Swiss Re’s 1st 9 Months 2015 Consolidated Net Income up 12% at $3.659 Billion

October 29, 2015

Swiss Re reported consolidated net income of $3.659 billion, a 12 percent increase, for the first nine months of 2015, compared to $3.255 billion for the first 9 months of 2014. $1.399 billion was earned in the third quarter. Swiss Re said its operations benefitted from “strong underwriting and investment result” and a “benign natural catastrophe experience.”

The earnings bulletin noted that “all Business Units contributed to this result, with Life & Health Reinsurance in particular showing a strong increase in net income. Group return on equity (ROE) was strong at 14.5 percent during the first nine months.”

Based on the Group’s financial performance, Swiss Re said it “expects to launch the share buy-back program in mid-November, after filing for and having received necessary approvals.” It also indicated that the group “remains on track to meet its 2011–2015 financial targets.”

Other highlights from the report were listed as follows:
• Property & Casualty Reinsurance for 9 months of 2015 net income of $2.3 billion; ROE of 23.3 percent
• Life & Health Reinsurance for 9 months of 2015 net income improved significantly to $763 million; ROE of 17.0 percent
• Corporate Solutions for 9 months of 2015 net income of $324 million; ROE of 18.7 percent
• Admin Re® for 9 months of 2015 income of $270 million; $265 million gross cash generated
• Thierry Léger appointed as new member to the Group Executive Committee effective 1 January 2016
• Swiss Re estimates claims burden from the Tianjin explosion to be approximately $250 million
• Swiss Re Board of Directors proposes Sir Paul Tucker for election at the upcoming AGM in April 2016

Group CEO Michel M. Liès commented: “Swiss Re achieved a very strong net income over the first nine months of 2015. Despite an overall insurance market environment that remains challenging, we’ve again made progress towards our 2011—2015 financial targets.

“In addition, in the third quarter we announced a significant transaction for our Admin Re® unit – which represents an excellent opportunity to deploy part of our excess capital above our hurdle rate. We are also preparing for the launch of our share buy-back program in mid-November, which was authorized by the AGM earlier this year.”

Swiss Re’s P&C combined ratio for the first 9 months was 84.8 percent compared to 82.7 percent for the same period of 2014. Premiums earned for the first nine months stood at $11.4 billion, compared to $11.7 billion for the first 9 months of 2014. The report noted, however, that “measured at constant foreign exchange rates, premiums earned increased by 4 percent, mainly driven by growth in US casualty business, higher premiums in the EMEA region and reduced external retrocessions, partly offset by the expiration of a large quota share in China.”

For the third quarter of 2015 Swiss Re reported P&C net income of $1.013 billion, compared to $842 million in Q3 2014), which it said reflected the “absence of large natural catastrophe losses, reserve releases and strong investment results. Premiums earned were $4.108 billion compared to $4.305 billion in Q3 2014; however premiums earned were also affected by foreign exchange movements, and, “measured at constant foreign exchange rates,” they would have risen by 1.4 percent, “largely driven by the US casualty business.” The combined ratio rose to 78.0 percent in Q3 2015 from 76.7 percent in Q3 2014.

Source: Swiss Re

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