Swiss Re says its 2013 first-quarter net income climbed to $1.4 billion, compared to $1.1 billion for the same period a year ago, with improvements in the group's property and casualty reinsurance business acting as a key driver for the results.
P&C Re net income was up by 53 percent to $1 billion in the quarter, compared to $660 million a year ago. Swiss Re says strong underwriting results, reserve releases and lower-than-expected claims drove the increase. The P&C Re combined ratio improved to 69.7 compared to 85 in 2012's first quarter. Premiums earned in this segment increased to $3.5 billion in Q1 2013 compared to $3.1 billion the year before.
Swiss Re's consolidated group combined ratio fell to 72.4 in the quarter compared to 84.9 a year ago.
The company saw increases in net income for its life and health reinsurance business ($222 million in 2013 compared to $209 million in 2012) and its corporate solutions segment ($101 million compared to $84 million).
Swiss Re's Admin Re segment net income fell to $78 million in Q1 2013 compared to $174 million in 2012 due to the absence of a tax benefit "and other one-off items which boosted last year's first-quarter results," according to the company.
The company says it saw moderate growth in its P&C Re April renewal period, focused mainly on business in Asia. "The price quality of the portfolio remained strong," Swiss Re says in a statement. "The renewals also showed a measured move into some casualty-segment business lines and are a positive indicator for the upcoming July renewals."
Swiss Re says it remains on track to deliver its 2011-2015 financial targets, even amid a weak growth outlook for 2013 and continued low interest rates.
Kurt Karl, Swiss Re's chief economist, says, "Growth in the advanced economies will remain subdued and this is a challenge for our industry. High-growth markets, however, remain a bright spot and many opportunities are intact."
Regarding the company's quarterly results, CEO Michael M. Liès says, "We are starting our 150th anniversary year with a very strong first-quarter result.
He adds, "The successful April renewals are another proof of Swiss Re's ability to perform and grow despite economic headwinds and a continuous low-interest rate environment."
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