LSE:0QL6

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 Analysis

Proven track record and fair value.


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: 0QL6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

0QL6

0.3%

GB Insurance

0.05%

GB Market


1 Year Return

19.7%

0QL6

0.9%

GB Insurance

7.1%

GB Market

Return vs Industry: 0QL6 exceeded the UK Insurance industry which returned 1.1% over the past year.

Return vs Market: 0QL6 exceeded the UK Market which returned 6.6% over the past year.


Shareholder returns

0QL6IndustryMarket
7 Day2.2%0.3%0.05%
30 Day6.5%3.8%-1.7%
90 Day10.2%10.5%4.1%
1 Year26.7%19.7%12.1%0.9%12.6%7.1%
3 Year47.0%24.8%18.5%-2.7%18.4%3.6%
5 Year80.5%34.5%30.8%-2.8%35.2%4.2%

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

No news available

Valuation

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

35.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0QL6 (CHF116.7) is trading below our estimate of fair value (CHF181.56)

Significantly Below Fair Value: 0QL6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0QL6 is poor value based on its PE Ratio (97.1x) compared to the Insurance industry average (14.7x).

PE vs Market: 0QL6 is poor value based on its PE Ratio (97.1x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0QL6 is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: 0QL6 is good value based on its PB Ratio (1.2x) compared to the GB Insurance industry average (1.8x).


Next Steps

Future Growth

How is Swiss Re forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0QL6's forecast earnings growth (25.8% per year) is above the savings rate (0.5%).

Earnings vs Market: 0QL6's earnings (25.8% per year) are forecast to grow faster than the UK market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0QL6's revenue (2.2% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: 0QL6's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QL6's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Swiss Re performed over the past 5 years?

-39.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0QL6 has high quality earnings.

Growing Profit Margin: 0QL6's current net profit margins (0.9%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: 0QL6's earnings have declined by -39.6% per year over the past 5 years.

Accelerating Growth: 0QL6's earnings growth over the past year (192.1%) exceeds its 5-year average (-39.6% per year).

Earnings vs Industry: 0QL6 earnings growth over the past year (192.1%) exceeded the Insurance industry 23.4%.


Return on Equity

High ROE: 0QL6's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


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: 0QL6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0QL6's debt is covered by short term assets (assets are 3.7x debt).


Financial Institutions Analysis

Asset Level: 0QL6's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0QL6 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0QL6 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0QL6 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0QL6 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0QL6 has an appropriate level of bad loans.


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0QL6's dividend (4.61%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: 0QL6's dividend (4.61%) is low compared to the top 25% of dividend payers in the UK market (5.12%).


Stability and Growth of Payments

Stable Dividend: 0QL6's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0QL6's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (465.4%), 0QL6's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QL6's dividends in 3 years are forecast to be covered by earnings (68.6% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Christian Mumenthaler (50yo)

3.6yrs

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 ($USD5.91M) is about average for companies of similar size in the UK market ($USD4.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christian Mumenthaler
Group CEO & Member of Executive Committee3.6yrsUS$5.81m0.025% $8.4m
John Dacey
Group CFO & Member of Executive Committee1.8yrsno data0.0094% $3.2m
Anette Bronder
Group COO & Member of Executive Committee0.6yrsno datano data
Guido Fürer
Group Chief Investment Officer & Member of Executive Committee7.3yrsno data0.023% $7.7m
Philippe Brahin
Head Investor Relations and Head Governmental Affairs & Sustainability0yrsno datano data
Hermann Geiger
Group Chief Legal Officer11.1yrsno datano data
Elena Logutenkova
Head of Media Relations & Corporate Reporting0yrsno datano data
Nigel Fretwell
Chief HR Officer & Member of Executive Committee6.8yrsno datano data
Beat Strebel
Head of the Middle East & Africa business0.9yrsno datano data
Robert Solitro
Head of Special Lines North America0yrsno datano data

3.6yrs

Average Tenure

56yo

Average Age

Experienced Management: 0QL6's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Ryan
Non-Executive4.8yrsUS$894.00k0.0040% $1.4m
Kuo Fung Ch'ien
Non-Executive12.1yrsUS$439.00k0.0079% $2.7m
Walter Kielholz
Non-Executive Chairman10.8yrsUS$3.88m0.14% $47.6m
Renato Fassbind
Vice Chairman & Lead Independent Director7.8yrsUS$826.00k0.0095% $3.2m
Joerg Reinhardt
Independent Director2.8yrsUS$276.00k0.0050% $1.7m
Paul Tucker
Non-Executive3.8yrsUS$325.00k0.0014% $468.9k
Jacques de Vaucleroy
Non-Executive Independent Director2.8yrsUS$633.00k0.00094% $317.1k
Susan Wagner
Non-Executive5.8yrsUS$575.00k0.0039% $1.3m
Jay Ralph
Non-Executive2.8yrsUS$276.00k0.00073% $246.3k
Trevor Manuel
Non-Executive4.8yrsUS$351.00k0.0019% $647.7k

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 0QL6's board of directors are considered experienced (4.8 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: 0QL6
  • Exchange: LSE
  • Founded: 1863
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: CHF33.735b
  • Shares outstanding: 288.83m
  • 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)SPONSORED ADRUSUSDMay 2011
SR9ADB (Deutsche Boerse AG)SPONSORED ADRDEEURMay 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 & Casualty Reinsurance, Life & Health Reinsurance, Corporate Solutions, and Life Capital. It underwrites property reinsurance, including credit and surety, engineering, aviation, marine, agriculture, and retakaful; casualty reinsurance, such as liability, motor, worker's compensation, personal accident, management and professional liability, cyber, footer, and share price, as well as life and health insurance products. The company also offers standard insurance covers and customized products; and manages closed and open life and health insurance books. It serves stock and mutual insurance companies, public sector clients and governmental entities, mid-sized and large multinational corporations, and individuals. Swiss Re AG was founded in 1863 and is headquartered in Zurich, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:32
End of Day Share Price2020/02/19 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.