Analysts expect liability reserves increase to boost Swiss Re shares
** Shares in Swiss Re SRENH.S jump 6.9% after the Swiss reinsurance company increased U.S. liability reserves by $2.4 billion
** Now Q3 net profit will be around $100 million, which will likely result in a full-year target miss a for its combined ratio in its property and casualty reinsurance division
** Co's relative weakness of casualty reserves has been the key bear point on the stock for many years, Jefferies says, adding the news "opens up the possibility for the shares to outperform from here"
** Despite reserving headwind, FY profit outlook of more than $3 billion implies the 2025 guidance ought to show a material acceleration in earnings, the broker adds
** Today's news is positive for Swiss Re as it has strengthened its P&C reserves, J.P.Morgan says, adding the co is still on track to achieve FY profit of more than $3 billion suggesting underlying profitability is very strong
** "The disclosure on the positioning on the best estimate range on total reserves should give greater confidence to investors," the broker notes
** Share on track for a best day in four years
Reporting by Amir Orusov
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