Two leading international reinsurance giants, Swiss Re and Munich Re, have released their 2025 financial results. Both companies achieved profitability, demonstrated continuous optimization of their combined ratios, maintained sufficient solvency, and adhered to strict underwriting discipline during the latest renewal season, managing market changes prudently.
Return on equity (ROE) approached 20%. For 2025, Swiss Re reported a net income of $4.8 billion, with an ROE of 19.6%, an improvement compared to the previous year's net income of $3.2 billion and an ROE of 15%. The insurance service result was $5.8 billion, a 36% increase year-on-year. Insurance service revenue was $43.1 billion, a decrease of approximately $2.5 billion from the prior year. The new business Contractual Service Margin (CSM) was $4.7 billion, down about $300 million year-on-year. Swiss Re's investment return (ROI) for 2025 was 4%, with a full-year sustainable investment return of 4.2%. As of January 1, 2026, Swiss Re's estimated Swiss Solvency Test (SST) ratio was 250%.
Swiss Re's CEO, Christian Mumenthaler, stated that 2025 was a year where the company delivered on two key priorities: achieving its financial targets and enhancing its resilience. The record net income was attributed to strict underwriting discipline, solid investment returns, and a lower level of major losses overall, excluding the first quarter.
For the 2025 fiscal year, Munich Re achieved a net profit of €6.121 billion (compared to €5.69 billion the previous year), exceeding its original target of €6 billion. Insurance revenue remained stable at €60.412 billion (previous year: €60.83 billion). ROE was 18.3% (previous year: 18.2%), and earnings per share were €47.15 (previous year: €42.93). The solvency ratio improved slightly to 298%.
Munich Re's Board Chairman, Joachim Wenning, commented that 2025 was a milestone year for the company, noting that not only was the net profit a record high, but it also fulfilled all commitments outlined in the "2025 Ambition" five-year strategic plan.
Property and casualty reinsurance COR below 80%. Swiss Re's P&C reinsurance segment reported a net income of $2.8 billion for 2025, up from $1.2 billion in 2024. The performance benefited from lower-than-expected natural catastrophe losses, the segment's inherent resilience, and solid investment returns. The insurance service result for 2025 was $3.6 billion, compared to $1.8 billion in 2024. Major natural catastrophe payouts totaled $813 million, primarily related to the Los Angeles wildfires and Hurricane Melissa. Major man-made disaster payouts were $345 million.
The combined ratio (COR) for Swiss Re's P&C reinsurance business was 79.4% in 2025, a significant improvement from 89.9% in 2024, achieving the full-year target of staying below 85%. Insurance service revenue was $18.7 billion, down from $19.8 billion in 2024. The decrease was mainly due to portfolio optimization in US liability business, a process now completed. The new business CSM for P&C reinsurance was $2.7 billion, compared to $2.9 billion in 2024.
For Munich Re, the P&C reinsurance segment's result improved to €3.308 billion (previous year: €3.153 billion). Insurance revenue decreased to €17.926 billion (previous year: €19.487 billion). The combined ratio was 73.5% (previous year: 77.3%), with a normalized combined ratio of 80.1%.
Munich Re's P&C reinsurance segment saw a significant reduction in major loss expenditures, post-reinsurance and on a pre-tax basis, to €1.627 billion (previous year: €2.807 billion). Full-year major loss expenditure, including adjustments for prior-year major loss events, accounted for 9.4% of net premium earned (previous year: 15%). Man-made major losses amounted to €740 million (previous year: €893 million), while natural catastrophe losses decreased to €887 million (previous year: €1.915 billion). The Los Angeles wildfires were the costliest single event of the year at approximately €800 million, while Hurricane Melissa was the most significant event in the fourth quarter, costing around €300 million.
In the life and health reinsurance business, Swiss Re reported a net income of $1.3 billion for 2025 (previous year: $1.5 billion). The full-year insurance service result was $1.2 billion, compared to $1.5 billion in 2024. Insurance service revenue was $16.5 billion, down from $17.1 billion in 2024. The new business CSM for 2025 was $1.1 billion, consistent with the previous year. The closing CSM balance for life and health reinsurance at the end of 2025 was $17 billion, compared to $17.4 billion at the end of 2024.
Munich Re's life and health reinsurance segment reported an overall underwriting result of €1.715 billion (previous year: €1.857 billion). The segment's net profit decreased to €1.334 billion (previous year: €1.545 billion). Insurance revenue for the segment was €12.179 billion (previous year: €11.767 billion).