Swiss Re (OTCMKTS:SSREF – Get Free Report) and Brookfield Reinsurance (NYSE:BNRE – Get Free Report) are both financial services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Dividends
Swiss Re pays an annual dividend of $4.36 per share and has a dividend yield of 4.2%. Brookfield Reinsurance pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Swiss Re pays out 37.0% of its earnings in the form of a dividend. Brookfield Reinsurance pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Swiss Re is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current ratings and target prices for Swiss Re and Brookfield Reinsurance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Swiss Re | 0 | 0 | 0 | 0 | N/A |
| Brookfield Reinsurance | 0 | 0 | 0 | 0 | N/A |
Earnings & Valuation
This table compares Swiss Re and Brookfield Reinsurance’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Swiss Re | N/A | N/A | N/A | $11.77 | 8.84 |
| Brookfield Reinsurance | $6.79 billion | 0.06 | $490.00 million | $0.42 | 86.79 |
Brookfield Reinsurance has higher revenue and earnings than Swiss Re. Swiss Re is trading at a lower price-to-earnings ratio than Brookfield Reinsurance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Swiss Re and Brookfield Reinsurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Swiss Re | N/A | N/A | N/A |
| Brookfield Reinsurance | 0.07% | 0.34% | 0.01% |
Institutional & Insider Ownership
24.3% of Swiss Re shares are owned by institutional investors. Comparatively, 49.3% of Brookfield Reinsurance shares are owned by institutional investors. 1.0% of Brookfield Reinsurance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Brookfield Reinsurance beats Swiss Re on 7 of the 10 factors compared between the two stocks.
About Swiss Re
Swiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, other insurance-based forms of risk transfer, and other insurance-related services worldwide. The company operates through three segments: Property & Casualty Reinsurance, Life & Health Reinsurance, and Corporate Solutions. The Property & Casualty Reinsurance segment underwrites property reinsurance, including property, credit and surety, engineering, aviation, marine, agriculture, retakaful, and facultative reinsurance solutions; and casualty reinsurance, such as liability, motor, worker's compensation, personal accident, management and professional liability, cyber, and facultative reinsurance solutions. The Life & Health Reinsurance segment underwrites life and health insurance products. The Corporate Solutions segment offers standard risk transfer covers and multi-line programs to customized solutions. It serves stock and mutual insurance companies, public sector and governmental entities, mid-sized and large corporations, and individuals. Swiss Re AG was founded in 1863 and is headquartered in Zurich, Switzerland.
About Brookfield Reinsurance
Brookfield Reinsurance Ltd., through its subsidiaries, provides annuity-based reinsurance products to insurance and reinsurance companies in the United States, Canada, and internationally. The company operates in three segments: Direct Insurance, Reinsurance, and Pension Risk Transfer (PRT). The Direct Insurance segment offers a range of insurance products and services including life insurance, annuities, property and casualty insurance, health insurance, credit insurance, and pension products. The Reinsurance segment provides reinsurance of annuity-based products, such as fixed annuities, fixed index annuities, and payout annuities. The PRT segment provides transfer by a corporate sponsor of the risks associated with the sponsorship and administration of a pension plan. The company was formerly known as Brookfield Asset Management Reinsurance Partners Ltd. and changed its name to Brookfield Reinsurance Ltd. in December 2022. Brookfield Reinsurance Ltd. was founded in 1905 and is headquartered in Pembroke, Bermuda.
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