Swiss Re hires Boston Consulting Group to drive cost-cutting program

Swiss Re, the world’s second-largest reinsurer, has engaged Boston Consulting Group to spearhead a major cost-reduction initiative as the company seeks to boosts its operational efficiency and profitability.

The Zurich-based reinsurer’s cost-cutting drive is already underway, with the cost cutting program part of a broader strategy aimed at streamlining operations and improving organizational effectiveness.

According to people familiar with the matter, Boston Consulting Group’s mandate includes a comprehensive review of Swiss Re’s operations, with job cuts under consideration across multiple divisions, including senior management roles.

Reporting from Bloomberg suggests that a team of around a dozen employees has already been slashed in the Forecasting department, while headcount reductions have also been announced in the Underwriting business.

Neither Swiss Re nor Boston Consulting Group (BCG) has publicly commented on the specifics of the consulting engagement or the planned restructuring. However, sources indicate that the review could lead to further reductions and organizational changes across the company’s global operations.

The cost review comes shortly after the appointment of Andreas Berger as Swiss Re’s CEO in July 2024. Berger, who previously led the company’s large corporate risks division and spent three years at BCG earlier in his career, has made cost discipline a cornerstone of his leadership. In a conference call this May, Berger emphasized his focus on reducing expenses at both the group level and within Swiss Re’s core reinsurance and corporate solutions divisions.

Swiss Re’s focus on cost control is set against a backdrop of falling reinsurance prices, driven by an excess supply of capital in the market. The influx of alternative capital – such as catastrophe bonds and other insurance-linked securities – has intensified competition and compressed margins for traditional reinsurers, making operational efficiency more critical than ever.

At the same time, competition in the industry is heating up, with disruptive tech-savvy start-ups entering the scene, and rivals turning to intelligent technology to leapfrog industry standards in terms of efficiency and customer excellence.

Financial Performance

Despite these industry headwinds, Swiss Re reported robust financial results for the first quarter of 2025. The company posted a net income of $1.3 billion, up from $1.1 billion in the same period last year, and achieved a return on equity (ROE) of 22.4% compared to 20.7% a year earlier. This performance was driven by disciplined underwriting and strong investment returns.