Berenberg Notes 'Weather Boost' in Swiss Re's Q2 P&C Re Performance; Estimates Updated

06:47 AM EDT, 08/07/2026 (MT Newswires) -- Berenberg noted a "weather boost" in Swiss Re's (SREN.SW) Property & Casualty Re division during the second quarter, with analysts expecting the "benign" natural catastrophe environment to bolster the group's profitability in full-year 2026. "Swiss Re's P&C Re performance in Q2 was supported materially by the benign environment in terms of natural catastrophes, with the actual large losses being at c$40m in the quarter versus the c$430m budget. As we expect the Atlantic hurricane season to be benign (see 2026 Hurricane Handbook: in search of storms, dated 28 July) we forecast the FY26 P&C Re combined ratio at 78.2%, resulting in a record-high divisional profit, before normalising lower in outer years," according to the note published Friday. For the outer years, however, the research firm flagged growing pricing pressure within P&C Re as the company renewed 88% of its treaty business year-to-date at a nominal price decline of 0.2% and raised loss assumptions by 4.4%. "With pricing pressures in P&C Re, specifically property and nat cat, set to persist into 2027 (with the additional risk of looser terms and conditions), we expect the P&C Re combined ratio to gradually trend towards 85% by FY28." As such, Berenberg lifted its EPS estimates for 2026 by 5% amid expected lower large natural catastrophe losses. On the other hand, EPS forecasts for 2027 and 2028 were trimmed, reflecting pricing concerns. The stock's hold rating and price target of 140 francs were unchanged.