SWX:SREN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer and slightly overvalued.


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


Market Performance


7 Day Return

0.6%

SREN

2.8%

CH Insurance

2.1%

CH Market


1 Year Return

15.5%

SREN

24.3%

CH Insurance

10.3%

CH Market

Return vs Industry: SREN underperformed the Swiss Insurance industry which returned 24.3% over the past year.

Return vs Market: SREN exceeded the Swiss Market which returned 10.3% over the past year.


Shareholder returns

SRENIndustryMarket
7 Day0.6%2.8%2.1%
30 Day-0.1%1.4%0.3%
90 Day6.3%7.5%1.6%
1 Year22.2%15.5%30.9%24.3%16.1%10.3%
3 Year35.6%15.2%67.3%43.1%34.7%17.2%
5 Year90.7%42.3%99.6%51.6%41.0%18.9%

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?

4.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SREN (CHF102.9) is trading below our estimate of fair value (CHF108.11)

Significantly Undervalued: SREN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SREN is poor value based on its PE Ratio (84.3x) compared to the Insurance industry average (14.4x).

PE vs Market: SREN is poor value based on its PE Ratio (84.3x) compared to the Swiss market (18.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SREN is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: SREN is good value based on its PB Ratio (1x) compared to the CH Insurance industry average (1.1x).


Next Steps

Future Growth

How is Swiss Re forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SREN's forecast earnings growth (14.7% per year) is above the savings rate (3.3%).

Earnings vs Market: SREN's earnings (14.7% per year) are forecast to grow faster than the Swiss market (10.3% per year).

High Growth Earnings: SREN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SREN's revenue (2.6% per year) is forecast to grow slower than the Swiss market (3.5% per year).

High Growth Revenue: SREN's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SREN's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Swiss Re performed over the past 5 years?

-39.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SREN's earnings have declined by -39.6% per year over the past 5 years.

Accelerating Growth: SREN's earnings growth over the past year (192.1%) exceeds its 5-year average (-39.6% per year).

Earnings vs Industry: SREN earnings growth over the past year (192.1%) exceeded the Insurance industry 20.1%.


Return on Equity

High ROE: SREN's Return on Equity (1.3%) is considered low.


Return on Assets

ROA vs Industry: SREN's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: SREN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Swiss Re's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SREN has a low level of unsold assets or inventory.

Debt Coverage by Assets: SREN's debt is covered by short term assets (assets are 3.652940x debt).


Financial Institutions Analysis

Asset Level: SREN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SREN has a sufficient allowance for bad loans.

Low Risk Liabilities: SREN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SREN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SREN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SREN has an appropriate level of bad loans.


Next Steps

Dividend

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

5.31%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%1.9%markettop25%3.7%industryaverage4.5%forecastin3Years6.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SREN's dividend (5.31%) is higher than the bottom 25% of dividend payers in the Swiss market (1.93%).

High Dividend: SREN's dividend (5.31%) is in the top 25% of dividend payers in the Swiss market (3.68%)

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: With its high payout ratio (465.4%), SREN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SREN's dividends in 3 years are forecast to be covered by earnings (63.3% payout ratio).


Next Steps

Management

What is the CEO of Swiss Re's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Christian Mumenthaler (50yo)

3.3yrs

Tenure

US$5,814,000

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 ($USD5.83M) is about average for companies of similar size in the Swiss market ($USD4.19M).

Compensation vs Earnings: Christian's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: SREN's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

63yo

Average Age

Experienced Board: SREN's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • John Dacey (59yo)

    Group Chief Financial Officer

    • Tenure: 1.5yrs
  • Christian Mumenthaler (50yo)

    Group Chief Executive Officer

    • Tenure: 3.3yrs
    • Compensation: US$5.81m
  • Beat Strebel

    Head of the Middle East & Africa business

    • Tenure: 0.6yrs
  • Robert Solitro

    Head of Special Lines North America

    • Tenure: 0yrs
  • Jonathan Isherwood (53yo)

    Head Globals - Reinsurance

    • Tenure: 6.3yrs
  • Hermann Geiger (56yo)

    Group Chief Legal Officer and Head Legal & Compliance

    • Tenure: 0yrs
  • Guido Fürer (56yo)

    Group Chief Investment Officer

    • Tenure: 6.9yrs
  • Nigel Fretwell (57yo)

    Chief Human Resources Officer

    • Tenure: 6.4yrs
  • Anette Bronder (52yo)

    Group Chief Executive Officer

    • Tenure: 0.3yrs
  • Philippe Brahin

    Head Investor Relations and Head Governmental Affairs & Sustainability

    • Tenure: 0yrs

Board Members

  • Philip Ryan (63yo)

    Non-Executive

    • Tenure: 4.5yrs
    • Compensation: US$894.00k
  • Raymond Ch'ien (67yo)

    Non-Executive

    • Tenure: 11.8yrs
    • Compensation: US$439.00k
  • Walter Kielholz (68yo)

    Non-Executive Chairman

    • Tenure: 10.4yrs
    • Compensation: US$3.88m
  • Renato Fassbind (64yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$826.00k
  • Joerg Reinhardt (63yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$276.00k
  • Paul Tucker (61yo)

    Non-Executive

    • Tenure: 3.5yrs
    • Compensation: US$325.00k
  • Jacques de Vaucleroy (58yo)

    Non-Executive Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$633.00k
  • Sue Wagner (58yo)

    Non-Executive

    • Tenure: 5.5yrs
    • Compensation: US$575.00k
  • Jay Ralph (60yo)

    Non-Executive

    • Tenure: 2.5yrs
    • Compensation: US$276.00k
  • Trevor Manuel (63yo)

    Non-Executive

    • Tenure: 4.5yrs
    • Compensation: US$351.00k

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: CHF30.438b
  • Shares outstanding: 295.80m
  • Website: https://www.swissre.com

Number of Employees


Location

  • Swiss Re AG
  • Mythenquai 50/60
  • 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
SR9XTRA (XETRA Trading Platform)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)SPON ADR EACH REPR 1 ORD SHSUSUSDMay 2011
SR9ADB (Deutsche Boerse AG)SPON ADR EACH REPR 1 ORD SHSDEEURMay 2011
SRENESWX (SIX Swiss Exchange)CHF0.10 (2ND BUY BACK LINE)CHCHFNov 2015

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 Analysis2019/10/15 21:01
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.