Swiss Re reported net income of $1.3 billion for the third quarter of 2026, taking profit for the first nine months of the year to $4.2 billion, the global reinsurer said.

Nine-month net income rose from $4.0 billion in the same period of 2025, with return on equity steady at 22.5%. Swiss Re said it was "well on track" towards its 2026 financial targets, including a full-year net income target of $4.5 billion, helped by all three business units, lower-than-expected catastrophe losses and a solid investment result.

Property and casualty reinsurance earned $2.2 billion, down 6% as competitive pricing weighed, with a combined ratio of 77.3%. Life and health reinsurance delivered $1.5 billion, up 43% on favourable US mortality experience, while Corporate Solutions earned $714 million. The group's insurance service result rose to $5.1 billion.

Large losses totalled $941 million, including $624 million in the third quarter, with natural catastrophe losses of $640 million driven by the Colombia earthquake in August and Storm Kristin. The solvency ratio stood at 259%, and the $1.5 billion buyback announced in February is nearly complete.

Shares fall despite the profit rise

Investors did not reward the results. Swiss Re shares fell 4.6% on Friday after JPMorgan downgraded German reinsurers, with Munich Re down 4.4% and Hannover Re down 4.3%. Insurance was the worst sector on the STOXX 600, which closed 1% lower at 648.33 as a global technology sell-off spread across Europe.

"We maintain our two priorities: delivering on our financial targets and the group's overall resilience," said chief executive Andreas Berger. Swiss Re also confirmed it remains on track to cut operating costs by $500 million by 2028, and will present 2027 targets on 4 December.