Swiss Re Posts $1.226 Billion Q1 Net Income

May 7, 2014

Swiss Re reported group net income of $1.226 billion for the first quarter of 2014, compared to $1.38 billion in the first quarter of 2013. The bulletin noted that the 11 percent drop should be seen in light of the “exceptional result in the prior-year period.”

It also noted that “all Business Units contributed to the result, led by another impressive contribution from the Property & Casualty Reinsurance segment. April renewals saw a volume increase of 14 percent, with prices still at attractive levels.”

The earnings bulletin added that Swiss Re remains on track to reach its 2011—2015 financial targets. Group CEO Michel M. Liès commented: “I’m pleased with the first quarter performance of our Group. P&C Re had another remarkable quarter. L&H Re wrote significant profitable new business, and while the US GAAP result is below expectations, we are making good progress in strengthening the underlying business.

“Corporate Solutions continued growing profitably in the quarter and Admin Re® has become a solid and steady cash generator for the Group. I’m confident that all segments will contribute to achieving our 2011—2015 financial targets.”

Earnings highlights included the following:

– Premium and fee income increased 11 percent to $7.6 billion, compared to $6.8 billion, through organic growth and the expiry of a major quota share agreement at the end of 2012.

– Annualized return on investments increased to 3.7 percent in the first quarter of 2014.

– Group return on equity (ROE) was 14.9 percent

– Operating income from investments was strong at $1.1 billion.

– P&C Re net income of $1.0 billion, premium growth of 7.9 percent and combined ratio of 78.8 percent

– L&H Re net income of $51 million, significant new business from Asia and Europe, premium and fee growth of 15.5 percent

– Corporate Solutions continues delivering profitable growth with net income of $80 million, premium growth of 35.4 percent

– Admin Re® with net income of $48 million and gross cash generation of $202 million

David Cole, Swiss Re’s Group CFO: commented: “The momentum that we generated over the past few years has continued into the first quarter of 2014. The strong combined ratios posted by Reinsurance and Corporate Solutions reflect our strong commitment to underwriting and the result in asset management highlights the strengths of our well-positioned investment portfolio. Meanwhile, our capital management remains unchanged – we aim to pay an attractive regular dividend and to deploy capital to profitable business opportunities.”

Source: Swiss Re

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