3rd December 2023

Swiss Re announces new IFRS targets, including a net income of more than $3.6bn for 2024 and a multi-year ROE of more than 14%

Swiss Re Group ceo 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 transition from US GAAP to IFRS provides Swiss Re with an opportunity to demonstrate the value of its business. The new accounting basis will have a positive impact on the bottom line by better reflecting L&H Re's earnings power, and on its balance sheet by eliminating systemic accounting mismatches under US GAAP. As a result, the shareholders' equity position will be significantly higher.
The Group targets an IFRS net income of more than $3.6bn for 2024, of which L&H Re is expected to contribute $1.5bn. P&C Re targets an IFRS reported combined ratio of less than 87 for 2024. Corporate Solutions targets an IFRS reported combined ratio of less than 93 for 2024. Swiss Re aims at a multi-year IFRS ROE of more than 14%.
The announced financial targets are reflective of Swiss Re's objective to be sustainably positioned at the higher end of the best estimate reserving range across its P&C businesses. This will be supported by the introduction of a reserving uncertainty allowance for new business. The implementation is expected to have a negative impact on profit after tax in 2024 of approximately $0.5bn.
Swiss Re maintains its capital management priorities, with the aim of returning to sustainable dividend growth. The Group's robust SST ratio of 314% will not be materially affected by the change in accounting standard.

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