Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SWISS RE AG. We currently have 8 research reports from 2 professional analysts.
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SWISS RE AG
SWISS RE AG
Robust Q3 profit exceeds consensus
03 Nov 16
Net profit attributable to shareholders decreased by 17% to $1.18bn for Q3 16 compared to Q3 15. Premiums earned were up by 10% to $8.6bn for Q3 16. Net investment income was flat at $912m for Q3 16 compared to Q3 15. Swiss Re reported a return on investment of 3.5% for the group for Q3 16 compared to 3.2% for Q3 15. The net unit-linked investment result rose from a loss of $1.15bn for Q3 15 to a profit of $2.4bn for Q3 16. Total revenues were therefore up by 55% to $12.3bn in Q3 16. Claims expenses increased by 30% to $3.1bn for Q3 16. Total expenses rose by 76% to $10.7bn for Q3 16. The group’s combined ratio in P&C reinsurance was 87.9% for Q3 16 compared to 77.7% in Q3 15. Shareholders’ equity was $37.4bn at the end of September 2016 versus $32.4bn at the end of 2015. The return on equity was 12.8% for Q3 16 compared to 17.3% for Q3 15, which is above its five-year financial target (700bp above the risk free average over five years). Swiss Re will start its public share buy-back programme of up to CHF1.0bn on 4 November 2016. It released no actual solvency ratios.
Non-Life Insurance - Monte Carlo, plus ça change
20 Sep 16
The Monte Carlo Rendez Vous saw lots of discussion about the mixed outlook for reinsurance. In truth, there was little new news. Reinsurance rates are still under downward pressure but talk of a floor is getting louder. This may well happen in 2017, especially for US cat rates, but having reached the nadir, we could stay there for a while until the issues of surplus capacity, limited demand growth, low interest rates and benign loss activity are addressed.
Weaker Q2 figures
29 Jul 16
Net profit attributable to shareholders decreased by 22% to $632m for Q2 16 compared to Q2 15. Premiums earned were up by 14% to $8.0bn for Q2 16. Net investment income rose by 4% to $930m for Q2 16 compared to Q2 15. Swiss Re reported a return on investment of 3.7% for the group for Q2 16 compared to 4.2% for Q2 15. However, the net unit-linked investment result rose from a loss of $768m for Q2 15 to a profit of $1.72bn for Q2 16. Total revenues were therefore up by 48% to $11.3bn in Q2 16. Claims expenses increased by 36% to $3.3bn for Q2 16. Total expenses rose by 63% to $10.4bn for Q2 16. The group’s combined ratio in P&C reinsurance was at 103.1% for Q2 16 compared to 93.6% in Q2 15. Shareholders’ equity was $35.8bn at the end of June 2016 versus $32.4bn at the end of 2015. The return on equity was 7.2% for Q2 16 compared to 9.5% for Q2 15, which is above its five-year financial target (700bp above the risk free average over five years) due to the negative risk free yield. Swiss Re released no actual solvency ratios.
Mixed start into FY2016
29 Apr 16
Net profit attributable to shareholders decreased by 15% to $1.23bn for Q1 16 compared to Q1 15. Premiums earned were up by 5% (plus 9% at constant currency) to $7.8bn for Q1 16. Net investment income rose by 5% to $934m for Q1 16 compared to Q1 15. However, net unit-linked investment gains declined from $1.44bn for Q1 15 to $405m for Q1 16. Swiss Re reported a return on investment of 3.7% for the group for Q1 16 compared to 3.9% for Q1 15. Total revenues were down by 5% to $10.0bn in Q1 16. Claims expenses increased by 18% to $2.9bn for Q1 16. The group’s combined ratio in P&C reinsurance was still good at 93.3% for Q1 16 compared to an unusually low 84.3% in Q1 15. Shareholders’ equity was $34.8bn at the end of March 2016 versus $32.4bn at the end of 2015. The return on equity was 14.6% for Q1 16 compared to 16.1% for Q1 15, which is above its five-year financial target (700bp above the risk free average over five years). The SST (Swiss Solvency Test) ratio was unchanged at 223% at the end of March 2016. Swiss Re released for the first time a Solvency II ratio as well which was 312%.
