Performance driven by life and asset management
Swiss Re made a profit of $970m in the first half of 2010 compared with a loss of $212m in the same period last year.
Earned premiums for the first half fell 14.3% to $9.65bn from $11.26bn. Investment income dipped 8.9% to $2.84bn from $3.12bn.
The reinsurer’s performance in the first half of 2010 was driven by its asset management and life and health divisions. The asset management unit’s operating income increased 49.3% to $2.17bn, while life and health operating income grew 64% to $387m.
Meanwhile, the property/casualty division’s operating income fell 59% to $714m from $1.74bn. The combined ratio for traditional property/casualty reinsurance business worsened to 105.9% in the first half of 2010 from 89.8% in the same period last year.
In the second quarter alone, Swiss Re made a net profit of $812m compared with a loss of $342m in the same period last year. Earned premiums were down 15.8% to $4.68bn and net investment income declined 24.9% to $1.36bn.
The reinsurer’s property/casualty combined ratio jumped to 102% from 89.4%, which the firm attributed to higher natural catastrophe and man-made losses.
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