Swiss Re AG Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week saw the newest quarterly earnings release from Swiss Re AG (VTX:SREN), an important milestone in the company's journey to build a stronger business. The results were mixed; although revenues of US$10b fell 13% short of what the analysts had predicted, per-share (statutory) earnings of US$4.31 beat expectations by 37%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the eleven analysts covering Swiss Re are now predicting revenues of US$45.7b in 2025. If met, this would reflect a credible 4.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 36% to US$15.47. Before this earnings report, the analysts had been forecasting revenues of US$47.5b and earnings per share (EPS) of US$15.27 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

Check out our latest analysis for Swiss Re

The average price target was steady at CHF144even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Swiss Re at CHF172 per share, while the most bearish prices it at CHF98.12. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Swiss Re's growth to accelerate, with the forecast 5.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Swiss Re to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Swiss Re going out to 2027, and you can see them free on our platform here..

Even so, be aware that Swiss Re is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.