Half-Year Report 2026
Half-Year
Report
2Swiss Re | Half-Year Report 2026
Contents
Notes to the consolidated financial statements | ||
Note 1 | Organisation and summary of material accounting policies | |
Note 2 | Information on operating segments | |
Note 3 | Insurance information | |
Note 4 | Other re/insurance disclosures | |
Note 5 | Investments | |
Note 6 | Fair value disclosures | |
Note 7 | Derivative financial instruments and hedge accounting | |
Note 8 | Debt | |
Note 9 | Earnings per share | |
Note 10 | Disposals | |
Swiss Re Ltd | |
Swiss Re Ltd is the holding company of the Swiss Re Group. Its shares are listed in accordance with the International Reporting Standard on the SIX Swiss Exchange and trade under the symbol SREN. | |
3Swiss Re | Half-Year Report 2026
Financial highlights
For the six months ended 30 June
USD millions, unless otherwise stated | 2026 | 2025 | Change in % |
Group | |||
Net income | 2 833 | 2 605 | 9 |
Insurance revenue | 20 264 | 20 947 | -3 |
Insurance service result | 3 464 | 3 003 | 15 |
Earnings per share in USD | 9.57 | 8.71 | 10 |
Shareholders’ equity (30.06.2026/31.12.2025) | 24 456 | 25 114 | -3 |
Return on equity (%, annualised) | 22.7 | 23.0 | |
Return on investments (%, annualised) | 4.0 | 4.1 | |
Property & Casualty Reinsurance | |||
Net income | 1 446 | 1 223 | 18 |
Insurance revenue | 8 241 | 8 916 | -8 |
Insurance service result | 1 821 | 1 568 | 16 |
Combined ratio (%)1 | 76.7 | 81.1 | |
Corporate Solutions | |||
Net income | 490 | 430 | 14 |
Insurance revenue | 3 614 | 3 749 | -4 |
Insurance service result | 578 | 515 | 12 |
Combined ratio (%)2 | 86.1 | 88.2 | |
Life & Health Reinsurance3 | |||
Net income | 1 045 | 865 | 21 |
Insurance revenue | 8 420 | 7 951 | 6 |
Insurance service result | 1 158 | 931 | 24 |
1Property & Casualty Reinsurance combined ratio is defined as [(insurance service expense + amounts recoverable from reinsurers for incurred claims) / (insurance revenue +
allocation of reinsurance premiums)].
2Corporate Solutions combined ratio is defined as [(insurance service expense + allocation of reinsurance premiums + amounts recoverable from reinsurers for incurred claims +
non-directly attributable expenses) / insurance revenue].
3Comparative information for 2025 has been revised to reflect the reallocation of certain reinsurance transactions in run-off from L&H Reinsurance to Group items. These relate to
primary insurance businesses that were formerly part of the dissolved Life Capital Business Segment.
1Estimated Group SST ratio as of 1 July 2026. The SST ratio is filed with FINMA periodically and is subject to review.
2P&C Re combined ratio is defined as [(insurance service expense + amounts recoverable from reinsurers for incurred claims) / (insurance revenue + allocation of
reinsurance premiums)].
3 Corporate Solutions combined ratio is defined as [(insurance service expense + allocation of reinsurance premiums + amounts recoverable from reinsurers for incurred claims +
non-directly attributable expenses) / insurance revenue].
4Comparative information for 2025 has been revised to reflect the reallocation of certain reinsurance transactions in run-off from L&H Reinsurance to Group items. These relate to
primary insurance businesses that were formerly part of the dissolved Life Capital Business Segment.
4Swiss Re | Half-Year Report 2026
Letter to shareholders
Dear Shareholders
Swiss Re delivered a net income of
USD 2.8 billion in the first half of 2026,
achieving a year-on-year increase of 9%
and placing the Group well on track
towards its USD 4.5 billion full-year target.
Return on equity (ROE) was 22.7% for the
first half of the year, compared with 23.0%
for the prior-year period.
The insurance service result, which reflects
the underwriting profit earned in the period,
was USD 3.5 billion, compared
with USD 3.0 billion in the first half of 2025.
The Group’s new business contractual
service margin (CSM), which reflects the
profitability of new business written in the
period, was USD 2.1 billion, compared
with USD 3.1 billion for the first half of
2025. This result reflects continued
challenging market conditions impacting
Property & Casualty Reinsurance (P&C Re)
renewals, as well as a lower contribution
from Life & Health Reinsurance (L&H Re)
mainly due to lower transaction activity.
Insurance revenue for the Group amounted
to USD 20.3 billion, compared with
USD 20.9 billion for the same period in
2025. Lower revenues in P&C Re were
partly offset by increased revenues in
L&H Re, supported by favourable foreign
exchange movements.
The Group achieved a return on investment
(ROI) of 4.0% for the first half of 2026. The
result reflects strong recurring income of
USD 2.0 billion, supported by realised gains
from real estate sales in the first quarter. The
recurring income yield increased to 4.2%,
up from 4.1% for the prior-year period. The
reinvestment yield for the second quarter of
2026 rose to 5.2%.
Swiss Re maintained its strong capital
position with an estimated Group Swiss
Solvency Test (SST) ratio of 264% 1 as of
1 July 2026, above the target range of
200–250%.
P&C Re
P&C Re delivered a net income of
USD 1.4 billion for the first half of 2026, an
increase of 18% from USD 1.2 billion for
the prior-year period. Strong underwriting
performance was supported by low large
natural catastrophe experience. P&C Re
achieved a combined ratio of 76.7% for the
first half of 2026 and is on track to reach its
target of less than 85% for the full year. 2
On a year-to-date basis, P&C Re renewed
treaty contracts worth USD 19.5 billion, a
0.5% increase in volume compared with the
business which was up for renewal. The
nominal price change for the year to date
was a decrease of 0.2%, with a decrease of
4.6% after higher loss assumptions. The
resulting portfolio quality is supportive of the
Group’s 2026 financial targets.
Corporate Solutions
Corporate Solutions delivered a net income
of USD 490 million in the first half of 2026,
an increase of 14% from USD 430 million
for the same period in 2025. The continued
strong result reflects the high quality of the
portfolio, favourable prior-year claims
development and lower-than-expected
natural catastrophe experience.
While Corporate Solutions is also managing
downward price pressure in some lines of
business, the Business Unit is delivering
growth in its strategic focus areas, including
International Programs and Alternative
Risk Solutions.
The insurance service result reached
USD 578 million in the first half of 2026,
an increase of 12% compared with
USD 515 million in the prior-year period.
Corporate Solutions delivered a combined
ratio of 86.1% in the first half of 2026 and
is on track to meet its target of below
91% for the full year. 3
With the half-year results, Corporate
Solutions announces two new exclusive
partnerships in India and Mexico, two of the
world’s fastest-growing commercial
insurance markets. By partnering with
leading local insurers, Corporate Solutions
can build on its underwriting expertise,
capital strength and International Programs
business to better serve Indian and Mexican
companies expanding internationally, as
well as global clients with operations in
these markets.
L&H Re
L&H Re achieved a net income of
USD 1.0 billion in the first half of 2026, a
21% increase from USD 865 million in the
prior-year period 4. The result demonstrates
the resilience of L&H Re’s large in-force
portfolio, providing an important source of
earnings diversification to the Group. L&H Re
is on track to reach its net income target of
USD 1.7 billion for 2026.
The insurance service result for the first half
of 2026 reached USD 1.2 billion, up 24%
from USD 931 million in the prior-year
period4..The increase was driven by more
favourable experience variance, particularly
in US mortality, which was partly offset by
lower CSM release.
5Swiss Re | Half-Year Report 2026
Group developments
Swiss Re has increased its operating cost
reduction target to USD 500 million by 2028.
The increase reflects strong progress towards
Swiss Re’s previous reduction target of
USD 300 million by 2027, as well as further
opportunities to simplify how the Group
operates, focusing on non-client facing teams.
We are also making good progress on the
USD 1.5 billion share buyback which we
announced in February, having completed
approximately 60% through the end of July.
Group Executive Committee appointments
Swiss Re appointed Velina Peneva,
currently Group Chief Investment Officer,
as CEO L&H Re. She will succeed Paul
Murray, who decided to leave Swiss Re
to pursue new opportunities after more
than 20 years at the company. Martin
Zingg, currently Group Head Corporate
Development & Capital Markets, was
appointed Group Chief Investment
Officer and member of the Group
Executive Committee. Velina Peneva and
Martin Zingg will assume their new roles
on 1 October 2026.
These appointments reflect the depth of our
internal talent pool and position Swiss Re well
to build on its momentum. Velina brings
strong leadership and deep expertise in
disciplined capital allocation for complex,
long-duration risks, alongside a distinctive
understanding of the client-relevant issues
that are central to the L&H Re business.
Meanwhile, Martin's broad investment
expertise and more than three decades of
leadership experience across the insurance
industry will help drive the continued
strength of our investment function.
Outlook
Strong earnings delivery in the first half of
the year puts us well on track towards our
2026 financial targets and highlights the
strength of our diversified group, with each
of our three Business Units delivering on
their objectives.
At the same time, we remain vigilant as we
approach the peak of the hurricane season
amid a volatile geopolitical and economic
environment. The ongoing conflict in the
Middle East continues to strain global supply
chains, while the increasingly fragmented
global economy is more prone to shocks and
re/insurance markets remain challenging.
While natural catastrophe activity was
comparatively low in the first half of 2026,
events such as the heatwaves in Europe
between May and July and the subsequent
wildfires remind us not to become
complacent. Climate change remains one
of the defining challenges of our time,
reinforcing the need for both mitigation and
adaptation. Swiss Re remains committed
to achieving net-zero greenhouse gas
emissions by 2050 while supporting our
clients in their adaptation and mitigation
efforts by providing risk insights, data and
models alongside financial protection.
Looking beyond the current year, we see
demand for re/insurance and risk expertise
continuing to grow in a rapidly changing
world. By investing in data, technology and
artificial intelligence, we are building the
capabilities that will enable us to better
capture this growing demand, help our
clients navigate an increasingly complex risk
landscape and create long-term value for
our shareholders.
We would like to thank you, our shareholders,
for your continued trust and support. Please
join us in thanking our employees for their
commitment to consistently delivering on our
ambitions. Together, we strengthen Swiss Re
and fulfil our purpose of making the world
more resilient.
Zurich, 6 August 2026 | ||
Jacques de Vaucleroy Chairman of the Board of Directors | ||
6Swiss Re | Half-Year Report 2026
Business performance
Swiss Re Group results
Swiss Re Group results
Group result driven by strong contributions from all Business Units.
Net income
Swiss Re delivered a net income of
USD 2.8 billion in the first half of 2026,
achieving a year-on-year increase of 9% and
placing the Group well on track towards its
USD 4.5 billion full-year target. Both P&C
Business Units continued to deliver strong
underwriting results, supported by low large
natural catastrophe experience in the first
half of the year. L&H Re’s performance
reflects healthy in-force margins and
favourable US mortality experience.
The Group’s shareholders’ equity amounted
to USD 24.5 billion as of 30 June 2026,
compared with USD 25.1 billion as of
31 December 2025. The n et income of
USD 2.8 billion in the first half of 2026 was
more than offset by the ordinary dividend
payment to shareholders of USD 2.4 billion
and the purchase of treasury shares of
USD 0.7 billion, resulting in an overall
decrease in the shareholders’ equity.
Return on equity (ROE) was 22.7% for the
first half of the year, compared with 23.0%
for the prior-year period.
Earnings per share for the first half of
2026 were USD 9.57 or CHF 7.52,
compared with USD 8.71 or CHF 7.55
for the first half of 2025.
Book value per share was USD 83.89
or CHF 67.67 as of 30 June 2026,
compared with USD 85.15 or CHF 67.47
at the end of 2025. Book value per share
is based on shareholders’ equity and
excludes perpetual capital instruments
and non-controlling interests.
Insurance service result
The insurance service result, which reflects
the underwriting profit earned in the period,
was USD 3.5 billion, compared
with USD 3.0 billion in the first half of 2025.
Insurance revenue
Insurance revenue for the Group amounted
to USD 20.3 billion, compared with
USD 20.9 billion for the same period in
2025. Lower revenues in P&C Re were
partly offset by increased revenues in
L&H Re, supported by favourable foreign
exchange movements.
New business contractual service margin
The Group’s new business contractual
service margin (CSM), which reflects the
profitability of new business written in the
period, was USD 2.1 billion, compared
with USD 3.1 billion for the first half of
2025. This result reflects continued
challenging market conditions impacting
P&C Re renewals, as well as a lower
contribution from L&H Re mainly due to
lower transaction activity.
Investment result
Swiss Re achieved an ROI of 4.0% for the
first half of 2026. The result reflects strong
recurring income of USD 2.0 billion,
supported by realised gains from real estate
sales in the first quarter.
The Group’s investment result was
USD 2.3 billion for the first six months of
2026, compared with USD 2.4 billion for
the prior-year period. The result reflects net
investment income of USD 2.2 billion,
which was USD 82 million higher than in
the prior-year period. Investment gains were
USD 104 million for the first half of 2026,
compared with USD 334 million in the
prior-year period, mainly reflecting losses
from insurance-linked derivatives in L&H Re,
associated with various hedging
programmes; these are offset in the
respective other income and insurance
finance result. The decline also reflects
lower valuation gains from private
equity funds.
The recurring income yield for the first six
months of 2026 increased to 4.2%, up from
4.1% for the prior-year period, reflecting
an increase in recurring income of
USD 55 million. The reinvestment yield for
the second quarter of 2026 rose to 5.2%.
Other expenses/income
Other expenses of USD 867 million in the
first six months of 2026 remained in line
with the prior-year period.
Other income increased to USD 303 million,
compared with USD 146 million for the
prior-year period, mostly driven by higher
income from insurance-linked derivatives
in L&H Re.
The Group reported a tax charge of
USD 865 million on a pre-tax income of
USD 3.7 billion, compared with a tax charge
of USD 632 million on a pre-tax income of
USD 3.2 billion for the same period in
2025. This translates into an effective tax
rate in the current and prior-year reporting
periods of 23.4% and 19.5%, respectively.
Outlook
Swiss Re has increased its operating cost
reduction target to USD 500 million by
2028. The increase reflects strong progress
towards Swiss Re’s previous reduction
target of USD 300 million by 2027, as well
as further opportunities to simplify how the
Group operates, focusing on non-client
facing teams.
Strong earnings delivery in the first half of
the year puts the Group well on track
towards its 2026 financial targets, while the
company remains vigilant as it approaches
the peak of the hurricane season. Looking
beyond the current year, Swiss Re sees
demand for re/insurance and risk expertise
continuing to grow in a rapidly changing
world. By investing in data, technology and
artificial intelligence, the Group is building
the capabilities that will enable it to better
capture this growing demand, help its
clients navigate an increasingly complex risk
landscape and create long-term value for
its shareholders.
7Swiss Re | Half-Year Report 2026
Business performance
Swiss Re Group results
Income statement
For the six months ended 30 June
USD millions | 2026 | 2025 | Change in % |
Insurance revenue | 20 264 | 20 947 | -3 |
Insurance service expense | -16 085 | -17 466 | -8 |
Insurance service result before reinsurance contracts held | 4 179 | 3 481 | 20 |
Allocation of reinsurance premiums | -1 287 | -1 195 | 8 |
Amounts recoverable from reinsurers for incurred claims | 573 | 717 | -20 |
Net income/expenses from reinsurance contracts held | -714 | -478 | 49 |
Insurance service result | 3 464 | 3 003 | 15 |
Finance income/expenses from insurance contracts issued | -1 303 | -1 308 | 0 |
Finance income/expenses from reinsurance contracts held | 72 | 65 | 11 |
Insurance finance result | -1 231 | -1 243 | -1 |
Net investment income | 2 177 | 2 095 | 4 |
Investment gains/losses | 104 | 334 | -69 |
Investment result | 2 281 | 2 429 | -6 |
Other income | 303 | 146 | 108 |
Other expenses | -867 | -854 | 2 |
Financing cost | -252 | -244 | 3 |
Income/loss before income tax expense/benefit | 3 698 | 3 237 | 14 |
Income tax expense/benefit | -865 | -632 | 37 |
Net income/loss | 2 833 | 2 605 | 9 |
Thereof | |||
Net income/loss attributable to non-controlling interests | 2 | 9 | -78 |
Net income/loss attributable to common shareholders | 2 831 | 2 596 | 9 |
1Compared with a large natural catastrophe budget of USD 836 million for the first half of 2026.
2P&C Re combined ratio is defined as [(insurance service expense + amounts recoverable from reinsurers for incurred claims) / (insurance revenue + allocation of
reinsurance premiums)].
8Swiss Re | Half-Year Report 2026
Business performance
Property & Casualty Reinsurance
Property & Casualty Reinsurance
Property & Casualty Reinsurance (P&C Re) result driven
by strong underwriting performance.
Net income
P&C Re delivered a net income of
USD 1.4 billion for the first half of 2026, an
increase of 18% from USD 1.2 billion for
the prior-year period. Strong underwriting
performance was supported by low large
natural catastrophe experience.
Insurance service result
The insurance service result was
USD 1.8 billion in the first half of
2026, compared with USD 1.6 billion
for the same period in 2025. Large
natural catastrophe claims amounted
to USD 169 million in the first half of
2026, driven by Storm Kristin, which
made landfall in Portugal in January. 1
Large man-made losses for the period
amounted to USD 129 million.
P&C Re achieved a combined ratio of
76.7% for the first half of 2026,
compared with 81.1% for the prior-year
period. The Business Unit targets a
combined ratio of less than 85% for the
full year. 2
Insurance revenue
Insurance revenue for the first half of
2026 was USD 8.2 billion, compared with
USD 8.9 billion for the same period in
2025. The decrease was primarily driven
by the overall renewals outcome in 2025
and reduced volumes written by cedents.
New business contractual service margin
P&C Re generated a new business CSM of
USD 1.6 billion in the first half of 2026,
compared with USD 2.2 billion in the
prior-year period, reflecting a challenging
market environment.
Investment result
The investment result amounted to
USD 1.3 billion in the first half of 2026,
in line with the same period in 2025. The
result was impacted by the absence of
investment gains, compared to investment
gains of USD 68 million in the prior-year
period. The decline mainly reflects lower
valuation gains from private equity and
lower gains from sales, with the prior-year
period benefiting from the sale of a minority
equity position in Definity Financial.
Outlook
P&C Re is on track to meet its 2026
combined ratio target, supported by
the successful defence of its portfolio
quality amid a market environment
that remains challenging.
On a year-to-date basis, P&C Re renewed
treaty contracts worth USD 19.5 billion, a
0.5% increase in volume compared with
the business which was up for renewal. The
nominal price change for the year to date
was a decrease of 0.2%, with a decrease of
4.6% after higher loss assumptions.
In property, P&C Re expects sustained long-
term demand for reinsurance protection as
loss trends rise and underlying exposures
continue to grow. At the same time,
abundant capacity is keeping competition
high. P&C Re’s risk appetite remains
unchanged, with a focus on underwriting
discipline and portfolio quality.
In casualty, the risk landscape, particularly
in the US, remains challenging, with legal
system abuse continuing to drive loss
trend uncertainty. P&C Re continues to
prioritise portfolio resilience by expanding
in profitable and diversifying segments
while maintaining underweight positions
where necessary.
P&C Re retains a constructive outlook for
the specialty market although pricing
continues to soften across many markets.
P&C Re is well positioned to capture
profitable growth opportunities in targeted
lines while defending structures as well as
terms and conditions.
9Swiss Re | Half-Year Report 2026
Business performance
Property & Casualty Reinsurance
Income statement
For the six months ended 30 June
USD millions | 2026 | 2025 | Change in % |
Insurance revenue | 8 241 | 8 916 | -8 |
Insurance service expense | -6 062 | -7 088 | -14 |
Insurance service result before reinsurance contracts held | 2 178 | 1 828 | 19 |
Allocation of reinsurance premiums | -431 | -614 | -30 |
Amounts recoverable from reinsurers for incurred claims | 73 | 354 | -79 |
Net income/expenses from reinsurance contracts held | -357 | -260 | 37 |
Insurance service result | 1 821 | 1 568 | 16 |
Finance income/expenses from insurance contracts issued | -760 | -737 | 3 |
Finance income/expenses from reinsurance contracts held | 18 | 20 | -10 |
Insurance finance result | -742 | -717 | 3 |
Net investment income | 1 287 | 1 269 | 1 |
Investment gains/losses | -1 | 68 | -101 |
Investment result | 1 286 | 1 337 | -4 |
Other income | 49 | 33 | 48 |
Other expenses | -304 | -383 | -21 |
Financing cost | -269 | -274 | -2 |
Income/loss before income tax expense/benefit | 1 842 | 1 564 | 18 |
Income tax expense/benefit | -396 | -341 | 16 |
Net income/loss | 1 446 | 1 223 | 18 |
Thereof | |||
Net income/loss attributable to non-controlling interests | 1 | -100 | |
Net income/loss attributable to common shareholders | 1 446 | 1 222 | 18 |
Combined ratio (%) | 76.7 | 81.1 |
1Corporate Solutions combined ratio is defined as [(insurance service expense + allocation of reinsurance premiums + amounts recoverable from reinsurers for incurred claims +
non-directly attributable expenses) / insurance revenue].
2The non-renewal of the Irish Medex business accounted for a reduction of USD 0.3 billion compared with the prior-year period.
10Swiss Re | Half-Year Report 2026
Business performance
Corporate Solutions
Corporate Solutions
Corporate Solutions continues strong
underwriting performance .
Net income
Corporate Solutions delivered a net income
of USD 490 million in the first half of 2026,
an increase of 14% from USD 430 million
for the same period in 2025. The continued
strong result reflects the high quality of the
portfolio, favourable prior-year claims
development and lower-than-expected
natural catastrophe experience.
While Corporate Solutions is also managing
downward price pressure in some lines of
business, the Business Unit is delivering
growth in its strategic focus areas,
including International Programs and
Alternative Risk Solutions.
Insurance service result
The insurance service result reached
USD 578 million in the first half of 2026,
an increase of 12% compared with
USD 515 million in the prior-year period.
Large man-made losses in the first half of
2026 amounted to USD 81 million. Large
natural catastrophe claims of
USD 31 million were mainly driven by a
tornado which struck Texas in April and
Storm Fern, which affected multiple parts
of North America in January.
