Swiss Re says its property and casualty (P&C) reinsurance arm secured rate increases of 19% at the April renewals as the business continues to start the year strongly with a return to profitability in the first quarter. 
 
The reinsurer reported overall net income of $US643 million ($958 million) in the January-March period following a $US248 million ($369 million) loss a year earlier, while net premiums earned and fee income combined improved 4.1% to $US11.1 billion ($16.6 billion). 
 
Its key Property and Casualty (P&C) Re division performed solidly, with net income rising sharply to $US369 million ($550 million) from $US85 million ($126 million) despite large natural catastrophe claims including from the New Zealand floods and Cyclone Gabrielle. 
 
The division recorded about $US426 million ($635 million) in net claims from the Turkey/Syria earthquake based on a market loss estimate of $US5.3 billion ($7.9 billion). 
 
Large natural catastrophe losses reached $US597 million ($890 million) in the March quarter, compared with $US449 million ($669 million) a year earlier. 
 
“The increase in net income was driven by robust price improvements and higher investment results,” Swiss Re says, referring to the P&C Re division. 
 
The division increased its net premiums earned by 8.5% to $US5.8 billion ($8.6 billion) and its combined ratio improved to 97.2% from 99.3%. 
 
At the April renewals the division renewed contracts with $US2.6 billion ($3.8 billion) in treaty premium volume, representing a 5% volume increase compared with the business that was up for renewal. 
 
Swiss Re says the 19% price rise achieved at the April renewals “more than offset higher loss 
assumptions of 13%, which continue to reflect a prudent view on economic inflation and loss model updates”. 
 
In other key earnings highlights the Life and Health Reinsurance (L&H Re) unit returned to the black with net income of $US174 million ($259 million) after losing $US230 million ($343 million) last year. 
 
The result benefitted from a strong decline in covid claims and a higher investment income, Swiss Re says. 
 
Group CEO Christian Mumenthaler says the overall first quarter results “demonstrate the resilience of all our main businesses, supported by adequate pricing, higher investment returns and cost discipline”. 
 
“The successful P&C Re renewals so far this year and a good start in L&H Re… underpin our confidence, supported by rising interest rates, cost discipline and a very strong capital position,” he said. 
 
Swiss Re is still aiming for a profit of more than $US3 billion ($4.5 billion) this year.