Swiss Re Price Target, Estimates Cut as RBC Notes Higher Cost of Equity, Lower Earnings

11:13 PM EST, 12/08/2025 (MT Newswires) -- RBC Capital Markets on Monday kept Swiss Re (SREN.SW) at underperform with a price target of 118 francs, down from 125 francs previously, amid the reinsurer's higher cost of equity and lower earnings. "We were disappointed by the short-fall in buyback, a new emphasis on M&A, cautious comments on P&C competition, and no material data to give full comfort that L&H issues are at an end. We nudged down top-line forecasts in P&C, and assume further negative experience variance in L&H into 2027. While the emphasis from management was on resilience, we continue to see the shares as fully valued for a below-peer track record and a worsening outlook for growth and margin," the note said. For EPS, the research firm lowered its estimates for 2025, 2026, and 2027 and noted "a more cautious view" of the Swiss company's top-line and margin in property and casualty and corporate solutions.