Corporate Solutions delivered a
combined ratio of 86.1% in the first half
of 2026, compared with 88.2% for the
prior-year period. The Business Unit
targets a combined ratio of less than 91%
for the full year. 1
Insurance revenue
Insurance revenue in the first half of 2026
amounted to USD 3.6 billion, compared
with USD 3.7 billion for the prior-year
period. Growth in targeted lines and
favourable foreign exchange movements
offset the majority of the impact of the
previously announced non-renewal of the
Irish Medex business. 2
New business contractual service margin
New business CSM for Corporate Solutions
was USD 201 million for the first half of
2026, compared with USD 262 million for
the prior-year period, reflecting a continued
challenging market environment.
Investment result
The investment result amounted to
USD 306 million in the first half of 2026,
compared with USD 295 million for the
same period in 2025.
Net investment income increased by
USD 20 million to USD 284 million for
the first half of 2026, driven by higher
recurring income and income from cash
and cash equivalents.
Investment gains were USD 22 million for
the first half of 2026, compared with
USD 31 million for the prior-year period.
The decrease reflects lower mark-to-
market gains from weather derivatives,
partially offset by realised gains from the
sale of fixed income securities.
Outlook
Corporate Solutions is on track to meet its
2026 combined ratio target, supported by
disciplined underwriting, active portfolio
steering and stringent cost management.
Within a more competitive market, the
Business Unit is strengthening cycle
resilience, enhancing portfolio diversification
and expanding differentiated propositions to
drive more cycle-independent growth and
long-term value creation.
In property, softer pricing driven by
increased market capacity characterised the
first half of 2026 and is expected to
continue through year-end. Renewals
through the first half of 2026 were broadly
in line with expectations, and portfolios
remain well positioned due to disciplined
risk selection. The impact of price softening
on earnings is expected to be modest
in 2026.
Casualty trends continue to diverge. General
liability is expected to remain under
pressure from ample market capacity, while
positive momentum in professional liability,
particularly in the US, and accident and
health, is expected to continue through the
second half of 2026. This supports
Corporate Solutions’ strategy of selectively
growing in more attractive segments and
providing valuable diversification benefits.
The specialty market continues to offer
selective attractive opportunities that help
balance exposure across insurance cycles.
Meanwhile, credit and surety faces ongoing
policy, geopolitical and global trade
uncertainties, and Corporate Solutions
remains focused on disciplined underwriting
and targeted market engagement.
With the half-year results, Corporate
Solutions announces two new exclusive
partnerships in India and Mexico, two of the
world’s fastest-growing commercial
insurance markets. By partnering with
leading local insurers, Corporate Solutions
can build on its underwriting expertise,
capital strength and International Programs
business to better serve Indian and Mexican
companies expanding internationally, as
well as global clients with operations in
these markets.
11Swiss Re | Half-Year Report 2026
Business performance
Corporate Solutions
Income statement
For the six months ended 30 June
USD millions | 2026 | 2025 | Change in % |
Insurance revenue | 3 614 | 3 749 | -4 |
Insurance service expense | -2 532 | -2 835 | -11 |
Insurance service result before reinsurance contracts held | 1 083 | 914 | 18 |
Allocation of reinsurance premiums | -902 | -733 | 23 |
Amounts recoverable from reinsurers for incurred claims | 397 | 334 | 19 |
Net income/expenses from reinsurance contracts held | -505 | -399 | 27 |
Insurance service result | 578 | 515 | 12 |
Finance income/expenses from insurance contracts issued | -250 | -252 | -1 |
Finance income/expenses from reinsurance contracts held | 109 | 97 | 12 |
Insurance finance result | -141 | -155 | -9 |
Net investment income | 284 | 264 | 8 |
Investment gains/losses | 22 | 31 | -29 |
Investment result | 306 | 295 | 4 |
Other income | 22 | 17 | 29 |
Other expenses | -103 | -108 | -5 |
Financing cost | -34 | -16 | 113 |
Income/loss before income tax expense/benefit | 628 | 548 | 15 |
Income tax expense/benefit | -138 | -118 | 17 |
Net income/loss | 490 | 430 | 14 |
Thereof | |||
Income/loss attributable to non-controlling interests | 2 | 8 | -75 |
Net income/loss attributable to common shareholders | 488 | 422 | 16 |
Combined ratio (%) | 86.1 | 88.2 |
1Comparative information for 2025 has been revised to reflect the reallocation of certain reinsurance transactions in run-off from L&H Reinsurance to Group items. These relate to
primary insurance businesses that were formerly part of the dissolved Life Capital Business Segment.
12Swiss Re | Half-Year Report 2026
Business performance
Life & Health Reinsurance
Life & Health Reinsurance
Life & Health Reinsurance (L&H Re) delivers
resilient earnings.
Net income
L&H Re achieved a net income of
USD 1.0 billion in the first half of 2026,
a 21% increase from USD 865 million
in the prior-year period 1. The result
demonstrates the resilience of L&H Re’s
large in-force portfolio, providing an
important source of earnings
diversification to the Group. L&H Re
targets a net income of USD 1.7 billion
for 2026.
Insurance service result
The insurance service result for the first
half of 2026 reached USD 1.2 billion, up
24% from USD 931 million in the prior-
year period1.The increase was driven by
more favourable experience variance,
particularly in US mortality, which was
partly offset by lower CSM release.
Insurance revenue
Insurance revenue in the first half of 2026
amounted to USD 8.4 billion, up 6% from
USD 8.0 billion for the prior-year period.
The increase was driven by favourable
foreign exchange movements and higher
contributions from longevity business.
Contractual service margin
L&H Re achieved a new business CSM of
USD 338 million for the first half of the year,
compared with USD 569 million for the
prior-year period. The decrease was driven
by lower transaction activity.
The Business Unit’s CSM balance at the
end of the first half of the year was
USD 16.7 billion, compared with
USD 16.9 billion at the end of 20251.
Investment result
The investment result amounted to
USD 616 million in the first six months of
2026, compared with USD 811 million for
the same period in 2025. Net investment
income was USD 759 million for the first half
of 2026, in line with the prior-year period.
Investment losses were USD 143 million for
the first half of 2026, compared with gains
of USD 47 million for the prior-year period.
The decline stems from insurance-linked
derivatives, associated with various hedging
programmes which are offset in the
respective other income and insurance
finance result.
Outlook
L&H Re is on track to reach its net income
target for the full year, following the material
review of its portfolios in 2025 and a
successful first half of 2026.
L&H Re’s business continues to expand,
with further growth expected in both
emerging and mature markets. Cession
rates and mortality premiums are expected
to remain broadly stable in major markets.
In addition, L&H Re sees ongoing
opportunities for transactions as clients
maintain a strong focus on capital, risk
and balance sheet optimisation in mature
markets. There is also further business
potential arising from the growing
demand for health protection, driven by
ageing societies.
1Comparative information for 2025 has been revised to reflect the reallocation of certain reinsurance transactions in run-off from L&H Reinsurance to Group items. These relate to
primary insurance businesses that were formerly part of the dissolved Life Capital Business Segment.
13Swiss Re | Half-Year Report 2026
Business performance
Life & Health Reinsurance
Income statement
For the six months ended 30 June
USD millions | 2026 | 2025 1 | Change in % |
Insurance revenue | 8 420 | 7 951 | 6 |
Insurance service expense | -7 192 | -6 971 | 3 |
Insurance service result before reinsurance contracts held | 1 228 | 980 | 25 |
Allocation of reinsurance premiums | -235 | -195 | 21 |
Amounts recoverable from reinsurers for incurred claims | 165 | 146 | 13 |
Net income/expenses from reinsurance contracts held | -69 | -49 | 41 |
Insurance service result | 1 158 | 931 | 24 |
Finance income/expenses from insurance contracts issued | -313 | -338 | -7 |
Finance income/expenses from reinsurance contracts held | 3 | 4 | -25 |
Insurance finance result | -310 | -334 | -7 |
Net investment income | 759 | 764 | -1 |
Investment gains/losses | -143 | 47 | -404 |
Investment result | 616 | 811 | -24 |
Other income | 224 | 81 | 177 |
Other expenses | -221 | -215 | 3 |
Financing cost | -136 | -173 | -21 |
Income/loss before income tax expense/benefit | 1 331 | 1 101 | 21 |
Income tax expense/benefit | -286 | -236 | 21 |
Net income/loss | 1 045 | 865 | 21 |
Thereof | |||
Net income/loss attributable to non-controlling interests | |||
Net income/loss attributable to common shareholders | 1 045 | 865 | 21 |
14Swiss Re | Half-Year Report 2026
Business performance
Share performance and ratings
Share performance and ratings
Share vs benchmarks | Total shareholder return in % (USD) | 2026 YTD |
As of 30 June 2026 | Swiss Re (SREN) | -0.8 |
Swiss Market Index (SMI) | 7.7 | |
STOXX Europe 600 Insurance Index (SXIP) | 3.8 | |
Share price in CHF | 128.50 | |
Market capitalisation in CHF billions | 37.5 |
Swiss Re’s financial strength ratings | Standard & Poor’s | Moody’s | A.M. Best | |
As of 30 June 2026 | Rating | AA– | Aa3 | A+ |
Outlook | Stable | Stable | Stable | |
Last review date | 7 November 2025 | 10 November 2025 | 1 October 2025 |
Swiss Re’s total shareholder return in % (USD) in 2026
Annual results 2025 (27 February) | Dividend payment (16 April) | ||||
Ex-dividend date (14 April) | Q1 2026 results (07 May) |
Consolidated IFRS
financial statements
16Swiss Re | Half-Year Report 2026
Income statement (unaudited)
Income statement
For the six months ended 30 June
USD millions | Note | 2026 | 2025 |
Insurance revenue | 3 | 20 264 | 20 947 |
Insurance service expense | 3 | -16 085 | -17 466 |
Insurance service result before reinsurance contracts held | 4 179 | 3 481 | |
Allocation of reinsurance premiums | 3 | -1 287 | -1 195 |
Amounts recoverable from reinsurers for incurred claims | 3 | 573 | 717 |
Net income/expenses from reinsurance contracts held | -714 | -478 | |
Insurance service result | 3 464 | 3 003 | |
Finance income/expenses from insurance contracts issued | 4 | -1 303 | -1 308 |
Finance income/expenses from reinsurance contracts held | 4 | 72 | 65 |
Insurance finance result | -1 231 | -1 243 | |
Net investment income | 5 | 2 177 | 2 095 |
Investment gains/losses | 5 | 104 | 334 |
Investment result | 2 281 | 2 429 | |
Other income | 303 | 146 | |
Other expenses | -867 | -854 | |
Financing costs | 8 | -252 | -244 |
Income/loss before income tax expense/benefit | 3 698 | 3 237 | |
Income tax expense/benefit | -865 | -632 | |
Net income/loss | 2 833 | 2 605 | |
Thereof | |||
Net income/loss attributable to non-controlling interests | 2 | 9 | |
Net income/loss attributable to common shareholders | 2 831 | 2 596 | |
in USD | |||
Basic earnings per share | 9 | 9.57 | 8.71 |
Diluted earnings per share | 9 | 9.51 | 8.64 |
in CHF | |||
Basic earnings per share | 9 | 7.52 | 7.55 |
Diluted earnings per share | 9 | 7.47 | 7.49 |
17Swiss Re | Half-Year Report 2026
Statement of comprehensive income (unaudited)
Statement of comprehensive income
For the six months ended 30 June
USD millions | 2026 | 2025 |
Net income/loss | 2 833 | 2 605 |
Other comprehensive income reclassifiable to income statement | ||
Foreign currency translation | ||
Change during the period | -264 | -49 |
Reclassified to income statement | 13 | |
Tax | 24 | 211 |
Net unrealised investment gains/losses on fixed income securities | ||
Change during the period | -531 | 291 |
Reclassified to income statement | -53 | 59 |
Tax | 120 | -71 |
Finance income/expenses from insurance contracts issued | ||
Change during the period | 484 | -378 |
Tax | -94 | 87 |
Finance income/expenses from reinsurance contracts held | ||
Change during the period | -32 | 29 |
Tax | 6 | -7 |
Share of other comprehensive income of equity-method investments | ||
Change during the period | 4 | |
Reclassified to income statement | 6 | |
Tax | ||
Cost of hedging | ||
Change during the period | 166 | 227 |
Reclassified to income statement | -169 | -218 |
Tax | -2 | |
Total other comprehensive income reclassifiable to income statement | -342 | 202 |
Other comprehensive income not reclassifiable to income statement | ||
Remeasurement of defined benefit liability | ||
Change during the period | 5 | 183 |
Tax | -2 | -36 |
Net unrealised investment gains/losses on equity investments | ||
Change during the period | -125 | 11 |
Tax | 7 | -3 |
Share of other comprehensive income of equity-method investments | ||
Change during the period | 1 | -3 |
Tax | ||
Total other comprehensive income not reclassifiable to income statement | -114 | 152 |
Total other comprehensive income | -456 | 354 |
Total comprehensive income | 2 378 | 2 959 |
Thereof | ||
Total comprehensive income attributable to non-controlling interests | 5 | 20 |
Total comprehensive income attributable to common shareholders | 2 373 | 2 939 |
18Swiss Re | Half-Year Report 2026
Balance sheet (unaudited)
Balance sheet
USD millions | Note | 30.06.2026 | 31.12.2025 |
Assets | |||
Cash and cash equivalents | 3 930 | 2 743 | |
Investments | 5, 6, 7 | ||
Fixed income securities | 84 817 | 88 469 | |
Equity investments | 870 | 876 | |
Mortgages and other loans | 7 980 | 7 085 | |
Investment property | 2 550 | 2 648 | |
Other invested assets | 9 385 | 9 672 | |
Total investments | 105 602 | 108 750 | |
Insurance contracts issued that are assets | 3 | 3 426 | 3 314 |
Reinsurance contracts held that are assets | 3 | 7 350 | 7 128 |
Goodwill and other intangible assets | 4 009 | 4 020 | |
Income taxes recoverable | 857 | 793 | |
Deferred tax assets | 1 741 | 1 758 | |
Other assets | 5 929 | 5 370 | |
Assets held for sale¹ | 131 | ||
Total assets | 132 845 | 134 007 | |
Liabilities | |||
Insurance contracts issued that are liabilities | 3 | 84 314 | 86 471 |
Reinsurance contracts held that are liabilities | 3 | 3 819 | 4 039 |
Short-term debt | 8 | 309 | 295 |
Long-term debt | 8 | 8 681 | 8 242 |
Income taxes payable | 1 058 | 848 | |
Deferred tax liabilities | 2 881 | 2 800 | |
Other liabilities | 5,6,7 | 6 825 | 5 423 |
Liabilities held for sale¹ | 151 | ||
Total liabilities | 107 887 | 108 269 | |
Equity | |||
Common shares | 36 | 28 | |
Additional paid-in capital | 578 | 664 | |
Treasury shares | -777 | -201 | |
Accumulated other comprehensive income | -3 606 | -3 129 | |
Retained earnings | 28 225 | 27 752 | |
Shareholders’ equity | 24 456 | 25 114 | |
Perpetual capital instruments | 444 | 444 | |
Non-controlling interests | 57 | 181 | |
Total equity | 24 958 | 25 739 | |
Total liabilities and equity | 132 845 | 134 007 |
19Swiss Re | Half-Year Report 2026
Statement of changes in shareholdersʼ equity (unaudited)
Statement of changes in shareholdersʼ equity
For the six months ended 30 June
Common shares | Additional paid-in capital | Treasury shares | Foreign currency translation | Net unrealised investment gains/ losses fixed income securities | Net unrealised investment gains/ losses on equity investments | Cost of hedging | Finance income/ expenses from insurance contracts issued | Finance income/ expenses from reinsurance contracts held | Share of other comprehensive income of equity- method investments | Retained earnings | Shareholders’ equity | Perpetual capital instruments | Non-controlling interests | Total equity | |
2026 | |||||||||||||||
USD millions | |||||||||||||||
Balance as of 1 January | 28 | 664 | -201 | -466 | -4 224 | -50 | 5 | 1 664 | -71 | 13 | 27 752 | 25 114 | 444 | 181 | 25 739 |
Change of currency of the share capital¹ | 8 | -8 | 0 | 0 | |||||||||||
Dividends | -2 357 | -2 357 | -2 | -2 359 | |||||||||||
Cancellation of treasury shares | 0 | 0 | |||||||||||||
Share-based payments | -66 | -66 | -66 | ||||||||||||
Issuance of treasury shares | 107 | 107 | 107 | ||||||||||||
Purchase of treasury shares | -683 | -683 | -683 | ||||||||||||
Realised gains/losses on treasury shares | -12 | -12 | -12 | ||||||||||||
Issuance/repayments of perpetual capital instruments | 0 | 0 | |||||||||||||
Coupon on perpetual capital instruments | -18 | -18 | -18 | ||||||||||||
Transfer of gains/losses on disposal to retained earnings – net of tax | -15 | 15 | 0 | 0 | |||||||||||
Transactions with non-controlling interests | 0 | 0 | |||||||||||||
Change in liability for redeemable shares | -2 | -2 | -2 | ||||||||||||
Transfer of non-controlling interests to Other liabilities² | 0 | -126 | -126 | ||||||||||||
Total comprehensive income | |||||||||||||||
Net income/loss | 2 831 | 2 831 | 2 | 2 833 | |||||||||||
Other comprehensive income, net of tax | -242 | -465 | -118 | -2 | 392 | -27 | 1 | 3 | -458 | 3 | -456 | ||||
Total comprehensive income | -242 | -465 | -118 | -2 | 392 | -27 | 1 | 2 835 | 2 373 | 5 | 2 378 | ||||
Balance as of 30 June | 36 | 578 | -777 | -708 | -4 689 | -183 | 3 | 2 056 | -99 | 14 | 28 225 | 24 456 | 444 | 57 | 24 958 |
¹ The change in the par value per share from CHF 0.10 to USD 0.12 resulted in a net increase in the carrying amount of common shares following the redenomination of the issued capital into US dollars. The change was driven by a reduction of the converted nominal value and an increase in the carrying amount of common shares under IFRS using the updated exchange
rates. Prior to the redenomination, the carrying amount of common shares was converted from Swiss francs into US dollars using historical exchange rates.
² The transfer of non-controlling interests to Other liabilities reflects a reassessment of the classification of external investorsʼ interests in certain subsidiaries, resulting in their classification as financial liabilities rather than equity.
Common shares | Additional paid-in capital | Treasury shares | Foreign currency translation | Net unrealised investment gains/ losses fixed income securities | Net unrealised investment gains/ losses on equity investments | Cost of hedging | Finance income/ expenses from insurance contracts issued | Finance income/ expenses from reinsurance contracts held | Share of other comprehensive income of equity- method investments | Retained earnings | Shareholders’ equity | Perpetual capital instruments | Non-controlling interests | Total equity | |
2025 | |||||||||||||||
USD millions | |||||||||||||||
Balance as of 1 January | 30 | 519 | -889 | -511 | -4 737 | -451 | 5 | 1 889 | -134 | 5 | 26 166 | 21 892 | 1 214 | 134 | 23 240 |
Dividends | -2 167 | -2 167 | -10 | -2 177 | |||||||||||
Cancellation of treasury shares | -2 | 669 | -667 | 0 | 0 | ||||||||||
Share-based payments | 6 | 6 | 6 | ||||||||||||
Issuance of treasury shares | 67 | 67 | 67 | ||||||||||||
Purchase of treasury shares | 0 | 0 | |||||||||||||
Realised gains/losses on treasury shares | 7 | 7 | 7 | ||||||||||||
Issuance/repayments of perpetual capital instruments | 0 | 0 | |||||||||||||
Coupon on perpetual capital instruments | -33 | -33 | -33 | ||||||||||||
Transfer of gains/losses on disposal to retained earnings – net of tax | 22 | -1 | -21 | 0 | 0 | ||||||||||
Transactions with non-controlling interests | 0 | 2 | 2 | ||||||||||||
Change in liability for redeemable shares | 0 | 0 | |||||||||||||
Transfer of non-controlling interests to Other liabilities² | 0 | 0 | |||||||||||||
Total comprehensive income | |||||||||||||||
Net income/loss | 2 596 | 2 596 | 9 | 2 605 | |||||||||||
Other comprehensive income, net of tax | 166 | 278 | 8 | 7 | -289 | 19 | 7 | 147 | 343 | 11 | 354 | ||||
Total comprehensive income | 166 | 278 | 8 | 7 | -289 | 19 | 7 | 2 743 | 2 939 | 20 | 2 959 | ||||
Balance as of 30 June | 28 | 532 | -153 | -345 | -4 459 | -421 | 12 | 1 600 | -115 | 11 | 26 021 | 22 711 | 1 214 | 146 | 24 071 |
20Swiss Re | Half-Year Report 2026
Statement of cash flows (unaudited)
Statement of cash flows
For the six months ended 30 June
USD millions | 2026 | 2025 |
Cash flows from operating activities | ||
Net income/loss | 2 833 | 2 605 |
Adjustments to reconcile net income to net cash provided/used by operating activities: | ||
Depreciation, amortisation and other non-cash items | -186 | -227 |
Investment gains/losses | -124 | -348 |
Income from equity-method investments, net of dividends received | -2 | -5 |
Change in: | ||
Insurance contracts issued | -1 278 | -509 |
Reinsurance contracts held | -468 | -430 |
Other assets and liabilities, net | -555 | 71 |
Income taxes payable/recoverable | 277 | 374 |
Trading positions, net | 220 | -177 |
Net cash provided/used by operating activities | 719 | 1 354 |
Cash flows from investing activities | ||
Fixed income securities: | ||
Sales and maturities | 31 480 | 34 230 |
Purchases | -28 617 | -38 389 |
Equity investments: | ||
Sales | 162 | 98 |
Purchases | -271 | -28 |
Securities purchased/sold under agreement to resell/repurchase, net | 31 | 1 600 |
Disposal of group companies, net of cash disposed of | 38 | 4 |
Net purchases/sales/maturities of other investments | -195 | 926 |
Net cash provided/used by investing activities | 2 629 | -1 559 |
Cash flows from financing activities | ||
Issuance of debt | 874 | 1 882 |
Repayment of debt | -319 | -35 |
Payments of lease liabilities | -38 | -38 |
Net issuances/redemptions/distributions of redeemable shares | 263 | |
Purchase/sale of treasury shares | -529 | 134 |
Dividends paid to shareholders | -2 357 | -2 167 |
Dividends paid to non-controlling interests | -2 | -10 |
Transactions with non-controlling interests | 2 | |
Net cash provided/used by financing activities | -2 106 | -232 |
21Swiss Re | Half-Year Report 2026
Statement of cash flows (unaudited)
USD millions | 2026 | 2025 |
Total net cash provided/used | 1 240 | -437 |
Effect of foreign exchange | -60 | 76 |
Change in cash and cash equivalents | 1 180 | -361 |
Cash and cash equivalents as of 1 January | 2 743 | 4 133 |
Cash and cash equivalents as of 1 January classified as assets held for sale | 7 | 31 |
Reclassified to assets held for sale | -134 | |
Cash and cash equivalents as of 30 June | 3 930 | 3 669 |
Supplementary information on the statement of cash flows | ||
Tax paid (operating activities) | 588 | 250 |
Dividends received (operating activities) | 23 | 8 |
Interest received (operating activities) | 1 948 | 1 903 |
Interest paid (operating activities) | 262 | 202 |
Interest paid (financing activities) | 8 | 8 |
Components of cash and cash equivalents
As of 30 June 2026 and 2025, cash and cash equivalents included USD 1 298 million and USD 1 169 million cash at bank and in hand,
and USD 2 632 million and USD 2 500 million of cash equivalents, respectively.
