Swiss Re sounded an upbeat note for 2012 and said reinsuranceprices could rise further after it posted a forecast-beating profitfor the first quarter thanks in part to the absence of largenatural catastrophes.

The firm, which competes with Germany's Munich Re, recorded aprofit of $ 1.1 billion for the first three months of the year,beating an average forecast for a $633 million profit in a Reuterspoll.

The volume of reinsurance policy renewals in April, chieflyfocused on Asia, rose 14 percent, the Zurich-based firm saidon Friday. Policy rates in Japan rose as a result of the earthquakeand tsunami last year, while other markets such as Korea also sawincreases.

“We expect to see continued price rises and further growth forthe upcoming renewals in 2012,” Chief Financial Officer GeorgeQuinn said on Friday.

First-quarter net premiums in the property andcasualty segment rose by 38 percent owing to the strongrenewals, the firm said.

For the property and casualty business the combined ratio, ameasure of underwriting profitability, improved to 85 in thefirst quarter, compared with 171 a year earlier.

Last year was one of the costliest ever for insurers due to anunusually high number of severe disasters. Huge claims due to theJapanese earthquake and tsunami meant Swiss Re posted a loss forthe first three months of 2011 of $665 million.

Swiss Re, which also competes with Hannover Re, has already paidback a convertible loan it took from U.S. billionaire WarrenBuffett after risky bets soured during the financial crisis, andalso achieved its goal of reclaiming its former good creditrating.

The firm confirmed its mid-term financial targets. These2011-2015 targets include annual earnings per share growth of10 percent over five years.