Swiss Re announced today first-half 2005 net profits fell 6percent to $1.06 billion. In addition, the company said ChiefExecutive Officer John Coomber will retire at year's end and bereplaced by his deputy, Jacques Aigrain.

Mr. Coomber assumed the CEO post in 2003 and during his tenurethe company was brought back to profitability.

"As we change over to our new organizational structure, ourlong-term management plan now allows a smooth transition at thehelm of the organization to Jacques Aigrain," Swiss Re said in astatement.

Mr. Aigrain in 2001 was put in charge of Swiss Re's FinancialServices Business Group and last year was named deputy CEO.

The group's combined ratio for its p-c operation improved to95.5 in the first half of the year from 96.1 in the comparableyear-ago period.

Earned premiums declined 8 percent in what the company describedas the result of pricing discipline in a softening marketenvironment. P-C operating income declined about 25 percent.

The Zurich-based company is the world's largest health and lifereinsurer and the second largest p-c reinsurer.

London-based Fitch Ratings director Damir Bettini said thecompany's earnings were in line with his expectations.

As for the company's claim that the premium drop was due to itscycle management techniques, he said the real test will be in thenext couple of years as competition on pricing and terms andconditions intensifies.

"However, there are signs from a number of players, Swiss Reincluded, that this time around there may be somewhat morediscipline than in previous cycles," Mr. Bettini said.