Swiss Re reports 118% rise in net income

Swiss Re has reported a 118% increase in net income in the third quarter.

The reinsurer reported a net income of US$1.3bn, compared to US$0.6bn the same time last year.

It said operating income in its Life & Health division rose by 21.8% to US$145 million (vs US$119 million). The benefit ratio improved to 83.6%. Premiums and fee income increased by 6.8% or 1.7% at constant foreign exchange rates.

The increase was largely due to growth in the Asia traditional life and health businesses and the Americas traditional life business.

Swiss Re said all segments contributed, helped by "a moderate natural catastrophe experience and positive one-offs".

Property & casualty reported an operating income of $1.0bn (2010 $1.1bn). Swiss re said this was based on strong underlying performance, further reserve releases and a better-than-expected natural catastrophe experience in the quarter.

Premiums earned increased by 18.0% or 13.1% at constant foreign exchange rates, reflecting successful renewals and new business written during 2011, particularly in Asia.

Stefan Lippe, chief executive officer, said: "I am pleased to announce another successful quarter for Swiss Re. Third-quarter Group results were excellent with a positive contribution from all segments. Our
underlying earnings power is very strong and our conservative asset management approach is proving to be appropriate in these times of heightened financial market volatility."