Swiss Re : 2023 FULL-YEAR Annual Report – Business report

Group net income for 2023

(USD billions | 2022: USD 0.5bn)

3.2

Return on equity for 2023

(2022: 2.6%)

22.3 %

Swiss Re reported a net income of USD 3.2 billion and a return on equity (ROE) of 22.3% for the full-year 2023, compared with a net income of USD 472 million and a ROE of 2.6% in the previous year. The result was supported by improved underwriting margins while higher interest rates drove an increase in investment income.

Group net premiums earned and fee income in 2023

USD

45.0bn

(2022: USD 43.1bn)

Property & Casualty Reinsurance (P&C Re)

P&C Re covers a wide range of risks in property, casualty and specialty lines (eg engineering, agriculture, marine). P&C Re helps insurers understand, quantify and manage property and casualty risk.

Net income (USD millions)

2023 1861

2022 312

Net premiums earned (USD billions)

2023 22.9

2022 22.0

Life & Health Reinsurance (L&H Re)

L&H Re offers a range of tailored services and insights - from risk transfer to structured solutions - related to life and health risks of its clients. By combining data, customer behaviour insights and innovative tools, L&H Re helps insurers manage their life and health portfolio risks.

Net income (USD millions)

2023 976

2022 416

Net premiums earned and fee income (USD billions)

2023 15.6

2022 15.0

Corporate Solutions

Corporate Solutions provides risk transfer solutions in property and casualty lines of business to large and medium-sized corporations around the world. Its highly customised products and standard insurance covers as well as claims services help to protect its clients' businesses.

Net income (USD millions)

2023 678

2022 486

Net premiums earned (USD billions)

2023 5.5

2022 5.5

P&C Re will target an IFRS combined ratio of less than 87% for 2024

USD

L&H Re will target an IFRS net income of approximately USD 1.5 billion in 2024

Corporate Solutions will target an IFRS combined ratio of less than 93% for 2024

Letter to shareholders

"Swiss Re's strong   result in such demanding times demonstrates   that our business model   is intact."

Dear Shareholders,

Swiss Re can look back on a successful   year as it achieved all of its 2023   fnancial targets, including generating USD 3.2 billion net income. Net   premiums earned and fee income rose to USD 45 billion, a record, while return on equity (ROE) was 22.3%. Our improved proftability supports the Board of Directors' proposal to increase the ordinary dividend per share by 6%.

Numerous factors drove our 2023 performance. Improved price adequacy within the property and casualty market after strong renewals, coupled with underwriting discipline, helped us manage elevated industry losses from natural catastrophes. Higher interest rates lifted   our investment income. While mortality   in the US remains elevated, it has declined from its 2021 peak.

To be sure, last year was characteristic   of the volatile era we live in: a new   war in the Middle East began while the war in Ukraine continued; for a fourth consecutive year, global insured losses from natural catastrophes exceeded USD 100 billion; and economic inflation also remained at higher levels than in recent decades.

Swiss Re's strong result in such demanding times demonstrates that our business model is intact, enabling us to continue providing the sophisticated risk knowledge and peak risk capacity that our clients require to navigate existing and

future perils.

2023 also marked the 160th anniversary of Swiss Re's founding. More than a century and a half after we got our start in Zurich in

1863, the company remains well placed to continue delivering on its purpose: making the world more resilient.

From the outset, Swiss Re has adapted to changing demands, a process that continues. In the second quarter of 2023, we re-cast our businesses into market- facing units by establishing separate   Life & Health Reinsurance (L&H Re) and Property & Casualty Reinsurance (P&C Re) Business Units, as well as a new Global Clients & Solutions Business Unit that embodies our strategic push to go beyond risk transfer by offering risk insights and cultivating risk partnerships. Corporate Solutions, Swiss Re's commercial insurance arm, was not impacted by these changes.

As part of this transformation of our Reinsurance businesses, we removed an entire organisational layer, making our underwriting and decision-making more effcient and bringing us closer to clients. Swiss Re is wholly committed to building   an organisation that is leaner, nimbler   and more responsive to the evolving risk-protection needs of our clients.

Swiss Re is well positioned to beneft   from the current reinsurance market environment, while our investment   portfolio is expected to be supported by higher interest rates. After the strong performance in 2023, we are focused on further improving business performance, while managing challenges with rigour and vigilance.

Group and business performance Swiss Re reported net income of

USD 3.2 billion, up from USD 472 million   in 2022, when results were signifcantly impacted by Hurricane Ian. Group net