Swiss Re Earnings: In Line With Consensus; Full-Year Guidance Maintained; Shares Undervalued

Swiss Re has reported a stable set of results for the first half of 2024 with net income of $2.09 billion. Interim and second-quarter numbers are marginally ahead of company-compiled consensus and the results position the business well against its full-year targets at group level and throughout its divisions. The group reported a 4.0% recurring income yield versus 3.4% in the prior year, with $2.07 billion of net investment income and $155 million of unrealized and realized gains. The full-year net income target is better than $3.6 billion and results so far, provide a 10.2% return on equity. Our forecasts are broadly in line with the full-year target, so we maintain our CHF 133.40 per-share fair value estimate and no moat rating.