Latest news with #SwissRe
Forbes
3 days ago
- Business
- Forbes
How Employers Can Forecast – And Mitigate – The Overlooked Business Costs Of Climate
Throughout my work as a surgeon and a U.S. senator, I have focused on practical solutions that keep people healthy, safe and resilient, that are firmly backed by data. Today, I see a new data-driven reality: climate impacts—from extreme heat to wildfire smoke—are steadily eroding workforce health and driving up employer medical costs. I've spent the last 18 years building healthcare companies that address gaps in care and improve health outcomes, but most employers I've worked with can't easily measure and adapt for the extreme weather that's impacting their workforce and their patients. A group I'm a part of has set out to change that. On May 5th, the National Commission on Climate and Workforce Health and Mercer launched the Climate Health Cost Forecaster, a first-of-its-kind digital tool that converts extreme heat, smoke, floods, and hurricanes into CFO-ready figures across any zip code. Built on a model developed by Mercer, the Forecaster fuses public climate data with health-care claims to project 10-year cost curves. Early results are blunt: employees in climate-controlled settings rack up 40 percent lower medical costs, while agriculture, utilities, and construction can face double the risk of climate-driven claims. Additional research shows a troubling gap: 77 percent of U.S. workers say climate events have already impacted them or their families, but only 4 percent of employers have mapped out who is most vulnerable. These events are becoming more frequent, and employees know it. New polling from the Commission and Northwind Climate found that 1 in 4 U.S. workers say they already face 'high' or 'very high' health risks from climate-related hazards on the job. The Forecaster finally gives business leaders a way to understand these trends and turn risk into readiness. Data alone, however, does not heal people; investments do. Louisville's Green Heart Project proves the point. Over three years, researchers planted more than 8,000 trees and shrubs across four square miles in a double-blind study and tracked residents' health. Those living in the 'greened' zone showed 13–20 percent lower levels of C-reactive protein—a marker that is a strong risk indicator for heart attack and other chronic conditions—than neighbors without a new canopy. Cleaner air, cooler streets, and reduced stress arose from something as replicable as planting trees along city blocks. These types of projects offer inspiring case studies for forward-thinking business leaders. Parametric insurance is another innovative example. After the record May 2024 heat waves in India, a Swiss Re–backed plan for the Self-Employed Women's Association triggered cash payouts to more than 46,000 outdoor women workers when local temperatures breached pre-set thresholds. The policy replaces lost wages on days that are too dangerous to work, letting workers buy cooling supplies and cover medical costs without waiting for claims adjusters. Index-based covers like this could be adapted by U.S. employers for outdoor crews, converting extreme-heat volatility into a predictable line item and reinforcing the business case for preventive investments such as shade, hydration, and flexible shifts. What employers should do now—before the next smoke wave or heat dome Summer is already here—and with it, record-breaking heat, wildfire smoke, and another wave of extreme weather. Employers can't afford to wait for another crisis to act. None of this is partisan. Protecting workers from heatstroke, smoke inhalation, and stress-related disease is good for health and good for business. Whether you manage a farm in Tennessee or a tech campus in California, the equation is the same: healthy people power healthy businesses. As co-chair of the National Commission on Climate and Workforce Health, we'll keep surfacing the data, partnerships, and innovations that turn risk into resilience. But leadership ultimately rests with employers—and with partners willing to accelerate ideas that deliver both planetary and human dividends. Climate impacts are becoming a widespread condition, but they are not untreatable. Companies already pay for the symptoms in rising claims and absenteeism; with the right diagnostics and a few nature-based prescriptions, they can finance the cure. Our people and economy will be healthier for it.
