Swiss Re Reports $665M First-Quarter Loss On $2.3B Cat Losses

The results were driven by natural catastrophe losses of $2.3 billion that amounted to a combined ratio of 163.7, an increase of 54.3 points from the same period last year.

"Historically, large losses from natural disasters have been followed by price increases and stronger demand in the [property and casualty] market," says the company. "Swiss Re believes the combination of the recent natural catastrophes, very low interest rates and years of price declines are likely to bring forward the turn in the cycle."

Lippe adds that while catastrophe losses "creates an additional challenge" it will also "accelerate the market turn" he says the company expected for 2012-2013.

The company reported an operating loss of $1.2 billion in its P&C business compared to operating income of $259 million for the same period last year.

Swiss Re reported its P&C treaty business written premiums grew by 5 percent on a year-to-year basis for April renewals, or 13 percent year to date.

The company says its life and health business reported an operating income of $144 million compared to $245 million for the same period last year. The results were driven by "less favorable mortality and variable annuity results."

In an analyst's note, William Hawkins with Keefe, Bruyette & Woods says the results were reassuring despite the catastrophe losses, where were already known. He adds that the result from the life business is more concerning, but the company attributed those results to "typical quarterly noise."