Swiss Re reported net income of CHF 334 million (about Cdn$349.2 million) for 2009 Q3, marking an improvement from 2008 Q3’s net loss of CHF 304 million (about Cdn$301 million).
The reinsurer’s property and casualty businesses combined ratio improved to 84.5% in Q3, compared to 99.6% in the same period of 2008.
This improvement was partly driven by low levels of natural catastrophes in the quarter, “but it is also a testament to the success of Swiss Re’s continued disciplined underwriting,” a company statement says.
Premiums earned by the P&C unit decreased 12% quarter-over-quarter, from CHF 3.6 billion in 2008 Q3 to CHF 3.2 billion in 2009 Q3.
Premium decrease was driven by higher retrocession and lower volumes due to selective underwriting and cycle management, Swiss Re said.
According to S&P’s, Swiss Re has more than CHF 6 billion in excess capital at the ‘AA’ level, the reinsurer noted.
“During the third quarter of 2009, we continued to improve Swiss Re’s financial flexibility through a combination of strong underlying performance in our business and continued de-risking of the Legacy activities,” Stefan Lippe, Swiss Re’s CEO said.