Swiss Re results rebound in 2012 Q1

Swiss Re rebounded nicely from a loss of US$665 million in 2011 Q1 to a gain of $1.1 billion in 2012 Q1, results that seem to auger well for the company’s 2011-15 plan.

“We aim to capture the opportunities we see arising from the hardening of the property and casualty reinsurance market, strong economic growth in the emerging markets and the challenge of regulatory changes such as Solvency II,” Michel Liès, Group CEO for Swiss Re, says in a statement.

Group results were a consolidated reflection of positive numbers for the reinsurance, corporate solutions and Admin Re business units.

Lower-than-expected major natural catastrophe claims, good investment performance and strong underwriting combined to help produce positive numbers.

Strong renewals pushed premiums earned up 21.7%, to $6.2 billion from $5.1 billion

Return on equity in 2012 Q1 increased to 15.3% from -10.7% in 2011 Q1 (significantly above the company’s five-year financial targets for 2011-2015) and annualized return on investment increased to 4.0% from 3.9%.

The Group combined ratio was 84.9% in 2012 Q1 versus 163.7% in 2011 Q1.

Partly as a result of benign natural catastrophe experience, net income in property and casualty reinsurance increased from a loss of $632 million in 2011 Q1 to a gain of $660 million in 2012 Q1.