Over the third quarter, Swiss Re has delivered another set of strong results, beating the company-compiled consensus across the board. Numbers are particularly healthy across the property and casualty parts of the business.
SREN is trading within a range we consider fairly valued.
Price
CHF 150.85
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say
Bulls
Swiss Re has had the best underwriting record in our European property and casualty reinsurance coverage under IFRS 4, and this is all down to claims.
Bears
Swiss Re took some underwriting losses in its corporate solutions business due to a soft market in North American liability and North American commercial auto.
Swiss Re is a reinsurer that has three core divisions: P&C reinsurance, life and health reinsurance, and corporate solutions. Swiss Re was founded in 1863 when the general manager of Helvetia sought to stem the flow of reinsurance premiums outside Switzerland. Moritz Grossmann argued he could cut the premiums paid to foreign firms, still make a profit, and pay mid-single-digit dividends. Swiss Re is now the second-largest reinsurer in the world by market capitalization, with 80 offices around the world and approximately 15,000 employees. While the business did lose its way in the early part of the millennium, led by an investment banker who heavily invested in securitizations, Swiss Re has recently focused on establishing quality within its three core divisions.