Swiss Re: complicated first quarter

17. May 2022
-IAM, News

Olivier Aeschlimann, Senior Financial Analyst

The group published a net loss of USD 248 million and a RoE of -4.6% in the first quarter of 2022. For comparison, Swiss Re posted a net profit of USD 333 million and a RoE of +5.2% over the same period in 2021. The results were impacted by the war in Ukraine, the high volatility of the financial markets, as well as the Covid-19 pandemic which is still not over. Although Swiss Re does not have an “outsized” position in Ukraine or Russia, the group has decided to act proactively by building up reserves. Despite these headwinds, the “property and casualty” business delivered solid results. However, the cost of natural disasters increased to USD 449 million from USD 316 million a year earlier. However, on a more positive note, investment income should, in the medium term, benefit from the rise in interest rates. Finally, the group intends to take advantage of its strong financial position to seize growth opportunities, in a more favorable price environment.