Swiss Re reports $1.1 billion group net income for Q3

Swiss Re has reported a group net income of $1.1 billion for the third quarter of the year, and a return on equity of 14.3% for the period.

That’s down from $2.2 billion for the comparable quarter in 2012, when the company reported a one-off gain from the sale of its U.S. business Admin Re. All figures are in U.S. currency.

The result for the quarter was led by the group’s property and casualty reinsurance division, which had a net income of $807 million for the period, down from $1 billion for the same period of 2012.

Premiums earned in the quarter increased by 19.9% to $4 billion (up from $3.3 billion in 2012), while the combined ratio was 80.9% (an improvement over the “exceptionally low” 69.3% in the prior year quarter).

The result was despite a number of large losses, notably German hailstorms in July, Swiss Re noted, adding that the combined ratio also benefited from reserve releases from prior year business.

The group’s Corporate Solutions division recorded a net income of $71 million, down from $110 million in the prior year quarter. Premiums earned rose by 34.5% to $791 million from $588 million in 2012, while the combined ratio was 95.8%, compared to 87.4% a year earlier.

“The increase reflects the impact of hurricanes in Mexico compared to benign nat cat experience in the prior-year,” Swiss Re said.

“Solid growth was seen across most regions and lines of business. The Singapore direct insurance license obtained in October will further strengthen the growth plan of the local Corporate Solutions operation by expanding its distribution channels.”

Meanwhile, net income was down significantly for the group’s life and health reinsurance division, totalling $12 million for the third quarter, versus $187 million a year earlier. The decrease is due in part lower realized gains, Swiss Re noted.

Overall, the group is on track to achieve its 2011-2015 financial targets, the company said.