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Swiss Re, 1H2017: net income of USD 1.2 billion supported by the underwriting performance and good investment results


Swiss Re reported net income of USD 1.2 billion for 1H2017. The overall result was impacted by USD 360 million (net of retrocession and before tax) insurance claims in the aftermath of Cyclone Debbie in Australia.

Swiss Re's Group Chief Executive Officer, Christian MUMENTHALER, says: "In the first half of 2017, we reported a solid result - despite the challenging market environment and having paid significant claims in the aftermath of natural catastrophes. While in the short term these drivers, especially the pricing pressures, are concerning and are being addressed, we are steering our company with long-term value creation in mind."

Solid half-year results despite challenging market conditions:

- Group net income of USD 1.2 billion for the first six months of 2017; supported by disciplined underwriting and strong investment results

- Property & Casualty Reinsurance net income USD 546 million; impacted by large natural catastrophe insurance claims

- Life & Health Reinsurance net income USD 432 million; continued to report strong results

- Corporate Solutions net income USD 39 million; started joint venture with Bradesco Seguros S.A. in Brazil

- Life Capital gross cash generation at USD 532 million; open book activities continued to deliver attractive growth

- High quality asset portfolio provided strong return on investments of 3.5%

- Swiss Re's disciplined underwriting approach led to a stable year-to-date risk adjusted price adequacy for the renewed P&C Re portfolio at 102%

The Group generated an annualized return on equity (ROE) of 7.0% in the first six months of 2017, with earnings per share (EPS) of CHF 3.75 or USD 3.76, compared with CHF 5.51 or USD 5.61 for the prior-year period. The Group's annualized return on investments (ROI) was 3.5%, driven by net investment income as well as net realized gains, largely from sales of equity securities. The fixed income running yield was 2.9% consistent with the full-year 2016 running yield.

Gross premiums written for the half-year decreased 8.3% to USD 18.1 billion due to disciplined underwriting and active portfolio management.

Swiss Re's Group Chief Financial Officer, David COLE, says: "While our property and casualty segments continued to experience pricing pressure in line with the overall industry and market environment, our life and health segments have delivered stable or even improved results. This shows the importance of having a diversified business model which can help to balance out volatility in individual areas. In addition, it is a differentiating factor that, together with our strong client relationships, can support our long-term value creation."

The full presentation of the 1H results is available here.

Author: Daniela GHETU on 10.08.2017




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