Global reinsurer Swiss Re reported net profit of US$1.5 billion in the first quarter of 2026, up 19% from US$1.3 billion in the previous year, driven by strong performance across its business segments, lower catastrophe losses and strong investment performance.
Group-wide return on equity increased to 23.6% from 22.4% in the same period last year as lower property and casualty (P&C) reinsurance revenue, which fell by approximately $400 million to $10 billion, also played a role in continued divestments in the iptiQ business, partially offset by favorable foreign exchange movements.
Group insurance services results increased from $1.3 billion in Q1’25 to $1.7 billion in Q1’26, while new business contract services margin (CSM) fell to $1.2 billion from $1.7 billion last year, primarily affected by the impact of property and casualty reinsurance renewals in January and lower life and health (L&H) reinsurance contribution, primarily due to lower trading activity.
The reinsurer explained that group return on investment increased to 4.6% from 4.4%, reflecting strong recurring income of $1 billion and further supported by realized gains on property sales.
During the first quarter, Swiss Re maintained a strong capital position, with the Swiss Re Group Solvency Test (SST) ratio expected to be 252% as of April 1, 2026.
At the company’s P&C reinsurance unit, net profit increased to $795 million in Q1’26 from $527 million in Q1’26, which Swiss Re said reflected continued disciplined underwriting, lower experience of large natural catastrophes and solid investment income.
P&C Re insurance services results increased from US$575 million to US$795 million. In the first quarter of this year, the sector suffered huge natural disaster losses of US$133 million due to the impact of Storm Cristin in Portugal. Substantial human-related losses totaled $41 million in the quarter.
In 1Q26, P&C Re’s combined ratio was 79.5%, an improvement from 86% in the previous year. Insurance revenue for the segment reached $4.1 billion in 1Q26, down from $4.5 billion in the prior year, driven by overall renewal results and lower ceding company underwriting volumes, partially offset by favorable foreign exchange movements.
P&C Re’s new business CSM fell to $1.0 billion in 1Q26 from $1.4 billion in 1Q25, which the company said reflected a more challenging pricing environment.
In its most recent April renewal, Swiss Re’s Property & Casualty division renewed treaty contracts with a premium volume of $2.3 billion, an 8% decrease from renewal business.
“This result reflects continued discipline and proactive cycle management in a more challenging pricing environment and continues trends seen in January,” the company said.
P&C Re saw a 2.5% nominal price fall at renewals in April, while terms and conditions remained stable. “Based on a cautious view of inflation and updated loss modeling, loss assumptions increased by 3.6%, resulting in a 6.1% decrease in net price,” Swiss Re continued.
As for L&H Re, net profit increased to $491 million in 1Q26 compared to $439 million in the same period last year, reflecting underwriting profits on the segment’s large active book, supported by favorable mortality experience in the United States.
The unit’s insurance services performance increased to $547 million from $456 million, with insurance revenue jumping to $4.3 billion from $4.1 billion a year ago. The segment’s new business CSM decreased from $344 million to $164 million, primarily due to lower transaction activity.
In Enterprise Solutions, net income increased to $262 million from $208 million, reflecting underwriting discipline and less experience with large claims. Huge man-made losses in 1Q26 were only $21 million, and the business did not suffer any big natural disaster losses during the quarter.
Corporate Solutions’ insurance services performance increased to US$286 million in the first quarter of 2026 from US$240 million in the same period last year. The business’s combined ratio was 85.1%, an improvement from 88.4% in the previous year. Insurance revenue fell $100 million to $1.7 billion in the quarter.
Andreas Berger, Swiss Re Group Chief Executive Officer, commented: “Our first quarter results demonstrate strong profitability and reflect the strategic actions taken in recent years to strengthen our business. In a more challenging market environment, we are focused on proactive cycle management of our property and casualty business, as well as underwriting discipline and efficiency across the group.”
Anders Malmström, Swiss Re Group Chief Financial Officer, said: “L&H Re has made a strong start to the new year following the completion of a portfolio review in 2025, while our Property & Casualty business continues to benefit from the high quality of business in recent years. We are also taking a prudent approach to managing current geopolitical volatility, including setting aside additional provisions for the potential inflationary impact of the ongoing Middle East conflict.”
Berger added: “Swiss Re delivered a strong first quarter profit and is well positioned to achieve our financial targets for 2026. Our Property & Casualty business continues to prioritize disciplined underwriting amid an uncertain macroeconomic backdrop and increasingly challenging market conditions. We expect Swiss Re to make an increasing contribution to balancing the Group’s overall performance going forward. At the same time, we have a firm focus on cost efficiency. Our goal remains: to achieve our financial targets and the Group’s overall resilience.”
