Swiss Re Ltd announced in Zurich that it achieved a net profit of USD 1.3 billion in the third quarter of 2026, bringing the total profit for the first nine months of the year to USD 4.2 billion. This compares with a profit of USD 4.0 billion reported in the same period of the previous year, while the return on equity stood at 22.5%, matching the level from the prior-year period. The group's results benefited from strong contributions across all business units, a burden from natural catastrophes that remained below expectations, and a solid investment performance. Management stated that the group and all business units remain on track to achieve their financial targets for 2026, targeting a full-year group net profit of USD 4.5 billion.
Group Chief Executive Officer Andreas Berger attributed the nine-month results to disciplined underwriting and targeted decisions made over recent quarters to strengthen the portfolio and build a more resilient business. Berger noted that the company combines underwriting discipline and higher cost efficiency with commercial ambitions, working closely with clients and brokers to identify attractive business opportunities amid increasingly complex and connected risks. Group Chief Financial Officer Anders Malmström added that while lower margins in new business reflect intense price competition observed in property and casualty insurance, the extensive in-force portfolio of Life and Health Reinsurance, strong performance in Corporate Solutions, and solid recurring investment income continue to support group profitability. Malmström also noted that the USD 1.5 billion share buyback program announced in February is nearly complete.
The underwriting result for the group reached USD 5.1 billion, compared with USD 4.8 billion in the first nine months of 2025. Group insurance revenue was USD 31.2 billion, down from USD 32.0 billion in the prior-year period, with lower revenues in Property and Casualty Reinsurance partially offset by higher revenues at Life and Health Reinsurance and positive currency effects. The contractual service margin for new business, which reflects the profitability of business written during the period, stood at USD 2.8 billion, compared with USD 3.9 billion in the first nine months of 2025. This reflected the impact of a competitive market environment during property and casualty treaty renewals alongside a lower contribution from life and health reinsurance driven by lower volumes, a more selective approach, and fewer large transactions.
Swiss Re recorded a return on investments of 4.0% for the first nine months of 2026, supported by recurring income of USD 3.1 billion. The running yield rose to 4.2% from 4.1% in the prior-year period, while the reinvestment yield for the third quarter of 2026 increased to 5.6%. The company continues to simplify operations by reducing organizational complexity, accelerating responses to market opportunities, and fostering closer client engagement to enhance competitiveness and long-term profitability. Swiss Re remains on course to lower operating costs by USD 500 million by 2028, having raised its previous savings target of USD 300 million by 2027 earlier in the year, while continuing to invest in strategic areas such as underwriting, client-facing capabilities, and data and artificial intelligence solutions. The group's capital position remained robust, with the Swiss Solvency Test ratio estimated at 259% as of October 1, 2026, exceeding the target range of 200% to 250%.
Property and Casualty Reinsurance generated a profit of USD 2.2 billion for the first nine months of 2026, marking a 6% decrease from USD 2.3 billion in the prior-year period primarily due to a competitive market environment. The unit's underwriting result reached USD 2.7 billion, compared with USD 2.9 billion a year earlier. Total large losses for the period were USD 941 million, of which USD 624 million occurred in the third quarter. Natural catastrophe claims accounted for USD 640 million of the nine-month total, notably including an earthquake in Colombia in August and Storm Kristin making landfall in Portugal in January, while man-made large losses contributed USD 301 million. The unit posted a combined ratio of 77.3%, compared with 77.6% in the prior-year period, and aims for a full-year combined ratio below 85%. Insurance revenue at Property and Casualty Reinsurance decreased to USD 12.8 billion from USD 14.0 billion, driven by treaty renewal outcomes and lower volumes ceded by clients, while new business contractual service margin was USD 1.8 billion compared to USD 2.5 billion in the previous year.
