Swiss Re’s property and casualty reinsurance arm posted a 96% decline in first-quarter net income to $US13 million ($18.6 million), squeezed by huge claims from the north Queensland floods and other major catastrophes.

Group net income fell to $US429 million ($613 million) from $US457 million ($653 million) in the corresponding period last year.

The floods cost the reinsurance giant about $US210 million ($300.2 million) in claims.

Other significant events included the crash in March of an Ethiopian Airlines Boeing 737 MAX 8 plane and subsequent grounding of MAX 8s globally, which produced $US90 million ($128.7 million) in claims for the March quarter.

But Swiss Re is drawing confidence from the broader market, where it enjoyed an 18% rise in treaty premium volumes at the April renewals and price quality improved 1%.

In Japan premium volume grew 10% and price 7%.

“While our property and casualty businesses were affected by significant large losses… [an] encouraging sign was the ongoing and accelerating improvement in the overall pricing environment for the property and casualty businesses, especially in loss-affected markets,” CEO Christian Mumenthaler said.

“This continued positive momentum in renewals gives us confidence in our outlook.”

First-quarter property and casualty net premium increased to $US4.2 billion ($6 billion) from $US3.8 billion ($5.4 billion), but the combined operating ratio blew out to 110.3% from 92% because of the huge catastrophe losses.