Swiss Re AG (SREN) AI Stock Analysis

• Market Cap: $39.58B
• Dividend Yield: 4.05%
• Average Volume (3M): 605.75K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.76
• Revenue Growth: -4.94%
• EPS Growth: N/A
• Country: CH
• Employees: 15,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Reinsurance
• EPS (TTM): 3.59
• Shares Outstanding: 298,761,720
• 10 Day Avg. Volume: 727,646
• 30 Day Avg. Volume: 605,753
• PEG Ratio: 3.92
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 4.84
• P/FCF Ratio: 13.48
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $139.77
• Price Target Upside: -4.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: CHF159.00 ▲(8.13% Upside)

Swiss Re AG's overall stock score reflects its strong financial performance, particularly in profitability and balance sheet strength. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. While technical indicators suggest a neutral market sentiment, the earnings call provided a balanced view of strengths and challenges. The absence of significant corporate events further solidifies the focus on core financial and operational metrics.

Swiss Re AG Business Overview & Revenue Model

Company Description

Swiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, other insurance-based forms of risk transfer, and other insurance-related services worldwide. The company operates through Property & Casualty Reinsurance, Life & Health Reinsurance, and Corporate Solutions. The Property & Casualty Reinsurance segment underwrites property reinsurance, including property, credit and surety, engineering, aviation, marine, agriculture, retakaful, and facultative reinsurance solutions; and casualty reinsurance, such as liability, motor, worker's compensation, personal accident, management and professional liability, cyber, and facultative reinsurance solutions. The Life & Health Reinsurance segment underwrites life and health insurance products. The Corporate Solutions segment offers standard risk transfer covers and multi-line programs to customized solutions. It serves stock and mutual insurance companies, public sector and governmental entities, mid-sized and large corporations, and individuals. Swiss Re AG was founded in 1863 and is headquartered in Zurich, Switzerland.

How the Company Makes Money

Swiss Re AG generates revenue primarily through the premiums it receives from insurance companies and other clients for providing reinsurance coverage. The company operates on a global scale, spreading risk by underwriting policies in multiple markets and industries. Key revenue streams include property and casualty reinsurance, which covers risks related to natural disasters, accidents, and liability issues, and life and health reinsurance, which manages mortality and morbidity risks. Swiss Re also earns income through investment activities, leveraging its capital to invest in various asset classes. Significant partnerships with insurance companies and corporations, along with its expertise in risk assessment and management, contribute to its earnings by enabling Swiss Re to craft tailored reinsurance solutions that address complex risk scenarios.

Swiss Re AG Financial Statement Overview

Summary

Swiss Re AG demonstrates robust financial health with a solid balance sheet and improving profitability. While revenue growth has been inconsistent, the company has managed to enhance its profitability and leverage. Cash flow management is stable, though ensuring consistent revenue growth and efficient investment utilization will be key to future stability and growth.

Income Statement

Swiss Re AG has shown a stable revenue base with some fluctuations over the years. The net profit margin improved to 37.14% in 2024 from 6.46% in 2023, indicating enhanced profitability. However, revenue decreased significantly from 2023 to 2024. EBIT margins have been inconsistent, with EBIT in 2024 being zero. The overall trend shows recovery from previous losses, yet maintaining consistent revenue growth remains a challenge.

Balance Sheet

The company's debt-to-equity ratio has improved over time, showing better leverage management, with a ratio of 0.31 in 2024. The equity ratio has remained stable, indicating a strong balance sheet. Return on Equity (ROE) increased significantly to 14.03% in 2024, highlighting improved shareholder returns. The financial stability is evident, but attention to asset management is needed due to fluctuating total assets.

