| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 83.00 | -33 |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Swiss Re AG is a global leader in reinsurance, insurance, and risk transfer solutions, headquartered in Zurich, Switzerland. Founded in 1863, the company operates through three key segments: Property & Casualty Reinsurance, Life & Health Reinsurance, and Corporate Solutions. Swiss Re serves a diverse clientele, including insurance companies, corporations, and public sector entities, offering tailored risk management products such as property, casualty, life, health, and specialty reinsurance. With a market capitalization of CHF 22.07 billion (as of latest data), Swiss Re plays a pivotal role in the global reinsurance industry, leveraging its extensive underwriting expertise and strong capital position. The company’s diversified portfolio and disciplined risk management make it a resilient player in the Financial Services sector, particularly in the Insurance - Reinsurance industry. Swiss Re’s commitment to innovation, including cyber risk and retakaful solutions, further strengthens its competitive edge in a rapidly evolving market.
Swiss Re AG presents a compelling investment case due to its strong market position, diversified revenue streams, and solid financial performance. In FY 2023, the company reported robust revenue of CHF 49.82 billion and net income of CHF 3.21 billion, with diluted EPS of CHF 11.09. Its low beta (0.716) suggests relative stability compared to broader markets, appealing to risk-averse investors. The company’s healthy operating cash flow (CHF 4.09 billion) and dividend payout (CHF 6.05 per share) underscore its financial strength. However, risks include exposure to catastrophic events (e.g., natural disasters) and macroeconomic volatility affecting reinsurance pricing. Long-term growth hinges on underwriting discipline and expansion in emerging markets.
Swiss Re AG maintains a competitive advantage through its global scale, underwriting expertise, and diversified risk portfolio. As one of the largest reinsurers globally, it benefits from strong relationships with primary insurers and corporations, enabling cross-selling opportunities. Its Property & Casualty segment is particularly resilient, with specialized offerings in niche areas like cyber and aviation reinsurance. The Life & Health segment provides stable cash flows, while Corporate Solutions caters to complex commercial risks. Swiss Re’s capital efficiency and AA- credit rating (as of latest available data) enhance its ability to underwrite large risks. However, competition is intense, with rivals like Munich Re and Hannover Re leveraging similar strengths. Swiss Re differentiates itself through innovation (e.g., parametric insurance) and a focus on ESG-aligned products. Its reinsurance leadership in Asia and Europe provides geographic diversification, though North American rivals like Berkshire Hathaway pose significant competition in scale and pricing power.