Swiss Re, Munich Re and Hannover Re delivered strong nine-month earnings despite the August Colombia earthquake, while IRB(Re) swung to a reported loss on Brazil’s tax reform yet lifted solvency to 333%.
The majors: record-level profits, thinner new business
Swiss Re reported on 5 November nine-month net income of $4.2 billion and a return on equity of 22.5%, with a P&C Re combined ratio of 77.3%. Nat cat losses of $640 million were driven mainly by the Colombia earthquake in August and Storm Kristin. The warning sign sits in the pipeline: new-business contractual service margin in P&C fell to $1.8 billion from $2.5 billion, which management attributed to the competitive pricing environment. Munich Re, in preliminary figures on 23 October, earned about €1.7 billion in the third quarter and raised its 2026 profit guidance from €6.3 billion to €6.6 billion on below-average major losses.
Hannover Re, on 9 November, posted nine-month net income of €2.1 billion, up 6.9%, and a P&C combined ratio of 83.7%. Its largest single natural catastrophe of the year was the Colombia earthquake at €215.7 million. P&C new-business CSM fell 11.9% to €2.3 billion, with added volume only partly offsetting price declines.
IRB(Re): a tax loss, a stronger balance sheet
Brazil’s IRB(Re) presented third-quarter results on 13 November. Law 15,525/2026, which cuts the CSLL rate from 15% to 9% from 2027, forced a net write-off of R$591 million in deferred tax assets, turning the last-twelve-month result into a R$54 million loss; comparable net income rose 18% to R$561 million. The solvency ratio climbed to 333% from 251% a year earlier. The LTM P&C combined ratio improved from 85% to 77% after a deliberate repricing and mix shift, and the quarter absorbed R$90 million from the Colombia earthquake. Retained Life premiums fell 55% as pre-2020 contracts ran off. AM Best rates IRB(Re) A- (Excellent).
What it means for Power Re
Two lessons stand out. First, a single Latin American earthquake appeared in the results of every major reinsurer, a reminder that accumulation control is not optional in the region, including for Personal Accident portfolios exposed to mass-casualty events. Second, rating agencies look through accounting noise to earnings quality and capital: IRB’s tax charge is a one-off, its solvency and underwriting turnaround are not. Power Re’s specialist focus on Group Life and Personal Accident across Latin America, with event-catastrophe protection, disciplined pricing and transparent reporting, is built to deliver the kind of consistent, explainable results that hold up when the soft cycle tests everyone else’s margins.
Power Re perspective
This commentary reflects Power Re’s reading of public market reporting. It is general information, not underwriting, investment or legal advice.