Strong FY2015 results, bonus dividend cancelled
23 Feb 16
Preliminary net profit attributable to shareholders was $938m for Q4 15 compared to $246m for Q4 14. Net profit attributable to shareholders rose by 31% to $4.6bn for FY2015 compared to FY2014. Premiums earned decreased by 3% to $30.2bn for FY2015 compared to FY2014 due to the strong $, it was up by 4% at constant currency. Claims declined by 7% to $9.85bn for FY2015. The group’s P&C combined ratio was again a low 86.0% for 2015 compared to 83.7% in 2014. Swiss Re’s return on investment (RoI) was 3.5% in 2015 compared to 3.7% in FY2014. Shareholders’ equity was down by 7% to $33.5bn at the end of 2015 versus the end of 2014. The RoE after tax of Swiss Re was 13.7% for FY2015 compared to 10.5% for FY2014. The regular dividend proposal per share increased from CHF4.25 for FY2014 to CHF4.60 for FY2015. However, the additional special dividend of CHF3.00 (2013: CHF4.15) for FY2014 was cancelled. Swiss Re announced another public share buy-back of up to CHF1.0bn. Swiss Re gave a mixed outlook regarding the January 2016 renewals. Swiss Re renewed $8.8bn of the $8.6bn premium volume up for renewal, representing an increase of 3%. The decrease in risk-adjusted price quality was 3 percentage points to 102%. Swiss Re's Board of Directors announced that Christian Mumenthaler, currently CEO of Reinsurance, will become Group Chief Executive Officer of Swiss Re as of 1 July 2016. Michel M Liès will retire.
Strong Q3 earnings and a share buy-back programme
29 Oct 15
Net profit attributable to shareholders rose by 14% to $1.4bn for Q3 15 compared to Q3 14 and was up by 70% compared to Q2 15. Premiums earned decreased by 5% to $7.76bn for Q3 15 compared to Q3 14. Net investment income was down by 9% to $912m for Q3 15. Swiss Re reported an annualised return on investment of 3.2% for the group for Q3 15 compared to 3.5% for Q3 14. Total revenues declined by 18% to $7.91bn for Q3 15. Claims expenses decreased by 13% to $2.4bn for Q3 15. The group's combined ratio at the P&C business was 78.0% for Q3 15, compared to 76.7% for Q3 14. Total expenses were down by 23% to $6.2bn in Q3 15. Pre-tax profit rose by 4% to $1.7bn for Q3 15 compared to Q3 14. The tax ratio declined from 24.1% for Q3 14 to 16.7% for Q3. Shareholders' equity was $32.6bn at the end of September 2015 versus $34.8bn at the end of 2014. The return on equity was 17.3% for Q3 15 compared to 14.8% for Q3 14. The five-year RoE financial target 2011-15 is 700bp above the risk-free average over five years. Swiss Re plans to start a share buy-back programme in mid-November, after filing for and having received the necessary approvals.
Mobilising the strategy
08 Dec 16
PCF has reported a good set of FY16 figures this morning. Pro forma 12 month adjusted pre-tax profit increased 38% YoY to £4.0m (FY15: £2.9m), 5% ahead of our estimate of £3.8m. Fully diluted return on equity remained broadly stable YoY at 13% but beat our forecast of 12.6%, driven by good loan book growth, up 14% YoY to £122m. Given the strength of the results the board has reinstated a dividend of 0.1p per share. Following Tuesday’s announcement of the approval of a banking licence, we believe that the group now has the capacity to accelerate its growth prospects. While the shares trade at 12.0x earnings and 2.0x reported book value, we do not believe this valuation captures the growth potential of the business.
VPC Speciality Lending Investments PLC – sticking to your knitting pays dividends
05 Dec 16
A 25% discount on a dividend paying vehicle suggests either (a) lack of belief in the NAV, (b) lack of belief in the dividend, (c) concerns over future delivery, (d) a shareholder’s base not normally exposure to “closed end structures” or (e) some combination of (a) to (d). We had a first meeting with the management team and London representative of VPC Speciality Lending to try to better understand why the share price had fallen quite so much.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
Better Capital – A tale of two funds
05 Dec 16
Our gut feel on the results is that BCAP’s Gardner disposal feels viable (albeit as a late Q1 transaction). Post Gardner, the exit profile for BCAP’s portfolio is slanted towards the years 2018/19 and not earlier; we view the market’s current pricing as cautious (14% disc to our estimate of FV). In contrast, BC12’s more consumer facing portfolio remains a work in progress and may well offer further disappointment before turning a corner; the market valuation (51% discount to NAV) is cautious but probably fair given the difficulties.
Panmure Morning Note 07-12-2016
07 Dec 16
PCF today announces that it has succeeded in achieving once its major strategic goals by being granted a UK banking licence. In line with prior guidance, the company aims to begin taking deposits in summer 2017 and will initially focus on lending to its core markets in consumer motor finance and SME asset finance. As well as supporting growth in the loan book, the banking licence will both diversify and reduce the cost of its funding base. More details are expected as part of the FY16 results tomorrow.
Meeting near-term headwinds
06 Dec 16
In its trading update IFG reported that performance has been in line with management expectations. The cooling effect of market uncertainty on growth in James Hay and financial advice client numbers, together with the impact of low interest rates, remain a near-term head wind for revenues. Even so, with Saunderson House continuing to increase profits, IFG expects to match 2015 earnings. The long-term growth opportunity presented by an ageing population and pension freedoms remains in place and to address this IFG is continuing investment to enhance its service and increase operational gearing.