Swiss Re appeared very upbeat after the completion of its January reinsurance treaty renewals. The Zurich-based reinsurer noted a “7 percent improvement in economic profit” and premium growth to CHF 9.3 billion ($7.1 billion).
The Company’s bulletin notes that the January renewals for traditional treaty business are “dominated by the European portfolio.” The sector remained constant with overall premium volume at CHF 8 billion ($6.1 billion). Swiss Re said its “proactive approach to continuously shaping its book to optimize profitability led to a shift in the mix of business with property and specialty lines growing 6 percent while liability and motor lines were cut 10 percent.”
Michel Liès, Head of Client Markets, commented: “Clients value Swiss Re’s superior financial strength, enabling us to improve the quality of our portfolio and to further consolidate our market position during this renewal season.”
While premium volume for European treaty business remained unchanged, Swiss Re noted a 13 percent decline in the U.S. “due to reductions in liability business.” This was balanced, however, by “solid growth of 23 percent in Asia, predominantly in the emerging markets.”
The bulletin also noted: “Attractive opportunities and a robust credit environment helped Swiss Re to grow its large corporate risks business and its credit and surety business by 14 percent and 12 percent respectively. Total premiums written for these portfolios reached CHF 1.3 billion [$992 million].”
Swiss Re said it “remains focused on profitable underwriting, targeting terms and conditions above the market average and maintaining leadership in price discipline as it renews business throughout 2006.”
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