As of 30 June 2026 and 2025, cash and cash equivalents included USD 168 million and USD 162 million not available for general use by
the Group, respectively.
22Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Notes to the consolidated financial statements
1 Organisation and summary of material accounting policies
Nature of operations
The Swiss Re Group, which is headquartered in Zurich, Switzerland, comprises Swiss Re Ltd (the parent company) and its subsidiaries
(collectively, the “Swiss Re Group” or the “Group”). The Swiss Re Group is a wholesale provider of reinsurance, insurance, and other
insurance-based forms of risk transfer as well as other insurance-related services. Working through brokers and a network of offices around
the globe, the Group serves a client base consisting of insurance companies, mid- to large-sized corporations and public sector clients.
The Swiss Re Group consists of four segments: Property & Casualty Reinsurance, Life & Health Reinsurance, Corporate Solutions and
Group items.
Basis of presentation
The accompanying condensed interim consolidated financial statements for the six months ended 30 June 2026 have been prepared in
accordance with IAS 34 Interim Financial Reporting. These condensed interim consolidated financial statements do not include all
disclosures required by IFRS Accounting Standards for annual financial statements and should therefore be read in conjunction with the
Swiss Re Group’s audited financial statements for the year ended 31 December 2025.
Unless otherwise stated, the same accounting policies and principles of recognition, measurement and consolidation have been applied as
in the Swiss Re Group’s audited financial statements for the year ended 31 December 2025.
The consolidated financial statements comply with Swiss law.
All significant intra-group transactions and balances are eliminated on consolidation. The Group’s financial statements are presented in US
dollars rounded to the nearest million, unless otherwise stated. As a result, there may be minor deviations in totals and percentages. All
calculations are based on unrounded underlying amounts.
Use of judgements and estimates in the preparation of financial statements
The preparation of these consolidated financial statements requires management to use judgement and make specific estimates that affect
the reported amounts of assets, liabilities, income and expenses. Material judgements and estimates primarily impact the following areas:
• Basis of consolidation
• Financial instruments classification and impairment
• Insurance contracts issued and reinsurance contracts held
• Goodwill and other intangible assets
• Income tax and related assets and liabilities
• Fair value of assets and liabilities
• Contingent liabilities
• Pension plans and other post-employment benefits
For insurance contracts issued and reinsurance contracts held, judgement is primarily used in determining which contracts or components
of contracts fall under IFRS 17 Insurance Contracts, the appropriate level of aggregation, contract boundaries, directly vs non-directly
attributable costs, discount rates, the risk adjustment for non-financial risk and coverage units. Additionally, there is significant judgement
in determining the estimates of future cash flows, which is described in further detail under the insurance risk section below.
The Group is subject to climate-related risks, which are reflected in the Group’s risk categories. There is a high level of uncertainty around
climate-related risks that could impact the estimates and assumptions made.
All estimates and related assumptions are based on experience and other factors that are considered reasonable and are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which they are made. Actual outcomes could differ
substantially from estimates and assumptions described above, based on the nature of these items and the inherent uncertainty involved.
Insurance risk
The Group’s cash flow estimates reflect the most current assumptions, incorporating all reasonable and supportable information about the
amount, timing and uncertainty of the future cash flows. These estimates are reflected in the liability for remaining coverage for insurance
events that have not yet occurred and in the liability for incurred claims for insurance events that have already occurred.
23Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Due to the inherent nature of the business written, amounts and the timing of cash payments to policyholders could differ substantially from
amounts originally estimated or amounts currently reflected in the liability for remaining coverage or liability for incurred claims. Expert
judgement is involved in setting assumptions, which are subject to governance and regular review processes and are updated to reflect
current conditions.
Property and casualty risk
The Group’s property and casualty insurance risk arises from coverage provided for property, liability, motor and accident risks as well as
specialty risks such as engineering, agriculture, aviation, marine and cyber.
The primary actuarial assumptions relating to future cash flows in the liability for remaining coverage are the estimates of ultimate losses,
premiums and commissions and the timing of associated payments. These assumptions are generally determined by product line, country,
type of business (proportional/non-proportional/facultative) and underwriting year. However, further refined splits are possible. The aim is
to use similar assumptions for homogenous risk groups.
Assumptions which impact the liability for incurred claims are reflected in reserves for reported losses, incurred but not reported (IBNR)
reserves and loss adjustment expenses. The liability for incurred claims is determined generally by product line, country, type of business
and underwriting year. However, further refined splits are possible, including an accident year view. The Group considers past events, claim
trends, patterns of loss payments and statistical models to estimate the liability for incurred claims.
For Property & Casualty Reinsurance and Corporate Solutions, major risks impacting assumption setting are costing and reserving risk,
natural catastrophes, man-made risk, economic/social inflation and changes in settlement patterns. These risks are described below.
• Costing and reserving risk describes the potential deviation between the current best estimate of losses and actual amounts ultimately
paid to the policyholder.
• Natural catastrophe risks include hurricanes, typhoons, windstorms, floods, hail, earthquakes, etc. which can generate insured losses for
many lines of business with severity and frequency that have not been anticipated in pricing assumptions. Even after insured events occur,
preliminary estimates of losses may be subject to change as new information becomes available.
• Man-made risks stem from human failures and acts of terrorism, which impact insurance losses.
• Inflation risks comprise both economic and social inflation. Economic inflation considers that claim payments are not fixed in advance but
rather depend on the value of insured goods and services when the claim is settled. Social inflation can adversely impact ultimate claims
paid from changes in law, interpretations of case law, shifts in public or juror attitudes, etc. Claims that take considerable time to settle
after insured events are most impacted by economic and social inflation.
• Settlement patterns can be different from expectations, which can also produce variability in reserve estimates. In addition, the
lengthening of settlement patterns is typically correlated with higher nominal reserve amounts as settlements are exposed for longer
to inflationary forces.
These factors are not exhaustive. The Group operates in an ever-changing environment and is exposed to new emerging risks.
Life and health risk
The Group’s life and health insurance risk arises from coverage provided for mortality (death), longevity (annuity) and morbidity (critical
illness and income protection).
The primary assumptions for future cash flows in the liability for remaining coverage relate to mortality, morbidity, lapses and expenses.
In addition to the product type and country, they typically reflect variations by year of policy issuance, age and gender of the insured
policyholders, among other factors. The aim is to use similar assumptions for homogenous risk groups. Assumptions are determined
with reference to past experience, adjusted for current market conditions and future expectations. Assumptions such as mortality and
morbidity trends will not manifest for many years and are therefore highly uncertain. Changes in the underlying drivers, such as
advances in medicine or the prevalence of certain diseases from lifestyle changes, are uncertain.
As with the Group’s property and casualty risk, assumptions which impact the liability for incurred claims are reflected in reserves for
reported losses, IBNR reserves and loss adjustment expenses. The liability for incurred claims is determined by product line, country and
underwriting year. The Group considers past events, claim trends, patterns of loss payments and statistical models to estimate the
liability for incurred claims.
In addition to potential shock events such as severe pandemics, the underlying risks inherent in life and health contracts arise when
mortality, morbidity or lapse experience deviates from expectations. These risks are described below.
• Mortality risk reflects the impact of deviations in future mortality rates from current best estimates. Mortality risk is also present in
products where benefit payments are contingent on the survival of the policyholder. In this case, the business risk materialises when
policyholders live longer than assumed in the pricing and valuation bases. This type of risk is longevity risk.
• Lethal pandemic risk captures the impact of a severe influenza pandemic, the most likely cause of a mortality shock. There is
fundamental uncertainty about the likelihood and severity of such an event.
24Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
• Morbidity risk reflects the impact of deviations in future morbidity rates from current best estimates. Morbidity risk is also present in
products where benefit payments are contingent on the health of the policyholder. In this case, the business risk materialises when
policyholders do not recover as assumed in pricing and valuation bases.
• Lapse risk reflects a change in value caused when actual lapse rates deviate from the expected rates.
• Expense ris k is the risk that actual expenses deviate from the expected expenses.
These factors are not exhaustive. The Group operates in an ever-changing environment and is exposed to new emerging risks.
Income taxes
The Group continues to monitor the Organisation for Economic Co-operation and Development (OECD) Pillar 2 rules and their
implementation across the jurisdictions in which it operates.
The Group has applied the mandatory temporary exception from recognising and disclosing deferred tax assets and liabilities related to
Pillar 2 top-up taxes and accounts for it as a current tax when incurred.
For the six-month periods ended 30 June 2026 and 2025, the Group recognised Pillar 2 top-up tax expenses of USD 31 million and
USD 23 million, respectively, determined based on the estimated annual effective tax rate. The Group expects the impact of Pillar 2 to
increase in future periods as transitional safe harbour provisions expire in certain jurisdictions and as Switzerland applies the Income
Inclusion Rule for under-taxed foreign subsidiaries.
Subsequent events and date of approval for issue
Subsequent events for the current reporting period have been evaluated up to 5 August 2026. This is the date when the condensed
financial statements were approved for issue by the Group Audit Committee.
Adoption of new accounting standards
In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments, which amends
IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The amendments clarify aspects of recognition and
derecognition, including when a financial liability settled through an electronic payment system may be derecognised before settlement,
refine the solely payments of principal and interest (SPPI) assessment, and introduce new disclosures to enhance transparency for equity
instruments designated at fair value through other comprehensive income (FVOCI) and financial instruments not measured at fair value
through profit or loss (FVPL) with certain contingent features. The Group adopted the amendments on 1 January 2026 and provides the
required disclosures in Note 5 Investments. The adoption did not have a significant impact on the Group’s financial statements.
In December 2024, the IASB issued Contracts Referencing Nature-dependent Electricity, which amends IFRS 9 Financial Instruments
and IFRS 7 Financial Instruments: Disclosures. The amendments introduce specific guidance allowing certain contracts for variable,
nature‑dependent electricity to qualify for the own‑use exemption and/or permit hedge accounting using a variable nominal amount
aligned with actual electricity generation, while prohibiting analogies to other contracts. The amendments also add targeted disclosure
requirements to enable investors to understand the effect of these contracts on the Group’s financial performance and future cash flows.
The Group adopted the amendments on 1 January 2026. The adoption did not have an impact on the Group’s financial statements.
Future adoption of new accounting standards
In April 2024, the IASB issued IFRS 18 Financial Statement Presentation and Disclosure, a new standard replacing IAS 1 Presentation of
Financial Statements. IFRS 18 primarily affects the structure of the consolidated income statement, introducing five mandatory
categories (operating, investing, financing, income taxes, and discontinued operations) and new subtotals. As a result, certain income
and expenses will be reclassified compared to current practice. The Group has identified “investing in assets” as a specified main
business activity, which means that most income and expenses from investments will be included in operating profit or loss. Shares of
profit or loss from investments accounted for using the equity method will be classified in the investing category. Foreign exchange
differences will be included in the same category as the income and expenses of the items that give rise to those differences. Additional
note disclosures will be required, particularly for management-defined performance measures and for expenses presented by function,
including mandatory disclosure of specific expense types. The Group will initially apply IFRS 18 as of its effective date of 1 January
2027, with retrospective application. On initial application, this new standard will only impact how the Group presents and discloses its
results in the financial statements; it will not affect the Group’s net income.
In June 2026, the IASB issued Amendments to the Fair Value Option for Investments in Associates and Joint Ventures, which amend
IAS 28 Investments in Associates and Joint Ventures. The amendments clarify which entities are eligible to apply the fair value option for
investments in associates and joint ventures. Under these amendments, entities whose main business activity is investing in assets may
elect to apply the fair value option to such investments. The Group has started to assess the implications of these amendments and will
apply them from 1 January 2027 in conjunction with the adoption of IFRS 18.
There are no additional IFRS accounting standards or amendments issued by the IASB that are not yet effective and expected to have a
significant impact on the Group.
25Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
2 Information on operating segments
The Group provides reinsurance and insurance throughout the world through its business segments. The segments are determined
by the organisational structure and by the way in which management reviews the operating performance of the Group.
The Group presents four segments: Property & Casualty Reinsurance, Life & Health Reinsurance, Corporate Solutions and Group
items. Segment revenue and net income/loss are determined in line with the accounting policies described in the summary of
material accounting policies (refer to Note 1 Organisation and summary of material accounting policies, page 22). Accounting
policies applied by the segments are in line with those of the Group. Cross-segmental dividends and gains and losses on certain
one-off transfers and transactions between segments are accounted for through segmental shareholders’ equity. Financing costs
are based on the segment’s capital funding position. The tax impact of a segment is derived from the legal entity segmentation of
the pre-tax result multiplied by the applicable statutory tax rate, including adjustments for deferred tax assets not recognised.
Other reconciling tax items are allocated to Group items only. If special allocations of other reconciling tax items to other segments
occur, these are specifically disclosed. For the six months ended 30 June 2026 and 2025, there are no special allocations to
other segments.
The segments as well as the Consolidation column are outlined below.
Reinsurance business is managed through two segments, Property & Casualty Reinsurance and Life & Health Reinsurance, operating
globally, both through brokers and directly with clients, and providing a large range of solutions for risk and capital management.
Clients include stock and mutual insurance companies, as well as public sector and governmental entities. In addition to traditional
reinsurance solutions, both Property & Casualty Reinsurance and Life & Health Reinsurance offer insurance-linked securities and other
insurance-related capital market products.
Property & Casualty Reinsurance
Property & Casualty includes the business lines property, casualty (including motor) and specialty.
Life & Health Reinsurance
Life & Health includes the life and health lines of business.
Corporate Solutions
Corporate Solutions offers insurance capacity to mid- to large-sized corporations across the globe. Offerings range from standard risk
transfer covers and multi-line programmes to highly customised solutions tailored to the needs of clients. Corporate Solutions serves
customers from offices worldwide. The Group’s Credit & Surety business is fully written in Corporate Solutions starting from
1 January 2026.
26Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Group items
Group items includes items not allocated to the other segments, which encompass Swiss Re Ltd, certain Treasury units, strategic
minority investments, iptiQ and reinsurance and insurance business in run-off. Swiss Re Ltd charges trademark licence fees to the
other segments, which are reported as other income. The Group allocates the foreign exchange gains and losses recognised in
earnings to Group items. Certain administrative expenses of the corporate centre functions that are not recharged to the other
segments are reported in Group items.
iptiQ partners with distributors providing Swiss Re access to risk pools offering white-labelled protection cover. In the second quarter
of 2024, the Group announced its plans to withdraw from the iptiQ business. The Group completed the sale of the iptiQ Americas
Sales Solutions business through a management buyout in April 2025, the sale of iptiQ’s European P&C business to Allianz Direct in
July 2025, the transfer of iptiQ’s Australian direct life insurance portfolio to Hannover Re in December 2025 and the sale of the iptiQ
American carrier business to Wilton Re in April 2026, following the receipt of all required regulatory approvals. Refer to Note 10
Disposals, page 59 for more details on the sale of iptiQ’s American carrier business. The Group will move the iptiQ EMEA L&H
business into run-off.
As of 1 January 2026, certain reinsurance transactions previously reported within L&H Reinsurance were reallocated to Group items
following the decision to place them into run-off and monitor them separately from the core reinsurance business. These reinsurance
transactions relate to primary insurance businesses that were formerly part of the dissolved Life Capital Business Segment.
Comparative segment information for 2025 has been revised accordingly, and the main impacts are presented in the table below.
2025 | Life & Health Reinsurance | Group items |
USD millions | ||
Income statement | ||
Insurance revenue | -89 | 89 |
Insurance service result | 31 | -31 |
Income/loss before income tax expense/benefit | 33 | -33 |
Balance sheet | ||
Other assets | 2 183 | |
Insurance contracts issued that are liabilities | -2 183 | 2 183 |
Other liabilities | 2 183 |
Consolidation
Segment information is presented net of external and internal retrocession and other intra-group arrangements. The Group total is
obtained after elimination of intra-group transactions in the Consolidation column. This includes significant intra-group reinsurance
arrangements, recharges of trademark licence fees and intersegmental funding.
27Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Business segments – income statement
For the six months ended 30 June
2026 | Property & Casualty Reinsurance | Life & Health Reinsurance | Corporate Solutions | Group items | Consolidation | Total |
USD millions | ||||||
Insurance revenue | 8 241 | 8 420 | 3 614 | 266 | -277 | 20 264 |
Insurance service expense | -6 062 | -7 192 | -2 532 | -361 | 62 | -16 085 |
Insurance service result before reinsurance contracts held | 2 178 | 1 228 | 1 083 | -95 | -216 | 4 179 |
Allocation of reinsurance premiums | -431 | -235 | -902 | 2 | 279 | -1 287 |
Amounts recoverable from reinsurers for incurred claims | 73 | 165 | 397 | -63 | 573 | |
Net income/expenses from reinsurance contracts held | -357 | -69 | -505 | 2 | 216 | -714 |
Insurance service result | 1 821 | 1 158 | 578 | -93 | 0 | 3 464 |
Finance income/expenses from insurance contracts issued | -760 | -313 | -250 | -39 | 57 | -1 303 |
Finance income/expenses from reinsurance contracts held | 18 | 3 | 109 | -57 | 72 | |
Insurance finance result | -742 | -310 | -141 | -39 | 0 | -1 231 |
Net investment income | 1 287 | 759 | 284 | 84 | -237 | 2 177 |
Investment gains/losses | -1 | -143 | 22 | 226 | 104 | |
Investment result | 1 286 | 616 | 306 | 310 | -237 | 2 281 |
Other income | 49 | 224 | 22 | 231 | -224 | 303 |
Other expenses | -304 | -221 | -103 | -463 | 224 | -867 |
Financing costs | -269 | -136 | -34 | -50 | 237 | -252 |
Income/loss before income tax expense/benefit | 1 842 | 1 331 | 628 | -103 | 0 | 3 698 |
Income tax expense/benefit | -396 | -286 | -138 | -44 | -865 | |
Net income/loss | 1 446 | 1 045 | 490 | -147 | 0 | 2 833 |
Thereof | ||||||
Net income/loss attributable to non-controlling interests | 2 | 2 | ||||
Net income/loss attributable to common shareholders | 1 446 | 1 045 | 488 | -147 | 2 831 |
28Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Business segments – income statement
For the six months ended 30 June
2025 | Property & Casualty Reinsurance | Life & Health Reinsurance 1 | Corporate Solutions | Group items1 | Consolidation | Total |
USD millions | ||||||
Insurance revenue | 8 916 | 7 951 | 3 749 | 673 | -342 | 20 947 |
Insurance service expense | -7 088 | -6 971 | -2 835 | -684 | 112 | -17 466 |
Insurance service result before reinsurance contracts held | 1 828 | 980 | 914 | -11 | -230 | 3 481 |
Allocation of reinsurance premiums | -614 | -195 | -733 | -7 | 354 | -1 195 |
Amounts recoverable from reinsurers for incurred claims | 354 | 146 | 334 | 7 | -124 | 717 |
Net income/expenses from reinsurance contracts held | -260 | -49 | -399 | 0 | 230 | -478 |
Insurance service result | 1 568 | 931 | 515 | -11 | 0 | 3 003 |
Finance income/expenses from insurance contracts issued | -737 | -338 | -252 | -37 | 56 | -1 308 |
Finance income/expenses from reinsurance contracts held | 20 | 4 | 97 | -56 | 65 | |
Insurance finance result | -717 | -334 | -155 | -37 | 0 | -1 243 |
Net investment income | 1 269 | 764 | 264 | 76 | -278 | 2 095 |
Investment gains/losses | 68 | 47 | 31 | 188 | 334 | |
Investment result | 1 337 | 811 | 295 | 264 | -278 | 2 429 |
Other income | 33 | 81 | 17 | 294 | -279 | 146 |
Other expenses | -383 | -215 | -108 | -427 | 279 | -854 |
Financing costs | -274 | -173 | -16 | -59 | 278 | -244 |
Income/loss before income tax expense/benefit | 1 564 | 1 101 | 548 | 24 | 0 | 3 237 |
Income tax expense/benefit | -341 | -236 | -118 | 63 | -632 | |
Net income/loss | 1 223 | 865 | 430 | 87 | 0 | 2 605 |
Thereof | ||||||
Net income/loss attributable to non-controlling interests | 1 | 8 | 9 | |||
Net income/loss attributable to common shareholders | 1 222 | 865 | 422 | 87 | 2 596 |
¹ Comparative information for 2025 has been revised to reflect the reallocation of certain reinsurance transactions in run-off from L&H Reinsurance to Group items.
29Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Business segments – balance sheet
As of 30 June 2026
2026 | Property & Casualty Reinsurance | Life & Health Reinsurance | Corporate Solutions | Group items | Consolidation | Total |
USD millions | ||||||
Assets | ||||||
Cash and cash equivalents | 1 978 | 687 | 911 | 354 | 3 930 | |
Investments | ||||||
Fixed income securities | 47 142 | 25 657 | 11 205 | 812 | 84 817 | |
Equity investments | 394 | 153 | 17 | 306 | 870 | |
Mortgages and other loans | 2 457 | 6 414 | 321 | 986 | -2 197 | 7 980 |
Investment property | 2 024 | 526 | 1 | 2 550 | ||
Other invested assets | 9 070 | 551 | 309 | 258 | -803 | 9 385 |
Total investments | 61 086 | 33 301 | 11 853 | 2 362 | -2 999 | 105 602 |
Insurance contracts issued that are assets | 1 228 | 2 696 | 218 | 239 | -956 | 3 426 |
Reinsurance contracts held that are assets | 4 039 | 316 | 6 535 | -3 540 | 7 350 | |
Goodwill and other intangible assets | 1 912 | 1 797 | 277 | 23 | 4 009 | |
Income taxes recoverable | 209 | 461 | 139 | 48 | 857 | |
Deferred tax assets | 1 719 | 1 312 | 202 | 1 230 | -2 721 | 1 741 |
Other assets | 18 327 | 11 871 | 3 453 | 9 531 | -37 252 | 5 929 |
Assets held for sale | 0 | |||||
Total assets | 90 497 | 52 443 | 23 587 | 13 785 | -47 468 | 132 845 |
Liabilities | ||||||
Insurance contracts issued that are liabilities | 48 268 | 21 651 | 14 627 | 3 428 | -3 661 | 84 314 |
Reinsurance contracts held that are liabilities | 3 523 | 232 | 894 | 3 | -834 | 3 819 |
Short-term debt | 163 | 309 | -163 | 309 | ||
Long-term debt | 5 256 | 3 903 | 743 | 814 | -2 034 | 8 681 |
Income taxes payable | 522 | 142 | 170 | 224 | 1 058 | |
Deferred tax liabilities | 1 233 | 3 264 | 722 | 383 | -2 721 | 2 881 |
Other liabilities | 21 249 | 15 294 | 1 892 | 6 445 | -38 054 | 6 825 |
Liabilities held for sale | 0 | |||||
Total liabilities | 80 214 | 44 794 | 19 050 | 11 297 | -47 468 | 107 887 |
30Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Business segments – balance sheet
As of 31 December 2025
2025 | Property & Casualty Reinsurance | Life & Health Reinsurance 2 | Corporate Solutions | Group items2 | Consolidation | Total |
USD millions | ||||||
Assets | ||||||
Cash and cash equivalents | 1 297 | 627 | 505 | 314 | 2 743 | |
Investments | ||||||
Fixed income securities | 49 398 | 26 935 | 11 363 | 773 | 88 469 | |
Equity investments | 400 | 6 | 52 | 418 | 876 | |
Mortgages and other loans | 3 186 | 5 425 | 187 | 1 031 | -2 743 | 7 085 |
Investment property | 2 322 | 326 | 1 | 2 648 | ||
Other invested assets | 9 889 | 193 | 284 | 315 | -1 008 | 9 672 |
Total investments | 65 194 | 32 884 | 11 886 | 2 538 | -3 752 | 108 750 |
Insurance contracts issued that are assets | 1 266 | 2 608 | 188 | 244 | -992 | 3 314 |
Reinsurance contracts held that are assets | 4 051 | 348 | 6 303 | -3 573 | 7 128 | |
Goodwill and other intangible assets | 1 912 | 1 799 | 277 | 32 | 4 020 | |
Income taxes recoverable | 127 | 484 | 137 | 44 | 793 | |
Deferred tax assets | 1 525 | 1 270 | 203 | 1 187 | -2 428 | 1 758 |
Other assets | 16 147 | 12 103 | 4 102 | 7 849 | -34 830 | 5 370 |
Assets held for sale¹ | 131 | 131 | ||||
Total assets | 91 519 | 52 123 | 23 600 | 12 339 | -45 575 | 134 007 |
Liabilities | ||||||
Insurance contracts issued that are liabilities | 49 573 | 22 436 | 14 672 | 3 485 | -3 694 | 86 471 |
Reinsurance contracts held that are liabilities | 3 795 | 213 | 897 | 4 | -872 | 4 039 |
Short-term debt | 211 | 742 | -658 | 295 | ||
Long-term debt | 4 441 | 4 333 | 743 | 810 | -2 085 | 8 242 |
Income taxes payable | 375 | 129 | 182 | 162 | 848 | |
Deferred tax liabilities | 1 227 | 3 015 | 616 | 370 | -2 428 | 2 800 |
Other liabilities | 20 461 | 13 694 | 1 550 | 5 555 | -35 839 | 5 423 |
Liabilities held for sale¹ | 151 | 151 | ||||
Total liabilities | 80 083 | 44 562 | 18 660 | 10 537 | -45 575 | 108 269 |
² Comparative information for 2025 has been revised to reflect the reallocation of certain reinsurance transactions in run-off from L&H Reinsurance to Group items.
31Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
3 Insurance information
The following table sets out the detail of insurance contracts issued net position as of 30 June 2026 and 31 December 2025:
USD millions | 2026 | 2025 |
Closing assets | -3 426 | -3 314 |
Closing liabilities | 84 314 | 86 471 |
Net liabilities for insurance contracts issued excluding held for sale | 80 887 | 83 157 |
Net payables/receivables that have not yet been allocated to a portfolio of insurance contracts | -2 252 | -1 762 |
Net liabilities for insurance contracts issued excluding held for sale and unallocated payables/receivables | 78 635 | 81 395 |
Insurance asset/liability held for sale | 120 | |
Net liabilities for insurance contracts issued including held for sale and excluding unallocated payables/ receivables | 78 635 | 81 516 |
The following disclosures are based on the net insurance contract liabilities excluding unallocated payables/receivables and including net
insurance asset/liability held for sale as presented above.
Insurance contracts issued
A reconciliation of the opening and closing balances is presented as follows for the six months ended 30 June:
USD millions | 2026 | 2025 |
Net (assets)/liabilities for insurance contracts issued as of 1 January | 81 516 | 80 342 |
Expected incurred claims and other insurance service expenses | -15 921 | -16 012 |
Changes in risk adjustment | -586 | -591 |
Contractual service margin recognised for services provided | -2 776 | -3 157 |
Experience adjustment for premium receipts related to current and past services | 471 | 426 |
Recovery of insurance acquisition cash flows | -1 452 | -1 613 |
Insurance revenue | -20 264 | -20 947 |
Insurance service expense | 16 085 | 17 466 |
Insurance service result | -4 179 | -3 481 |
Finance income/expenses from insurance contracts issued | 816 | 1 745 |
Effect of foreign exchange | -417 | 3 170 |
Total changes in profit or loss and other comprehensive income | -3 779 | 1 434 |
Cash flows | 1 038 | 771 |
Other movements | -140 | |
Net (assets)/liabilities for insurance contracts issued as of 30 June | 78 635 | 82 547 |
32Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Insurance contracts issued: measurement components
A reconciliation of the opening and closing balances for insurance contract liabilities analysed by measurement component is presented as
follows for the six months ended 30 June:
2026 | Estimates of the present value of future cash flows | Risk adjustment | Contractual service margin | Total |
USD millions | ||||
Net (assets)/liabilities for insurance contracts issued as of 1 January | 52 916 | 8 210 | 20 390 | 81 516 |
Contractual service margin recognised for services provided | -2 776 | -2 776 | ||
Changes in fulfilment cash flows (past/current) | -1 451 | -640 | -2 091 | |
Contracts initially recognised in period | -2 732 | 644 | 2 527 | 440 |
Changes in estimates (future) | 241 | -50 | 57 | 249 |
Insurance service result | -3 941 | -46 | -192 | -4 179 |
Finance income/expenses from insurance contracts issued | 380 | 93 | 343 | 816 |
Effect of foreign exchange | -224 | -31 | -162 | -417 |
Total changes in profit or loss and other comprehensive income | -3 784 | 15 | -11 | -3 779 |
Cash flows | 1 038 | 1 038 | ||
Other movements | -123 | -16 | -1 | -140 |
Net (assets)/liabilities for insurance contracts issued as of 30 June | 50 047 | 8 209 | 20 379 | 78 635 |
2025 | Estimates of the present value of future cash flows | Risk adjustment | Contractual service margin | Total |
USD millions | ||||
Net (assets)/liabilities for insurance contracts issued as of 1 January | 51 490 | 8 231 | 20 621 | 80 342 |
Contractual service margin recognised for services provided | -3 157 | -3 157 | ||
Changes in fulfilment cash flows (past/current) | -52 | -644 | -696 | |
Contracts initially recognised in period | -4 017 | 692 | 3 600 | 275 |
Changes in estimates (future) | 223 | 60 | -186 | 97 |
Insurance service result | -3 846 | 108 | 257 | -3 481 |
Finance income/expenses from insurance contracts issued | 1 150 | 223 | 372 | 1 745 |
Effect of foreign exchange | 2 037 | 279 | 854 | 3 170 |
Total changes in profit or loss and other comprehensive income | -659 | 610 | 1 483 | 1 434 |
Cash flows | 771 | 771 | ||
Other movements | ||||
Net (assets)/liabilities for insurance contracts issued as of 30 June | 51 602 | 8 841 | 22 104 | 82 547 |
33Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
4 Other re/insurance disclosures
Total investment result and net insurance finance result
The tables below present an analysis of total investment result and net insurance finance result recognised in profit or loss and other
comprehensive income for the six months ended 30 June.
2026 | Recognised in profit or loss | Recognised in OCI | Total |
USD millions | |||
Net investment income | 2 177 | 2 177 | |
Investment gains/losses | 104 | 104 | |
Foreign currency translation | -240 | -240 | |
Cost of hedging | -2 | -2 | |
Net unrealised investment gains/losses on fixed income securities | -464 | -464 | |
Net unrealised investment gains/losses on equity investments | -118 | -118 | |
Share of other comprehensive income of equity-method investments | 1 | 1 | |
Total investment return | 2 281 | -824 | 1 457 |
Finance income/expenses from insurance contracts issued | -1 303 | 390 | -913 |
Finance income/expenses from reinsurance contracts held | 72 | -26 | 46 |
Total insurance finance result | -1 231 | 364 | -867 |
2025 | Recognised in profit or loss | Recognised in OCI | Total |
USD millions | |||
Net investment income | 2 095 | 2 095 | |
Investment gains/losses | 334 | 334 | |
Foreign currency translation | 175 | 175 | |
Cost of hedging | 7 | 7 | |
Net unrealised investment gains/losses on fixed income securities | 279 | 279 | |
Net unrealised investment gains/losses on equity investments | 8 | 8 | |
Share of other comprehensive income of equity-method investments | 7 | 7 | |
Total investment return | 2 429 | 476 | 2 905 |
Finance income/expenses from insurance contracts issued | -1 308 | -291 | -1 599 |
Finance income/expenses from reinsurance contracts held | 65 | 22 | 87 |
Total insurance finance result | -1 243 | -269 | -1 512 |
Risk adjustment
As of 30 June 2026 and 31 December 2025, the level of risk adjustment net of reinsurance held as measured by the Group corresponds to
a confidence level on the ultimate loss distribution of 78% and 78%, respectively.
34Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Discount rates
For cash flows that do not vary based on the returns on underlying items, the Group determines the IFRS 17 discount rates using a bottom-
up approach based on government bond yields, extrapolated towards an ultimate forward rate set by the Group, which reflects long-term
real interest rate and inflation expectations. Although the ultimate forward rate is subject to revision, it is expected to be stable and would
change only as a result of significant changes to long-term expectations. The tables below set out the yield curves used to discount the cash
flows of insurance contracts for major currencies as of 30 June 2026 and 31 December 2025.
2026 | 1 year | 5 years | 10 years | 20 years | 30 years | 50 years |
Currency | ||||||
AUD | 4.541% | 4.446% | 4.843% | 5.349% | 5.579% | 5.071% |
CAD | 2.554% | 3.063% | 3.452% | 3.780% | 3.923% | 3.945% |
CNY | 1.174% | 1.438% | 1.773% | 2.288% | 2.314% | 2.957% |
EUR | 2.520% | 2.752% | 3.187% | 3.746% | 3.920% | 3.947% |
GBP | 4.075% | 4.329% | 4.973% | 5.616% | 5.773% | 5.009% |
JPY | 1.163% | 1.915% | 2.714% | 3.768% | 4.177% | 4.005% |
USD | 4.044% | 4.265% | 4.508% | 5.199% | 5.091% | 4.611% |
2025 | 1 year | 5 years | 10 years | 20 years | 30 years | 50 years |
Currency | ||||||
AUD | 4.002% | 4.347% | 4.868% | 5.350% | 5.504% | 5.019% |
CAD | 2.435% | 3.041% | 3.518% | 3.884% | 4.001% | 4.009% |
CNY | 1.292% | 1.627% | 1.897% | 2.425% | 2.313% | 2.936% |
EUR | 2.068% | 2.611% | 3.191% | 3.772% | 4.008% | 4.054% |
GBP | 3.643% | 3.978% | 4.677% | 5.306% | 5.464% | 4.563% |
JPY | 0.914% | 1.555% | 2.082% | 3.069% | 3.551% | 3.861% |
USD | 3.525% | 3.766% | 4.230% | 5.086% | 5.076% | 4.623% |
Direct allocation of assets to groups of re/insurance contracts
IFRS requires disclosures for groups of re/insurance contracts for which the option to recognise components of re/insurance finance income
or expenses directly in other comprehensive income (OCI) at the transition date has been exercised and to which a portfolio of assets is
directly allocated, with fair value changes on those assets also recognised directly in OCI. There are no material circumstances where
Swiss Re directly allocates assets to groups of re/insurance contracts based on the transition method used.
35Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
5 Investments
Investment result
Net investment income
For the six months ended 30 June, net investment income from financial assets, by measurement category, and other investment income
and expenses were as follows:
Investment income from financial assets measured at: | |||||||
2026 | Fair value through other comprehensive income | Fair value through other comprehensive income (designated) | Fair value through profit or loss | Fair value through profit or loss (designated) | Amortised cost | Other | Total |
USD millions | |||||||
Fixed income securities | 1 651 | 107 | 2 | 1 760 | |||
Equity investments | 1 | 1 | 3 | ||||
Investment property | 129 | 129 | |||||
Mortgages and other loans | -3 | 214 | 211 | ||||
Share in earnings of equity-method investments | 23 | 23 | |||||
Cash and cash equivalents | 6 | 41 | 46 | ||||
Other | 119 | 71 | 191 | ||||
Gross investment income | 1 651 | 1 | 230 | 2 | 326 | 152 | 2 362 |
Investment expenses | -184 | -184 | |||||
Net investment income | 1 651 | 1 | 230 | 2 | 326 | -33 | 2 177 |
Investment income from financial assets measured at: | |||||||
2025 | Fair value through other comprehensive income | Fair value through other comprehensive income (designated) | Fair value through profit or loss | Fair value through profit or loss (designated) | Amortised cost | Other | Total |
USD millions | |||||||
Fixed income securities | 1 604 | 140 | 2 | 1 746 | |||
Equity investments | 4 | 1 | 5 | ||||
Investment property | 122 | 122 | |||||
Mortgages and other loans | 1 | 202 | 203 | ||||
Share in earnings of equity-method investments | 12 | 12 | |||||
Cash and cash equivalents | 7 | 52 | 59 | ||||
Other | 77 | 65 | 142 | ||||
Gross investment income | 1 604 | 4 | 226 | 2 | 319 | 134 | 2 289 |
Investment expenses | -194 | -194 | |||||
Net investment income | 1 604 | 4 | 226 | 2 | 319 | -60 | 2 095 |
Interest revenue from financial assets measured at amortised cost and fair value through other comprehensive income, calculated using
the effective interest method, amounted to USD 1 990 million and USD 1 945 million for the six months ended 30 June 2026 and
2025, respectively. Thereof, USD 37 million and USD 43 million were recognised in Other income in the income statement for the six
months ended 30 June 2026 and 2025, respectively.
36Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Investment gains/losses
For the six months ended 30 June, investment gains and/or losses from financial assets, by measurement category, and other investment
gains and losses were as follows:
Investment gains/losses from financial assets measured at: | ||||||
2026 | Fair value through other comprehensive income | Fair value through profit or loss | Fair value through profit or loss (designated) | Amortised cost | Other | Total |
USD millions | ||||||
Un/realised gains/losses on: | ||||||
Fixed income securities | 50 | -32 | 2 | 20 | ||
Equity investments | 7 | 7 | ||||
Investment property | 107 | 107 | ||||
Equity-method investments | 4 | 4 | ||||
Insurance-related derivatives | -176 | -176 | ||||
Other | -70 | 1 | -70 | |||
Impairment-related gains/losses from: | ||||||
Change in expected credit losses | 1 | -19 | -19 | |||
Other impairments¹ | -5 | -5 | ||||
Reversals of other impairments² | 5 | 5 | ||||
Foreign exchange gains/losses | 230 | 230 | ||||
Investment gains/losses | 50 | -272 | 2 | -19 | 341 | 104 |
Investment gains/losses from financial assets measured at: | ||||||
2025 | Fair value through other comprehensive income | Fair value through profit or loss | Fair value through profit or loss (designated) | Amortised cost | Other | Total |
USD millions | ||||||
Un/realised gains/losses on: | ||||||
Fixed income securities | -60 | -34 | 1 | -93 | ||
Equity investments | 5 | 5 | ||||
Investment property | 4 | 4 | ||||
Equity-method investments | 209 | 209 | ||||
Insurance-related derivatives | 31 | 31 | ||||
Other | 3 | 3 | ||||
Impairment-related gains/losses from: | ||||||
Change in expected credit losses | -7 | -2 | -9 | |||
Other impairments¹ | -6 | -6 | ||||
Reversals of other impairments | 0 | |||||
Foreign exchange gains/losses | 190 | 190 | ||||
Investment gains/losses | -67 | 5 | 1 | -2 | 397 | 334 |
¹Other impairments of USD 5 million and USD 6 million relate to equity-method investments for the six months ended 30 June 2026 and 2025, respectively.
²Reversals of other impairments relate to investment property.
37Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Carrying amounts of investments and other liabilities
Total investments by measurement category
As of 30 June 2026 and 31 December 2025, the carrying amounts of financial assets, by measurement category, and non-financial assets
were as follows:
Financial assets by measurement category | ||||||||
2026 | Fair value through other comprehensive income¹ | Fair value through other comprehensive income (designated) | Fair value through profit or loss | Fair value through profit or loss (designated) | Amortised cost² | Non-financial assets | Reclassified to assets held for sale | Total |
USD millions | ||||||||
Cash and cash equivalents | 234 | 3 696 | 3 930 | |||||
Investments | ||||||||
Fixed income securities | 82 108 | 2 575 | 133 | 84 817 | ||||
Equity investments | 654 | 216 | 870 | |||||
Mortgages and other loans | 16 | 7 964 | 7 980 | |||||
Investment property | 2 550 | 2 550 | ||||||
Other invested assets, thereof: | 5 228 | 3 631 | 526 | 9 385 | ||||
Derivative financial instruments | 475 | 475 | ||||||
Reverse repurchase agreements | 2 433 | 2 433 | ||||||
Securities borrowing | 246 | 246 | ||||||
Equity-method investments | 526 | 526 | ||||||
Private equity funds | 3 646 | 3 646 | ||||||
Other³ | 1 107 | 952 | 2 059 | |||||
Total investments | 82 108 | 654 | 8 036 | 133 | 11 594 | 3 076 | 0 | 105 602 |
Financial assets by measurement category | ||||||||
2025 | Fair value through other comprehensive income¹ | Fair value through other comprehensive income (designated) | Fair value through profit or loss | Fair value through profit or loss (designated) | Amortised cost² | Non-financial assets | Reclassified to assets held for sale | Total |
USD millions | ||||||||
Cash and cash equivalents | 260 | 2 490 | -7 | 2 743 | ||||
Investments | ||||||||
Fixed income securities | 85 452 | 3 038 | 127 | -148 | 88 469 | |||
Equity investments | 710 | 166 | 876 | |||||
Mortgages and other loans | 11 | 7 074 | 7 085 | |||||
Investment property | 2 648 | 2 648 | ||||||
Other invested assets, thereof: | 5 833 | 3 280 | 560 | 9 672 | ||||
Derivative financial instruments | 416 | 416 | ||||||
Reverse repurchase agreements | 2 359 | 2 359 | ||||||
Securities borrowing | 433 | 433 | ||||||
Equity-method investments | 560 | 560 | ||||||
Private equity funds | 3 747 | 3 747 | ||||||
Other³ | 1 670 | 488 | 2 158 | |||||
Total investments | 85 452 | 710 | 9 048 | 127 | 10 354 | 3 208 | -148 | 108 750 |
¹The carrying amount of financial assets measured at fair value through other comprehensive income corresponds to fair value, and the allowance for ECL is recognised in
Other comprehensive income.
²The carrying amount of financial assets measured at amortised cost is net of ECL allowances.
³Includes an equity ETF of USD 1 billion and USD 1.5 billion structured with a total return swap, measured at fair value through profit and loss, as of 30 June 2026 and
31 December 2025, respectively.
38Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Financial assets measured at amortised cost with a carrying amount of USD 2 582 million and USD 2 084 million as of 30 June 2026
and 31 December 2025, respectively, were included in Other assets.
Financial assets measured at fair value through profit and loss and financial assets designated at fair value through profit and loss with
a carrying amount of USD 867 million and USD 772 million as of 30 June 2026 and 31 December 2025, respectively, were included
in Other assets.
Financial assets subject to contractual cash flow adjustments
The Group holds certain financial assets with contractual features for which the amount of contractual cash flows may be adjusted
based on the occurrence of contingent events unrelated to changes in fundamental lending risks and costs. Contingent events include
the achievement of ESG (Environmental, Social and Governance) targets and the failure to meet requirements to register with financial
market regulators.
The impact of contingent features on the contractual cash flows is limited to adjustments to the contractual interest rate and is not
considered significant. The Group has determined a change to be not significant when the cumulative adjustment to the contractual
interest does not exceed 20% on a relative basis or 70 basis points on an absolute basis. The cumulative change is measured over the
lifetime of the financial instrument on an undiscounted basis. The resulting range of changes in contractual cash flows is constrained
within these thresholds.
