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Swiss Re net income rises 9% as P&C combined ratio improves
Swiss Re said its estimated Group Swiss Solvency Test ratio was 264% as of July 1, 2026, above its 200% to 250% target range.
Swiss Re reported net income of $2.8 billion for the first half of 2026, up 9% year on year, helped by stronger contributions across its business units, according to Reinsurance News. Group return on equity was 22.7% for H1 2026, down slightly from 23% in the prior year.
The reinsurer said its insurance service result rose by $500 million year on year to $3.5 billion, reflecting improved underwriting profitability. However, group insurance revenue fell by $600 million to $20.3 billion, with declines in P&C Re partly offset by higher L&H Re revenues, supported by favourable foreign exchange movements.
Swiss Re reported a new business contractual service margin of $2.1 billion for H1 2026, down from $3.1 billion a year earlier, attributing the drop to continued challenging market conditions affecting P&C Re renewals and lower transaction activity in L&H Re. It also posted an ROI of 4% for the period, supported by recurring income of $2 billion and realised gains from real estate sales in the first quarter.
In P&C Re, net income increased 18% to $1.4 billion, with a stronger combined ratio of 76.7% for H1 2026 versus 81.1% a year earlier, driven by low large natural catastrophe losses. The segment recorded large natural catastrophe claims of $169 million related to Storm Kristin, and while P&C Re premium volume written at mid-year renewals totaled $4.5 billion with a nominal price decrease of 1.2%, Swiss Re said loss assumptions rose 4.2%, leading to a net price decrease of 5.3%.