Swiss Re’s profits rise by 12% in first nine months
Swiss Re’s profits increased by 12 percent in first nine months of the year, compared with the same time period last year, boosted by both strong underwriting results and investment returns, the company said.
The reinsurer posted a net income of $3.7 billion in 9M 2015, of which $1.4 billion was earned in the third quarter. This compared with a net income of $3.3 billion in the first nine months of last year.
Its property/casualty book reported a net income of $1 billion in the third quarter, also a big improvement on the $842 million it made in the same period the year before.
The firm said the result reflects its very strong underlying portfolio, the importance of close client relationships and the company’s differentiated services.
Both Swiss Re’s return on equity and return on investments increased also, by 1.2 percent and 0.1 percent, respectively.
Its combined ratio did increase however for the first nine months of the year to 84.8 percent, compared with 82.7 percent in the same period a year earlier and premiums earned decreased to $11.4 billion, compared with $11.7 billion in the same time period of last year.
The company’s subsidiary, Admin Re, saw its net income increase to $324 million in the first nine months of the year, compared with $219 million in 9M 2014. Its premiums did decrease however to $565 million ($731 million, 9M 2014) and its gross cash generation also decreased to $265 million ($615 million, 9M 2014).
"Swiss Re achieved a very strong net income over the first nine months of 2015. Despite an overall insurance market environment that remains challenging, we've again made progress towards our 2011—2015 financial targets,” said Michel Liès, group chief executive officer.
“In addition, in the third quarter we announced a significant transaction for our Admin Re unit – which represents an excellent opportunity to deploy part of our excess capital above our hurdle rate. We are also preparing for the launch of our share buy-back programme in mid-November, which was authorised by the AGM earlier this year."
