Swiss Re says third-quarter earnings fell 51% to $US1.07 billion ($1.13 billion) on catastrophe losses and pressures in the Australian life division.

The drop also follows a result in the third quarter last year that was lifted by selling part of the Admin Re business.

Total premiums earned and fee income grew 14% to $US7.48 billion ($7.89 billion), while the combined ratio moved to 83.4% from 72% in the corresponding period last year.

Property and casualty earnings fell 21.7% to $US807 million ($851 million) on increased made-made and natural catastrophe losses and lower net reserve releases in previous years.

Hailstorms in Germany in July led to about $US240 million ($253 million) in claims for Swiss Re and total insurance industry losses of up to $US2.7 billion ($2.8 billion).

Property and casualty net premiums earned increased to $US4 billion ($4.2 billion) from $US3.3 billion ($3.5 billion).

“Natural catastrophe reinsurance rates are currently adequate but under pressure from alternative capital and strong competition,” Swiss Re said.

“However, primary rates for US casualty and European motor continue to increase. The rest of the market is flat or softening slightly.”

Life and health reinsurance net income fell to $US12 million ($12.7 million) from $US187 million ($197 million), mainly due to reserve additions of $US121 million ($128 million) for the Australian group disability business and lower realised gains.

Corporate Solutions has posted earnings of $US71 million ($75 million) and Admin Re contributed $US141 million ($149 million), down from $US823 million ($868 million).

Swiss Re’s total net income for the nine months to September 30 fell 5% to $US3.24 billion ($3.42 billion).