Current tensions in the Middle East represent a significant shock to the system, one that simultaneously creates lower economic growth and higher inflation. According to Haegeli, oil price movements provide a clear indication of how CPI could evolve across different price scenarios.

“On the point of higher inflation, we see a magnitude of around 1% to 1.5% increase across the key scenarios for both the US as well as European CPI, with Europe probably being more affected,” said Haegeli.

In terms of what this means for natural catastrophe losses and specifically how peak losses could develop over time, Haegeli said that “a one percentage point increase in consumer price inflation, this will mean for peak loss, meaning a 1-in-10 year event, in 2030, of around a $420 billion insured loss.”

Haegeli further highlighted: “Looking at our analysis from the Sigma reports, this is a shock which is a peak loss shock which would for the reinsurance industry mean solvency ratios decline of around 40% to 50%, so that’s really significant.”

Swiss Re highlights the importance of closing protection gaps in a recent report by the Swiss Re Institute, which revealed that secondary perils, such as severe convective storms (SCS), floods and wildfires, accounted for 92% of global insured losses in 2025.

Reinsurers face a double challenge: high inflation and the growing frequency of secondary perils, which demand disciplined underwriting and strong capital reserves.

The rising cost of claims and repairs, fuelled by inflation, will test the industry’s capacity to manage extreme risk, which will be further tested by both the severity of peak events and the accumulation of smaller, weather-related losses.

Haegeli concluded: “The global reinsurance industry is exactly here to manage the tail, and for that, a well-capitalised reinsurance industry is also really important for the resilience of today’s world, and also making sure that protection gaps continue to decrease.”

The post Rising CPI driven by geopolitical volatility to amplify future peak loss costs, warns Swiss Re appeared first on ReinsuranceNe.ws.

Contributing $40 billion to the 2025 total, the LA wildfires at the start of the year also represented the largest insured wildfire loss event on Swiss Re’s sigma records.

SCS also contributed significantly in 2025, ranking as the third-costliest year on record for the peril, after 2023 and 2024, and adding $51 billion to overall global insured losses.

By contrast, flood-related insured losses were well below average in 2025, at $3.4 billion compared to a previous five-year average of $15.4 billion.

The report also highlighted that 2025 was notable for the absence of a major US hurricane landfall.

Even so, long-term global insurance losses from natural catastrophes continue to grow at an annual rate of 5–7%, underscoring the need for sustained adaptation and risk mitigation to maintain insurability and reduce protection gaps.

Balz Grollimund, Head Catastrophe Perils, added, “The below-trend natural catastrophe losses seen in 2025 are the result of favourable variability rather than any easing of underlying risk.

“If losses return to normal long-term levels, they would total $148 billion in 2026. According to our modelled peak-loss scenario, insured losses could even climb to about $320 billion in 2026.

“As exposure keeps building, the upward trend in insured losses is structural and it is critical to identify the risk drivers behind this to manage and reduce risks before losses occur.”

Urs Baertschi, CEO Property & Casualty Reinsurance, commented, “A peak loss scenario year could be more than double the recent annual insured natural catastrophe losses and exceed $300 billion.

“Further risk awareness, adaptation and mitigation, alongside sufficient insurance and reinsurance, play vital roles in societal resilience. We protect against peak 2/3 risks by absorbing low-frequency, high-severity events that can quickly turn a quiet year into a record loss year.”

Jérôme Jean Haegeli, Head Swiss Re Institute and Group Chief Economist, said, “Most long-term loss growth comes from a simple reality: more valuable property is being built in harm’s way, and rebuilding costs have risen.

“At the same time, sigma analysis suggests that for some perils and regions, hazards and vulnerability are evolving faster than exposure alone would imply. As such, sustained and well-designed adaptation and risk mitigation measures are increasingly decisive to keep insurance viable and affordable – and to reduce the global protection gap represented by underinsurance.”

Total global economic losses from natural catastrophes were $220 billion in 2025, about 49% of which were insured, the highest share on sigma records and reportedly a “clear indication” that the insurance industry is playing its part in navigating global protection gaps.