As of 30 June 2026 and 31 December 2025, the gross carrying amounts of financial assets subject to such contractual terms amounted
to USD 443 million and USD 524 million, respectively.
Other liabilities by measurement category
As of 30 June 2026 and 31 December 2025, the carrying amounts of financial liabilities, by measurement category, and non-financial
liabilities were as follows:
Financial liabilities by measurement category | |||||
2026 | Fair value through profit or loss | Amortised cost | Non-financial liabilities | Reclassified to liabilities held for sale | Total |
USD millions | |||||
Other liabilities | |||||
Derivative financial instruments | 683 | 683 | |||
Repurchase agreements | 10 | 10 | |||
Securities lending | 45 | 45 | |||
Securities sold short | 621 | 621 | |||
Other | 3 179 | 2 287 | 5 466 | ||
Other liabilities | 1 304 | 3 235 | 2 287 | 0 | 6 825 |
Financial liabilities by measurement category | |||||
2025 | Fair value through profit or loss | Amortised cost | Non-financial liabilities | Reclassified to liabilities held for sale | Total |
USD millions | |||||
Other liabilities | |||||
Derivative financial instruments | 626 | 626 | |||
Repurchase agreements | 76 | 76 | |||
Securities lending | 3 | 3 | |||
Securities sold short | 619 | 619 | |||
Other | 1 709 | 2 408 | -18 | 4 099 | |
Other liabilities | 1 245 | 1 788 | 2 408 | -18 | 5 423 |
39Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Risk concentration of fixed income securities, and mortgages and other loans
As of 30 June 2026 and 31 December 2025, the risk concentration of fixed income securities, by country of issuance, was as follows:
USD millions | 2026 | 2025 |
Debt securities issued by governments and government agencies: | ||
US Treasury and other US government corporations and agencies | 10 896 | 13 703 |
US Agency securitised products | 4 990 | 5 481 |
States of the United States and political subdivisions of the states | 1 080 | 1 125 |
Canada | 3 454 | 3 293 |
France | 3 243 | 2 752 |
United Kingdom | 3 243 | 3 585 |
Australia | 2 237 | 2 149 |
Germany | 2 077 | 2 153 |
Japan | 1 472 | 2 198 |
Other | 9 517 | 10 340 |
Total | 42 208 | 46 779 |
Corporate debt securities¹ | 36 271 | 35 956 |
Securitised products | 6 337 | 5 882 |
Reclassified to assets held for sale | -148 | |
Fixed income securities | 84 817 | 88 469 |
¹Includes corporate debt securities of USD 22 099 million and USD 22 041 million issued in the US as of 30 June 2026 and 31 December 2025, respectively. There are no other
significant risk concentrations.
As of 30 June 2026 and 31 December 2025, the risk concentration of mortgages and other loans, by country of issuance, was as follows:
USD millions | 2026 | 2025 |
United States | 3 846 | 3 274 |
United Kingdom | 2 086 | 1 968 |
Australia | 492 | 409 |
Germany | 341 | 385 |
France | 232 | 263 |
Other | 982 | 788 |
Mortgages and other loans | 7 980 | 7 085 |
Equity instruments designated at FVOCI
The Group has designated certain equity investments as measured at FVOCI because it intends to hold them long term.
As of 30 June 2026 and 31 December 2025, the fair value of equity investments designated at FVOCI amounted to
USD 654 million and USD 710 million, respectively. Thereof, USD 265 million and USD 148 million, respectively, were unlisted
investments, predominantly in insurance companies.
Fair value changes recognised in Other comprehensive income for the six months ended 30 June 2026 and 2025 amounted to losses of
USD 119 million and USD 1 million, respectively.
For the six months ended 30 June 2026 and 2025, dividend income recognised on equity investments designated at FVOCI and held at
the end of the reporting period amounted to USD 1 million and USD 4 million, respectively.
Derecognition of equity instruments designated at FVOCI
During the six months ended 30 June 2026, equity instruments designated at FVOCI with a fair value of USD 81 million were derecognised
due to being redeemed or sold.
Corresponding cumulative gains of USD 15 million were reclassified from other comprehensive income to retained earnings.
40Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Maturity analysis for financial assets and financial liabilities
Maturity analysis for financial assets
As of 30 June 2026 and 31 December 2025, the carrying amounts of fixed income securities and mortgages and other loans, by remaining
maturity, were as follows:
USD millions | 2026 | 2025 | ||
Fixed income securities | Mortgages and other loans | Fixed income securities | Mortgages and other loans | |
Due within one year | 16 770 | 440 | 18 822 | 370 |
Due between one and five years | 25 353 | 2 849 | 25 668 | 2 950 |
Due between five and ten years | 16 353 | 2 109 | 16 515 | 1 648 |
Due after ten years | 21 437 | 2 499 | 23 295 | 2 057 |
Securitised products with no fixed maturity | 4 905 | 83 | 4 316 | 61 |
Reclassified to assets held for sale | -148 | |||
Total carrying amount | 84 817 | 7 980 | 88 469 | 7 085 |
Maturity analysis for financial liabilities
As of 30 June 2026 and 31 December 2025, the total undiscounted cash flows of insurance contracts without significant risk transfer, by
remaining maturity, were as follows:
USD millions | 2026 | 2025 |
Insurance contracts without significant risk transfer | Insurance contracts without significant risk transfer | |
Due within one year | 77 | 138 |
Due between one and five years | 111 | 66 |
Due between five and ten years | 28 | 28 |
Due after ten years | 123 | 121 |
Total undiscounted cash flows | 339 | 353 |
Insurance contracts without significant risk transfer are presented within Other liabilities.
41Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Offsetting of financial assets and financial liabilities
As of 30 June 2026 and 31 December 2025, offsetting of derivatives, financial assets and financial liabilities was as follows:
2026 | Gross amounts of recognised financial assets | Amounts set off in the balance sheet | Net amounts of financial assets presented on the balance sheet | Related financial liabilities not set off in the balance sheet | Related collateral not set off in the balance sheet | Net amount |
USD millions | ||||||
Derivative financial instruments – assets | 475 | 475 | -146 | -196 | 133 | |
Reverse repurchase agreements | 4 037 | -1 605 | 2 433 | -2 433 | 0 | |
Securities borrowing | 246 | 246 | -246 | 0 | ||
Total | 4 758 | -1 605 | 3 153 | -146 | -2 875 | 133 |
2026 | Gross amounts of recognised financial liabilities | Amounts set off in the balance sheet | Net amounts of financial liabilities presented on the balance sheet | Related financial assets not set off in the balance sheet | Related collateral not set off in the balance sheet | Net amount |
USD millions | ||||||
Derivative financial instruments – liabilities | -683 | -683 | 146 | 400 | -137 | |
Repurchase agreements | -1 615 | 1 605 | -10 | 10 | 0 | |
Securities lending | -45 | -45 | 45 | 0 | ||
Total | -2 343 | 1 605 | -738 | 146 | 455 | -137 |
2025 | Gross amounts of recognised financial assets | Amounts set off in the balance sheet | Net amounts of financial assets presented on the balance sheet | Related financial liabilities not set off in the balance sheet | Related collateral not set off in the balance sheet | Net amount |
USD millions | ||||||
Derivative financial instruments – assets | 416 | 416 | -204 | -83 | 130 | |
Reverse repurchase agreements | 4 339 | -1 980 | 2 359 | -2 359 | 0 | |
Securities borrowing | 455 | -21 | 433 | -433 | 0 | |
Total | 5 209 | -2 001 | 3 208 | -204 | -2 875 | 130 |
2025 | Gross amounts of recognised financial liabilities | Amounts set off in the balance sheet | Net amounts of financial liabilities presented on the balance sheet | Related financial assets not set off in the balance sheet | Related collateral not set off in the balance sheet | Net amount |
USD millions | ||||||
Derivative financial instruments – liabilities | -626 | -626 | 204 | 324 | -98 | |
Repurchase agreements | -1 656 | 1 580 | -76 | 76 | 0 | |
Securities lending | -424 | 421 | -3 | 3 | 0 | |
Total | -2 706 | 2 001 | -705 | 204 | 403 | -98 |
The Group reports net amounts of financial assets and liabilities on the balance sheet if i) it has a legally enforceable right to set off the
recognised amounts in the normal course of business, in the event of default, and in the event of insolvency or bankruptcy of the Group
and all the counterparties; and ii) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. To
reduce credit risk exposure between counterparties, the Group enters into various netting agreements, including repurchase and reverse
repurchase transactions, securities borrowing and securities lending arrangements. The Group meets offsetting requirements for some
repurchase and reverse repurchase arrangements and for some securities lending and securities borrowing arrangements. Generally,
International Swaps and Derivatives Association (ISDA) agreements related to derivative financial instruments do not meet the criteria
for offsetting under IAS 32 Financial instruments – Presentation as they normally foresee the right to offset the assets and liabilities only
in the event of bankruptcy or similar events. Upon occurrence of a default event, the non-defaulting party sets off the obligation against
all outstanding transactions and collateral received under the agreement, which substantially reduces credit risk exposure. In addition,
there is no intention by the Group to realise the derivative assets and to settle the derivative liabilities simultaneously or to settle them on
a net basis.
Collateral pledged or received between two counterparties with a master netting arrangement or similar arrangement in place, but not
subject to balance sheet netting, is disclosed at fair value. The fair values represent the gross carrying value amounts at the reporting date
for each financial instrument received or pledged by the Group. The net amounts of the financial assets and liabilities presented on the
balance sheet are recognised in Other invested assets and Other liabilities, respectively.
42Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Transferred assets and collateral
Collateral pledged by the Group excluding securities lending and repurchase agreements
As of 30 June 2026 and 31 December 2025, financial assets (excluding cash and cash equivalents) and investments in consolidated
Swiss Re funds with a carrying value of USD 12 814 million and USD 13 863 million, respectively, were placed on deposit with regulatory
agencies or posted to secure certain reinsurance, derivative and debt liabilities.
As of 30 June 2026 and 31 December 2025, a real estate portfolio with a carrying value of USD 240 million and USD 247 million,
respectively, served as collateral for a credit facility.
Financial assets transferred by the Group for securities lending and repurchase agreements
As of 30 June 2026 and 31 December 2025, securities transferred to unrelated parties under securities lending transactions and
repurchase agreements, in which the counterparties obtain the right to sell or repledge the assets, by class of financial asset, were as
follows:
USD millions | 2026 | 2025 |
Cash equivalents | 243 | 352 |
Fixed income securities | 17 453 | 18 096 |
Equity investments | 2 | |
Total investments | 17 698 | 18 448 |
Corresponding liabilities recognised for the obligation to return cash collateral | 55 | 79 |
Non-cash collateral received by the Group with the right to sell or repledge in the absence of default by the owner
The Group holds equity securities as well as government and corporate debt securities as collateral.
As of 30 June 2026 and 31 December 2025, the fair value of financial assets accepted as collateral and other securities received where
the Group is permitted to sell or repledge was USD 23 249 million and USD 23 897 million, respectively. Thereof, USD 3 205 million and
USD 2 440 million was sold or repledged as of 30 June 2026 and 31 December 2025, respectively. Securities received are not
recognised in the balance sheet and the Group is obliged to return equivalent securities.
43Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Investment property
A reconciliation of the opening and closing balances for the carrying amount of investment property is presented as follows for the
periods ended 30 June 2026 and 31 December 2025:
USD millions | 2026 | 2025 |
Gross carrying amount as of 1 January | 3 905 | 3 648 |
Additions | ||
From purchases | ||
From subsequent expenditure recognised as an asset | 45 | 106 |
Disposals | -139 | -197 |
Transfer to and from owner-occupied property | 1 | |
Effect of foreign exchange | -61 | 336 |
Other movements | 1 | 11 |
Gross carrying amount as of period end | 3 750 | 3 905 |
Cumulative depreciation and impairment as of 1 January | -1 256 | -1 233 |
Depreciation | -32 | -64 |
Impairments¹ | -14 | |
Reversals of impairments¹ | 5 | 32 |
Disposals | 63 | 123 |
Transfer to and from owner-occupied property | ||
Effect of foreign exchange | 20 | -116 |
Other movements | 16 | |
Cumulative depreciation and impairment as of period end | -1 200 | -1 256 |
Carrying amount | 2 550 | 2 648 |
Fair value | 5 956 | 6 155 |
¹Impairment losses and reversals of impairment losses recognised for the periods ended 30 June 2026 and 31 December 2025 were driven by updated appraisals.
As of 30 June 2026, the Group classified investment properties as held for sale. The investment properties are allocated to the
Property & Casualty Reinsurance business segment.
Amounts recognised in profit or loss
Rental income and direct operating expenses recognised in relation to investment property for the six months ended 30 June were
as follows:
USD millions | 2026 | 2025 |
Rental income from investment property | 129 | 122 |
Direct operating expenses arising from investment property that generated rental income during the period | -33 | -33 |
Total amount recognised in profit or loss | 96 | 89 |
44Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
6 Fair value disclosures
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. Assets and liabilities measured at fair value and assets and liabilities not measured at fair value but
for which the fair value is disclosed are categorised within the fair value hierarchy. This three-level hierarchy is based on the observability
of the inputs used in the fair value measurement. The levels of the fair value hierarchy are defined as follows:
Level 1 inputs are unadjusted, quoted prices in active markets for identical assets or liabilities that the Group has the ability to access.
Level 1 inputs are the most persuasive evidence of fair value and are to be used whenever possible. The types of instruments categorised
within level 1 include active government and government agency securities, corporate debt securities, active listed equities, certain
exchange-traded derivative instruments and most exchange-traded funds.
Level 2 inputs are market-based inputs that are directly or indirectly observable, but not considered level 1 quoted prices. Level 2 inputs
consist of i) quoted prices for similar assets or liabilities in active markets; ii) quoted prices for identical assets or liabilities in non-active
markets (eg markets which have few transactions and where prices are not current, or price quotations vary substantially); iii) inputs other
than quoted prices that are observable (eg interest rates, yield curves, volatilities, prepayment speeds, credit risks and default rates); iv)
inputs derived from, or corroborated by, observable market data; and v) quoted prices provided by third-party brokers. The types of
instruments that trade in markets that are not considered to be active include most government and government agency securities, certain
investment-grade corporate debt securities, securitised products, certain over-the-counter (OTC) and non-exchange-traded derivative
instruments and less liquid listed equities.
Level 3 inputs are unobservable inputs. These inputs generally reflect the Group’s own assumptions about market pricing using the best
internal and external information available. Certain financial instruments are categorised within level 3 of the fair value hierarchy because
they trade infrequently and therefore have little or no price transparency. Such instruments include less liquid corporate debt securities and
certain securitised products, private equity and private equity funds. Certain OTC derivatives trade in less liquid markets with limited pricing
information and the determination of fair value for these derivatives is inherently more difficult. When appropriate, valuations are adjusted
for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market
evidence. In the absence of such evidence, management’s best estimate is used.
In certain situations, the Group uses inputs to measure the fair value of asset or liability positions that fall into different levels of the fair value
hierarchy. In these situations, the Group will determine the appropriate level based on the lowest level input that is significant to the
determination of the fair value.
Valuation techniques
Cash and cash equivalents mainly consist of publicly traded money market funds (MMFs), which are valued using net asset value (NAV).
Valuations of NAV are derived from public exchanges. MMFs are therefore classified as level 1 instruments.
Fixed income securities mainly comprise debt securities issued by governments and government agencies, corporate debt securities
including insurance-linked securities, and securitised products, of which the majority are mortgage- and asset-backed securities, as well
as collateralised loans.
Debt securities issued by governments and government agencies, which have quoted market prices in active markets, are categorised as
level 1 instruments within the fair value hierarchy. Securities, which are not observed to have active markets, are generally classified as
level 2 instruments. They are valued using independent pricing providers (vendors). Pricing providers utilise a variety of observable market
data in the valuation process, including executed trade information and quotes (ie broker, interdealer broker, exchange and clearing
house). Valuations provided by vendors are generally based on executable trade information as most of the Group’s government holdings
are traded in a transparent and liquid market.
Corporate debt securities mainly include US and European investment-grade positions, which are priced by utilising inputs from third-party
pricing providers (vendors). Pricing providers utilise observable market inputs where available in the valuation process, with emphasis
placed on executed trades, executable dealer quotes (price, yields and spread) and dealer indications. Instruments where valuation is
derived from executable trade information are categorised as level 1 instruments. Where market data (direct executable) is not available for
a specific instrument, valuations are developed based on a variety of pricing techniques, including utilising an implied and interpolated
issuer curve, which is developed using observable quotes and traded prices as proxies, incorporating considerations of the security’s credit
rating, maturity, liquidity, seniority and call features. Other modelling techniques (eg relative yield analysis, peer proxy/comparable) utilise
observable inputs and option-adjusted spreads and incorporate considerations of the security’s seniority, maturity and the issuer’s
corporate structure. When pricing is based on indirect observable data, or direct observable data in markets that are not considered active,
instruments are categorised within level 2, or level 3 when unobservable inputs are required. Most of the level 3 instruments are valued
based on bid-market indications provided by third-party pricing vendors.
45Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Fair values of mortgage- and asset-backed securities are obtained both from third-party pricing vendors, quoted prices and internal
valuation models; some of which may be based on the prices of comparable securities with similar structural and collateral features. For
both, residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS), cash flows are derived based
on the transaction-specific information, which incorporates priority in the deal structure, and are generally adjusted to reflect benchmark
yields, market prepayment data, collateral performance (default rates and loss severity) for specific vintage and geography, credit
enhancements and ratings. For certain RMBS and CMBS with low levels of market liquidity, judgements may be required to determine
comparable securities based on the loan type and deal-specific performance. The factors specifically considered in the valuation of CMBS
include borrower-specific statistics in a specific region, such as debt service coverage and loan-to-value ratios, as well as the type of
commercial property. Asset-backed securities also includes debt securitised by credit card, student loan and auto loan receivables. Pricing
inputs for these securities focus on capturing, where relevant, collateral quality and performance, payment patterns and delinquencies.
Consequently, the majority of mortgage- and asset-backed securities are categorised within level 2 of the fair value hierarchy.
Equity investments primarily include private equity investments. The fair value of such instruments is mainly derived by internal valuation
models (eg Discounted Cash Flow model and Financial Statement modelling) utilising judgmental assumptions in defining inputs.
Consequently, equity investments are mainly classified within level 3 of the fair value hierarchy.
Mortgages and other loans are mainly categorised within level 3 of the fair value hierarchy due to their individually tailored nature. This
results in the absence of directly observable exit prices and/or only limited indirect observable inputs. For middle market loans, certain
commercial mortgage loans, private securitisations and infrastructure loans the fair value can be estimated using discounted cash flow
models, which are based on discount curves and spread inputs that require management’s judgement.
The Group holds both exchange-traded and OTC interest rate, foreign exchange, credit and equity derivative contracts for hedging and
trading purposes. The fair values of exchange-traded derivatives measured using observable exchange prices are classified as level 1.
Long-dated contracts may require adjustments to the exchange-traded prices, which would trigger reclassification to level 2 in the fair
value hierarchy. OTC derivatives are generally valued by the Group based on the internal models, which are consistent with industry
standards and practices, and use both observable (dealer, broker or market consensus prices, spot and forward rates, interest rate and
credit curves and volatility indices) and unobservable inputs (adjustments for liquidity, inputs derived from the observable data based on
the Group’s judgements and assumptions). The Group’s OTC interest rate derivatives primarily include interest rate swaps, futures,
options, caps and floors and are valued based on discounted cash flow models, which generally utilise as inputs observable market yield
curves and volatility assumptions. The Group’s OTC foreign exchange derivatives primarily include forward spot and option contracts and
are generally valued based on discounted cash flow models, utilising as main inputs observable foreign exchange forward curves. The
Group’s investments in equity derivatives primarily include OTC equity option contracts on single or baskets of market indices and equity
options on individual or baskets of equity securities, which are valued using internally developed models (such as the Black-Scholes type
option pricing model and various simulation models) calibrated with the inputs, which include underlying spot prices, dividend curves,
volatility surfaces, yield curves and correlations between underlying assets. The Group’s OTC credit derivatives can include index and
single-name credit default swaps. Plain vanilla credit derivatives, such as index and single-name credit default swaps, are valued by the
Group based on the models consistent with the industry valuation standards for these credit contracts, and primarily utilise observable
inputs published by market data sources, such as credit spreads and recovery rates. These valuation techniques warrant classification of
plain vanilla OTC derivatives as level 2 financial instruments in the fair value hierarchy.
Other invested assets mainly include the Group’s private equity funds and hedge fund investments, which are made directly or via
ownership of funds. Valuation of direct private equity investments requires significant management judgement due to the absence of
quoted market prices and the lack of liquidity. Initial valuation is based on the acquisition cost and is further refined based on the available
market information for the public companies that are considered comparable to the Group’s holdings in the private companies being
valued, and the private company-specific performance indicators; both historic and projected. Subsequent valuations also reflect business
or asset appraisals, as well as market transaction data for private and public benchmark companies and the actual companies being
valued, such as financing rounds, and mergers and acquisitions activity. The Group’s holdings in private equity funds and hedge funds are
generally valued utilising NAV, subject to adjustments, as deemed necessary, for restrictions on redemption (lock-up periods and amount
limitations on redemptions). Consequently, the majority of the Group’s private equity funds and hedge funds are categorised within level 3
of the fair value hierarchy.
Other assets measured at fair value include insurance contracts without significant risk transfer as well as insurance-linked mortgage loan
investments. The fair values of those assets are derived from discounted best estimate cash flows used in valuing the related insurance
liabilities, utilising lapse rates for insurance contracts without significant risk transfer and both lapse rates and mortality rates for insurance-
linked mortgage loans. Consequently, both, insurance contracts without significant risk transfer and insurance-linked mortgage loans, are
categorised within level 3 of the fair value hierarchy.
Other assets measured at amortised cost but for which the fair value is disclosed include insurance contracts without significant risk transfer,
which are categorised within level 3 of the fair value hierarchy. The fair value is derived from discounted best estimate cash flows utilising
unobservable inputs such as biometric assumptions and lapse rates that are essential to project future cash flows.
46Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Investment property is fair valued primarily by independent external appraisers based on proprietary discounted cash flow models that
incorporate applicable risk premium adjustments to discount yields and projected market rental income streams based on market-specific
data. These fair value measurements are classified in level 3 in the fair value hierarchy.
