Swiss Re Discloses New Targets Ahead of Accounting Method Transition

By Andrea Figueras

Swiss Re released a new guidance for next year as it will start reporting under IFRS as of 2024.

For the upcoming year and under the IFRS method, the Swiss reinsurer aims to reach net profit of more than $3.6 billion, of which the life and health business is expected to contribute $1.5 billion.

For the property and casualty reinsurance segment, Swiss Re expects to reach combined ratio of less than 87%, while it targets a combined ratio of less than 93% for the corporate solutions business.

The company also anticipates a return on equity of more than 14%.

The new accounting method will have a positive impact on the bottom line, as it will better reflect the earnings power of its life and health business, and on its balance sheet, the company said.

The transition will enable the company to avoid systemic accounting mismatches under the previously-used US GAAP accounting method, resulting in a higher equity position for shareholders, Swiss Re said.

Swiss Re also noted that it aims to return to sustainable dividend growth and that it will implement a reserving uncertainty allowance for new business, which is expected to have a negative impact on profit after tax in 2024 of around $0.5 billion.

For insurances, a reserving uncertainty allowance sets aside funds to cover future claims and liabilities.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

December 01, 2023 01:54 ET (06:54 GMT)

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