SWISS RE

Analysis of Swiss Re share price

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If you are an investor interested in the Swiss Re share, we offer our help in carrying out your analyses of its price. To help you best anticipate the future variations of this value, you will find information which will help you to carry out relevant studies of this stock such as the detailed activities of the company, its main competitors on the market and its recent partnerships. We'll also reveal the elements to follow as part of your fundamental analyses of this share.

Elements that can influence the price of this asset:

Analysis N°1

You should particularly keep an eye on the group's operations aimed at increasing its expansion through inorganic and organic means thanks to its significant capital.

Analysis N°2

You should also closely monitor the insurance market in general as well as its evolution over time and in the target countries.

Analysis N°3

Global economic health is also closely correlated with sales in this sector and as such should also be the focus of your attention as part of this analysis.

Analysis N°4

It's also important to keep an eye on the increasing and more and more aggressive competition in this sector of activity which can harm the profits of the group. Particularly because of the adoption of Solvency II agreements.

Analysis N°5

Finally as for all values related to insurance, events related to climate change that can lead to climatic catastrophes and other very costly events for Swiss Re should be followed.

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General presentation of Swiss Re

Check out more useful information about the Swiss Re company and its activities through a detailed presentation of the group which will help you to better understand where its profits and revenues come from and therefore how to anticipate its future profitability.

The Swiss Re group is a Swiss company operating in the insurance industry. More specifically, the company is one of the leaders in the reinsurance segment around the world.

To better understand the activities of the group, it's possible to divide them by geographic sector according to the turnover share generated like so:

  • First of all, the major part of the Swiss Re group income, i.e. nearly 50.8% of its turnover comes from non-life reinsurance activities in particular damage reinsurance, civil liability, automobile, accidents and even credit and deposit.
  • The group's second area of activity is life and health reinsurance, which generates 33.8% of the company's turnover. In this segment, Swiss Re is also the leader worldwide with life insurance which generates 67.4% of the premiums earned in this segment and health insurance which generates 32.6%.
  • Finally, the remainder of the group's turnover, i.e. 15.4%, comes from the provision of financial services with, among other things, asset management, private equity, financial advice and the sale of structured products.
Analysis of Swiss Re share price
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The major competitors of Swiss Re

Now let's find out who the main competitors of the Swiss Re group are in its sector of activity with the largest international companies:

Munich Re

First of all, the German reinsurance company Munich Re is one of the main players in this sector worldwide and includes the subsidiary ERGO which specializes in direct insurance. This group is also listed on the various German stock exchanges as well as on the electronic transaction system Xetra. It's important to mention that Munich Re is part of the composition of the German DAX 30 stock market index.

Berkshire Hathaway 

This Company is an American investment conglomerate led by Warren Buffet which specializes in insurance and reinsurance. It's one of the largest companies in terms of capitalization in this sector and its shares are listed on the New York Stock Exchange.

RGA

Finally, the company RGA for Reinsurance Group of America is also one of the main groups in this sector of activity although it is positioned after Swiss Re. It's a holding company for a global life and health reinsurance entity based in Missouri, United States. The company has over $ 3.5 trillion dollars in life reinsurance in effect and $ 76.4 billion in assets at the start of 2020. It has also become the only international company in the world to focus primarily on life and health reinsurance.


The major partners of Swiss Re

The Swiss Re group regularly signs strategic partnerships which allow it to boost its growth. Some specific examples:

Hitachi

In 2020, Swiss Re joined forces with the electronics group Hitachi aimed at offering insurance to companies embarking on a digital transformation. The two entities want to enable their future customers to accelerate their digital transformation by reducing insurance risks against potential interruptions in their business.

Toyota 

The same year, it was with Toyota Insurance Services that the Swiss re group set up a strategic partnership aimed at the development of an advanced driver assistance system. Swiss Re had already signed such a partnership with the car manufacturer BMW , in 2019. The objective of this concept is to offer car policyholders cheaper insurance premiums.

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The factors in favour of a rise in the Swiss Re share price:

Currently, the Swiss Re group enjoys a number of advantages over its competitors on the market, here are a few examples:

  • First of all, the Swiss Re group is one of the most important groups in the field of reinsurance around the world with international operations.
  • The Group's long experience, which has existed for 150 years, is another of its major assets.
  • Another advantage is the commercial and geographical diversification of the company which reduces risks with activities equally well distributed over the different segments of insurance.
  • The workforce and the size of the company is another of its strengths with more than 11,000 employees around the world.
  • Finally, the group's presence in over 25 different countries is also one of its strengths.
The factors in favour of a drop in the Swiss Re share price:

With regard to the weaknesses of the Swiss Re group, the following elements should be taken into account:

  • Firstly, the trend recorded in the life and health activities of the group has been rather downward in recent years and is weighing on its operating profit.
  • Finally, the recent decline in investment income may also affect the future profitability of the group.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the main shareholders of the Swiss Re group?

The shareholding of the Swiss Re group includes several large private shareholders including Swiss Re AG which holds 10% of the capital, The Vanguard Group with 2.65% of the shares, Norges Bank Investment Management with 2.14% of the shares, UBS Asset management Switzerland with 2.07% of the shares, BlackRock Fund Advisors with 2.03% of the shares, Wellington Management with 2.02% of the shares, Ivy Investment Management with 1.45% of the shares and Fidelity Management & Research with 1.30% of the shares.

On which market is the Swiss Re group's share listed?

If you want to invest in the Swiss re share price, you will need to do so on the Swiss stock market on which that security is currently listed. The Swiss Re share is listed on the SIX Swiss Exchange in Zurich, which is the country's main stock market. The security is also part of the composition of the national Swiss stock market index, the SMI or Swiss Market Index.

Can I invest in Swiss Re shares online?

As is the case with many other shares of Swiss companies, it is possible to speculate on the Swiss Re share price online thanks to specialized brokers and CFD-type contracts. But this practice is reserved for experienced traders.

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