Swiss Re suffers $248m net loss in Q1

The firm logged a ROE of –4.6%.

Swiss Re suffered a $248m loss in profits in the first quarter of 2022, impacted by the war in Ukraine, heightened financial market volatility and the ongoing COVID-19 pandemic.

The firm reported a return of equity (ROE) of -4.6% for Q1. This was a huge drop from its net income of $333m and ROE of 5.2% for the same period in 2021.

The group said it absorbed higher-than-expected large natural catastrophe claims of $524m across its property and casualty businesses as well as COVID-19 claims of $515m. In addition, Swiss Re booked $283m in reserves related to the war in Ukraine.

Swiss Re, however, reported a growth in net premiums earned and fee income for the group by 4% compared to last year to $10.6b in Q1

Swiss Re's return on investments of 0.7% was impacted by equity mark-to-market losses as well as modest losses on Russia-related exposures. The recurring income yield of 2.1% demonstrates the quality and stability of the underlying asset portfolio.

According to the insurer, its capital position remained very strong, with the group Swiss Solvency Test (SST) ratio in the upper half of the 200–250% target range as of 1 April 2022.

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