Swiss Re reports net income of US$3 billion in first nine months

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Swiss Re reports net income of US$3 billion in first nine months

Reports p&c net income of US$1.5 billion.

Staff on November 4, 2016

Swiss Re reported strong net income of US$3 billion in the first nine months, compared to US$3.7 billion for the same period in 2015. Net income was supported by large and tailored transactions and a strong investment result, partially offset by losses from large natural catastrophes and a difficult market environment.

The annualized Group return on equity (ROE) for the first nine months was 11.6% (vs 14.5% for 9M 2015), with earnings per share (EPS) of USD 9.15 or CHF 8.97, compared with USD 10.69 or CHF 10.19 for the prior-year period.

Premiums earned and fee income for the Group rose 9.6% to US$24.7 billion (vs US$22.6 billion). At constant exchange rates, premiums and fees increased by 11.8%, reflecting growth in selected markets and lines of business, mostly through large and tailored transactions. The Group’s combined ratio in the first nine months was 94.8% (vs 85.7%).

The Group’s annualised return on investments (ROI) remained strong at 3.6% (vs 3.8%). Net investment income was US$2.8 billion (vs US$2.7 billion), driven by an increased asset base arising from acquisitions and large transactions.

Common shareholders’ equity increased to US$37.4 billion as of 30 September 2016, up from US$32.4 billion at the end of December 2015. Book value per common share was US$112.90 or CHF 109.40 at the end of September 2016, compared to US$95.98 or CHF 96.04 at the end of December 2015. The Group continues to have a very strong capitalisation and the company’s Swiss Solvency Test ratio remains comfortably above Swiss Re’s risk tolerance.

P&C Re delivers strong results with net income of US$1.5 billion; ROE of 16.1% P&C Re net income declined to US $1.5 billion in the first nine months (vs US$2.3 billion in the prior-year period), after higher natural catastrophe losses, particularly in the second quarter, and lower favourable prior-year developments. The annualised ROE for the first nine months was 16.1% (vs 23.5%).

Net premiums earned increased 11.8% to USD 12.7 billion (vs USD 11.4 billion). Swiss Re applied a disciplined underwriting approach. The increase was driven by large and tailored transactions in the US and Europe. P&C Re reported a combined ratio of 93.8% for the first nine months (vs 84.5%). The increase was mainly driven by higher a large loss burden due to the wildfires in Fort McMurray, Canada, a series of agricultural losses in Europe, softening market conditions, and less favourable impact from prior accident years compared to the year before.

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Swiss Re reports net income of US$3 billion in first nine months