Other liabilities measured at fair value mainly include securities sold short. The value as well as fair value levelling of those liabilities follows
the respective fair values and levelling categorisation of the underlying assets sold short.
Other liabilities measured at amortised cost but for which a fair value is disclosed include insurance contracts without significant risk
transfer, which are categorised within level 3 of the fair value hierarchy. The fair value is derived from discounted best estimate cash flows
utilising unobservable inputs such as biometric assumptions and lapse rates that are essential to project future cash flows.
Debt positions, which are fair valued based on executable broker quotes or the discounted cash flow method using observable inputs, are
priced by utilising inputs from third-party pricing providers (vendors) and classified within level 1 or level 2. The fair value of the majority of
the Group’s level 3 debt positions is judged to be the value of their updated cash flows discounted by a risk-adjusted market curve plus
credit spread, if any, due to the highly tailored nature of the obligation.
Valuation process for assets and liabilities categorised within level 3 of the fair value hierarchy
Financial valuation risk is managed by internal and external portfolio managers, who ensure that valuations remain in line with the market.
In addition, Swiss Re has a function within Financial Risk Management that independently assesses valuations and valuation techniques.
This team performs independent price verification for financial risk positions to confirm that valuations are reasonable and to add
assurance that there are no material misstatements of fair value in Swiss Re’s financial reports. The results of the independent price
verification process are reviewed by the Pricing and Valuation Committee. Summary results are regularly reported to Executive
management, through the Asset Valuation Committee, and the Board of Directors at Group and legal entity level.
47Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Allocation of assets and liabilities to levels of the fair value hierarchy
As of 30 June 2026 and 31 December 2025, the allocation of assets and liabilities by level of input was as follows:
2026 | Quoted prices in active markets for identical assets and liabilities (level 1) | Significant other observable inputs (level 2) | Significant unobservable inputs (level 3) | Total |
USD millions | ||||
Assets measured at fair value on a recurring basis | ||||
Cash and cash equivalents | 234 | 234 | ||
Fixed income securities | 37 932 | 45 778 | 1 106 | 84 817 |
Equity investments | 460 | 43 | 367 | 870 |
Mortgages and other loans | 16 | 16 | ||
Derivative financial instruments | 448 | 27 | 475 | |
Other invested assets | 1 040 | 71 | 3 643 | 4 753 |
Other assets¹ | 272 | 595 | 867 | |
Total assets measured at fair value on a recurring basis | 39 938 | 46 341 | 5 754 | 92 032 |
Assets not measured at fair value but for which the fair value is disclosed | ||||
Mortgages and other loans | 38 | 7 748 | 7 786 | |
Investment property | 5 956 | 5 956 | ||
Other invested assets | 153 | 38 | 192 | |
Other assets | 937 | 937 | ||
Total assets not measured at fair value but for which the fair value is disclosed | 0 | 192 | 14 679 | 14 871 |
Liabilities measured at fair value on a recurring basis | ||||
Derivative financial instruments | -652 | -31 | -683 | |
Other liabilities | -15 | -605 | -621 | |
Total liabilities measured at fair value on a recurring basis | -15 | -1 257 | -31 | -1 304 |
Liabilities not measured at fair value but for which the fair value is disclosed | ||||
Long-term debt | -3 076 | -4 010 | -1 940 | -9 026 |
Short-term debt | -311 | -311 | ||
Other liabilities | -285 | -285 | ||
Total liabilities not measured at fair value but for which the fair value is disclosed | -3 076 | -4 321 | -2 224 | -9 622 |
¹ Includes unit-linked and insurance-linked mortgage loan investments.
48Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
2025 | Quoted prices in active markets for identical assets and liabilities (level 1) | Significant other observable inputs (level 2) | Significant unobservable inputs (level 3) | Total |
USD millions | ||||
Assets measured at fair value on a recurring basis | ||||
Cash and cash equivalents | 260 | 260 | ||
Fixed income securities¹ | 31 242 | 56 614 | 613 | 88 469 |
Equity investments | 615 | 17 | 244 | 876 |
Mortgages and other loans | 11 | 11 | ||
Derivative financial instruments | 17 | 360 | 39 | 416 |
Other invested assets | 1 576 | 96 | 3 745 | 5 417 |
Other assets² | 271 | 502 | 773 | |
Total assets measured at fair value on a recurring basis | 33 981 | 57 086 | 5 154 | 96 222 |
Assets not measured at fair value but for which the fair value is disclosed | ||||
Mortgages and other loans | 39 | 6 896 | 6 935 | |
Investment property | 6 155 | 6 155 | ||
Other invested assets | 150 | 41 | 191 | |
Other assets | 877 | 877 | ||
Total assets not measured at fair value but for which the fair value is disclosed | 0 | 189 | 13 968 | 14 157 |
Liabilities measured at fair value on a recurring basis | ||||
Derivative financial instruments | -5 | -584 | -37 | -626 |
Other liabilities | -83 | -536 | -619 | |
Total liabilities measured at fair value on a recurring basis | -88 | -1 120 | -37 | -1 245 |
Liabilities not measured at fair value but for which the fair value is disclosed | ||||
Long-term debt | -1 559 | -5 112 | -2 056 | -8 726 |
Short-term debt | -291 | -3 | -294 | |
Other liabilities | -272 | -272 | ||
Total liabilities not measured at fair value but for which the fair value is disclosed | -1 559 | -5 403 | -2 330 | -9 292 |
¹ Excludes USD 148 million of fixed income securities categorised within levels 1, 2 and 3, and classified as held for sale.
² Includes unit-linked and insurance-linked mortgage loan investments.
49Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Transfers between levels
Level transfers are mainly driven by changes in the observability of valuation inputs used. Levelling information for the majority of fixed
income securities is sourced from an external provider. The Group’s policy is to recognise transfers into and transfers out of fair value
hierarchy levels at the end of the reporting period.
For the periods ended 30 June 2026 and 31 December 2025, level transfers for assets and liabilities measured at fair value on a recurring
basis were as follows:
2026 | Transfers from | Transfers to | |||||
USD millions | level 1 | level 2 | level 3 | level 1 | level 2 | level 3 | |
Assets | |||||||
Fixed income securities | 3 866 | 16 552 | 8 | 16 277 | 3 874 | 275 | |
Equity investments | 11 | 11 | |||||
Other invested assets | |||||||
Liabilities | |||||||
Other liabilities | 9 | 15 | 15 | 9 | |||
2025 | Transfers from | Transfers to | |||||
USD millions | level 1 | level 2 | level 3 | level 1 | level 2 | level 3 | |
Assets | |||||||
Fixed income securities 1 | 9 903 | 12 761 | 276 | 12 585 | 10 177 | 179 | |
Equity investments | |||||||
Other invested assets | 3 | 3 | |||||
Liabilities | |||||||
Other liabilities | 209 | 50 | 50 | 209 | |||
¹ Excludes transfers of fixed income securities classified as held for sale from level 1 to level 2 and level 2 to level 1, amounting to USD 9 million and USD 71 million, respectively.
50Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3)
The following tables show a reconciliation of the opening and closing balances for recurring fair value measurements in level 3 of the
fair value hierarchy and analyse the total gains and losses recognised in net income and OCI for the periods ended 30 June 2026 and
31 December 2025:
2026 | Fixed income securities | Equity investments | Mortgages and other loans | Derivative financial instruments | Other invested assets | Other assets | Total assets | Derivative financial instruments | Total liabilities |
USD millions | |||||||||
Balance as of 1 January | 613 | 244 | 11 | 39 | 3 745 | 502 | 5 154 | -37 | -37 |
Realised/unrealised gains/losses: | |||||||||
Included in net income¹ | -5 | 7 | -125 | 165 | 41 | 3 | 3 | ||
Included in other comprehensive income² | -5 | -18 | -23 | 0 | |||||
Purchases | 264 | 148 | 8 | 243 | 9 | 673 | -19 | -19 | |
Sales | -1 | -203 | -51 | -256 | 1 | 1 | |||
Settlements | -31 | -3 | -18 | -3 | -55 | 21 | 21 | ||
Transfers into level | 275 | 275 | 0 | ||||||
Transfers out of level | -8 | -8 | 0 | ||||||
Effect of foreign exchange | -2 | -3 | -16 | -27 | -48 | 0 | |||
Reclassified to held for sale | 0 | 0 | |||||||
Closing balance as of 30 June | 1 106 | 367 | 16 | 27 | 3 643 | 595 | 5 754 | -31 | -31 |
2025 | Fixed income securities | Equity investments | Mortgages and other loans | Derivative financial instruments | Other invested assets | Other assets | Total assets | Derivative financial instruments | Total liabilities |
USD millions | |||||||||
Balance as of 1 January | 576 | 680 | 9 | 42 | 3 526 | 361 | 5 194 | -47 | -47 |
Realised/unrealised gains/losses: | |||||||||
Included in net income¹ | 2 | 5 | -8 | 39 | 2 | 177 | 218 | 56 | 56 |
Included in other comprehensive income² | 26 | -24 | 2 | 0 | |||||
Purchases | 299 | 1 | 17 | 439 | 24 | 780 | -51 | -51 | |
Sales | -33 | -427 | -6 | -295 | -98 | -859 | 0 | ||
Settlements | -148 | -1 | -43 | -5 | -197 | 7 | 7 | ||
Transfers into level | 179 | 3 | 183 | 0 | |||||
Transfers out of level | -276 | -276 | 0 | ||||||
Effect of foreign exchange | 3 | 8 | 1 | 70 | 42 | 124 | -2 | -2 | |
Reclassified to held for sale | -14 | -14 | 0 | ||||||
Closing balance as of 31 December | 613 | 244 | 11 | 39 | 3 745 | 502 | 5 154 | -37 | -37 |
¹ Fair value changes from level 3 assets and liabilities, except from Other assets, are reported in Investment gains/losses. Fair value changes from Other assets are reported in
Other income or Other expenses.
² Fair value changes from fixed income securities and equity investments are reported in Net unrealised investment gains/losses on fixed income securities and Net unrealised
investment gains/losses on equity investments, respectively.
Gains and losses on assets and liabilities measured at fair value on a recurring basis using significant
unobservable inputs (level 3)
The gains and losses relating to the assets and liabilities measured at fair value using significant unobservable inputs (level 3) for the six
months ended 30 June were as follows:
USD millions | 2026 | 2025 |
Gains/losses included in net income | 44 | 44 |
Whereof change in unrealised gains/losses relating to assets and liabilities still held at the reporting date | 169 | -6 |
51Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Significant unobservable inputs for financial instruments measured at fair value level 3
The table below sets out information about unobservable inputs used in measuring fair values for financial instruments measured at fair
value and categorised within level 3 of the fair value hierarchy as of 30 June 2026 and 31 December 2025:
USD millions | 2026 | 2025 | |||
Type of financial instrument | Fair value | Valuation technique | Significant unobservable input | Range (weighted average³) | Fair value |
Assets | |||||
Fixed income securities | 1 106 | 613 | |||
Securitised products | 361 | Discounted cash flow model | Credit spread | 22–19 417bps (375bps) | 126 |
Private placement corporate debt¹ | 745 | Discounted cash flow model | Credit spread | 0–381bps (110bps) | 487 |
Equity investments | 367 | 244 | |||
Private equity² | 367 | Discounted cash flow model/Peer multiples approach/Market capitalisation method | Financial statements multiples/Cash flow projections/ Earnings projections | 244 | |
Other invested assets | 3 643 | 3 745 | |||
Private equity funds² | 3 643 | Net asset value | n/a | 3 744 | |
Other assets | 595 | 502 | |||
Insurance contracts without significant risk transfer | 324 | Discounted cash flow model | Lapse rate | 0.9–13.8% (1.7%) | 180 |
Insurance-linked mortgage loans | 271 | Discounted cash flow model | Lapse rate Mortality rate | 3.1–8.4% (7.0%) 0.0–1.3% (0.7%) | 321 |
¹ Excludes USD 14 million classified as held for sale in 2025.
² The range and weighted average of the inputs is not disclosed as there is a dispersion of values given the diverse nature of the investments.
³ Unobservable inputs are weighted by the relative fair value of the instruments.
Sensitivity of recurring level 3 measurements to changes in unobservable inputs
The significant unobservable input used in the fair value measurement of the Group’s securitised products is credit spread. A significant
increase (decrease) in this input in isolation would result in a significantly lower (higher) fair value measurement. The significant
unobservable input used in the fair value measurement of the Group’s private placement corporate debt securities is credit spread. A
significant increase (decrease) in this input in isolation would result in a significantly lower (higher) fair value measurement. However,
changing any of the unobservable inputs to reflect reasonably possible alternative scenarios would not lead to a significant change in
the corresponding fair values.
The significant unobservable input used in the fair value measurement of the Group’s private equity is dependent on the valuation
technique utilised. These comprise financial statements multiples, cash flow and/or earnings projections. A significant increase
(decrease) in these inputs in isolation would result in a significantly higher (lower) fair value measurement. However, changing any of
the unobservable inputs to reflect reasonably possible alternative scenarios would not lead to a significant change in the corresponding
fair values.
The significant unobservable input used in the fair value measurement of the Group’s private equity funds is net asset value. A significant
increase (decrease) in this input in isolation would result in a significantly and proportionally higher (lower) fair value measurement; ie a
10% increase (decrease) in the net asset value would result in a corresponding 10% increase (decrease) of the fair value.
The significant unobservable input used in the fair value measurement of the Group’s insurance contracts without significant risk transfer
is lapse rate. A significant increase (decrease) in this input would result in a significantly lower (higher) fair value measurement.
However, changing any of the unobservable inputs to reflect reasonably possible alternative scenarios would not lead to a significant
change in the corresponding fair values.
The significant unobservable inputs used in the fair value measurement of the Group’s insurance-linked mortgage loans are mortality
rates and lapse rates. A significant increase (decrease) in the mortality rates in isolation would result in a significantly lower (higher) fair
value measurement. A significant increase (decrease) in the lapse rates in isolation would result in a significantly lower (higher) fair value
measurement. However, changing any of the unobservable inputs to reflect reasonably possible alternative scenarios would not lead to
a significant change in the corresponding fair values.
52Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
7 Derivative financial instruments and hedge accounting
The Group uses a variety of derivative financial instruments including swaps, options, forwards and exchange-traded financial futures in its
trading and hedging strategies, in line with the Group’s overall risk management strategy. The objectives include managing exposure to
price, foreign currency, credit risk and/or interest rate risk on planned or anticipated investment purchases, existing assets or liabilities, as
well as locking in attractive investment conditions for future available funds.
The fair values represent the gross carrying value amounts at the reporting date for each class of derivative contract held or issued by the
Group. The gross fair values are not an indication of credit risk, as many over-the-counter transactions are contracted and documented
under ISDA master agreements or their equivalent. Management believes that such agreements provide for legally enforceable set-off in
the event of default, which substantially reduces credit exposure.
Fair values and notional amounts of derivative financial instruments
As of 30 June 2026 and 31 December 2025, the notional amounts of derivatives designated as hedging instruments outstanding were
as follows:
Maturity by nominal amount | ||||
2026 | Due within one year | Due between one and five years | Due after five years | Notional amount assets/liabilities |
USD millions | ||||
Derivatives designated as hedging instruments | ||||
Fair value hedges | ||||
Interest rate contracts | 310 | 325 | 1 798 | 2 433 |
Hedge of net investment in foreign operations | ||||
Foreign exchange contracts | 9 469 | 9 469 | ||
Total | 9 779 | 325 | 1 798 | 11 902 |
Maturity by nominal amount | ||||
2025 | Due within one year | Due between one and five years | Due after five years | Notional amount assets/liabilities |
USD millions | ||||
Derivatives designated as hedging instruments | ||||
Fair value hedges | ||||
Interest rate contracts | 316 | 1 820 | 2 135 | |
Hedge of net investment in foreign operations | ||||
Foreign exchange contracts | 11 080 | 11 080 | ||
Total | 11 080 | 316 | 1 820 | 13 215 |
53Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
As of 30 June 2026 and 31 December 2025, the fair values of derivatives outstanding were as follows:
Fair value assets | Fair value liabilities | ||||||||
2026 | Due within one year | Due between one and five years | Due after five years | Total fair value assets | Due within one year | Due between one and five years | Due after five years | Total fair value liabilities | Carrying value assets/liabilities |
USD millions | |||||||||
Derivatives not designated as hedging instruments | |||||||||
Interest rate contracts | 41 | 79 | 4 | 124 | -3 | -80 | -315 | -397 | -274 |
Foreign exchange contracts | 195 | 21 | 27 | 242 | -117 | -26 | -13 | -156 | 86 |
Equity contracts | 2 | 37 | 5 | 44 | -39 | -42 | -81 | -37 | |
Credit contracts | 0 | 0 | |||||||
Other contracts | 4 | 23 | 26 | -29 | -2 | -31 | -5 | ||
Total | 242 | 137 | 58 | 437 | -188 | -150 | -328 | -666 | -229 |
Derivatives designated as hedging instruments | |||||||||
Hedge of net investment in foreign operations | |||||||||
Foreign exchange contracts | 38 | 38 | -17 | -17 | 21 | ||||
Total | 38 | 38 | -17 | -17 | 21 | ||||
Total net amount of derivative financial instruments¹ | 475 | -683 | -208 | ||||||
Fair value assets | Fair value liabilities | ||||||||
2025 | Due within one year | Due between one and five years | Due after five years | Total fair value assets | Due within one year | Due between one and five years | Due after five years | Total fair value liabilities | Carrying value assets/liabilities |
USD millions | |||||||||
Derivatives not designated as hedging instruments | |||||||||
Interest rate contracts | 102 | 3 | 104 | -3 | -56 | -173 | -233 | -128 | |
Foreign exchange contracts | 157 | 22 | 20 | 200 | -141 | -17 | -13 | -171 | 29 |
Equity contracts | 14 | 48 | 6 | 68 | -50 | -48 | -99 | -31 | |
Credit contracts | 0 | -1 | -1 | -1 | |||||
Other contracts | 10 | 29 | 39 | -34 | -2 | -1 | -37 | 2 | |
Total | 181 | 171 | 59 | 411 | -229 | -124 | -187 | -540 | -129 |
Derivatives designated as hedging instruments | |||||||||
Hedge of net investment in foreign operations | |||||||||
Foreign exchange contracts | 5 | 5 | -86 | -86 | -81 | ||||
Total | 5 | 5 | -86 | -86 | -81 | ||||
Total net amount of derivative financial instruments¹ | 416 | -626 | -210 | ||||||
¹Net amount of derivative financial instruments held in an asset position represents the maximum exposure to credit risk.
The fair value assets are included in Other invested assets.
The fair value liabilities are included in Other liabilities.
54Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Non-hedging activities
The Group primarily uses derivative financial instruments for risk management and trading strategies. Gains and losses of derivative financial
instruments not designated as hedging instruments are recorded in Investment gains/losses and Financing costs in the income statement.
For the six months ended 30 June, the gains and losses of derivative financial instruments not designated as hedging instruments were
as follows:
USD millions | 2026 | 2025 |
Derivatives not designated as hedging instruments | ||
Interest rate contracts | -143 | 4 |
Foreign exchange contracts | 157 | 340 |
Equity contracts | -26 | -10 |
Credit contracts | -13 | |
Other contracts | 14 | 44 |
Total | 2 | 365 |
Hedging activities
The Group designates certain derivative financial instruments as hedging instruments. The designation of derivative financial instruments is
primarily used for overall portfolio and risk management strategies.
The Group periodically assesses whether the hedging relationship meets the hedge effectiveness requirements. One such requirement is
the existence of an economic relationship between the hedging instrument and the hedged item, or in other words, that the hedging
instrument and the hedged item are expected to generally move in opposite directions. The Group applies a range of qualitative and
quantitative methods to capture the relevant characteristics of the hedging relationship, including the sources of hedge ineffectiveness.
These methods primarily include the critical terms method (a qualitative assessment of the critical terms of the hedged item and the hedging
instrument), the simple scenario analysis method (hypothetical derivative method) and the linear regression analysis method. The method
used depends primarily on the complexity of the relationship between the hedged item and the hedging instrument.
The Group also carefully considers the economic relationship between hedged items and hedging instruments and ensures that the hedge
ratio is aligned with the requirements of the economic hedging strategy (or risk management strategy) and the hedging objective.
Fair value hedges
The Group enters into interest rate swaps to hedge interest rate risk exposure to changes in fair values of certain fixed income securities and
its issued long-term debt positions in respect to the underlying benchmark interest rates. These derivative instruments are designated as
hedging instruments in qualifying fair value hedges. The Group designates the hedged items only to the extent of benchmark interest rates
because the changes in fair values of these instruments are significantly influenced by changes in underlying benchmark interest rates. The
main sources of ineffectiveness are the differences between the repricing dates of the swaps and the debt positions as well as the
differences in payment and maturity dates for the swaps and fixed income securities. The Group has established a hedge ratio of 1:1, as the
underlying risk of the hedging instrument is identical to the hedged risk component.
For the six months ended 30 June, the gains and losses used as a basis for calculating hedge ineffectiveness attributable to the hedged risks
were as follows:
USD millions | 2026 | 2025 | ||
Investment gains/ losses | Interest expenses | Investment gains/ losses | Interest expenses | |
Interest rate contracts | ||||
Gains/losses on derivatives | -1 | 6 | 1 | 14 |
Gains/losses on hedged items | 1 | -6 | -1 | -15 |
55Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
As of 30 June 2026 and 31 December 2025, the carrying values of the hedge liabilities and the cumulative amounts of fair value hedging
adjustments included therein, recognised in the balance sheet, were as follows:
USD millions | 2026 | 2025 | ||
Carrying value | Cumulative basis adjustment | Carrying value | Cumulative basis adjustment | |
Assets | ||||
Fixed income securities | 352 | |||
Liabilities | ||||
Short-term debt | -309 | 1 | ||
Long-term debt | -1 630 | 135 | -1 983 | 145 |
Hedges of the net investment in foreign operations
The Group designates derivative and non-derivative financial instruments as hedges of the foreign currency exposure arising from its net
investment in certain foreign operations. To minimise hedge ineffectiveness, the Group excludes the forward and time value of option
elements from the designated derivative hedging instruments. These elements are recorded in Other comprehensive income – Cost of
hedging. Hedge effectiveness is assessed based on the critical terms of the hedged item and the hedging instrument. Ineffectiveness for
hedges of the net investment in foreign operations is unlikely to occur unless the hedged net assets fall below the designated hedged
amount. The exceptions are hedges where the hedging currency is not the same as the currency of the foreign operation, where the
currency basis may cause ineffectiveness. Ineffectiveness in the hedges of the Group’s net investments is recognised in the income
statement when the cumulative gain or loss on the hedging instrument exceeds the cumulative change in fair value of the hedged item,
both calculated from inception of the hedge (over-hedge). The Group has established a hedge ratio of 1:1, as the underlying risk of the
hedging instrument is identical to the hedged risk component.
