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Swiss Re AG SREN

Morningstar Rating
CHF 108.50 −0.30 (0.28%)
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Company Report

Swiss Re Is Dedicated to Underwriting Improvements With Research-Steered Technology Investments

For almost a decade, Swiss Re has been missing its stride. Yet, we think this is a top-quality business with some unique assets. More than any other European reinsurer we cover, Swiss puts research and development, data and technology, customer relationships, analytics, and insight front and center when trying to carve out a pure underwriting-based competitive advantage. It has the leading property-casualty claims ratio by a minimum of 1 percentage point. We think it operates with strong natural catastrophe underwriting skill sets, driven by its proprietary risk models and collaboration with leading scientists. Barriers to entry are high because of potential losses, should a business fail to underwrite properly. A new entrant's entire capital base could easily be wiped out. That entrenches Swiss with customers, enhances trust, and increases switching costs.

Price vs Fair Value

SREN is trading at a 351% premium.
Price
CHF 108.50
Fair Value
CHF 827.40
Uncertainty
Medium
1-Star Price
CHF 118.84
5-Star Price
CHF 78.83
Economic Moat
Klz
Capital Allocation
Qldmnkrb

Bulls Say, Bears Say

Bulls

Swiss has the best underwriting record in our European property-casualty reinsurance coverage, and this is all down to claims and pricing.

Bears

Swiss took some underwriting losses in its corporate solutions business. This was due to a soft market in North American liability and North American commercial auto insurance.

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News

Trading Information

Previous Close Price
CHF 108.80
Day Range
CHF 108.00109.55
52-Week Range
CHF 83.10117.20
Bid/Ask
CHF 110.00 / CHF 0.00
Market Cap
CHF 31.51 Bil
Volume/Avg
470,800 / 834,588

Key Statistics

Price/Earnings (Normalized)
11.51
Price/Sales
0.75
Dividend Yield (Trailing)
5.71%
Dividend Yield (Forward)
5.71%
Total Yield
5.71%

Company Profile

Swiss Re is a reinsurer that has three core divisions: property-casualty reinsurance, life and health reinsurance, and corporate solutions. Swiss 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 is now the second-largest reinsurer in the world by market cap, has 80 offices globally, and employs nearly 15,000 people. While the business did lose its way in the early part of the millennium, led by an investment banker who took the business heavily into securitizations, lately Swiss has been focused on establishing quality within its three core divisions.
Sector
Financial Services
Industry
Insurance - Reinsurance
Stock Style Box
Large Core
Total Number of Employees
14,719

Competitors

Valuation

Metric
SREN
MUV2
HNR1
Price/Earnings (Normalized)
11.5111.4716.59
Price/Book Value
2.321.982.59
Price/Sales
0.751.011.55
Price/Cash Flow
15.078.0220.45
Price/Earnings
SREN
MUV2
HNR1

Financial Strength

Metric
SREN
MUV2
HNR1
Quick Ratio
Current Ratio
Interest Coverage
8.9823.6113.61
Quick Ratio
No chart available

Profitability

Metric
SREN
MUV2
HNR1
Return on Assets (Normalized)
1.83%2.04%2.87%
Return on Equity (Normalized)
23.32%19.06%19.06%
Return on Invested Capital (Normalized)
10.47%17.01%16.95%
Return on Assets
SREN
MUV2
HNR1
See how this stock stacks up to its competitors with Morningstar Investor

Insurance - Reinsurance Industry Comparables

1-Day Chart
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