Swiss Re Demonstrates Resilience with Strong Profits Amid Rising Climate Costs

Swiss Re reports record profit and plans higher dividend & share buyback. Global insured nat cat losses hit $107B, driven 92% by secondary perils like floods and hail.

Despite facing a transformed landscape of global insurance losses, the reinsurance giant Swiss Re has reported robust financial results and outlined generous shareholder returns. The company's performance comes in a year marked by historically costly secondary perils, showcasing its ability to withstand significant volatility.

Shareholder Rewards Reflect Financial Health

Swiss Re’s financial strength remains undimmed by recent challenges. The company closed the last financial year with a record profit of $4.8 billion. Reflecting this success, the Board of Directors will propose an increased dividend of $8.00 per share at the upcoming Annual General Meeting on April 10, 2026. This represents a 9% raise. Complementing this, a $1.5 billion share buyback program is currently underway. On the market, the share price held steady at €141.55 in recent trading, maintaining a position just above its 50-day average of €140.00. The group's estimated Swiss Solvency Test (SST) ratio stands at a comfortable 250%.

A Shift in Catastrophe Costs

The scale of insured natural catastrophe losses was substantial, according to the latest sigma report from the Swiss Re Institute. Total global insured losses reached $107 billion for the year. A striking feature of this figure is its composition: so-called secondary perils, including floods and hail, accounted for 92% of the overall costs—a record high. The devastating wildfires in Los Angeles in January 2025 alone resulted in a $40 billion industry loss. However, the absence of a major hurricane making landfall in the United States meant the industry-wide total remained below the long-term growth trend.

Strategic Pivot to Mitigate Future Volatility

Looking ahead, the company's own institute anticipates annual growth in insurance burdens of 5-7%. Under a normal scenario, experts project industry-wide losses of approximately $148 billion for 2026. To balance the inherent volatility of the natural catastrophe business, Swiss Re is actively diversifying its earnings base. A key move in this strategic shift was the recent completion of a $2 billion longevity reinsurance transaction for the American market in mid-March. This deal reduces the group's reliance on traditional property business and marks a concrete step toward a more balanced portfolio.