Swiss Re profit dips amid “challenging environment”
Swiss Re has reported a net income of $1.2 billion for the first quarter of 2016 – down from $1.4 billion at the same time period last year.
Property and casualty (P/C) reinsurance net income was $587 million for the quarter, down from $808 million in the first quarter of 2015. Corporate solutions net income more than halved to $80 million in the quarter, compared with $167 million for the first three months of 2015.
Life and health reinsurance profits grew in the quarter however to $321 million, compared with $277 million at the same time the previous year.
The P&C Re combined ratio during the first three months of the year was 84.4 percent, up from 79.2 percent in the first quarter of the previous year.
The business unit's combined ratio fared better at 87.8 percent for the quarter (vs 95.2 percent in the prior-year period), driven by lower losses in property and specialty lines.
Michel Liès, Swiss Re's group chief executive officer, said: "The overall environment remained challenging during the first quarter, in which low interest rates and declining reinsurance prices continued to make their mark on the entire industry. However, our strategic framework helped us navigate these market pressures.
“We continued to successfully differentiate ourselves through outstanding relationships with our clients and the development of tailored risk solutions, which resulted in several unique reinsurance transactions. We also made good progress on integrating Guardian Financial Services into Life Capital, which is already showing a strong contribution to our bottom line."
