SWX:SREN

Stock Analysis Report

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Executive Summary

Swiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, and other insurance-based forms of risk transfer worldwide. More Details


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Swiss Re's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SREN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.1%

SREN

-7.7%

CH Insurance

-2.7%

CH Market


1 Year Return

-35.3%

SREN

-25.0%

CH Insurance

1.6%

CH Market

Return vs Industry: SREN underperformed the Swiss Insurance industry which returned -25% over the past year.

Return vs Market: SREN underperformed the Swiss Market which returned 1.6% over the past year.


Shareholder returns

SRENIndustryMarket
7 Day-8.1%-7.7%-2.7%
30 Day-8.5%-7.2%-0.2%
90 Day-7.2%-4.5%2.6%
1 Year-30.0%-35.3%-20.2%-25.0%5.1%1.6%
3 Year-7.6%-23.3%11.8%-5.3%19.3%6.9%
5 Year8.3%-19.1%50.9%13.9%41.3%17.7%

Price Volatility Vs. Market

How volatile is Swiss Re's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Swiss Re undervalued compared to its fair value and its price relative to the market?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SREN (CHF67.3) is trading below our estimate of fair value (CHF107.94)

Significantly Below Fair Value: SREN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SREN is unprofitable, so we can't compare its PE Ratio to the CH Insurance industry average.

PE vs Market: SREN is unprofitable, so we can't compare its PE Ratio to the Swiss market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SREN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SREN's PB Ratio (0.7x) is in line with the CH Insurance industry average.


Next Steps

Future Growth

How is Swiss Re forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

49.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SREN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.2%).

Earnings vs Market: SREN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SREN's is expected to become profitable in the next 3 years.

Revenue vs Market: SREN's revenue (2.4% per year) is forecast to grow slower than the Swiss market (4.5% per year).

High Growth Revenue: SREN's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SREN's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Swiss Re performed over the past 5 years?

-57.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SREN is currently unprofitable.

Growing Profit Margin: SREN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SREN is unprofitable, and losses have increased over the past 5 years at a rate of 57.7% per year.

Accelerating Growth: Unable to compare SREN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SREN is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-17.1%).


Return on Equity

High ROE: SREN has a negative Return on Equity (-4.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is Swiss Re's financial position?


Financial Position Analysis

Short Term Liabilities: SREN's short term assets ($113.1B) do not cover its short term liabilities ($159.4B).

Long Term Liabilities: SREN's short term assets ($113.1B) exceed its long term liabilities ($49.8B).


Debt to Equity History and Analysis

Debt Level: SREN's debt to equity ratio (40.6%) is considered high.

Reducing Debt: SREN's debt to equity ratio has reduced from 47.5% to 40.6% over the past 5 years.

Debt Coverage: SREN's debt is well covered by operating cash flow (35.4%).

Interest Coverage: Insufficient data to determine if SREN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Swiss Re current dividend yield, its reliability and sustainability?

8.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SREN's dividend (8.27%) is higher than the bottom 25% of dividend payers in the Swiss market (1.93%).

High Dividend: SREN's dividend (8.27%) is in the top 25% of dividend payers in the Swiss market (3.81%)


Stability and Growth of Payments

Stable Dividend: SREN's dividend payments have been volatile in the past 10 years.

Growing Dividend: SREN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: SREN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SREN's dividends in 3 years are forecast to be covered by earnings (74% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Christian Mumenthaler (51 yo)

4.17yrs

Tenure

US$5,932,000

Compensation

Mr. Christian Mumenthaler has been Group Chief Executive Officer of Swiss Re Ltd. since July 1, 2016 and served as its Chief Executive Officer of Reinsurance since October 21, 2011 until July 1, 2016. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD6.59M) is about average for companies of similar size in the Swiss market ($USD6.27M).

Compensation vs Earnings: Christian's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Christian Mumenthaler
Group CEO & Member of Executive Committee4.17yrsUS$5.93m0.027%
$ 5.1m
John Robert Dacey
Group CFO & Member of Executive Committee2.42yrsno data0.011%
$ 2.0m
Anette Bronder
Group COO & Member of Executive Committee1.17yrsno datano data
Guido Fürer
Group Chief Investment Officer & Member of Executive Committee7.83yrsno data0.019%
$ 3.6m
Youngran Kim
Group Chief Technology Officer0.42yrno datano data
Thomas Bohun
Head of Investor Relationsno datano datano data
Hermann Geiger
Group Chief Legal Officer11.67yrsno data0.018%
$ 3.3m
Elena Logutenkova
Head of Media Relations & Corporate Reportingno datano datano data
Nigel Fretwell
Chief HR Officer & Member of Executive Committee7.33yrsno data0.0044%
$ 825.9k
Beat Strebel
Head of the Middle East & Africa business1.5yrsno datano data
Robert Solitro
Head of Special Lines North Americano datano datano data
Jonathan Isherwood
Chief Executive Officer of Reinsurance Americas7.17yrsno datano data

4.2yrs

Average Tenure

57yo

Average Age

Experienced Management: SREN's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Ryan
Non-Executive Independent Director5.42yrsUS$898.00k0.0056%
$ 1.1m
Kuo Fung Ch'ien
Non-Executive Independent Director12.67yrsUS$441.00k0.0076%
$ 1.4m
Walter Kielholz
Non-Executive Chairman11.33yrsUS$3.81m0.15%
$ 28.5m
Renato Fassbind
Vice Chairman & Lead Independent Director8.42yrsUS$826.00k0.011%
$ 2.1m
Larry Zimpleman
Non-Executive Independent Director2.42yrsUS$296.00k0.00072%
$ 135.2k
Joerg Reinhardt
Independent Director3.42yrsUS$296.00k0.0092%
$ 1.7m
Paul Tucker
Non-Executive Independent Director4.42yrsUS$325.00k0.0019%
$ 364.2k
Karen Gavan
Non-Executive Independent Director2.42yrsUS$433.00k0.0010%
$ 187.7k
Jacques de Vaucleroy
Non-Executive Independent Director3.42yrsUS$718.00k0.0017%
$ 324.7k
Susan Wagner
Non-Executive Independent Director6.42yrsUS$595.00k0.0050%
$ 936.7k
Sergio Ermotti
Non-Executive Independent Director0.42yrno datano data
Jay Ralph
Non-Executive Independent Director3.42yrsUS$276.00k0.0012%
$ 221.5k

3.9yrs

Average Tenure

63yo

Average Age

Experienced Board: SREN's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Swiss Re AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Swiss Re AG
  • Ticker: SREN
  • Exchange: SWX
  • Founded: 1863
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: CHF18.771b
  • Shares outstanding: 278.92m
  • Website: https://www.swissre.com

Number of Employees


Location

  • Swiss Re AG
  • Mythenquai 50/60, PO Box
  • Zurich
  • Zurich
  • 8022
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRENSWX (SIX Swiss Exchange)YesNew Common StockCHCHFDec 1993
SR9DB (Deutsche Boerse AG)YesNew Common StockDEEURDec 1993
SSRE.FOTCPK (Pink Sheets LLC)YesNew Common StockUSUSDDec 1993
SREN NBMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNDec 1993
0QL6LSE (London Stock Exchange)YesNew Common StockGBCHFDec 1993
SSRE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMay 2011
SR9ADB (Deutsche Boerse AG)SPONSORED ADRDEEURMay 2011

Biography

Swiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, and other insurance-based forms of risk transfer worldwide. The company operates through four segments: Property & Ca ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 03:53
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.