Swiss Re’s net profit fell to $US953 million ($1.39 billion) in the first half, from $US1 billion ($1.45 billion) a year earlier, as natural catastrophes in Australia and fallout from the Ethiopian Airlines plane crash weighed on a strong reinsurance and investment performance.

The reinsurance world leader says its underwriting performance was impacted by late claims development from Typhoon Jebi in the first quarter, Australia’s flood, hail and storm losses, and the Ethiopian crash and subsequent grounding of the Boeing 737 MAX fleet.

Net written premium and fee income rose 7.9% to $US18.16 billion ($26.4 billion).

Property and casualty reinsurance (P&C) combined operating ratio worsened to 100.5% in the first half, from 92.9% a year earlier, while net income rose 2.5% to $US771 million ($1.12 billion). P&C would achieve a normalised combined ratio of 98% for the full year, the company says.

Year-to-date P&C Re treaty premium volume increased by 23% to $US17 billion ($24.71 billion), of which 1% was due to price increases. In the July treaty renewals, which focus mainly on the Americas, a 17% volume increase and 2% price quality improvement was achieved.

Life and health reinsurance net income rose 15.3% to $US459 million ($667.28 million).

“The Corporate Solutions unit posted a net loss of $US403 million ($595.43 million) and a combined ratio of 132.8%, though Swiss Re is targeting 98% in 2021 as it repositions the business to address underperformance.