Swiss Re has reported flat premium in the property and casualty business and a number of large claims in the three months to September 30.

Premium totalled $US4.1 billion ($5.7 billion), compared with $4.3 billion ($6 billion) in the corresponding period last year.

Claims totalled $US1.9 billion ($2.6 billion), and total expenses came to $US3.2 billion ($4.5 billion).

Net income was $US1 billion ($1.4 billion), up 1.4% due to a lack of major losses and stronger results from the US business.

The combined operating ratio for property deteriorated to 63.7% from 60.8%, driven by a $US250 million ($352 million) claim from the Tianjin port explosion in China.

Swiss Re says the claim may rise because insurers are still assessing the damage.

The casualty combined operating ratio improved to 92.1% from 102.1%.

The specialty combined operating ratio deteriorated to 82% from 57.3% due to the Tianjin blasts and a number of aviation losses.

Swiss Re CEO Michel Liès says the global insurance market remains tough.

“The uncertainty in the market that we have seen for a while continues to exist. The economic cost of natural catastrophes has increased more than fivefold during the past 35 years and insurance hasn’t kept pace with the increased risk.

“In fact, the gap between economic and insured losses has remained stubbornly large. Addressing this insurance gap represents an important long-term opportunity for the industry globally.”