Swiss Re has reported a 31% rise in net profit to $US4.6 billion ($6.4 billion) for last year, and announced the promotion of CEO Reinsurance Christian Mumenthaler to Group CEO.

Strong underwriting results and the life and health division’s return to profitability were behind the profit increase.

Property and casualty (P&C) reinsurance net income fell to $US3 billion ($4.2 billion) last year from $US3.6 billion ($5 billion) in 2014, pushed down by lower realised gains and flood losses in the UK and India during the fourth quarter.

The division’s combined operating ratio deteriorated to 86% from 83.7%.

The life and health reinsurance unit earned net income of $US939 million ($1.3 billion), compared with a loss of $US462 million ($642 million) the previous year, as operating margins improved and management actions to address pre-2004 US individual life business bore success.

“These results show we are well positioned to capture available opportunities, despite headwinds that the entire industry is experiencing as a result of the tough market environment,” Group CFO David Cole said.

“Looking ahead, we are in a solid position to combine our capital strength with financial flexibility, to continue to profitably grow our business.”

Outgoing CEO Michel Liès, who has been with Swiss Re for more than 35 years, including four in charge, believes Mr Mumenthaler is the right person to take over from him from July 1.

“I am convinced he and his team will further strengthen the role of Swiss Re in our industry and our society more generally.”

Mr Mumenthaler has worked with Swiss Re for 17 years and led the all-important reinsurance business unit for almost five years.

The unit accounts for 85% of the Swiss reinsurance giant’s group revenue.

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