Ad hoc announcement pursuant to Article 53 LR

• Ahead of its transition from US GAAP to the IFRS accounting standard, Swiss Re announces new financial targets for 2024
• Property & Casualty Reinsurance (P&C Re) targets a reported combined ratio of less than 87%
• Life & Health Reinsurance (L&H Re) targets a net income of USD 1.5 billion
• Corporate Solutions targets a reported combined ratio of less than 93%
• The Group targets a multi-year IFRS return on equity (ROE) of more than 14%

Zurich, 1 December 2023 – Swiss Re announces new IFRS targets, including a net income of more than USD 3.6 billion for 2024 and a multi-year ROE of more than 14%.

Swiss Re Group Chief Executive Officer Christian Mumenthaler said: "Our hard work to increase earnings resilience is paying off with significantly improved profitability in all of our core businesses. Swiss Re is well positioned to benefit from the more economic view provided by the IFRS accounting standard, which is reflected in the targets published today."

Better reflection of earnings power and higher equity

The transition from US GAAP to IFRS provides Swiss Re with an opportunity to demonstrate the value of its business. The new accounting basis will have a positive impact on the bottom line by better reflecting L&H Re's earnings power, and on its balance sheet by eliminating systemic accounting mismatches under US GAAP. As a result, the shareholders' equity position will be significantly higher.

The Group targets an IFRS net income of more than USD 3.6 billion for 2024, of which L&H Re is expected to contribute USD 1.5 billion. P&C Re targets an IFRS reported combined ratio of less than 87% for 2024[1]. Corporate Solutions targets an IFRS reported combined ratio of less than 93% for 2024[1,2]. Swiss Re aims at a multi-year IFRS ROE of more than 14%.

A changing reserving philosophy and sustainable dividend growth

The announced financial targets are reflective of Swiss Re's objective to be sustainably positioned at the higher end of the best estimate reserving range across its P&C businesses. This will be supported by the introduction of a reserving uncertainty allowance for new business. The implementation is expected to have a negative impact on profit after tax in 2024 of approximately USD 0.5 billion[3].

Swiss Re maintains its capital management priorities, with the aim of returning to sustainable dividend growth. The Group's robust SST ratio of 314%[4] will not be materially affected by the change in accounting standard.

Swiss Re will report under IFRS as of 2024.

Investors' Day webcast

Swiss Re's 2023 Investors' Day will be held today from 10:30 to 15:30 CET. Media are able to follow the event via live webcast. For additional information on the event, including the agenda and presentation slides, please click here.

[1] Compared to US GAAP, IFRS reported combined ratios reflect discounting of claims and certain methodological differences.

[2] Compared to P&C Re, Corporate Solutions' IFRS reported combined ratio definition reflects lower discounting and methodological benefits.

[3]  Impact expected to come from new business uncertainty allowances affecting the 2024 current year result in P&C Re and Corporate Solutions.

[4] As of 1 July 2023.