Swiss Re’s Q1 2021 results show that its life and health business has taken a significant hit due to COVID-19. However, the reinsurer said that strong underlying performance of all businesses more than offset these losses.
The group’s first-quarter net profit was $333 million, compared to a loss of $225 million in Q1 2020. For property and casualty reinsurance its net profit was $477 million, compared to $61 million for Q1 2020, and the combined ratio was 96.5 percent, as compared to 110.8 percent for 2020. Its life and health business made a loss of $184 million for Q1 2021, compared to net profit of $299 million in 2020.
Swiss Re’s group chief executive officer Christian Mumenthaler said: “The start of 2021 has seen record numbers of COVID-19-related deaths in many countries, and our thoughts go out to those who have lost a loved one. The devastating human toll of the pandemic is also reflected in the financial results of Swiss Re as the world’s largest life and health reinsurer. As we continue to support our clients and communities affected by the pandemic, the underlying performance of all our businesses remains very strong and underpins our confidence.”
Swiss Re’s group chief financial officer John Dacey added: “The return to profitability this quarter in our property and casualty businesses underlines the earnings potential of our diversified business model. We effectively absorbed the heightened mortality impact on our life and health business and maintained a very strong capital position.”
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Swiss Re, Q1, 2021 results, Insurance, Reinsurance, COVID-19, John Dacey, Europe