CNBC
25-05-2025
- Business
- CNBC
European insurance giants take $3.5 billion hit from Los Angeles wildfires — beating estimates
Financial losses stemming from the California wildfires earlier this year have risen to at least $3.5 billion for European insurance giants, according to CNBC's calculations. The insured losses, mainly from reinsurance claims, are being borne by 10 large, listed firms in Europe, mainly centered in Germany, the U.K., Switzerland and France. Germany-listed Munich Re and Hannover Re, two of the largest reinsurance firms, together booked nearly $2 billion in losses. Switzerland-listed firms Swiss Re and Zurich collectively reported $830 million in hits. London-listed companies Hiscox, Lancashire Insurance, Conduit Re and Beazley reported losses of amounting to nearly $500 million. French companies Scor and AXA also reported $167 million and $100 million losses, respectively. The total hit far exceeds the billion dollars expected from analysts in the immediate aftermath of the wildfires. While the total economic loss due to the disaster was expected to be around $50 billion, JPMorgan analysts had expected insured losses of around $20 billion. Berenberg analyst Michael Huttner told CNBC that the losses were much larger than anticipated at most insurance firms because the wildfires were a "combination of unusual and big." The uncontained nature of the wildfire was one factor leading to the large losses, he said. However, the analyst added that profits generated by the companies far exceeded expectations, and pointed to the resiliency of the sector amid large natural disasters. In late April, Swiss Re further raised the estimate for insured losses to $40 billion from the LA fires, making it one of the deadliest and most expensive disasters for California. The death toll from the wildfires that ravaged the greater Los Angeles area, covering Eaton and Palisades, rose to 30 after human remains were found among the charred houses. Millions have been displaced, and thousands of homes and buildings have been destroyed. CNBC's tally would leave European companies on the hook for nearly a tenth of total insured losses. Reinsurance firms offer policies to primary insurance providers, like Chubb, which are present in California and directly deal with customers on the ground. The reinsurance policies typically only kick in after about 400 million euros worth of losses are absorbed by the primary insurance provider. Outside of Europe, Japanese reinsurers Tokio Marine and Sompo disclosed nearly 50 billion yen ($348 million) in losses, significantly higher than the $63 million estimated by JPMorgan analysts in the days after the fire. If Swiss Re's forecast for total insured losses comes to fruition, the Los Angeles wildfire would be four times more devastating than wildfires of the past. In 2018, wildfires in California cost the whole industry around $16 billion in losses. During that event, Munich Re absorbed the largest share of the loss at 500 million euros. The experience of that disaster and others has led to per-event deductibles (or excess) rising from 100 million euros to 400 million euros today. The losses to insurers, both in the U.S. and Europe, have also been partly reduced by the introduction of the FAIR Plan, a pooled fund built with contributions from multiple insurance providers in California. The system is expected to absorb the bulk of the losses first before private insurance companies begin paying out.
Yahoo
19-05-2025
- Business
- Yahoo
Swiss Re's net income surges 16% to $1.27bn in Q1 2025
Swiss Re has reported net income of $1.27bn for the first quarter of 2025 (Q1 2025), a 16% rise from $1.09bn posted in the same quarter of the previous year. The company attributed the increase to underwriting results across its business segments and investment returns. The book value per share saw a 7% rise, reaching $79.51 from $74.44 in the previous year's first quarter. The insurance service result saw a 6% decline to $1.27bn in Q1 2025, down from $1.35bn in Q1 2024. The Zurich-based company's insurance revenue decreased by 11% to $11.6bn from $10.4bn in the prior year. This reduction was mainly due to non-recurring IFRS transition effects and the termination of an external retrocession transaction in L&H Re, which had boosted the previous year's figures, as well as adverse foreign exchange movements. The company's property and casualty (P&C) reinsurance revenues were down 10% to $4.4bn, while the corporate solutions segment fell by 4% to $1.7bn and life and health reinsurance reported a 15% decrease in revenues to $4.05bn. Swiss Re also plans to cancel around 18.7 million surplus treasury shares by 30 June 2025, which are currently not eligible for dividends. Following the cancellation, the total share count for Swiss Re will stand at 298.8 million, which includes nearly 294.8 million dividend-eligible shares and around four million treasury shares reserved mainly for share-based compensation plans. In the P&C sector, large natural catastrophe claims totalled $570m in Q1 2025, representing 29% of the annual budget for such claims, primarily from the Los Angeles wildfires. Corporate Solutions reported man-made losses of $147m for the quarter, while natural catastrophe losses of $60m were largely due to the Los Angeles wildfires and tropical cyclone Alfred in Queensland, Australia. Swiss Re Group CEO Andreas Berger said: "The first quarter of 2025 was marked by significant large loss events in our property and casualty businesses. Despite this, all business units posted robust results, highlighting the resilience of the Group and underscoring our ability to support clients by acting as a shock absorber for peak risks." Commenting on the outlook, Berger added: "With a turbulent start to the year, we remain vigilant and focused on maintaining our strong foundations. Thanks to the decisive actions we took in 2024, all our businesses are well-positioned and have delivered a robust performance in the first quarter. Alongside our continued focus on cost discipline and efficiency, this gives us confidence in our 2025 targets despite a challenging environment.' The company confirmed that its exit from iptiQ is on track. Last month, Swiss Re completed the divestment of iptiQ's Americas Sales Solutions through a management buyout and disclosed the sale of iptiQ's Australian operations to Hannover Re. "Swiss Re's net income surges 16% to $1.27bn in Q1 2025 " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Swiss Re AG (SSREF) Q1 2025 Earnings Call Highlights: Strong Net Income Amid Large Losses
