Swiss Re says attractive margins in the property and casualty (P&C) businesses, along with continued cost discipline, will help the reinsurer achieve a 14% return on equity (ROE) in 2024.

The reinsurer set the 14% ROE target at its investor day update last week.

“We have come a long way since our last investors’ day,” Group CEO Christian Mumenthaler said. “We successfully completed the turnaround of Corporate Solutions and significantly improved P&C Re margins.”

The reinsurer says reinsurance is at the core of its strategy, describing it as a highly attractive franchise comprising P&C Re and L&H Re segments.

“The focus on underwriting excellence and disciplined growth remains a top priority for P&C Re,” the business said.

“This includes the continued expansion of the natural catastrophe business, which reported an average combined ratio of 75% over the past 10 years and attracted rising interest from third-party capital partners.”

The reinsurer’s P&C Re business achieved $US2.1 billion ($2.8 billion) in net income last year, following a $US427 million ($571 million) loss in 2020.