Swiss Re says its fourth-quarter net income dropped 19 percent due in part to $900 million in Superstorm Sandy losses, but the company managed to more than double income for the full year.
Group CEO Michel M. Lies says the company saw strong results in its P&C reinsurance business for the year, helped by favorable prior-year loss development, and strong performance in investments.
The company’s Q4 net income dropped $188 million to $795 million, which includes a 5-percent drop in P&C reinsurance net income and an 85-percent drop in life and health reinsurance net income. Swiss Re did not release Q4 revenue numbers.
For the year, net income increased 60 percent to $4.2 billion. The company posted a combined ratio of 83.1, an improvement of 21.6 points. Full year revenues increased 20 percent to $33.6 billion.
“In U.S. dollar terms, this is the highest results ever achieved,” said Group CFO George Quinn in a video recording.
Swiss Re said P&C reinsurance drove the year-end results, with the segment’s net income increasing by $1.89 billion to $2.99 billion. The reinsurance combined ratio was 80.7. Net premiums earned for the segment jumped by 22 percent to $12 billion.
Swiss Re said that its January treaty renewals achieved profitable growth of 11 percent.
The insurer expects 2013 to be equally successful, helped by the end of a five-year 20-percent quota-share agreement with Berkshire Hathaway that should produce a significant increase in net-premium income.
“We have more to do, but we are definitely on the right track,” said Quinn.