Comparing Swiss Re (SSREY) & Its Rivals

Swiss Re (OTCMKTS: SSREY) is one of 38 publicly-traded companies in the “Life insurance” industry, but how does it compare to its peers? We will compare Swiss Re to similar businesses based on the strength of its institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Dividends

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Swiss Re pays an annual dividend of $1.00 per share and has a dividend yield of 4.0%. Swiss Re pays out 384.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Life insurance” companies pay a dividend yield of 2.2% and pay out 28.7% of their earnings in the form of a dividend.

Institutional and Insider Ownership

0.1% of Swiss Re shares are owned by institutional investors. Comparatively, 49.3% of shares of all “Life insurance” companies are owned by institutional investors. 18.8% of shares of all “Life insurance” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Swiss Re and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Swiss Re $42.49 billion $398.00 million 95.15
Swiss Re Competitors $22.05 billion $1.25 billion 16.02

Swiss Re has higher revenue, but lower earnings than its peers. Swiss Re is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Swiss Re and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Swiss Re 1 4 2 0 2.14
Swiss Re Competitors 317 1126 1514 83 2.45

As a group, “Life insurance” companies have a potential upside of 9.20%. Given Swiss Re’s peers stronger consensus rating and higher possible upside, analysts plainly believe Swiss Re has less favorable growth aspects than its peers.

Profitability

This table compares Swiss Re and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Swiss Re N/A N/A N/A
Swiss Re Competitors 4.44% 4.85% 0.81%

Volatility and Risk

Swiss Re has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Swiss Re’s peers have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.

Summary

Swiss Re peers beat Swiss Re on 12 of the 15 factors compared.

About Swiss Re

Swiss Re Ltd, together with its subsidiaries, provides wholesale reinsurance, insurance, and other insurance-based forms of risk transfer worldwide. The company operates through four segments: Property & Casualty Reinsurance, Life & Health Reinsurance, Corporate Solutions, and Life Capital. It underwrites casualty, property and specialty, agriculture, aviation, engineering, marine, life and health, retakaful, solvency II, and facultative reinsurance products, as well as trade credit, surety, and political risk reinsurance; structured reinsurance solutions; and insurance-linked securities. The company also offers customized products and standard insurance covers; and manages closed and open life and health insurance books. The company serves insurance companies, mid-to-large-sized corporations, and public sector clients. Swiss Re Ltd was founded in 1863 and is headquartered in Zurich, Switzerland.

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