Swiss Re 2Q Net Income Up 45%

Swiss Re reported net income rising 45 percent for the second quarter, helped by the acquisition of General Electric's property-casualty business, strong investment performance and pricing adjustments.

The company also noted that its combined ratio in the quarter stood at 90.7--a decrease of 3.2 points from the same period last year.

"We are pleased with the results for the second quarter. We continued to generate economic profit growth through careful cycle management and efficient capital allocation," said Jacques Aigrain, chief executive officer of the Zurich, Switzerland-based firm, in a statement.

"The results also demonstrate our continuing ability to deliver against our other goal of reducing earnings volatility, enlarging market scope and achieving organizational excellence," he said.

The company reported net income increased in the second quarter compared with last year by CHF (Swiss Franc) 369 million (U.S. $309 million at the current exchange rate), to CHF 1.2 billion ($997 million) or CHF 3.22 ($2.69) a share.

Revenues rose 41 percent, or CHF 3.6 billion ($3 billion), to CHF 12.3 billion ($10.3 billion).

For the first half of the year, net income rose 49 percent, CHF 835 million ($698 million), to CHF 2.5 billion ($2.1 billion), or CHF 6.70 ($5.60) a share.

Revenues were up 31 percent, or CHF 5.7 billion ($4.7 billion), to CHF 24 billion ($20 billion).

Property-casualty revenues were up 68 percent in the second quarter, or CHF 692 million ($579 million), to CHF 1.7 billion ($1.4 billion) compared with the same period last year.

Swiss Re said the business improved due to underwriting results, the inclusion of the GE Insurance Solutions and an 82 percent gain in its investment performance to CHF 1.4 billion ($1.1 billion).

In addition to p-c business, the company also has a life and health and financial services business.