Insurers and some reinsurers globally are seeing their profits eroding rapidly as the downturn in equity markets bites harder than increasing premiums can offset.

In Europe, Belgian financial services company Fortis said its income in the first half of 2002 fell 18% to $2.6 billion, thanks to its investments falling in value by up to $1.6 billion.

But that pales into insignificance alongside Swiss Re, which experienced a 91% income fall to a net profit of $142 million for the same period. Investment returns fell $1.3 billion. The company also claimed a 16% rise in premium revenue to $16.7 billion. Property/casualty premiums increased only 3% to $7.9 billion.