After a slump in the previous year: Swiss Re profit increases significantly

After the slump in the previous year Swiss Re has earned and 2018, significantly more. Net income rose to 421 million dollars. The catastrophe losses were high, but not so great as in the previous year.

In the previous year had a mess, especially the hurricanes, "Harvey", "Irma", and "Mary" the result and the bottom line is the net profit of 3.56 billion 331 million dollars in the depth ripped. Overall, Swiss Re had resorted to their customers, according to the record of expensive natural disasters, with $ 4.7 billion under the arms.

in 2018, it is not quite so bad, even if natural disasters and man-made disasters have caused Swiss Re to re a large cost. The total burden of losses from disasters is estimated at $ 3 billion, the second largest reinsurer in the world on Thursday in a Communiqué. Overall, the natural disasters cost Swiss Re $ 2.2 billion, while 0.8 billion dollars on man-made disasters accounted for.

In the current year, especially the big damage of the US-hurricane "Florence", typhoons "Jebi" and "Trami" in Japan, or the bridge of no fall, have shaped in Genoa the bill. And in the USA, the hurricane "Michael struck". 2018 is for the insurance industry as a whole is the fourth most expensive year in history. In the fourth quarter of the fires in California, typhoons in Japan, beat the most impact.

in Addition, the net profit was impacted by a Change in the US accounting standards, US GAAP. This struck 599 million dollars before taxes to book. Without the Amendment, the group would have achieved a net profit of 894 million dollars.

return to profit in the P&C business

In the non-life reinsurance business was able to achieve the Swiss Re back to a profit of $ 370 million, after they had suffered in the previous year, a loss of $ 413 million. The combined ratio (the so-called Combined Ratio) increased from 111.5 percent to 104.0 percent. Below 100 percent of the business of insurance is technically profitable.

But also in the insurance business for large corporate clients (Corporate Solutions) it went up again, though not as strong as hoped. The loss of the sector decreased from 741 million to $ 405 million dollars. The combined ratio improved to 117,5%, after bad 133,4 per cent in the previous year.

With Numbers, Swiss Re has failed to meet the expectations of the financial community. Analysts had expected on average, according to the news Agency AWP, with a net profit of 608 million dollars. In the case of the Combined Ratio in property and casualty reinsurance business, you had predicted to 103,9 per cent, in the case of corporate customers insurance they were expected to 107,7 per cent.

corporate customer business disappointing

"The disasters of last year have, as expected, a negative impact on our Property & Casualty business impact," said Swiss Re chief Christian Mumenthaler. "In addition, the annual results of Corporate Solutions, unfortunately, are disappointing. Despite the difficult environment, I look forward to the future, Swiss Re is optimistic. I am pleased that we are increasing the contract renewals of our P&C reinsurance business in January, the volume of premiums and at the same time, the ongoing costs constant."

In the division of life and health reinsurance (Life & Health Reinsurance) decreased the profit of 1.092 billion to 761 million dollars. "The result was solid, but lower than in the previous year," wrote the Swiss Re. At Life Capital, the profit of 161 million shrank to $ 23 million. The development of the British Anlagemakrt had been negative, which had a corresponding impact on Fund-linked and participating income.

The gross written premiums of the group rose by 4.7 percent to 36.4 billion dollars, mainly thanks to growth in premiums throughout the life and health business of the group.

The dividend will increase Swiss Re to 5.60 francs per share. In the previous year it had distributed to 5.00 Swiss francs per share.

(oli/sda)

Created: 21.02.2019, 07:50 PM