Cash Flow

Operating cash flow showed a decline from 2023 to 2024, but free cash flow remained positive. The free cash flow to net income ratio improved, indicating better cash generation relative to profit. However, negative investing cash flow suggests a need for careful investment management. The cash flow situation is stable, but there is room for improvement in operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.96B	8.72B	49.73B	46.04B	46.74B	43.34B
Gross Profit	21.96B	12.37B	49.46B	46.04B	46.74B	43.34B
EBITDA	0.00	4.27B	-23.00M	1.64B	-573.00M	115.00M
Net Income	2.38B	3.24B	3.21B	472.00M	1.44B	-878.00M
Balance Sheet
Total Assets	135.34B	127.23B	179.58B	170.68B	181.57B	182.62B
Cash, Cash Equivalents and Short-Term Investments	0.00	88.64B	88.38B	85.61B	4.15B	4.70B
Total Debt	8.47B	7.26B	9.82B	11.04B	11.19B	11.74B
Total Liabilities	111.27B	103.99B	163.21B	157.87B	10.32B	11.58B
Stockholders Equity	23.93B	23.11B	16.15B	12.70B	23.57B	27.14B
Cash Flow
Free Cash Flow	0.00	3.13B	4.09B	2.93B	4.10B	5.39B
Operating Cash Flow	0.00	3.13B	4.09B	2.93B	4.10B	5.39B
Investing Cash Flow	0.00	-407.00M	-362.00M	-2.34B	-2.14B	-7.72B
Financing Cash Flow	0.00	-2.97B	-3.22B	-1.24B	-2.10B	-2.50B

Swiss Re AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 147.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SREN, the sentiment is Positive. The current price of 147.05 is above the 20-day moving average (MA) of 141.52, above the 50-day MA of 144.95, and above the 200-day MA of 139.67, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 92.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SREN.

Swiss Re AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZURN	79 Outperform	CHF79.93B	15.87	22.83%	4.94%	-7.33%	17.93%
SREN	74 Outperform	$39.58B	13.34	17.22%	4.05%	-4.94%	―
VAHN	73 Outperform	CHF1.82B	12.03	5.77%	3.89%	-1.58%	4.07%
SLHN	66 Neutral	CHF24.12B	20.42	16.14%	4.09%	-1.65%	9.88%
BALN	64 Neutral	CHF8.85B	20.18	10.60%	4.12%	-9.11%	―
HELN	56 Neutral	CHF10.29B	18.81	11.65%	3.44%	-1.57%	95.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Swiss Re AG Corporate Events

Swiss Re Study: GLP-1 Medications Could Significantly Reduce Mortality by 2045

Swiss Re’s recent study highlights the potential impact of GLP-1 medications on reducing mortality rates in the USA and UK by 2045, assuming widespread use and lifestyle changes. The study emphasizes the importance of lifestyle modifications alongside medication use to achieve significant mortality reductions, with implications for insurers in risk assessment and benefit claims development.

The most recent analyst rating on (CH:SREN) stock is a Buy with a CHF158.00 price target. To see the full list of analyst forecasts on Swiss Re AG stock, see the CH:SREN Stock Forecast page.

Swiss Re Highlights Resilience Amid Global Risks at Monte Carlo Meeting

Swiss Re emphasizes the importance of a holistic approach to maintaining resilience amid complex risks, highlighting the role of AI in improving risk assessment and underwriting quality. The company underscores the urgency of preventive measures against natural disasters and stresses the need for collaboration between public and private sectors to mitigate risks. Geopolitical uncertainties and fragmentation pose challenges to the re/insurance market, affecting risk assessment and causing volatility. Swiss Re views re/insurance as a stabilizing force during global upheavals, supporting economic recovery and resilience.

The most recent analyst rating on (CH:SREN) stock is a Buy with a CHF161.40 price target. To see the full list of analyst forecasts on Swiss Re AG stock, see the CH:SREN Stock Forecast page.

Swiss Re Projects Growth and Resilience in Global P&C Insurance Market

The Swiss Re Institute reports that the global property and casualty insurance market, valued at USD 2.4 trillion, is set to grow alongside global GDP over the next decade, driven by increasing natural disaster damages and economic factors. The market’s maturity is evident through the entry of smaller players and the adoption of alternative risk solutions, enhancing capacity and affordability. The industry is becoming more efficient with specialization and outsourced underwriting, while the use of alternative risk solutions helps manage rising risks, particularly in catastrophe-prone regions. Reinsurers play a critical role in maintaining stability and capacity, despite new dependencies on capital markets.

The most recent analyst rating on (CH:SREN) stock is a Buy with a CHF161.40 price target. To see the full list of analyst forecasts on Swiss Re AG stock, see the CH:SREN Stock Forecast page.