Swiss Re Group has unveiled ambitious financial targets, as it aims to improve its net income by $3.6bn in 2024.
It is expected that this will be spearheaded by the Zurich-based firm’s Life & Health Reinsurance (L&H Re) division, which has also set lofty targets, aiming for a net income of $1.5bn.
The global insurers corporate solutions division is setting its sights on achieving a combined ratio of less than 93%. Concurrently, Swiss Re’s overarching goal entails attaining a long-term return on equity surpassing 14% for the entire group.
Additionally, P&C Re aims for an IFRS reported combined ratio of less than 87%, and the group is set to achieve a multi-year IFRS return on equity (ROE) exceeding 14%.
This strategic move comes ahead of the transition from US GAAP to the IFRS accounting standard, which will take place next year. This transition is expected to significantly elevate shareholders’ equity positions and enhance the company’s overall bottom line.
Swiss Re Group Chief Executive Officer Christian Mumenthaler said: “Our hard work to increase earnings resilience is paying off with significantly improved profitability in all of our core businesses. Swiss Re is well positioned to benefit from the more economic view provided by the IFRS accounting standard, which is reflected in the targets published today.”
The company’s reserving philosophy is poised for a change, aligning with its goal to sustainably position itself at the higher end of the best estimate reserving range. This strategic shift will introduce a reserving uncertainty allowance for new business, anticipated to impact profit after tax in 2024 by approximately $0.5bn.
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