(Bloomberg) — Swiss Re AG, the world's second- biggest reinsurer, may say third-quarter profit dropped 11% after lower reserve releases.
Net income probably fell to $950.3 million from $1.07 billion in the year earlier period, according to the average estimate of eight analysts surveyed by Bloomberg. Zurich-based Swiss Re is to report earnings tomorrow at 7 a.m. local time.
Reinsurers help primary insurers such as Allianz SE and Axa SA shoulder risks. They are facing earnings pressure as reinsurance rates decline amid lower-than-average disaster claims and record capital available for their coverage. Rates declined in the main renewals of annual treaties in January, April and July. They dropped in seven of the last 10 years.
Bigger competitor Munich Re today posted third-quarter profit that missed analyst estimates as low interest rates eroded returns from fixed-income investments. Hannover Re, the world's third-largest reinsurer by market value, said third- quarter profit rose 21%, beating analyst estimates, helped by higher income from investments and a lack of U.S. hurricanes.
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