% on a net basis after lower external retrocession, which the presentation attributed to the renewals outcome and cedent volume updates, partly offset by favourable exchange rates. New business CSM was USD 1.8 billion against USD 2.5 billion.
The July renewal round, reported in August, placed USD 4.5 billion of treaty premium at a nominal price decrease of 1.2%, with loss assumptions up 4.2% for a net price decrease of 5.3%. For the year to date the unit had renewed USD 19.5 billion at a 0.5% volume gain, a 0.2% nominal price decrease and a 4.6% decrease after higher loss assumptions.
| Measure | Q3 2026 | Q3 2025 | Consensus |
|---|---|---|---|
| Group net income (USD m) | 1,339 | 1,432 | 1,149 |
| P&C Re combined ratio | 78.3% | 71.3% | 81.8% |
| P&C Re net insurance revenue (USD m) | 4,237 | 4,642 | n/a |
| Corporate Solutions combined ratio | 87.0% | 85.0% | 89.5% |
| L&H Re net income (USD m) | 482 | 200* | 435 |
| Earnings per share (USD) | 4.60 | 4.53 | n/a |
Sources: Swiss Re 9M 2026 results presentation (5 November 2026); Vara Research consensus collected by Swiss Re (median of 19 analysts, 20 October 2026). *Derived: the restated USD 1,065 million nine-month 2025 L&H Re net income less the restated USD 865 million first-half figure in the half-year release.
L&H Re and Corporate Solutions
L&H Re's nine-month net income rose 43% to USD 1,527 million from USD 1,065 million, against a full-year target of USD 1.7 billion. The insurance service result was USD 1,640 million against USD 1,053 million, which the presentation attributed to favourable experience variance, particularly from US mortality. The CSM release was in line with the 8% to 9% full-year guidance, and the CSM balance stood at USD 16.6 billion against USD 16.9 billion at the end of 2025. The 2025 comparatives were revised to move certain run-off reinsurance transactions, formerly part of the dissolved Life Capital segment, from L&H Re to Group items.
New business CSM in the unit was USD 488 million against USD 833 million, which the release put down to fewer large transactions and a more selective approach, particularly in APAC. Insurance revenue rose 7% to USD 12,891 million on exchange rates and new longevity business.
Corporate Solutions earned USD 224 million in the quarter at a combined ratio of 87.0% against 85.0%, below the 89.5% consensus. Nine-month net income was USD 714 million against USD 693 million at a combined ratio of 86.4% against 87.1%, inside the sub-91% target.
Large man-made losses were USD 219 million for nine months, USD 150 million of them in the third quarter, and large nat cat losses were USD 54 million. Insurance revenue of USD 5,493 million against USD 5,687 million absorbed a USD 0.4 billion reduction from the non-renewal of the Irish Medex business. New business CSM was USD 418 million against USD 500 million.
Capital, investments and targets
The estimated group SST ratio was 259% at 1 October 2026, above the 200% to 250% target range and up an estimated nine points since 1 January, which the presentation attributed to underwriting and investment income, partly offset by the dividend accrual. Shareholders' equity was USD 23,998 million at 30 September against USD 25,114 million at the end of 2025, and book value per share was USD 83.33 against USD 85.15. About 95% of the USD 1.5 billion share buyback announced in February had been executed between March and October, the presentation said.
Swiss Re issued EUR 750 million of subordinated debt in April to partly refinance USD 1.3 billion of 2027 redemptions, and established a USD 1.0 billion ten-year subordinated note issuance facility in the third quarter that sits off balance sheet until drawn.
The return on investments was 4.0% for nine months on recurring income of USD 3.1 billion, a recurring income yield of 4.2% against 4.1%, and the reinvestment yield rose to 5.6% in the third quarter, the release said. Group new business CSM was USD 2.8 billion against USD 3.9 billion, which the release attributed to the competitive P&C renewals environment and lower L&H Re volumes.
Swiss Re reiterated its 2026 targets: group net income of USD 4.5 billion, a P&C Re combined ratio below 85%, a Corporate Solutions ratio below 91% and L&H Re net income of USD 1.7 billion. It also restated the cost target of USD 500 million of savings by 2028, raised earlier this year from USD 300 million by 2027. The group will present its 2027 financial targets on 4 December 2026 and report full-year results on 26 February 2027.
Further Reading
- Munich Re and Swiss Re Post Sub-80% Ratios Atop AM Best's Top 50: where the 77.3% nine-month ratio sits against the peer group.
- Cedants Arrive at Baden-Baden Asking for Lower Attachment Points: the January 2027 renewal pressure behind the new business CSM decline.
- Chubb Calls Post-2022 Casualty Green as Munich Re Flags 2022 to 2025: how peers read the long-tail reserves Swiss Re added to this quarter.
- AIG Underwriting Income Falls 29% as Cats Rise and Releases Halve: a primary carrier's third quarter against the same catastrophe backdrop.
Sources
- Swiss Re, "Swiss Re delivers 3% increase in net income to USD 4.2 billion for the first nine months of 2026," press release, 5 November 2026
- Swiss Re, 9M 2026 Results, investor and analyst presentation, 5 November 2026
- Swiss Re, half-year 2026 results press release, 6 August 2026
- Vara Research, 9M 2026 consensus collected by Swiss Re, median of 19 analysts, 20 October 2026