Higher-than-expected catastrophe losses hit Swiss Re’s second-quarter profit, which slumped 22% to $US637 million ($821 million).

The result includes an expected loss of $US220 million ($283 million) for Canadian wildfires, with the combined operating ratio for the property and casualty business reaching 101%.

“It is the first time in several years we have seen multiple larger losses from a number of natural catastrophes in one quarter,” Group CEO Christian Mumenthaler says.

“However, these events remind us why we are here: to support our clients after disasters, with the goal to help make the world more resilient.”

Group net investment income for the quarter was $US930 million ($1.2 billion), with the return on investment declining to 3.7% from 4.2%.

“Overall profitability in the second quarter remained solid despite the headwinds we faced,” CFO David Cole said. “The events of the quarter underscore the strength of our globally diversified business model.”

For the first-half, earnings slipped 17% to $US1.9 billion ($2.4 billion).

Swiss Re says the current low-yield environment continues to challenge the industry, while political developments such as the UK’s vote to leave the EU have added to a period of uncertainty and volatility, with longer-term consequences unclear.