Swiss Re reports surge in Q2 profits, despite large claims

Swiss Re reported a surge in net income, going from a net loss of $342 million in 2009 Q2 to a net income of $812 million in 2010 Q2.
Its property and casualty business suffered, however, as a result of higher-than-expected catastrophic and man-made losses.
Estimated claims from the earthquake in Chile increased $130 million to $630 million, before tax, and the estimated claims incurred by the reinsurer from the Deepwater Horizon oil rig are approximately $200 million before tax.
But, despite the large claims, the property and casualty segment maintained an underwriting profit. It reported an operating income of $455 million in 2010 Q2 (a decrease from 2009 Q2’s $896 million).
Swiss Re’s property and casualty c combined ratio was 89.4% in 2009 Q2. That spiked to 102% in 2010 Q2.