SHORT REINSURERS: Deja Vu

Research evidence excerpt

SHORT REINSURERS: Deja Vu

Gigi Sparling - Specialist Sales - European Financials AC (44-20) 7134-0355 Europe Specialist Sales J P M O R G A Nghislaine.sparling@jpmorgan.com

J.P. Morgan Securities plc 02 August 2026

Gigi Sparling

+44 207 134 0355

ghislaine.sparling@jpmorgan.com

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Short Reinsurers: Déjà vu. Kam and Nadia downgraded Swiss Re to UW this week ahead of their results next Thursday, and

placed Hannover on Negative Catalyst Watch ahead of their results on the 12th of August. In short the pricing dynamics of the

industry mean we’re expecting the weak top line trends we’ve seen from last quarter to continue. Whilst the bottom line will be

fine due to low losses, pricing trends in property catastrophe business have been very weak and those lack of losses means that the

pricing dynamics are unlikely to change soon. Soon after results, the Monte-Carlo conference in September is likely to be a

downbeat affair and focus attention on pricing trends into 2027 which we think could also see material pressure. Whilst OW rated

Munich Re has already preannounced positively – it’s worth pointing out they didn’t mention their top line trends which we think

will likely be the market focus next week. We are 3% below consensus on net income for Swiss Re ahead of results next week.

Research: Kam and Nadia rate Swiss Re an UW, Hannover a Neutral and Munich Re an OW. Research here.

Short Interest: Swiss Re SI is 18 ADTV to cover or 9% of ffloat, Hannover SI is 4 ADTV to cover or 3% of ffloat