Swiss Re reports underwriting loss in Q2

Swiss Re reported an underwriting loss for the second quarter, driven by a number of large natural catastrophes.

For the period between April and June, Swiss Re recorded a combined ratio of 103.1 percent for the consolidated group which compares to 93.6 percent in the same period a year ago. The company estimates total respective losses in P&C Re of approximately $350 million for the second quarter.

For the first half of 2016 the company reported an underwriting profit with a combined ratio of 98.0 percent compared to 88.9 percent in the first half of 2015. Premiums earned and fee income grew to $16.12 billion from $14.70 billion over the period. Net income, however, declined to $1.87 billion compared to $2.26 billion.

Swiss Re's new group chief executive officer, Christian Mumenthaler, said: "We have a solid result for the first half 2016 despite a challenging second quarter that was marked by a difficult macroeconomic environment as well as more pronounced natural catastrophe losses and large reported claims in our Corporate Solutions Business Unit.”

The 2016 half-year result reflected two large man-made casualty losses in North America, which occurred in the second half of 2015. The magnitude and responsibility for these losses were only established in the second quarter of 2016. The company said that the impact was partially offset by favourable business performance across most other lines and moderate income from investment activities.

“The focus on underwriting discipline together with our excellent capitalisation will help us navigate, and potentially benefit from, the turbulent times," Mumenthaler said.

Mumenthaler  became the group chief executive officer of Swiss Re on 1 July 2016, after the retirement of Michel Liès.