Swiss Re reports $83-million net profit in 2012 Q2

Swiss Re reports a net profit of $83 million for the second quarter of 2012.

The result was influenced by the sale at a loss of US$1 billion of the Admin Re U.S. business. Property and casualty reinsurance delivered a strong result while life and health reinsurance net income benefited from realized gains.

“We have delivered a profit in the second quarter,” Michel M. Liès, Group CEO, commented in a statement. “Given the impact from the sale of the Admin Re U.S. business, this shows the strength and resilience of our underlying earnings power.

“With another successful renewal round in July behind us, we will continue to focus on implementing our strategy and capturing growth opportunities in developed and high-growth markets in the second half of the year.”

Net income in property and casualty reinsurance was $717 million in 2012 Q2 compared with $385 million in 2011 Q2.

“This result was helped by low losses from natural catastrophes in the quarter, reserve releases and net investment gains,” the company reports. “Premiums earned were $2.8 billion, a healthy increase of 18.2% from $2.4 billion in Q2 2011. Successful renewals in the first half of the year contributed to this very strong growth.”

The combined ratio in 2012 Q2 was 81% versus 78.1% in 2011 Q2.

“Adjusting for natural catastrophes and reserve releases, the underlying combined ratio for Q2 2012 was 94.6%, in line with expectations,” Swiss Re notes.

The P&C Reinsurance segment’s return on equity was 27% in 2012 Q2, up from 17% over the same period last year.