Swiss Re’s report concluded, “However, protection gaps remain especially wide in emerging economies, where 80–90% of catastrophe losses are typically not covered by insurance, underscoring the need to pair stronger adaptation and risk management with broader, more accessible insurance coverage.”

The post Secondary perils account for 92% of global insured losses in 2025: Swiss Re appeared first on ReinsuranceNe.ws.

The analysis, written by Jonathan Anchen, Head of Market Intelligence at Swiss Re, and Vinitha Ajit, Research Analyst at Swiss Re, assesses how litigation strategies, scientific debates and public policy discussions may influence future liability risks for food manufacturers.

The analysts explain that ultra-processed foods represent a potential long-tail liability risk that could develop characteristics similar to other sectors where liability costs expanded over time. The report notes that litigation dynamics may also be affected by excess inflation, which can amplify the financial impact of claims as they evolve.

According to Swiss Re, a significant development occurred in December 2025 when the first lawsuit initiated by a government authority against manufacturers of ultra-processed foods was filed. Swiss Re says this case reflects a new direction in legal strategies being applied to the sector. Litigation approaches often shift as claims mature, particularly when the potential claimant population is large.

The analysts report that early claims primarily centred on individual injury allegations, where plaintiffs argued that consumption of specific products contributed to health conditions. More recent legal strategies have expanded to include public cost recovery actions. Swiss Re explains that these claims aim to recover healthcare or social costs linked to diet-related illnesses and often rely on legal theories such as unfair competition or public nuisance.

Swiss Re notes that this strategy may allow plaintiffs to avoid some of the evidentiary barriers associated with proving a direct causal relationship between a particular product and an individual health outcome. By framing claims around broader public costs or market practices, plaintiffs may attempt to bypass the scientific hurdles that typically arise in personal injury litigation.

Despite this shift, Swiss Re states that individual injury cases remain active and continue to form part of the legal landscape. Swiss Re explains that if a case progresses past preliminary motions and enters the discovery phase, internal corporate documents could become central evidence. Swiss Re observes that disclosure of such material has historically played a decisive role in other major liability disputes and may lead to substantial defence expenses or settlement pressure.

The analysts also note that a successful case could create momentum for further legal action. According to Swiss Re’s analysis, a favourable outcome for plaintiffs in one jurisdiction could encourage similar claims elsewhere, potentially resulting in follow-on lawsuits or comparable litigation strategies in multiple markets.

A key narrative advanced by plaintiffs concerns the formulation and consumption patterns associated with ultra-processed foods. Swiss Re explains that some claimants argue these products are engineered to be highly appealing, sometimes described as “hyperpalatable,” which may encourage increased consumption. According to Swiss Re, plaintiffs sometimes characterise this design as contributing to behaviour resembling addictive consumption patterns.

Swiss Re highlights that ultra-processed foods make up a substantial portion of dietary intake in several high-income economies. Data referenced by Swiss Re indicates that in countries such as the United States and the United Kingdom these products account for more than half of total energy consumption. Swiss Re further notes that in the United States children and adolescents aged one to eighteen receive approximately 61.9% of their calories from ultra-processed foods.

The analysts emphasise that legal claims involving ultra-processed foods face several scientific and definitional challenges. One difficulty identified by Swiss Re is the absence of a universally agreed definition of ultra-processed foods. This lack of consistency may complicate legal arguments, regulatory frameworks and scientific interpretation.

Swiss Re also explains that establishing direct causation between ultra-processed food consumption and specific health outcomes remains complex. The report notes that relatively few randomised controlled trials have examined the issue in depth. As a result, Swiss Re observes that plaintiffs frequently rely on observational research that identifies correlations between high intake of ultra-processed foods and adverse metabolic health indicators.

While observational studies do not provide the same level of causal evidence as controlled experiments, Swiss Re reports that the growing body of research has attracted increasing attention from governments, regulators and public health authorities. Swiss Re indicates that this rising policy interest could influence how courts and regulators assess the issue over time.

The analysts conclude that litigation strategies may continue to evolve as plaintiffs test different legal approaches. According to Swiss Re, if courts allow observational evidence to play a larger role in proceedings, some cases could progress further through the legal process.

Swiss Re suggests that the possibility of cases reaching juries or entering extensive discovery phases could create leverage for plaintiffs and increase financial exposure for companies involved in the production and marketing of ultra-processed foods.

