(Bloomberg) -- Swiss Re AG's net income rose to $3.21 billion in 2023 driven by higher underwriting margins and interest rates.
The profit was in line with estimates and resulted in a return on equity of 22.3% for the full year, slightly below the consensus estimate. Last year's net income was $472 million.
Swiss Re expects profit to further rise this year to more than $3.6 billion, it said in a release on Friday.
“Our businesses are well positioned to benefit from the current market environment, while the higher interest rate environment supports recurring investment income,” Chief Financial Officer John Dacey said in the statement. “This positive earnings momentum gives us confidence to increase the pay-out to investors.”
The board of directors will propose an increased dividend of $6.80 per share, Swiss Re said.
The Zurich-based company's key property and casualty business reported net income of $1.86 billion for last year, compared with $312 million in 2022. This reflects “strong margins and positive reserve developments,” the company said.
The unit targets a combined ratio of less than 87% for 2024, it said.
A ratio of less than 100% means revenue from premiums exceeds claims and expenses.
Claims linked to natural catastrophes hit $1.3 billion last year, coming in below Swiss Re's budget of $1.7 billion, it said. The claims included damages caused by the earthquake in Turkey and Syria and by Hurricane Otis in Mexico.
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Last year, Swiss Re proposed Jacques de Vaucleroy to serve as interim chairman until he can formally be voted on at the next shareholder meeting in April. The change was prompted by the exit of Sergio Ermotti, who had been chairman since April 2021, returning as the chief executive officer at UBS Group AG.
Swiss Re is among other large insurers and reinsurers to abandon the world's biggest climate coalition for the industry, the Net Zero Insurance Alliance.
Read more: Swiss Re Becomes Fourth Insurer to Leave Net Zero Group (2)
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