Net Income: USD1.3 billion in Q1 2025. Return on Equity: 22% for Q1 2025. Large Losses: USD900 million in P&C, with LA wildfires contributing around two-thirds. Insurance Revenue: USD10.4 billion in Q1 2025, down from USD11.7 billion last year. Life & Health Re Net Income: USD439 million in Q1 2025. Admin Cost Reduction Target: On track to reduce by at least USD100 million in 2025. Combined Ratio - P&C Re: 86% in Q1 2025. Combined Ratio - Corporate Solutions: 88.4% in Q1 2025. Investment Return on Investment (ROI): 4.4% in Q1 2025. Tax Rate: 14% in Q1 2025. SST Ratio: Estimated at 254% for Q1 2025. Warning! GuruFocus has detected 8 Warning Signs with SSREF. Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Swiss Re AG (SSREF) reported a strong start to 2025 with a net income of USD 1.3 billion and a return on equity of 22%. All business units contributed positively to the results, supported by strong investment returns. The company achieved a 6% volume growth in P&C Re, despite a modest net price change of negative 1.5%. Life & Health Re produced a solid net income of USD 439 million, slightly above the pro rata target. Swiss Re AG (SSREF) is on track to reduce its cost run rate by at least USD 100 million this year, contributing to a USD 300 million target by 2027. The P&C Re and Corporate Solutions segments faced significant large losses amounting to USD 900 million, primarily due to the LA wildfires. Insurance revenue for the group decreased to USD 10.4 billion from USD 11.7 billion in the previous year, partly due to nonrecurring IFRS transition effects. The P&C Re segment experienced a decline in CSM release, driven by prudent initial loss picks and slightly lower margins. The macroeconomic environment remains uncertain, with potential risks from increased inflation and ongoing tariff situations. Corporate Solutions faced higher-than-expected man-made claims totaling USD 150 million in the quarter. Q: Can you provide insights into the reserve release and whether this reflects a new normal or is it just a response to volatility, such as the LA wildfires? A: Anders Malmstrom, Group CFO: The reserve release indicates resilience in our reserves. While we guide for neutral development, the release shows our reserves' strength. The volatility from events like the LA wildfires is managed, and we expect similar resilience going forward. Q: The Life & Health Re CSM release was higher than expected. Can you explain the drivers and future expectations? A: Anders Malmstrom, Group CFO: The higher CSM release in Q1 is due to volatility rather than a trend. We maintain guidance of an 8% average CSM release, which should be expected going forward. Q: How do you view the sustainability of Corporate Solutions' current margin levels amid a softening rate environment? A: Andreas Berger, Chief Executive Director: Pricing levels in property and cat remain healthy, and we expect them to stay competitive. We manage risk profiles case by case, and while some rate reductions may occur, structures remain stable, supporting margin sustainability. Q: What are your thoughts on the US liability market and actions like Chubb's stance on litigation financing? A: Andreas Berger, Chief Executive Director: We support efforts to address tort system abuses. Constructive actions by companies like Chubb are welcome and could lead to a more insurable and affordable liability market in the US. Q: With the current economic uncertainty and inflation risks, how are you managing these challenges? A: Andreas Berger, Chief Executive Director: We continuously update our models and scenario planning to reflect changes like tariffs and inflation. While we don't see direct impacts, we remain vigilant and adjust our strategies to maintain resilience. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
16-05-2025
- Business
- Yahoo
Swiss Re Just Quietly Crushed Q1--And It's Sitting on a Fortress of Capital
Swiss Re (SSREY) just reminded the market why it's still a heavyweight in global reinsurance. Despite softer top-line numbers and a barrage of large claimsfrom Los Angeles wildfires to major man-made lossesthe firm pulled in $1.3 billion in net income for Q1 2025, up 16% from last year. Its Swiss Solvency Test ratio? A towering 254%, meaning it holds more than double the capital required to cover risks. That kind of buffer isn't just strongit's fortress-like. With return on equity hitting 22.4% and all business units in the black, Swiss Re appears to be leaning into a disciplined, shock-absorber role in a volatile world. Warning! GuruFocus has detected 8 Warning Signs with SSREY. P&C Reinsurance took on over $700 million in claims but still brought home $527 million in profit, with a solid 86% combined ratio. Corporate Solutions chipped in $208 million, even after absorbing heavy man-made losses. And Life & Health Re kept things steady with $439 million in net income, helped by sticky margins and recurring investment gains. Investment income was another bright spot, driven by a recurring yield of 4.1% and a $209 million equity sale that padded results. Even with revenue declining year-on-yearblame accounting transitions and FX dragsSwiss Re's core profitability remained intact. April renewals also came in with modest premium growth and improved pricing discipline. Debt has been steadily shrinking since 2021and it's stayed low. Cash, on the other hand, peaked in 2019 and hasn't bounced back, hovering at more modest levels. That combo points to a company that's trimmed financial fat and is putting capital to work, not just parking it. With a 254% solvency buffer backing it up, Swiss Re looks like it's built for discipline, not drama. Combine that with a 254% solvency ratio and you're looking at a business built to take hits and keep moving. For long-term investors eyeing stable returns in a choppy macro environment, this might be one worth watching closely. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
