ZURICH (Reuters) – Swiss Re, the world's second-biggest reinsurer, said it saw prices rising further in a continued reaction to the unusually high number of natural catastrophes last year, as it posted an unexpected quarterly profit.
Huge natural catastrophes in 2011, including the Japanese earthquake and tsunami and flooding in Thailand, have allowed insurers, who for years had to grapple with low bond yields, to charge higher prices on property and casualty policies.
Swiss Re said on Thursday it had seen prices rise in New Zealand and Australia, which have suffered earthquakes and severe flooding in recent years and which constitute about 20 percent of its premiums.
Since the start of the year, premium volumes had risen an estimated 24 percent, and chief executive Michel Lies struck an upbeat note for the future. “The trend of increasing prices is expected to continue,” Lies said at a news conference.
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