The post Rising legal exposure for ultra-processed food manufacturers amid new government-led lawsuits: Swiss Re appeared first on ReinsuranceNe.ws.

The reinsurance giant has completed more than 30 longevity reinsurance transactions across the UK, the Netherlands, Singapore, and Australia since the market was established almost 20 years ago, covering more than $50 billion of pension benefits and over one million retirees.

Swiss Re has now built on this success with the execution of its first longevity risk transfer deal covering US retirees, announcing that it has entered into a $2 billion liability longevity reinsurance transaction.

For the transaction, Athene participated as the counterparty as part of its ordinary course risk management activities.

“Swiss Re’s financial strength and structuring experience support Athene’s mission to protect policyholders’ pension income in retirement. This transaction demonstrates Swiss Re’s continued commitment to delivering tailored longevity risk solutions to leading retirement services providers,” said Michael Bacon, Managing Director, Head of US Globals and Transactions at Swiss Re.

In 2025, longevity business accounted for 17% of Swiss Re’s insurance revenue, making it the second largest segment for the reinsurer’s Life & Health reinsurance operation.

“With record volumes of defined benefit plan sponsors shifting pension liabilities to insurers, Swiss Re expects significant industry need for longevity risk transfer solutions,” said the firm.

The post Swiss Re enters US retiree market with landmark $2bn longevity reinsurance deal appeared first on ReinsuranceNe.ws.

The reinsurer noted that in 2025, the global economy demonstrated resilience amid heightened trade tensions and elevated policy and geopolitical uncertainty.

With this in mind, Swiss Re said it and its peers benefited from global economic growth, robust labour markets, elevated long-term government bond yields and strong financial market returns.

Demand for insurance and reinsurance also reportedly remained solid in 2025, although total global insurance premium growth slowed to an estimated 3.9% in real terms, following a decade-high expansion of 5.7% in 2024.

As per Swiss Re, this reflected a transition from post-pandemic strength to a more sustainable growth path.

The firm’s report added that while financial markets should benefit from the continued economic expansion in 2026, elevated asset valuations and ongoing policy and geopolitical uncertainty may drive periodic market volatility and pose a risk to the overall macro outlook.

Swiss Re’s annual report continued, “Equities are expected to deliver positive returns in 2026, while high-quality investment grade credit spreads are expected to remain tight.

“Total global insurance premium growth is projected to slow to around 2.0% in real terms on average over 2026–2027, reflecting a return to more sustainable expansion after the strong growth experienced in the last two years.

“Firm long-dated bond yields will continue to provide a reinvestment tailwind for insurers’ fixed- income portfolios, supporting profitability in the P&C and L&H sectors.”

As for the P&C sector, Swiss Re has anticipated that the market will hit a cyclical low in 2026–2027, with average global P&C insurance premium growth of 1.1% in real terms as competition intensifies.

“Structural drivers such as rising natural catastrophe exposures due to urbanisation and asset concentration in exposed areas, escalating liability costs and AI-related investment (e.g., in data centres, new hardware and energy infrastructure) should support demand in the medium term. Underwriting discipline and robust investment income are expected to continue to underpin overall profitability,” Swiss Re added.

In L&H, sector growth is forecast to remain robust, with life premiums expected to rise at an average annual rate of 2.8% in real terms in 2026–2027.

“Protection business is expected to grow at a similar pace and above the historical average on the back of rising consumer risk awareness. Firm long-term bond yields as well as the partial normalisation of excess mortality trends towards pre-pandemic levels should continue to support profitability over the next two years,” the global reinsurer’s report concluded.

The post Re/insurance sector to gain from steady growth and easing inflation in 2026: Swiss Re appeared first on ReinsuranceNe.ws.

Bown has spent over two decades at Swiss Re, holding several senior leadership roles within Life & Health.

This appointment marks Bown’s return to the Asia-Pacific region, where he previously led Swiss Re’s L&H Client Markets in Japan and chaired the Asia L&H Origination Committee.

In 2023, he took on leadership of Swiss Re’s UK & Ireland Market Unit, a role that expanded in 2024 to include the Middle East and Africa region.