For the six months ended 30 June, the gains and losses used as a basis for calculating hedge ineffectiveness attributable to the hedged
risks were as follows:
USD millions | 2026 | 2025 |
Change in value of hedged items | 112 | 1 197 |
Change in value of hedging instruments | -114 | -1 197 |
Hedging gain/losses recognised in Other comprehensive income – Foreign currency translation | -112 | -1 197 |
Hedge ineffectiveness recognised in the income statement | -2 |
As of 30 June 2026 and 31 December 2025, the total foreign currency translation reserve amounted to a net loss of USD 1 097 million
and USD 984 million, respectively.
56Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
8 Debt
The Group enters into long- and short-term debt arrangements to obtain funds for general corporate use and specific transaction financing.
The Group defines short-term debt as debt having a maturity at the balance sheet date of not greater than one year and long-term debt as
having a maturity of greater than one year. For subordinated debt positions, maturity is defined as the next optional redemption date
(notwithstanding that optional redemption could be subject to regulatory consent). Financing costs are classified accordingly.
Long-term debt and short-term debt is measured at amortised cost.
The Groupʼs debt as of 30 June 2026 and 31 December 2025 was as follows:
USD millions | 2026 | 2025 |
Senior debt | 309 | 295 |
Short-term debt | 309 | 295 |
Senior debt | 590 | 904 |
Subordinated debt | 8 091 | 7 338 |
Long-term debt | 8 681 | 8 242 |
Total carrying value | 8 990 | 8 537 |
Total fair value | 9 337 | 9 020 |
Subordinated debt classified as equity | 444 | 444 |
Perpetual capital instruments classified as equity | 444 | 444 |
As of 30 June 2026 and 31 December 2025, operational debt, ie debt related to operational leverage, amounted to:
USD millions | 2026 | 2025 |
Operational debt | 1 678 | 1 725 |
Thereof limited- or non-recourse | 1 583 | 1 629 |
Operational leverage is subject to asset/liability matching and is excluded from rating agency financial leverage calculations.
Maturity analysis of long-term debt
As of 30 June 2026 and 31 December 2025, long-term debt as reported above had the following maturities:
USD millions | 2026 | 2025 | ||
Carrying value | Undiscounted cash flows¹ | Carrying value | Undiscounted cash flows¹ | |
Due between one and five years | 2 811 | 3 215 | 3 117 | 3 501 |
Due between five and ten years | 3 228 | 4 502 | 2 436 | 3 271 |
Due after ten years | 2 642 | 5 374 | 2 689 | 5 524 |
Total | 8 681 | 13 090 | 8 242 | 12 296 |
¹Undiscounted cash flows reflect interest and principal payments. Floating interest rates are assumed to remain constant as of the reporting date.
57Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
Changes in liabilities arising from financing activities
2026 | Short-term debt issued | Long-term debt issued | Total |
USD millions | |||
Balance as of 1 January | 295 | 8 242 | 8 537 |
Financing cash flows | -294 | 849 | 555 |
Reclassifications from long-term to short-term debt | 313 | -313 | 0 |
Effect of foreign exchange | -5 | -107 | -112 |
Other | 10 | 10 | |
Balance as of 30 June | 309 | 8 681 | 8 990 |
2025 | Short-term debt issued | Long-term debt issued | Total |
USD millions | |||
Balance as of 1 January | 959 | 6 302 | 7 261 |
Financing cash flows | -987 | 1 835 | 849 |
Reclassifications from long-term to short-term debt | 312 | -312 | 0 |
Effect of foreign exchange | 18 | 406 | 423 |
Other | -7 | 12 | 4 |
Balance as of 31 December | 295 | 8 242 | 8 537 |
Financing costs
Financing costs for the six months ended 30 June were as follows:
USD millions | 2026 | 2025 |
Senior debt | 14 | 19 |
Subordinated debt | 196 | 162 |
Interest expense on long-term debt | 210 | 181 |
Interest expense on short-term debt | 3 | 32 |
Net impact of hedging | 1 | |
Other | 39 | 30 |
Total financing costs | 252 | 244 |
Long-term debt issued in 2026
In April 2026, Swiss Re Subordinated Finance Plc, a subsidiary of Swiss Re Ltd, issued eleven-year guaranteed subordinated fixed rate reset
notes, which are callable on 22 April 2036. The notes have an aggregate face value of EUR 750 million, with a fixed coupon of 4.40% per
annum until 22 April 2036. The notes are guaranteed on a subordinated basis by Swiss Re Ltd.
58Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
9 Earnings per share
Earnings per share for the six months ended 30 June were as follows:
USD millions (except share data) | 2026 | 2025 |
Basic earnings per share | ||
Net income | 2 833 | 2 605 |
Coupon on perpetual capital instruments | -18 | -33 |
Gains/losses from redemption of perpetual capital instruments | ||
Net income/loss attributable to non-controlling interests | -2 | -9 |
Earnings attributable to common shareholders | 2 814 | 2 563 |
Weighted average common shares outstanding | 294 026 802 | 294 346 237 |
Basic earnings per share in USD | 9.57 | 8.71 |
Basic earnings per share in CHF¹ | 7.52 | 7.55 |
Dilutive effects | ||
Change in average number of shares due to employee options | 1 825 717 | 2 393 795 |
Diluted earnings per share | ||
Earnings attributable to common shareholders assuming debt conversion and exercise of options | 2 814 | 2 563 |
Weighted average common shares outstanding | 295 852 519 | 296 740 032 |
Diluted earnings per share in USD | 9.51 | 8.64 |
Diluted earnings per share in CHF¹ | 7.47 | 7.49 |
¹ The translation from USD to CHF is shown for informational purposes only and has been calculated using the Group’s average exchange rates.
Dividends are declared in US dollars in line with the Group’s reporting currency and are paid in Swiss francs. During the six months ended
30 June 2026 and the year ended 31 December 2025, the parent company of the Group (Swiss Re Ltd) paid dividends per share of
CHF 6.30 (USD 8.00) and CHF 6.01 (USD 7.35), respectively.
59Swiss Re | Half-Year Report 2026
Notes to the consolidated financial statements (unaudited)
10 Disposals
iptiQ American carrier business
On 1 April 2026, the Group completed the sale of the iptiQ American carrier business to Wilton Re, following receipt of all required
regulatory approvals. The agreement to sell the subsidiaries was entered into on 30 December 2025 in line with the Group’s strategic
decision to withdraw from iptiQ.
Wilton Re, a provider of in-force and reinsurance solutions in the North American life insurance industry, acquired the risk carriers Elips Life
Insurance Company and Lumico Life Insurance Company.
An expected loss on disposal of USD 94 million was recognised in the Group items segment when classifying the disposal group as held
for sale in the fourth quarter of 2025. An additional loss of USD 31 million was recognised in 2026 based on the purchase price of
USD 125 million paid in cash and the carrying amount of the disposal group as of the closing of the transaction. This was partially offset by
gains of USD 19 million for items in Other comprehensive income recognised in the income statement upon disposal. The loss from the
disposal has been reflected in the Other expenses line in the income statement.
The major classes of assets and liabilities held for sale as of 31 December 2025 and disposed on 1 April 2026 are listed below. Assets and
liabilities disposed of during 2026 are presented on an unconsolidated basis. Assets and liabilities held for sale in the 2025 comparative
period are shown on a consolidated basis to align with the presentation on the balance sheet.
USD millions | 2026 | 2025 |
Assets | ||
Cash and cash equivalents | 87 | 7 |
Investments | ||
Fixed income securities | 239 | 148 |
Total investments | 239 | 148 |
Insurance contracts issued that are assets | 17 | 12 |
Deferred tax assets | 29 | 43 |
Other assets | 2 | 1 |
Unallocated impairment under IFRS 5 | -97 | -81 |
Total assets | 277 | 131 |
Liabilities | ||
Insurance contracts issued that are liabilities | 152 | 132 |
Income taxes payable | 2 | 1 |
Other liabilities | 3 | 18 |
Total liabilities | 157 | 151 |
iptiQ European P&C business
On 1 July 2025, the Group completed the sale of the iptiQ European P&C business to Allianz Direct, following the receipt of all regulatory
approvals. The agreement to sell the subsidiary was entered into the fourth quarter of 2024 in line with the Group’s strategic decision to
withdraw from iptiQ. The Group recognised a loss of USD 85 million on the transaction.
Refer to Note 15 Disposals of the 2025 Annual Report for further details on the disposal of the iptiQ European P&C business.
61Swiss Re | Half-Year Report 2026
Cautionary note on forward-looking statements and disclaimer
Cautionary note on forward-looking
statements and disclaimer
Certain statements contained herein are
forward-looking. These statements
(including as to plans, objectives,
targets, and trends) provide current
expectations of future events based on
certain assumptions and include any
statement that does not directly relate to
a historical fact or current fact.
Forward-looking statements typically are
identified by words or phrases such as
“anticipate”, “target”, “aim”, “assume”,
“believe”, “continue”, “estimate”,
“expect”, “foresee”, “intend” and similar
expressions, or by future or conditional
verbs such as “will”, “may”, “should”,
“would” and “could”. These forward-
looking statements involve known and
unknown risks, uncertainties and other
factors, which may cause Swiss Re’s
(the “Group”) actual results of
operations, financial condition, solvency
ratios, capital or liquidity positions or
prospects to be materially different from
any expected or assumed results of
operations, financial condition, solvency
ratios, capital or liquidity positions or
prospects expressed or implied by such
statements or cause the Group to not
achieve its published targets. Such
factors include, among others:
• macro-economic events or developments
including the risk of a global economic
downturn, deglobalisation, fragmentation
of markets, changes in inflation rates,
increased volatility of, and/or disruption in,
global capital, credit, foreign exchange
and other markets and their impact on the
respective prices, interest and exchange
rates and other benchmarks of such
markets;
• elevated geopolitical risks or tensions,
including global political or domestic
instability, which may consist of conflicts
arising in and between, or otherwise
impacting, countries that are operationally
and/or financially material to the Group or
significant elections that may result in
domestic and/or regional political tensions
as well as contributing to or causing
macro-economic events or developments
as described above;
• the frequency, severity and development
of, and losses associated with, insured
claim events, particularly natural
catastrophes, human-made disasters,
pandemics, liability excess inflation, acts
of terrorism or acts of war, including
developments or escalation of ongoing
conflicts or wars and any associated
governmental and other measures such as
sanctions, expropriations and seizures of
assets as well as the economic
consequences of the foregoing;
• the Group’s ability to adhere to standards
related to the environment, climate
change, social issues, employment (such
as inclusion), respect for human rights,
and governance. These are often referred
to by expressions such as sustainability,
environmental, social and governance
(“ESG”), and corporate social responsibility
(“CSR”). The Group’s ability to fully achieve
goals, targets, ambitions or stakeholder
expectations related to CSR, ESG and/or
sustainability matters and ability to adapt
to the evolving expectations of investors,
shareholders, business partners, or third
parties, including regulators and public
authorities, as well as CSR, ESG and/or
sustainability recommendations,
standards, norms, metrics or regulatory
requirements;
• the Group’s ability to achieve its strategic
objectives;
• legal actions or regulatory investigations
or actions, the intensity and frequency of
which may increase;
• the Group’s dependence on third parties,
including reinsurers, external investment
managers, and other service providers;
• the Group’s ability to attract, retain and
train highly skilled and technically qualified
employees at the senior management
level as well as in key operational roles;
• the effects of business disruption due to
terrorist attacks, cyberattacks, natural
catastrophes, public health emergencies,
hostilities or other events;
• central bank, regulatory or governmental
intervention in the financial markets, trade
wars or other tariffs and protectionist
measures relating to international trade
and cross-border service arrangements,
adverse geopolitical events, domestic
political upheavals or other developments
that adversely impact global economic
conditions;
• mortality, morbidity and longevity
experience;
• the Group’s ability to maintain sufficient
liquidity and access to capital markets,
including sufficient liquidity to cover
potential recapture of reinsurance
agreements, early calls of debt or debt-like
arrangements and collateral calls due to
actual or perceived deterioration of the
Group’s financial strength or otherwise;
• the Group’s ability to realise amounts on
sales of securities on the Group’s balance
sheet equivalent to their values recorded
for accounting purposes;
• the Group’s ability to generate sufficient
investment income from its investment
portfolio;
• changes in legislation and regulation or
the interpretations thereof by regulators
and courts, affecting the Group or its
ceding companies or the markets in which
they are operating;
• matters negatively affecting the reputation
of the Group, its board of directors or its
management;
62Swiss Re | Half-Year Report 2026
Cautionary note on forward-looking statements and disclaimer
• the lowering, loss, giving up of, or the
decision not to participate in one of the
financial strength or other ratings of one or
more companies in the Group, and
developments adversely affecting its
ability to achieve improved ratings;
• uncertainties in estimating reserves,
including differences between actual
claims experience and underwriting and
reserving assumptions;
• changes in our policy renewal and lapse
rates and their impact on the Group’s
business;
• developments, litigation, or regulatory
changes relating to the use of artificial
intelligence (“AI”) by the Group or third-
party vendors, including risks around data
quality, explainability, fairness, privacy,
cybersecurity, intellectual property,
overstating AI capabilities, reliability and
effectiveness of AI systems, data or third-
party dependency, failings in human
oversight or expertise, adoption or
integration, and the Group’s ability to
implement and govern AI responsibly and
in line with evolving legal, ethical and
technological standards;
• the outcome of tax audits, the ability to
realise tax loss carryforwards and deferred
tax assets (including by reason of the mix
of earnings in a jurisdiction or deemed
change of control), which could negatively
impact future earnings, and the overall
impact of changes in tax regimes on the
Group’s business model;
• changes in accounting estimates or
assumptions that affect reported amounts
of assets, liabilities, revenues or expenses,
including contingent assets and liabilities
as well as changes in accounting
standards, practices or policies, including
the Group’s recent adoption of IFRS;
• failure of the Group’s hedging
arrangements to be effective;
• significant investments, acquisitions or
dispositions, and any delays, unforeseen
liabilities or other costs, lower-than
expected benefits, impairments, ratings
action or other issues experienced in
connection with any such transactions;
• extraordinary events affecting the Group’s
clients and other counterparties, such as
bankruptcies, liquidations and other
credit-related events;
• changing levels of competition in the
markets and geographies in which the
Group competes; and
• limitations on the ability of the Group’s
subsidiaries to pay dividends or make
other distributions.
These factors are not exhaustive. The Group
operates in a constantly changing
environment and new risks may emerge
accordingly. You are cautioned not to place
undue reliance on forward-looking
statements. The Group undertakes no
obligation to publicly revise or update any
forward-looking statements, whether as a
result of new information, future events or
otherwise.
This communication is not intended to be a
recommendation to buy, sell or hold
securities and does not constitute an offer
for the sale of, or the solicitation of an offer
to buy, securities in any jurisdiction,
including the United States. Any such offer
will only be made by means of a prospectus
or offering memorandum, and in compliance
with applicable securities laws.
63Swiss Re | Half-Year Report 2026
Note on risk factors
Note on risk factors
The operations, investments and other
activities of Swiss Re Ltd (SRL) and its
subsidiaries (collectively, the “Group” or
“Swiss Re”) are subject to a range of risks
that could adversely impact the Group’s
business, financial condition, results of
operations, liquidity and cash flows.
General impact of adverse
market conditions
Swiss Re’s operations as well as its
investment returns are subject to the financial
market and macroeconomic environment.
Financial, credit and foreign exchange
markets are experiencing continued periods
of volatility reflecting a range of political,
geopolitical, economic and other
uncertainties, some of which are inter-
related. For example, geopolitical and policy
ambiguity are driving inflation uncertainty.
In case of a claims occurrence, higher
inflation may lead to higher replacement
costs than anticipated. In Property &
Casualty Reinsurance, the inflation and
supply chain issues seen in recent years
have raised costs to rebuild and repair
structures. While headline inflation rates
have since eased, price levels in absolute
terms are still elevated and geopolitics could
spark risks of renewed inflation surges.
Respectively in Life & Health Reinsurance,
higher medical costs in combination with
potential increases in excess mortality or
outbreaks of pandemics could bring the risk
that Swiss Re’s reserves may not be
adequate to address future claims.
Further adverse developments that have a
negative impact on financial markets and
economic conditions could limit the Group’s
ability to access capital and bank funding,
affect the ability of counterparties to meet
their obligations to the Group, or weaken the
confidence of the ultimate buyers of
insurance and reinsurance.
Such adverse developments could
additionally have a material adverse
effect on the Group’s investment and
overall results, make it difficult to
determine the value of certain assets in
the Group’s portfolio, make it more
difficult to acquire suitable investments
to meet its risk and return criteria, and
otherwise have a material adverse effect
on its business and operations.
Impact of military conflicts and other
geopolitical tensions
Regional, national or international
geopolitical conflicts and tensions may
adversely affect the economies of countries
that are operationally and/or financially
material to the Group, be it through direct
military action, the imposition of sanctions,
export control measures, expropriations,
tariffs or other measures or due to
depressed demand as a result of such
conflict or tension. Any of the foregoing may
also impact supply chains, banking and
monetary systems, financial markets and
therefore also customers of Swiss Re in
affected regions or globally and may lead to
lower demand for Swiss Re’s products or
excessive claims against Swiss Re. In
addition, the Group may be affected by laws
and regulations that restrict its ability to
provide re/insurance or to invest in certain
companies, including those involved in the
production of specific types of weapons.
Sustainability and environmental,
social and governance activities
and disclosures
Swiss Re’s investors, shareholders, business
partners, customers and other third parties,
including regulators and public authorities,
are increasingly focused on corporate
actions and reporting related to
environment, including climate change,
social issues, employment (such as
inclusion), respect for human rights, and
governance. These are often referred to by
expressions such as sustainability,
environmental, social and governance
(“ESG”), and corporate social responsibility
(“CSR”).
Since the financial year 2023, Swiss Re has
been subject to statutory ESG reporting
requirements under Swiss laws and, since
2025, Swiss Re is required to achieve net-
zero greenhouse gas emissions by 2050
according to the Swiss Climate and
Innovation Act.
In this context, Swiss Re may be subject to
greater scrutiny when it comes to its own
CSR, ESG and/or sustainability endeavours,
including reporting and progress towards
net-zero greenhouse gas emissions by
2050. If Swiss Re does not adapt to or
comply with the evolving investor,
shareholder, business partner or third party,
including regulators and public authorities,
expectations and CSR, ESG and/or
sustainability recommendations, standards,
norms, metrics or regulatory requirements
and/or does not meet its CSR, ESG and/or
sustainability targets, goals and/or
ambitions, Swiss Re can be perceived to
have not responded appropriately to CSR,
ESG and/or sustainability recommendations,
standards, norms, metrics or regulatory
requirements. Furthermore, Swiss Re may
suffer from reputational damage and/or
litigation or regulatory proceedings, which
could result in its financial condition, results
of operations, business and prospects being
materially and adversely affected. In
addition, changes and uncertainty in relation
to policies or regulations regarding
sustainability, ESG or CSR matters as well
as the fragmentation of ESG legislation
globally, may result in potential investigation
and litigation, higher regulatory and
compliance costs and increased capital
expenditures, which could result in
Swiss Re’s financial condition being
materially and adversely affected.
In addition, Swiss Re’s investors,
shareholders, business partners and third
parties look to ESG rating systems, or
disclosure frameworks that have been
developed by third party groups to allow
comparisons between companies on
ESG factors as they evaluate investment
decisions as well as company disclosures.
Swiss Re does not participate in all of the
available rating systems and may not
necessarily score well in all of the available
ratings systems. Further, the criteria used
in these ratings systems change
frequently, and Swiss Re cannot
guarantee that it will be able to score well
as criteria change. Not participating in
certain third-party ratings systems, failure
to score well in those ratings systems or
failure to provide certain ESG disclosures
could result in reputational damage, which
could result in Swiss Re’s financial
condition, results of operations, business
and prospects being materially and
adversely affected.
Risk of unexpected and unintended
issues related to claims and coverage,
including liability excess inflation
As industry practices and legal, judicial,
social and other environmental conditions
change, unexpected and unintended issues
related to risk of claims and coverage may
develop in an adversely different manner
64Swiss Re | Half-Year Report 2026
Note on risk factors
than originally anticipated may continue to
emerge. Such issues have adversely
affected, and may in the future adversely
affect, the Group’s business by either
requiring it to extend coverage beyond its
underwriting intent or by increasing the
number or amounts of claims against the
Group. For example, the trend of liability
excess inflation has increased liability claims
against the Group in recent years. There has
been an increase in severity of awards and
settlements affecting excess and umbrella
layers, particularly in the US, as well as an
increase in commercial automotive and
general liability claims. The Group
proactively strengthened its reserves and
has considered the latest information and
outlook related to such claims, including in
relation to economic and liability excess
inflation when making its reserve decisions.
In addition, the Group closely monitors the
intersection between liability excess
inflation, economic inflation and loss trend
and intends to adjust its pricing accordingly.
The Group intends to continue to manage its
exposure to large corporate risks in line with
its cautious view on liability excess inflation.
Despite the Group’s various measures to
address these issues, there remains
uncertainty on how these unintended issues
related to claims and coverage may impact
the Group’s business. If the Group’s
reserving and pricing is not adequate to
cover these or other issues, there could be
an additional adverse effect on the Group’s
business, financial condition or results of
operations.
