Swiss Re Group excelled in the 2014 second quarter with improved results in nearly every area but particularly property/casualty reinsurance. Group CEO Michel M. Liès noted the milestone stands in contrast with what has been an otherwise softening market.
Even July renewals, which focused on the Americas, Australia and New Zealand, were successful, particularly casualty, Swiss Re said.
“We see the insurance market generally softening,” Liès said in a statement. “Thanks to our leading position, we continue to take advantage of opportunities as they arise—for example in high growth markets—and actively manage our overall portfolio. I am confident that Swiss Re will remain successful at every stage of the cycle.”
For the quarter, Swiss Re booked consolidated results that included $802 million in net income, or $2.34 per share. That’s up from $786 million in the 2013 second quarter, or $2.28 per share.
Here’s the breakdown by division:
P/C Reinsurance. This unit reported more than $3.5 billion in premiums earned and $553 million in net income in the 2014 third quarter. That’s a solid increase over nearly $3.2 billion in premiums earned and $455 million in net income during the 2013 second quarter. P/C also brought in a combined ratio of 93.5, vastly better than the 101.1 combined ratio last year. The division produced a 4.3 percent annualized return on investment and 17.3 percent return on equity versus 2.9 percent and 17.3 percent, respectively, in 2013.
L/H Reinsurance. Swiss Re said this division generated nearly $2.8 billion in premiums earned/fee income during the 2014 second quarter versus just under $2.5 billion in the 2013 second quarter. One weak spot: net income reached $48 million, down from $154 million over the same period last year. And L/H produced a 3.7 percent annualized return on investment and 3 percent return on equity compared to 4.7 percent and 10.3 percent, respectively, last year.
Corporate Solutions. Swiss Re booked $841 million in premiums earned and $66 million in net income, a huge improvement over $686 million in premiums earned and $55 million in net income last year. The combined ratio came in at 93.2 versus 96.9 in the 2013 second quarter. Corporate Solutions’ annualized return on investment hit 2.4 percent, with a 10.1 percent return on equity. That compares to a 2.1 percent return on investment and 7.7 percent return on equity last year.
Admin Re. This arm produced $264 million in premiums earned/fee income and $117 million in net income through the 2014 second quarter. That compares to $440 million in premiums earned/fee income and $109 million in net income for the same period in 2013. Admin Re produced a 4.7 percent return on investment and 7.6 percent return on equity versus 5.6 percent and 7.2 percent, respectively, in the 2013 second quarter.
Source: Swiss Re Group