Paul Murray, CEO Life & Health Reinsurance, said, “Asia Pacific is a dynamic and complex region at the forefront of the longevity and retirement challenge, and insurance is playing an increasingly important role in providing financial and health resilience for Asian societies.

“Tamas Bown’s 20-year connection to Swiss Re’s L&H business, and his deep knowledge of Asia’s insurance markets make him the ideal internal appointment to service our clients in the APAX region.”

The post Swiss Re names Tamas Bown as Head L&H Reinsurance, APAC appeared first on ReinsuranceNe.ws.

Kell brings experience across wealth management, insurance and reinsurance, with a strong track record of building high-value partnerships, strengthening distribution capabilities, and delivering sustainable growth.

Most recently, he served as Head of Applied Data Science at Honey Insurance.

Kell rejoins Swiss Re after previously serving as Data Scientist, Assistant Vice President for three years, where he was also global technical lead for the Swiss Re Impact+ Retention Optimiser product.

Earlier in his career, he worked in financial advice and asset management, holding roles at Jacaranda Financial Planning, Morpheus Analytics, and Rexergy.

In a recent LinkedIn post, Lisa Matthews, Head Customer & Distribution Management, ANZ at Swiss Re Corporate Solutions, said, “His commercial acumen and collaborative approach will be instrumental in advancing our ANZ customer and distribution strategy.

“Welcome to the team, Rob! We are excited to have you on board and look forward to the impact you’ll make as we continue to grow our presence and partnerships across our Market Unit.”

The post Swiss Re CorSo appoints Robert Kell as Customer & Distribution Manager ANZ appeared first on ReinsuranceNe.ws.

Alongside the release of its results for the 2025 financial year this morning, Swiss Re revealed the outcome of its January 1st 2026 renewal, announcing a -0.3% premium volume change and a -4.6% net price change, driven by 4.6% higher loss assumptions, very slightly offset by a 0.3% nominal price increase.

Roughly 55% of the company’s treaty business renewed in January, and of the $12.5 billion up for renewal, $600 million was either cancelled or not placed, meaning 95%, or $11.8 billion was renewed. If you then include a 2%, or $300 million change on renewed, and $900 million of new business, total premium volume at the renewal totalled $12.4 billion.

By line of business, Swiss Re reduced the size of its nat cat book by 7% with a gross premium volume of $2.4 billion, while the property book retracted by 6% to $1.9 billion, offset by 3% growth in specialty and 4% growth in casualty to $2.8 billion and $5.3 billion, respectively.

Swiss Re explained this morning that the reduction in nat cat reflects nominal price declines in a more competitive market, but added that, importantly, terms and structures were broadly stable.

During a recent call with the media, CEO Berger was questioned on the drivers of the softening environment, leading the executive to highlight the importance of cycle management, and also Swiss Re’s prominent market position.

“First of all, let me state there is not one cycle. So, it’s very important to say, because each line of business is in a different market cycle. There might be a few lines that are correlated to each other, but not in general. That’s what I said around the lines of business like credit/surety, which I mentioned before, which is not correlated to the traditional property and casualty lines of businesses,” said Berger.

He continued: “For the renewals, we have seen demand, but we have seen also higher competition on the supply side. So, there’s capital, abundant capital in the market, and that is reflected in a more intense pricing competition. The good news is that the structures stayed broadly intact, the terms and conditions and attachment points, and that’s something we need to observe, and we need to keep that discipline in the market.

“We’ve seen the sophisticated and very large reinsurance buyers, they have taken more risk, so meaning taking premium out of the market. But again, the good news is they need lead reinsurance partners, so our share of wallet in the market didn’t reduce.”

The CEO went on to note Swiss Re’s active role in the intersection between the liability and the asset side, and also the capital markets, underlining the firm’s leading role in the establishment of the insurance-linked securities (ILS) market.

“So, this is normal cycle management. There’s parts of the cycle when rates go up. Then parts of the cycle, when, due to the high rates, investors think there’s an attractive market, capital will come in, it puts more pressure on pricing, competition goes up. Here, technical excellence, technical underwriting, how do you assess a risk? How do you price risk? Is very important. And you always have to look at rate adequacy and about composition of your portfolios and protecting your balance sheet,” he said.

