Swiss Re profits boosted by L&H Re results
Swiss Re delivered a healthy full-year net income of $4.6 billion for 2015, a big increase on the $3.5 billion it made in 2014.
The reinsurer said it benefitted from strong underwriting, the absence of major natural catastrophes and from reserve releases, as well as from the strong result in life and health reinsurance (L&H Re) in 2015.
All three of the reinsurer’s business units contributed to this result, with life and health reinsurance in particular reporting a strong increase in net income after the successful management actions in 2014.
The return on equity (ROE) for 2015 was 13.7 percent, while premiums earned and fee income for the group totalled $30.2 billion for 2015, compared with $31.3 billion for 2014, mainly reflecting unfavourable foreign exchange rate movements. At constant exchange rates, premiums and fees increased by 4 percent.
Swiss Re said it achieved a “strong” full-year investment result in what it called a difficult low-yield environment. The group's return on investments (ROI) was 3.5 percent for 2015 (3.7 percent in 2014), as Swiss Re continued to maintain a steady return, with a high-quality, well balanced portfolio.
Michel Liès, group chief executive officer, Swiss Re, said: "We have delivered a strong performance based on our underwriting discipline over the past five years and end this period with one of our highest-ever profits. I am also pleased to announce that we achieved our return on equity and earnings per share targets, even as the market environment has changed considerably since 2011.
“L&H Re bounced back with a strong operating result after the management actions we undertook in 2014. We maintained a strong capital position, increased the regular dividends with earnings and launched a share buy-back programme. At the same time we broadened the offering of the services we can bring to our clients."
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