While the property/casualty reinsurance industry continues to be hammered by heavy competition and soft pricing, Swiss Re can celebrate its 2014 third quarter results.
The Zurich company reported a strong $1.2 billion in overall net income during the quarter, versus $1 billion over the same period a year ago. With its property/casualty reinsurance, life and health reinsurance, corporate solutions and Admin Re business units all contributing to the gains, Swiss Re said.
“This result is proof that going the extra mile for our clients pays off, especially as the markets continue to be soft and economic conditions seem to become more uncertain,” Group CEO Michael M. Liès said in a statement.
Swiss Re’s property/casualty reinsurance sector contributed a large part of that, with $842 million in net income generated during the quarter, up from $784 million in the 2013 third quarter. The combined ratio improved to 76.7, versus 81.5 over the same period last year.
Net premiums earned for Swiss Re’s property/casualty reinsurance arm also came in at impressive levels. This number surpassed more than $4.3 billion during the quarter, a jump over the $3.95 billion in net premiums earned over the 2013 third quarter.
Swiss Re said the P/C results reflected mild natural catastrophe claims, favorable prior year development and the release of a premium tax provision. The 9 percent jump in premiums earned stemmed from the end of a quota share agreement in 2012 and large quota share treaties written in Asia and the Americas at the end of 2013, the company added.
Swiss Re’s other divisions saw broad gains as well, save for Admin Re, which saw a drop in premiums earned/fee income and net income, though gross cash generation and return on investment improved compared to last year.
Swiss Re noted that the sale of Admin Re’s Aurora National Life Assurance Company in the U.S. announced recently should help Admin Re better use its capital “and capture attractive growth opportunities.” Admin Re will continue to focus its growth agenda on the U.K., Swiss Re said, where it has pursued initiatives including “a solid pipeline of potential acquisitions.”
Source: Swiss Re