Looking ahead to future 2026 renewals, Berger said that Swiss Re is expecting similar dynamics to 1.1 2026, adding that, as ever, this could change if there’s a huge loss.

“We’re going now into the April renewals; they’re mainly Asia or Japan driven. Again, the Japanese market is a very different market to the US market, or European markets. And then you go into the June/July renewals in the US, everybody’s waiting for that, obviously. So, let’s see. I think it’s higher demand. So, always a good sign. There’s demand for the product, and we just need to have discipline in keeping the rates adequate and keeping the structures disciplined,” said Berger.

The post Despite some taking more risk, Swiss Re’s ‘share of wallet didn’t reduce’ at Jan renewal: CEO Berger appeared first on ReinsuranceNe.ws.

The appointment is expected to last for a one-year term. Simultaneously, Larry Zimpleman, who has served on the Swiss Re Board of Directors since 2018 and is currently a member of the Risk and Audit Committees, has decided not to stand for re-election.

Henchoz served as Hannover Re CEO between 2019 and 2025, and previously worked at Swiss Re from 1998 to 2018, latterly as CEO Reinsurance EMEA, Regional President EMEA and as a member of the Group Executive Committee.

Currently, he is Chairman of the Board at BMS Group in London, a board member at Brit Group in London (until April 30th, 2026), and serves on the Supervisory and Foundation Boards of IMD in Lausanne.

Jacques de Vaucleroy, Chairman, Swiss Re, commented, “We are delighted to propose Jean-Jacques Henchoz for election to our Board as he brings outstanding reinsurance expertise, strategic thinking and proven leadership skills.

“And we would like to thank Larry Zimpleman for his outstanding dedication and valuable contributions over the past eight years and wish him all the best.”

Additionally, the reinsurer has appointed Henock Teklu as the Group Chief Transformation Officer & Chief of Staff, effective April 1st, 2026.

Teklu will serve as a member of the Group Executive Committee, based in New York. In his new role, Teklu will help orchestrate and oversee Swiss Re’s enterprise-wide transformation agenda.

The reinsurer explains that he has deep expertise anchoring from a two-decade long stint in leadership experience across investment banking, insurance and asset management. He joins Swiss Re from BlackRock Investment Management in New York.

In its 2025 results, the reinsurance giant reported a 47% hike in group net income to $4.8 billion in 2025.

The post Swiss Re to nominate former Hannover Re CEO Henchoz to serve as Board member appeared first on ReinsuranceNe.ws.

Group-wide, Swiss Re generated insurance revenue of $43.1 billion in 2025, a 5% decrease from the prior year’s $45.6 billion, as the insurance service result increased by 36% year-on-year to $5.8 billion.

The new business contractual service margin (CSM), which reflects the profitability of new business written in the period, fell to $4.7 billion from $5 billion.

Swiss Re achieved an ROE of 19.6% for 2025, up on the prior year’s 15%, as the firm delivered a strong ROI of 4%, which reflects recurring income of more than $4 billion as well as a positive contribution from equity holdings.

Within P&C reinsurance, net income increased to $2.8 billion in 2025 compared with $1.2 billion in 2024, supported by lower losses from natural catastrophes, a resilient underwriting performance, and a solid investment result.

Large losses from natural catastrophe events totalled $813 million in 2025, driven mostly by the LA wildfires and Hurricane Melissa, while large man-made losses hit $345 million.

The P&C Re insurance service result was $3.6 billion for 2025, compared with $1.8 billion for 2024, a year that was impacted by significant reserving actions.

The segment delivered a combined ratio of 79.5% for 2025, an improvement on the prior year’s 89.9%, and within the target of less than 85% for the year.

P&C Re insurance revenue fell from $19.8 billion in 2024 to $18.7 billion in 2025, with the larger driver of the decrease being the repositioning of the US casualty portfolio, which was completed in 2025. The segment generated a new business CSM of $2.7 billion in 2025, a slight decrease on 2024’s $2.9 billion.

