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Swiss Re reports $1.2 billion net income for Q1


May 7, 2014   by Canadian Underwriter


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A “benign natural catastrophe experience” helped Swiss Re post net income of $1.2 billion for the first quarter of 2014, although that result is a decrease from the $1.4 billion the reinsurer saw in Q1 last year.

Property and casualty reinsurance net income reached $1.0 billion for the quarter, Swiss Re said Wednesday. All figures are in U.S. dollars.

The combined ratio for that business during the quarter was 78.8% (69.7% in 2013), mainly from the higher impact of man-made losses and lower reserve releases.

Premiums earned during the first quarter for that business also rose by 7.9% to $3.8 billion ($3.5 billion in 2013).

For its Corporate Solutions business., first quarter net income was $80 million, down from $101 million in the first three months of 2013, mainly because of higher man-made losses and higher claims from business written in prior years, according to Swiss Re.

Premiums earned rose for the quarter by 35.4% to $830 million ($613 million last year), with organic growth from most lines of business.

That business’ combined ratio increased to 95.2% from 87.6% in the prior year quarter.

For life and health, profit was down to $51 million from $222 million in the prior year quarter,
impacted by a loss on an interest rate hedge.”

Premiums earned and fee income increased 15.5% to $2.7 billion, largely through new business in Asia and Europe and recaptured business.

“The April treaty renewals concluded for Swiss Re with a volume increase of 14 % while year-to-date risk-adjusted price quality remains at attractive levels,” the reinsurer also reported.

“Swiss Re successfully diversified its portfolio through tailored large transactions, writing less natural catastrophe business and expanding into casualty, which has seen profitable growth across all regions. This is in line with Swiss Re’s strategy to allocate capital to lines of business with the most attractive returns.”

In its Q1 results announcement, Swiss Re also announced that Patrick Raaflaub will join the reinsurer as a member of the Group Executive Committee and new Group Chief Risk Officer (CRO) as of Sept. 1.

Raaflaub was the CEO of FINMA, Switzerland’s financial market supervisory authority, from 2009 to 2014. Prior to that, he worked with Swiss Re, including as Chief Financial Officer of Swiss Re Italia, Regional Chief Financial Officer Europe and Asia, and Head of Group Capital Management.


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