A significant portion of profits in life and health

As with Property & Casualty, the data show that Life & Health Reinsurance retains a significant portion of the industry’s profits. In this comparison with five peers, we have used operating income to measure profits to get around differences caused by accounting treatment.

While the data for 2014 show the impact of our management actions with respect to the pre-2004 US individual life business and the unwinding of an asset funding structure, the results show us quickly back on track in 2015. This year we met the return on equity target we set for ourselves in 2013 of 10%–12%, ending at 11.8% for 2015, using the terms set for that target.

L&H Reinsurance revenues and operating income share vs top reinsurers (bar chart)

1 Limited comparability due to different accounting standards; Top 6 reinsurers include: Swiss Re, Munich Re, Hannover Re, PartnerRe, SCOR, RGA.
2 Operating income is income before tax and before interest for financial debt; excludes realised capital gains/losses.
3 Data for Munich Re and Hannover Re extrapolated from 9 months results.
Source: Swiss Re Economic Research & Consulting