Swiss Re reported a 17% rise in profits for the first quarter of 2015, posing a net income of US$808 million in its property and casualty reinsurance division and US$1.4 billion organization-wide.
The world’s second largest reinsurer credits this marked increase to “sound underwriting and a benign natural catastrophe experience,” although it noted that these were slightly counterbalanced by price softening and underwhelming positive reserve developments.
The company feels optimistic about reaching its end of year targets, since it boasted a 3.9% return on investment despite falling interest rates and uncertain markets.
"The current market and interest rate environment continues to be very challenging. For that reason, I am all the more pleased to say that we have been able to further grow our business profitably and achieve strong results thanks to our client-centred, differentiated approach and diversified business model,” CEO Michel M. Liès said in a statement.
Although P&C Re premiums earned marginally dropped from US$3.81 billion to US$3.77 billion in Q1 of 2014, the company puts forth that this was largely the result of foreign exchange translations. If held constant, the company contends that its premiums would have increased by 6%.
“This underlying increase was driven by further growth in the casualty business, particularly in the US and EMEA regions,” the company reports.
The Life and Health Reinsurance sector, Corporate Solutions, and Admin Re all posted strong returns as well. As a result, company leadership has high hopes for the remainder of 2015.
“Despite a challenging overall environment, the insurance market offers ample opportunities and we remain well placed to address the significant levels of underinsurance in the world today. In addition, our data shows that there were more natural catastrophes in 2014 than in any other year on our records - yet, over two-thirds of the world's assets do not yet have any financial protection from these events,” said Liès. “We remain firm in our commitment to help our insurance clients to meet this challenge in a profitable and sustainable manner.”
