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Swiss Re (SSREY) is a reinsurer that has three core divisions: (1) property and casualty reinsurance, (2) life and health reinsurance, and (3) corporate solutions.

Swiss Re was founded in 1863 when the general manager of Helvetia sought to stem the flow of reinsurance premiums outside Switzerland. Moritz Grossmann argued he could cut the premiums paid to foreign firms, still make a profit, and pay mid-single-digit dividends.

Swiss Re is now the second-largest reinsurer in the world by market cap, has 80 offices globally, and employs nearly 15,000 people. While the business did lose its way in the early part of the millennium, led by an ex-investment banker who took the business heavily into securitizations, lately Swiss Re has been focused on establishing quality within its three core divisions.

Swiss Re AG is headquartered in Zurich, Switzerland.

Three key data points gauge Swiss Re AG or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

SSREY Price

Over the past year, Swiss Re AG share price rose about 10% from $25.93 to $28.56 as of Thursday’s market close.

If SSREY trades in the range of $23.00 to $33.00 this next year, its recent $28.56 share price might rise to $30.60 by next year. Of course, SSREY’s price could drop about the same $2.04 estimated amount or more.

My annual upside estimate of $2.04 however, is in line with the average annual price increase for SSREY shares over the past three years.
 

SSREY Dividend

Swiss Re AG has declared variable annual dividends since April 2012. SSREY most recent annual dividend of $1.59 was declared on March 21, 2023, to shareholders of record on April 14th. The payout was made on April 25th.

A forward-looking $1.59 annual dividend yields 5.57% at Thursday’s $28.56 share price.
 

SSREY Returns

To put it all together, add the estimated annual dividend of $1.59 to the estimated price upside of $2.04 to find a $3.63 gross gain.

At Thursday’s $28.56 share price, a little under $1000 would buy 35 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.29 per share.

Subtracting that likely $0.29 brokerage cost from the $3.63 gross gain produces a net gain of $3.34 X 35 shares = $116.90 for an 11.7% estimated net gain.

You might choose to pounce on Swiss Re AG It is a 161 year-old Zurich-based re-insurer.

Furthermore, the estimated $55.70 of annual dividend income from $1k invested is about 1.95 times greater than SSREY’s recent $28.56 single share price.

The exact track of Swiss Re AG ongoing future price and dividend will be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

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