Swiss Re’s earnings increased 21% in the first quarter, driven by a strong underwriting performance in property and casualty and gains in the commercial insurance arm.

Net income grew to $US1.38 billion ($1.33 billion) from $US1.41 billion ($1.36 billion) in the corresponding period last year.

Premiums earned and fee income increased to $US6.78 billion ($6.56 billion) from $US6.21 billion ($6.01 billion).

The combined ratio moved to 72.4% from 84.9%, continuing a long-term improvement.

“This shows Swiss Re has established a successful track record to underwrite risks prudently across all business lines, also in a difficult economic environment,” the company said.

Property and casualty reinsurance net income grew 53% to $US1.01 billion ($977 million), driven by a strong underwriting result. Reserve releases and lower-than-expected claims in the absence of major catastrophes aided the result.

The commercial insurance business, Corporate Solutions, posted a 20% gain in net income to $US101 million ($97.7 million) after premiums earned grew 15%.

Life and health reinsurance profit was $US222 million ($214.74 million), up from $US209 million ($202.16 million).