Financial market turmoil translated into a 53 percent drop in first-quarter net income for Zurich-based reinsurer Swiss Re, but management said it believes the company's portfolio still has strong earnings possibilities.

For the quarter, Swiss Re reported net income dropped Swiss Franc (CHF) 705 million ($671.7 million at the current exchange rate) to CHF 624 ($594.4 million), translating into earnings per share of CHF 1.84 ($1.75). The results were affected by a 25 percent drop in net premiums earned of CHF 1.2 billion ($1.14 billion) to CHF 3.7 billion ($3.53 billion). The company's combined ratio rose 3.1 points to 96.9.

The company said the results were significantly affected by a CHF 819 million ($780.6 million) loss on the structured credit default swaps in runoff since November of last year.

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