Swiss Re Reports 16% Profit Rise in Q1 Despite Heavy Wildfire Claims

Frankfurt (Reuters) — The global reinsurance giant Swiss Re has posted a 16% year-on-year rise in net profit for the first quarter of  the year 2025, defying expectations even as it absorbed $570 million in claims from devastating wildfires in Los Angeles.

Swiss Re reported a quarterly profit of $1.275 billion, outpacing the $938 million average forecast by analysts and significantly ahead of the $1.096 billion posted during the same period last year. The boost came from strong investment income and favorable tax impacts, which helped offset losses from natural catastrophes.

“The first quarter of 2025 was marked by significant large loss events in our property and casualty businesses,” said CEO Andreas Berger. Despite what the company termed a “turbulent start to the year,” it reaffirmed its confidence in meeting its financial targets for 2025.

The Los Angeles wildfires, which killed nearly 30 people and destroyed over 16,000 structures, led to substantial claims across the reinsurance sector. While Swiss Re absorbed a major share of the damage, its competitors—Munich Re and Hannover Re which were hit even harder, reporting a combined €1.7 billion ($1.91 billion) in fire-related claims and sharp profit declines earlier this week.