Through the January 1st, 2026, reinsurance renewals, when around 55% of the firm’s treaty business is renewed, Swiss Re states that it maintained disciplined underwriting throughout, renewing P&C Re contracts resulting in $12.4 billion in premium volume, which is in line with the business up for renewal.

“The outcome reflects continued discipline and active cycle management amid a more challenging pricing environment,” says the firm.

Swiss Re says that it achieved a price increase of 0.3% at the 1.1 2026 renewals, and managed to maintain stable terms and conditions. However, loss assumptions increased by 4.6%, resulting in a net price decrease of 4.3%. The reinsurance giant also opted to reduce its external retrocession at the January renewals, leading to an increase in net nat cat exposure. For 2026, the budget for expected large nat cat losses is $2.1 billion for P&C Re, up 5% year-on-year.

The reinsurer’s life and health (L&H) reinsurance business has now completed its portfolio review, and recorded net income of $1.3 billion in 2025, compared with $1.5 billion in 2024. While solid, the portfolio review meant that Swiss Re missed its L&H Re net income target of approximately $1.6 billion for the year.

The L&H Re insurance service result decreased to $1.2 billion in 2025 from $1.5 billion a year earlier, which primarily reflects a $650 million negative impact from assumption updates focused on addressing underperforming portfolios in Australia, Israel, and South Korea.

Insurance revenue in the segment was $16.5 billion in 2025, compared with $17.1 billion in 2024, mainly driven by the termination of an external retrocession transaction. The new business CSM hit $1.1 billion in 2025, in line with 2024’s total, with a CSM balance at the end of 2025 of $17 billion, compared with $17.4 billion a year earlier.

Swiss Re Corporate Solutions, the company’s primary insurance arm, witnessed an increase in net income to $988 million, compared with $829 million in 2024, as the segment also benefited from lower-than-expected large natural catastrophe claims. Large natural catastrophe losses of $148 million were mainly driven by the LA wildfires, as large man-made losses hit $351 million.

Corporate Solutions delivered a combined ratio of 86.5% in 2025, an improvement on 89.7% in 2024, realising its target of below 91% for the full year.

The insurance service result increased from $1 billion to $1.2 billion, as insurance revenue fell to $7.7 billion from $8.1 billion for 2025. Corporate Solutions achieved a new business CSM of $834 million in 2025, lower than $959 million in 2024.

Swiss Re’s Group Chief Executive Officer, Andreas Berger, said: “In 2025 we delivered on two key priorities: achieving our Group financial target and strengthening the resilience of the company. Group net income reached the highest level in our history, reflecting disciplined underwriting, strong investment returns and low large loss activity outside of the first quarter.

“Today’s result also reflects our continued commitment to increasing the resilience of Swiss Re’s business. Having completed the comprehensive review of underperforming portfolios in L&H Re, all three of our Business Units are positioned to deliver consistent results. We have also made substantial progress on our decision to withdraw from iptiQ, with all parts of this business either sold or planned to be placed into run-off.”

Anders Malmström, Swiss Re’s Group Chief Financial Officer, added: “Having achieved our key objectives in 2025, we are well positioned to increase the payout to shareholders through an increased dividend and the launch of a substantial share buyback programme, which consists of a sustainable annual component linked to our target achievement and an additional extraordinary amount. The latter reflects our strong capital generation and position, our focus on managing the property and casualty pricing cycle, and the increased resilience of the Group.”

Today, Swiss Re has also confirmed its previously announced financial targets for 2026, targeting net income of $4.5 billion across the Group. P&C Re is expected to produce a combined ratio of below 85% and Corporate Solutions a combined ratio of less than 91% for the year. L&H Re targets an increased net income of $1.7 billion in 2026, reflecting its strengthened portfolio.

“Swiss Re’s 2026 targets reflect our confidence in the resilience of our Business Units, disciplined underwriting and active cycle management alongside rising demand for re/insurance. We are on track to meet our cost efficiency goals and remain focused on executing with discipline, delivering distinctive value to our clients and reinforcing a leading position in key markets. With strengthened foundations across our diversified businesses, we are well positioned to deliver on our ambitions in 2026 and beyond,” said Berger.

The post Swiss Re delivers record Group net income as P&C Re profit rises to $2.8bn appeared first on ReinsuranceNe.ws.