Swiss Re's property and casualty reinsurance unit delivered a combined ratio of 76.7% for the first half of 2026. Large natural catastrophe claims amounted to US$169 million and man-made losses to US$129 million. Together, those figures reached less than 15% of the unit's US$836 million catastrophe budget for the period.
P&C Re net income rose 18% to US$1.446 billion from US$1.223 billion in the first half of 2025. The insurance service result reached US$1.821 billion, up 16% from US$1.568 billion. The benign loss environment allowed earned premium to flow through to underwriting income.
The half-year result carries a caveat that reinsurance professionals will note. At the mid-year renewals, P&C Re reported a nominal price decrease of 1.2% on US$4.5 billion in treaty volume. After updated loss model assumptions are applied, that gap widens to a net price decrease of 5.3%.
The new business CSM shrank to US$1.6 billion from US$2.2 billion in the prior-year period, a 27% decline. That compression measures the profitability of new business written in the period. It points to tighter economics on new treaty terms even as the in-force book continues to perform.
On a year-to-date basis, P&C Re renewed US$19.5 billion in treaty contracts, a 0.5% volume increase against the business up for renewal. The nominal price decrease for the year to date was 0.2%, widening to 4.6% on a risk-adjusted basis. Across the market, record capital levels have shifted pricing power toward cedants at each successive renewal in 2026.
Group chief financial officer Anders Malmström said the P&C businesses achieved strong underwriting results across the half. "A solid investment result in a highly volatile market further underpinned the resilience of our earnings," Malmström said.
At the group level, Swiss Re reported net income of US$2.833 billion for the first half of 2026. That is a 9% increase from US$2.605 billion a year earlier, putting the group on track towards its full-year target of US$4.5 billion. Swiss Re paid out more than US$17 billion in claims to clients during the period.
The group insurance service result was US$3.464 billion, up 15% from US$3.003 billion in the first half of 2025. Insurance revenue fell to US$20.264 billion from US$20.947 billion. Lower P&C Re volumes were partly offset by life and health reinsurance growth, supported by favourable foreign exchange movements.
L&H Re net income rose 21% to US$1.045 billion from US$865 million, driven by favourable US mortality experience. The L&H Re insurance service result reached US$1.158 billion, up 24% from US$931 million, providing earnings diversification as P&C Re pricing softens.
Swiss Re also confirmed a leadership change at the unit, effective October 1. Velina Peneva, currently group chief investment officer, will take over as CEO L&H Re from Paul Murray, who is leaving the company. Martin Zingg will assume the group CIO role on the same date.
Across the group's other business units, results were also ahead of the prior year. Corporate solutions net income increased 14% to US$490 million from US$430 million, with a combined ratio of 86.1% against 88.2% in the prior-year period. The unit announced new partnerships in India and Mexico, where Swiss Re is targeting further commercial insurance growth.
Swiss Re raised its operating cost reduction target to US$500 million by 2028, up from US$300 million by 2027. The increase follows strong progress on the previous target alongside further opportunities to reduce costs in non-client-facing areas. The group achieved a return on investments of 4% and a recurring income yield of 4.2% for the period.
Group chief executive officer Andreas Berger said the result positions the group well while underscoring the uncertainties ahead. "Strong earnings delivery in the first half of the year puts us well on track towards our 2026 financial targets, while we remain vigilant as we approach the peak of the hurricane season," Berger said.
Swiss Re maintained a Swiss Solvency Test ratio of 264% as of July 1, above its target range of 200% to 250%. The group's US$1.5 billion share buyback, announced in February, was approximately 60% complete through the end of July.
