Swiss Re Q2 Profit $802 Million; but Misses Estimates on Drop at Life Unit

By Carolyn Bandel | August 6, 2014

Swiss Re Ltd., the world’s second- biggest reinsurer, reported second-quarter profit that missed analysts estimates, as earnings from life and health insurance declined.

Net income increased to $802 million from $786 million a year earlier, the Zurich-based reinsurer said in an e-mailed statement today. Swiss Re was expected to earn $898 million, according to the average estimate of 12 analysts surveyed by Bloomberg.

“The non-life result was a bit modest and life was disappointing after some one-offs,” Stefan Schuermann, a Zurich-based analyst with Vontobel Holding AG, who has a buy rating on the stock, said by telephone. “The market will not like it.”

Net income at the life and health unit fell to $48 million from $154 million a year earlier. Profit for the non-life business rose 22 percent to $553 million as premiums climbed 12 percent.

Swiss Re has fallen 6 percent to 77.10 Swiss francs in Zurich trading this year. Munich Re, the world’s biggest reinsurer, dropped 3.7 percent while the 33-company Bloomberg Europe 500 Insurance Index has fallen 0.3 percent.

The combined ratio, a measure of profitability in property and casualty reinsurance, improved to 93.5 percent compared with 101.1 percent a year earlier, when it was pushed up by higher- than-expected claims from catastrophes and lower reserve releases.

Swiss Re said its quarterly return on investments increased to 4.1 percent from 3.8 percent.

 

Subscribe Like this article?
Subscribe to our free email newsletter.

Add a Comment

Your email address will not be published. Required fields are marked *

*

More News
More News Features