Swiss Re’s Q1 profit dips

Swiss Re reported a net income of CHF624 million (approx. Cdn$594 million) for 2008 Q1, a decrease of 53% over last year’s first quarter.
“The reduction was attributable to the continuing turmoil in the financial markets and the resulting additional market-to-market loss of CHF 819 million (approx. Cdn$779 million) on the structured credit default swaps in run-off since November 2007,” a company statement says
The company’s combined ratio in its property and casualty operations increased 3.1% to 96.9% in 2008 Q1 over the same period last year (93.8%).
The company reported CHF 3.6 billion (Cdn$3.4 billion) in premiums earned, a 25% decrease over 2007 Q1 (approx Cdn$4.6 billion).
The company’s property and casualty unit reported an operating income of CHF1.3 billion (approx. Cdn$1.2 billion), a decrease of 6% compared to the first quarter of 2007, which reflects, the company says in a statement, “strict underwriting across all lines of business.”
“With the credit crisis effect still working through the financial system, property and casualty rates softening and client retentions increasing, 2008 will be a challenging year,” the company said in a letter to its shareholders.