P&C dents Swiss Re H1 results

Swiss Re’s first half 2017 results have been impacted by lower income from the property/casualty (P&C) reinsurance division as the reinsurer curbs premium and is hit by Cyclone Debbie.

Overall, the group’s net income declined to $1.21 billion in the first six months of 2017 from $1.87 billion in the same period a year ago.

Net income in the P&C division fell to $546 million from $870 million over the period. The P&C results included insurance claims from Cyclone Debbie in Australia of
$320 million (net of retrocession and before tax). Last year's net income benefited from positive foreign exchange movements which did not repeat in 2017, the company noted.

Gross premiums written in P&C declined by 15.5 percent year on year to $9.4 billion in the first six months of 2017. This was the result of a disciplined reduction in capacity where prices did not meet Swiss Re's profitability expectations, according to the statement. The combined ratio remained stable at 97.4 percent compared to 97.2 percent in the first six months of 2016.

Overall, the group gross premiums written for the first half year decreased 8.3 percent to $18.1 billion due to disciplined underwriting and active portfolio management, the company explained.

"In the first half of 2017, we reported a solid result – despite the challenging market environment and having paid significant claims in the aftermath of natural catastrophes,” said Swiss Re's CEO Christian Mumenthaler.

“While in the short term these drivers, especially the pricing pressures, are concerning and are being addressed, we are steering our company with long-term value creation in mind.”

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