Swiss Re to reduce its amount of capital

Swiss Reinsurance Company has reported a 5% decrease in its 2007 Q3 profits over last year and has announced its plan to reduce its capacity.
Swiss Re is prepared to reallocate capital across business lines or return it to shareholders through a share buy-back programme and dividends, a release says.
The company reported a profit of CHF1.469 billion (about Cdn$1.183 billion) in 2007 Q3. Year-to-date profits totalled CHF3.992 billion (about Cdn$3.215 billion).
Premiums earned over 2007 Q3 amounted to CHF7.813 billion (about Cdn$6.289 billion), compared to 2006 Q3s CHF8.112 billion (about Cdn$6.530 billion).
The companys property and casualty combined ratio for the quarter was 83.4%, down from last years Q3 combined ratio of 86.5%.
The ROE [return on equity] also dropped, from 21.7% in 2006 Q3, to 18.8% this year.
While the companies profits showed a decrease over the same period of 2006, it marked an increase of 23% for the first nine months of 2007, the release notes.
The property and casualty sectors combined ratio reflects the diligent and focussed underwriting approach taken in recent years, the statement adds.
The results also benefited from benign natural catastrophe claims and a modest release of reserves.