Insurance, operational and other risks
As part of the Group’s ordinary course of
operations, the Group is subject to a variety
of risks, including risks that reserves may not
adequately cover future claims and benefits;
risks that catastrophic events (including
natural catastrophes, such as hurricanes,
cyclones, tornadoes, windstorms, hail
storms, wildfires, floods and earthquakes, as
well as extreme space weather events such
as solar storms and geomagnetic activity,
and man-made disasters, such as acts of
terrorism, cyberattacks and other disasters
such as explosions, industrial accidents and
fires, as well as diseases, pandemics,
epidemics and humanitarian crises) are
inherently unpredictable in terms of both
their frequency and severity (as well as
heightened accumulation risk e.g. in the
case of cyberattacks) and have exposed,
and may continue to expose, the Group to
unexpected large losses (and related
uncertainties in estimating future claims in
respect of such events); changes in the
insurance industry that affect ceding
companies, particularly those that further
increase their sensitivity to counterparty risk;
competitive conditions (including as a result
of consolidation and the availability of
significant levels of alternative capacity);
cyclicality of the industry; risks related to
emerging claims and coverage issues
(including, in particular, liability excess
inflation); macro-economic, financial market
and geopolitical developments, including
central bank, regulatory or governmental
intervention in the financial markets, trade
wars or other tariffs and protectionist
measures relating to international trade and
cross-border service arrangements, adverse
geopolitical events, domestic political
upheavals or other developments that
adversely impact global economic
conditions; macro developments giving rise
to emerging risks, such as climate change
and technological developments, including
the development, adoption and use of
artificial intelligence and generative AI, as
well as risks associated with the evolving
legal and regulatory landscape applicable to
AI, which may exacerbate existing risks or
create new risks relating to data quality,
model reliability, explainability, bias, privacy,
cybersecurity, third-party dependencies,
governance and human oversight, and may
result in operational disruption, regulatory or
legal exposure, reputational harm or
financial losses; risks arising from the
Group’s dependence on policies,
procedures and expertise of ceding
companies; risks related to investments and
operations in emerging markets; and risks
related to the failure of, or attacks directed
at, the Group’s operational systems and
infrastructure (or those of its third party
providers), including systems and
infrastructure relating to IT, data storage and
processing as well as accounting and
control. Any of the foregoing, as well as the
occurrence of future risks that the Group’s
risk management procedures fail to identify
or anticipate, could have a material adverse
effect on the Group, and could also give rise
to reputational risk.
Financial and capital market risk
Volatility and disruption in the global
financial markets could expose the Group
to significant financial and capital markets
risk, including changes in interest rates,
credit spreads, equity prices, real estate
prices and foreign currency exchange
rates, which may adversely impact the
Group’s financial condition, results of
operations, liquidity and capital position.
The Group’s exposure to interest rate risk
is primarily related to the market price of
assets and present value of liabilities, as
well as cash flow variability associated
with changes in interest rates. In general, a
higher interest rate environment is
beneficial to the insurance and
reinsurance industries, supporting
earnings capacity via higher investment
income, despite mark-to-market volatility
in short term. Additionally, an increase in
interest rates generally results in an
increase in the Group’s Swiss Solvency
Test ratio. Exposure to credit spreads
primarily relates to market price and cash
flow variability associated with changes in
credit spreads. When credit spreads
widen, the net unrealised loss position of
the Group’s investment portfolio can
increase, as could the allowance for
expected credit losses.
The Group is exposed to changes in the level
and volatility of equity prices, as well as the
value of securities or instruments that derive
their value from a particular equity security,
a basket of equity securities or a stock index.
The Group is also subject to equity price risk
to the extent that the values of life-related
benefits under certain products and life
contracts, most notably variable annuity
contracts, are wholly or partially exposed,
directly and/or indirectly, to market
fluctuations, including equity prices. To the
extent market values fall, the financial
exposure on guarantees related to these
contracts would increase to the extent this
exposure is not hedged. While the Group
has an extensive hedging programme
covering its existing variable annuity
business, certain risks cannot be hedged,
including actuarial, basis and correlation
risks. Exposure to real estate originates from
changes in property values. Foreign
exchange risk arises from changes in spot
prices, forward prices and volatilities of
currency exchange rates.
The Group seeks to manage the risks
inherent in its investment portfolio by
repositioning the portfolio from time to time,
as needed, and to reduce risk and
fluctuations through the use of hedges and
other risk management tools. These risks
65Swiss Re | Half-Year Report 2026
Note on risk factors
can have a significant effect on investment
returns and market values of securities
positions, which in turn may affect both the
Group’s results of operations and financial
condition. The Group continues to focus on
asset-liability management for its
investment portfolio, but pursuing even this
strategy has its risks, including a possible
mismatch between investments and liability
benchmarks.
Legal, regulatory and tax risks
In the ordinary course of business, the Group
may be involved in lawsuits, arbitrations and
other formal and informal dispute resolution
procedures, the outcomes of which
determine the Group’s rights and obligations
under insurance, reinsurance or other
contractual agreements. From time to time,
the Group may institute, or be named as a
defendant in, legal proceedings, and the
Group may be a claimant or respondent in
arbitration proceedings. These proceedings
could involve coverage or other disputes
with ceding companies, disputes with
parties to which the Group transfers risk
under reinsurance arrangements, disputes
with other counterparties or other matters.
While the Group believes it has measures
in place to mitigate the exposure to such
proceedings, it is inherently difficult to
predict their frequency and the amounts
in dispute, which could be material for
the Group.
The Group may from time to time be
involved in investigations and regulatory
proceedings, which could result in adverse
judgments, settlements, fines and other
outcomes. These investigations and
proceedings could relate to insurance or
reinsurance matters, or could involve
broader business conduct rules, including
those in respect of market abuse, bribery,
money laundering, sanctions, competition
law, data protection and privacy, ESG and
CSR or sustainability issues more generally
as well as any other disclosure or
accounting issues.
The Group also is subject to audits and
challenges from time to time by tax
authorities, which could result in increases
in tax costs, changes to internal structures
and interest and penalties. Tax authorities
may also actively pursue additional taxes
based on retroactive changes to tax laws.
The Group could be subject to risks arising
from alleged, or actual, violations of any of
the foregoing, and could also be subject to
litigation or enforcement actions arising
from potential employee misconduct,
including non-compliance with internal
policies and procedures, negligence and
malfeasance, such as undertaking or
facilitating cyber-attacks on internal
systems. Substantial legal liability could
materially adversely affect the Group’s
business, financial condition or results of
operations or could cause significant
reputational harm, which could seriously
affect its business.
Changes in the legal, regulatory
or tax environment
Swiss Re and its subsidiaries operate in a
highly regulated environment, which has
changed significantly in recent years and is
expected to continue to evolve. While most
regulation is national in scope, the global
nature of the Group’s business means that
its operations are subject to a fragmented
and complex regulatory environment with a
patchwork of global, national and regional
regulatory schemes and requirements. On
the one hand, Swiss Re and its subsidiaries
are subject to group supervision, on the
other, Swiss Re’s subsidiaries are also
subject to local supervision and applicable
regulation in each of the jurisdictions in
which they conduct business, particularly
Switzerland, the United States, Luxembourg
and Singapore. Swiss Re Group, as well as
its Swiss-regulated entities, is subject to the
Swiss Solvency Test, and its (re)insurance
entities and branches regulated in the
European Economic Area are subject to
Solvency II.
While certain regulatory processes are
designed in part to foster convergence and
achieve recognition of group supervisory
schemes, the Group continues to face risks
of extraterritorial application of regulations,
particularly in the area of sustainability but
also with regards to group supervision and
group capital requirements. Furthermore,
evolving regulatory schemes and
requirements may be inconsistent or may
conflict with each other, thereby subjecting
the Group, particularly in light of the
increasing focus on legal entities in isolation
and fragmented jurisdictional approaches to
sustainability regulation for example, to
higher compliance and legal costs and risks,
as well as the possibility of higher
operational, capital and liquidity costs.
In December 2022, the Financial Stability
Board (FSB) endorsed the International
Association of Insurance Supervisors’ (IAIS)
Holistic Framework (HF) for assessing and
mitigating systemic risk and discontinued its
identification of global systemically
important insurers (G-SIIs). The FSB has
reaffirmed its decision to use the IAIS HF
instead of an annual identification of G-SIIs
in November 2025. The IAIS HF embraces
an enhanced set of policy measures
targeted at the exposures and activities that
can lead to systemic risks from the
insurance sector. The Group cannot predict
what additional regulatory changes will be
implemented as the IAIS systemic risk
process evolves and what any such changes
may mean for how the Group is structured in
any particular jurisdiction and how aspects
of its business may be affected. The FSB has
published an updated list of insurers that are
subject to resolution planning standards,
which includes Swiss Re, among other
Swiss (re)insurers. The listed insurers are
working with the relevant authorities to be
prepared for possible crisis situations (i.e., to
address a stress event). The list is expected
to further evolve as authorities work to
implement resolution regimes for insurers. .
Large internationally active insurance
groups (IAIGs), which are identified by
group-wide supervisors based on IAIS
defined criteria, are expected to become
subject to a risk-based group-wide global
insurance capital standard (ICS). The ICS
was adopted at year-end 2024; it became
applicable as international soft law as of
2025 and jurisdictional implementation
assessments are expected to start in 2026.
It is expected that the Group Swiss Solvency
Test (SST) will be the Swiss implementation
of ICS.
The Group can neither predict which
legislative and/or regulatory initiatives will
be enacted, nor their scope and content,
their date of enactment or their
implications for the industry, in general,
and for the Group, in particular. The Group
may be subject to changes promulgated
by its supervisors in respect of the models
that the Group uses for capital and
solvency purposes, and could be adversely
affected if, for example, it is required to
use standard models rather than internal
models. Generally, legal and regulatory
changes could have a material impact on
the Group’s business.
Regulatory changes also could occur in
areas of broader application, such as
competition policy and tax laws. For
example, changes in tax laws, or the
interpretation of the tax laws or tax
regulations in jurisdictions in which the
Group does business, or withdrawals of
tax rulings in jurisdictions such as
Switzerland that have issued such rulings
to Swiss Re, could increase the level of
taxes the Group pays, or impact the
attractiveness of products offered by the
Group, the Group’s investment activities or
the value of deferred tax assets or
66Swiss Re | Half-Year Report 2026
Note on risk factors
liabilities. These changes, or
inconsistencies between the various
regimes that apply to the Group, could
increase the costs of doing business
(including due to increased capital
requirements), reduce access to liquidity,
limit the scope of current or future
business or affect the competitive balance,
or could make reinsurance less attractive
to primary insurers.
Risks relating to credit
rating downgrades
Ratings are an important factor in
establishing the competitive position of
re/insurance companies. Third party rating
agencies assess and rate the financial
strength of re/insurers, such as Swiss Re.
These ratings are intended to measure a
company’s ability to repay its obligations
and are based upon criteria established by
the rating agencies. Ratings may be solicited
or unsolicited.
The Group’s solicited ratings reflect the
current opinion of the rating agencies with
whom we maintain an interactive rating
relationship. One or more of the Group’s
solicited or unsolicited ratings could be
downgraded or revoked at the sole
discretion of the rating agencies. The
financial strength ratings assigned by rating
agencies to insurance or reinsurance
companies are based upon factors relevant
to cedants, which include factors not
entirely within our control, including factors
impacting the financial services, insurance
and reinsurance industries generally.
Rating agencies may increase the frequency
and scope of ratings reviews, revise their
criteria or take other actions that may
negatively impact the Group’s ratings and/
or the ratings of its legal entities and any
such action is inherently difficult to predict
by the Group. In addition, changes to the
process or methodology of issuing ratings,
changes in regulation, or the occurrence of
events or developments affecting the Group,
could adversely affect the Group’s existing
ratings or make it more difficult for the
Group to achieve improved ratings which it
would otherwise have expected. In
particular, it is possible that the Group’s
ratings could be negatively affected by a
range of factors such as challenging market
environment, the level of natural catastrophe
losses, underwriting performance, adequacy
of reserves, changes in senior management,
economic trends and financial market
performance on the Group.
As financial strength ratings are a key factor
in establishing the competitive position of
re/insurers, a decline in ratings of Swiss Re
and/or the ratings of its key rated legal
entities could make re/insurance provided
by the Group less attractive to clients
relative to re/insurance from competitors
with similar or stronger ratings. A decline in
ratings could also cause the loss of clients
who are required by either policy or
regulation to purchase re/insurance only
from re/insurers with certain ratings, or
whose confidence in the Group is otherwise
diminished. Certain larger re/insurance and
derivative contracts may contain terms that
would allow the ceding companies, other
clients or counterparties to terminate the
contract or request collateral if the Group’s
ratings or those of its subsidiaries are
downgraded beyond a certain threshold.
Furthermore, ratings directly impact the
availability and terms of unsecured financing
(potentially impacting both the Group’s
ability to rollover existing facilities and/or
obtain new facilities) and declines in the
Group’s ratings or the ratings of legal entities
within the Group could also obligate the
Group to provide collateral or other
guarantees in the course of its business or
trigger early termination of funding and/or
derivative arrangements. As a ratings
decline could also have a material adverse
impact on the Group’s costs of borrowing or
ability to access the capital markets, the
adverse implications of a downgrade could
be more severe. Any of the foregoing, or a
combination of the foregoing, could have a
negative impact on the Group’s business.
Ability to attract and retain key personnel
Swiss Re relies upon the knowledge and
talent of the employees across the Group to
successfully conduct its operations.
Swiss Re’s success has depended, and will
continue to depend, in substantial part upon
its ability to attract and retain highly skilled
and technically qualified employees and to
train its employees. This is true at the senior
management level as well as in key
operational roles. There is significant
competition for qualified managers and
employees from within the industry as well
as from businesses outside the industry. A
loss of senior management or other key
personnel to competitors or otherwise could
have a material adverse effect on Swiss Re’s
results of operations, financial condition and
cash flows in future periods.
Pandemic risk
The emergence of new diseases or
infections or future outbreaks of pandemics
(including new variants of the SARS-CoV-2
virus) and the actions that may be taken to
slow the spread of such diseases could have
an adverse impact on communities, social
and business interactions, economic activity
and economies across the world. The global
insurance industry remains exposed to a
range of adverse impacts, including
increased health care costs, higher mortality
rates that would drive higher claims under
life insurance products such as term
policies, possible lockdown measures and
other long-term direct/indirect effects of
pandemics. Many pandemic-related
developments continue to impact long-term
trends on the insurance industry. It also
remains to be seen how public-private
partnership initiatives may evolve to address
future pandemics. Underfinancing of
healthcare systems can lead to staff
shortages due to the exodus of healthcare
workers to high-income countries, which
strains the healthcare system in the event of
a pandemic. This in turn will adversely affect
the insurance industry.
Use of models; accounting matters
The Group is subject to risks relating to the
preparation of estimates and assumptions
that its management uses, for example, as
part of its risk models as well as those that
affect the reported amounts of assets,
liabilities, revenues and expenses in the
Group’s financial statements (such as
assumptions related to the Group’s capital
requirements and anticipated liabilities),
including assumed and ceded business.
For example, the Group estimates
premiums pending receipt of actual data
from ceding companies, which actual data
could deviate from the estimates (and
could be adversely affected if premiums
turn out to be lower, while claims stay the
same). In addition, particularly with
respect to catastrophic events, it may be
difficult to estimate losses, and preliminary
estimates may be subject to a high degree
of uncertainty and change as new
information becomes available.
Deterioration in market conditions could
have an adverse impact on assumptions
used for financial reporting purposes,
which could trigger a potential impairment
of various assets and liabilities, including
goodwill. Moreover, regulators could
require the use of standard models instead
of permitting the use of internal models for
determining minimum solvency
requirements. To the extent that
management’s estimates or assumptions
prove to be incorrect, it could have a
material impact on underwriting results
and results of operations or on reported
financial condition, and such impact could
be material.
The Group’s results may be impacted by
changes in accounting standards, or
67Swiss Re | Half-Year Report 2026
Note on risk factors
changes in the interpretation of accounting
standards. Changes in accounting standards
could impact future reported results or
require restatement of past reported results.
The Group’s results may also be impacted if
regulatory authorities take issue with any
conclusions the Group may reach in respect
of accounting matters. In addition, the
application of IFRS for the Group’s
consolidated accounts adds complexity in
the Group’s financial reporting process
including but not limited to the need to
maintain and regularly update a larger
number of estimates and assumptions and
apply a significant degree of judgment.
The Group uses alternative performance
measures in its external financial reporting.
These measures are not prepared in
accordance with IFRS or any other
comprehensive set of accounting rules or
principles and should not be viewed as a
substitute for measures prepared in
accordance with IFRS. Moreover, these may
be different from, or otherwise inconsistent
with, non-IFRS financial measures used by
other companies. These measures have
inherent limitations, are not required to be
uniformly applied and are not audited.
Credit risk
If the credit markets were to deteriorate, the
Group could experience losses. Changes in
the market value of the underlying securities
and other factors impacting their price could
give rise to market value losses. The Group
could also face write-downs in other areas
of its portfolio, including other structured
instruments, and the Group and its
counterparties could face difficulties in
valuing credit-related instruments.
Differences in opinion with respect to
valuations of credit-related instruments
could result in legal disputes among the
Group and its counterparties as to their
respective obligations, the outcomes of
which are difficult to predict and could be
material. The Group is also subject to credit
and other risks in its credit & surety
businesses, including reliance on banks that
underwrite and monitor facilities in which
the Group participates and potential default
by borrowers under those facilities.
Liquidity risks
The Group’s business requires, and its
clients expect, that it has sufficient capital
and sufficient liquidity to meet its
re/insurance obligations, and that this
would continue to be the case following
the occurrence of any foreseeable event or
series of events, including extreme
catastrophes, that would trigger insurance
or reinsurance coverage obligations. The
Group’s uses of funds include, among
other things, payment of its obligations
arising in its insurance and reinsurance
businesses (including claims and other
payments as well as insurance provision
repayments due to portfolio transfers,
securitisations and commutations), which
may include large and unpredictable
claims (including catastrophe claims),
short-term securities lending and
repurchase agreements, funding of capital
requirements and operating costs,
payment of principal and interest on
outstanding indebtedness and funding of
acquisitions. The Group also has unfunded
capital commitments in its private equity
and hedge fund investments, which could
result in funding obligations at a time
when it is subject to liquidity constraints.
In addition, the Group has potential
collateral requirements in connection with
a number of reinsurance and derivative
arrangements, the amounts of which may
be material and the meeting of which
could require the Group to liquidate cash
equivalents or other securities.
The Group manages liquidity and funding
risks by focusing on the liquidity stress that
is likely to result from extreme capital
markets scenarios or from extreme loss
events or combinations of the two.
Generally, the ability to meet liquidity needs
could be adversely impacted by factors that
the Group cannot control, such as market
dislocations or interruptions, adverse
economic conditions, severe disruption in
the financial and worldwide credit markets
and the related increased constraints on the
availability of credit; changes in interest
rates, foreign exchange rates and credit
spreads; or by perceptions among market
participants of the extent of the Group’s
liquidity needs.
Unexpected liquidity needs (including
meeting collateral calls) could require the
Group to increase levels of indebtedness or
to liquidate investments or other assets.
Should the Group require liquidity at a time
when access to bank funding and the capital
markets is limited, it may be unable to
secure new sources of funding. The Group’s
ability to meet liquidity needs through asset
sales may be constrained by market
conditions and the related stress on
valuations. In addition, the Group’s ability to
meet liquidity needs through the incurrence
of debt may be limited by constraints on the
general availability of credit in the case of
bank funding, and adverse market
conditions, in the case of capital markets
debt. Failure to meet covenants in lending
arrangements could further constrain access
to liquidity. The Group’s ability to meet
liquidity needs may also be constrained by
regulatory requirements that require
regulated entities to maintain or increase
regulatory capital, or that restrict intragroup
transactions, the timing of dividend
payments from subsidiaries or the fact that
certain assets may be encumbered or are
otherwise not tradeable. Finally, any adverse
ratings action against the Group could
trigger a need for further liquidity (for
example, by triggering termination
provisions or margin calls/collateral delivery
requirements in contracts to which Swiss Re
is a party) at a time when the Group’s ability
to obtain liquidity from external sources is
limited by such ratings action. See also
“Risks relating to credit rating downgrades.”
Counterparty risks
The Group is exposed to the risk of defaults,
or concerns about defaults, by its
counterparties. These include issuers or
borrowers whose securities or loans the
Group holds, trading counterparties,
counterparties under swaps and other
derivative contracts, clearing agents,
clearing houses and other financial
intermediaries, as well as insured
counterparties within the Credit & Surety
portfolio. Such counterparties may default
on their obligations to the Group or, in the
case of the Credit & Surety business, default
on their underlying obligations to third
parties, due to bankruptcy, insolvency,
restructuring, regulatory intervention, lack of
liquidity, adverse economic conditions,
operations failure, fraud or other reasons,
which could also have a material adverse
effect on the Group. The Group has
allocation to higher return-generating
strategies, including high-quality corporate
debt and some alternative assets, which
tend to also be subject to potentially greater
counterparty risk than government bonds.
The Group could also be adversely affected
by the insolvency of, or other credit
constraints affecting, counterparties in its
insurance and reinsurance operations.
Moreover, the Group could be adversely
affected by liquidity issues at ceding
companies or at third parties to whom the
Group has retroceded risk, and such risk
could be exacerbated to the extent any such
exposures are concentrated.
68Swiss Re | Half-Year Report 2026
Financial calendar
5 November 2026 |
Nine-month 2026 results, conference call |
4 December 2026 |
Financial targets 2027, conference call |
26 February 2027 |
Annual results 2026, conference call |
12 March 2027 |
Publication of Annual Report 2026 |
14 April 2027 |
163rd Annual General Meeting |
Contacts
Investor Relations
Telephone +41 43 285 4444
Media Relations
Telephone +41 43 285 7171
Share Register
Telephone +41 43 285 6810
Head office
Swiss Re Ltd
Mythenquai 50/60, P.O. Box,
8022 Zurich, Switzerland
Telephone +41 43 285 2121
69Swiss Re | Half-Year Report 2026
©2026 Swiss Re. All rights reserved.
Title:
Half-Year Report 2026
Design:
Swiss Re Corporate Real Estate & Services/
Media Services, Zurich
Photography:
Phosstudio Zurich
The Half-Year Report 2026 is available at:
Swiss Re Ltd
Mythenquai 50/60
P.O. Box
8022 Zurich
Switzerland
Telephone +41 43 285 2121
swissre.com