Swiss Re CEO Christian Mumenthaler gestures throughout a session of the World Economic Forum (WEF) yearly conference in Davos on January 18, 2024.
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Insurance giant Swiss Re on Friday reported a sharp increase in full-year revenue, taking advantage of what it referred to as an appealing market environment after a “batch of bad years.”
The Zurich- headquartered business published full-year net revenue of $3.2 billion, in line with expectations according to an LSEG-compiled agreement. It marked an almost 580% boost when compared to the previous year’s $472 million revenue.
Swiss Re proposed a 6% boost in its dividend to $6.80 per share for 2023.
The company’s outcomes show a significant healing from 2022 when the business dealt with high inflation, declares from Hurricane Ian in Florida, and losses from the coronavirus pandemic.
Swiss Re CEO Christian Mumenthaler informed CNBC’s “Squawk Box Europe” on Friday he was “very happy” with the company’s 2023 results and stated the business had a “very positive” outlook.
Asked whether the insurance coverage and reinsurance market had actually been installing rates excessive and therefore developing an inflationary issue, Swiss Re’s Mumenthaler responded: “In the end, the role of insurance and reinsurance in particular is to put a fair price to risk and I think we have actually been lagging a little bit in the last few years.” Reinsurance describes insurance coverage for insurer.
Looking ahead, Mumenthaler cautioned that the rate of the environment crisis would quickly be at the door of customers for the very first time.
“With climate change, risks have increased a lot and you could see it in our profits, which were not adequate over the last few years. And so this is a reaction, a reassessment of the risk,” he included.
Firefighters deal with the zone of a forest fire in the hills in Quilpue comune, Valparaiso area, Chile on February 3, 2024.
Javier Torres|Afp|Getty Images
“To a certain extent, what we see here … is the price for climate change for the first time coming at the door of regular consumers. So far, this was a very abstract problem but here you can see the practical implications, so I don’t think we are above anything we need for shareholders to get their adequate returns,” he stated.
Shares of Swiss Re were 2.1% lower at 10: 30 a.m. London time.
