Swiss Re Reports Better-Than-Expected Net Profit Despite Claims Surge

October 29, 2021 by Tom Sims and Paul Arnold

Reinsurance company Swiss Re said on Friday it swung to a better-than-expected net profit in the first nine months as it recovers from the impact of the coronavirus pandemic despite big claims from major storms on both sides of the Atlantic.

The company’s net profit in the reported period came in at $1.3 billion, from a net loss of $691 million a year earlier. Analysts had expected less than $1 billion in profit, according to a consensus forecast.

The Zurich-based company attributed the beat to strong underwriting results in its property and casualty reinsurance division and its arm to protect businesses. Its life and health reinsurance division lost money due to COVID-related claims.

Last year, Swiss Re posted its first loss since the 2008 financial crisis, but it had said it expected to return to profit for this financial year.

The results give “us confidence for the remainder of the year and into 2022, with all our businesses well-positioned to continue their strong performance,” Chief Executive Officer Christian Mumenthaler said in a statement.

Claims from large natural catastrophes – including Hurricane Ida in the United States and floods in Germany and elsewhere – totaled $1.7 billion in the period, a figure that was higher than the company had initially expected.