Swiss Re aims for $3.6b in net income amidst IFRS shift

Its SST ratio is perceived to be unaffected by the shift to IFRS.

Swiss Re has unveiled new IFRS targets, aiming for a net income exceeding $3.6b in 2024 and a multi-year ROE surpassing 14%. 

Swiss Re Chief Executive Officer (CEO) Christian Mumenthaler highlighted improved profitability across core businesses, with the transition from US GAAP to IFRS expected to enhance the company's value and equity. 

Specific targets include an IFRS net income of over $3.6b for 2024, with L&H Re contributing $1.5b. 

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P&C Re aims for an IFRS-reported combined ratio below 87%, Corporate Solutions targets below 93%, and the overall goal is a multi-year IFRS ROE of over 14%. 

The company anticipates implementing a changing reserving philosophy with sustainable dividend growth, acknowledging a potential negative impact of approximately $0.5b on profit after tax in 2024. 

Despite the shift to IFRS in 2024, Swiss Re's robust SST ratio of 314% is expected to remain largely unaffected.