NU Online News Service, Aug. 5, 2:50 p.m. EDT
The market is beginning to turn, Swiss Re executives say, as the global reinsurer reports that its 2011 second-quarter net income rose to $960 million, compared to $812 million in the 2010 second quarter.
All segments reported strong results, the company says.
In a conference call, CFO George Quinn says property and casualty results were "excellent," as P&C operating income in the quarter was $993 million, compared to $455 million in the 2010 second quarter.
Strong July renewals led to the operating income increase, but Swiss Re says the company also exercised disciplined underwriting. Lower large-loss experience in the quarter and favorable net development of prior accident years also contributed to growth.
Swiss Re says its combined ratio was 78.4, compared to 102 in the 2010 second quarter. A lower-than-expected catastrophe impact led to the property combined ratio of 76.3, down 17.8 points compared to last year. The absence of large man-made losses led to a casualty combined ratio of 86.5, compared to 124.8 a year ago. The specialty combined ratio was 81.4, down from 94 in the 2010 second quarter due to better large-loss experience and favorable net impact from prior accident years.
CEO Stefan Lippe says during the same call that the market has "really started to turn." He notes that he had said in the first quarter that he expected the market to turn faster. Now, Lippe says, "I'm glad to report now that market conditions are definitely improving." He explains that prices are firming and he is seeing improved terms in catastrophe-exposed areas.
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