Higher property and casualty (P&C) premiums and fewer natural disasters helped Swiss Re to record a 62% rise in profit to $US4.2 billion ($4.1 billion) in 2012.

Premium and fee income rose 15% to $US25.45 billion ($24.84 billion), while the combined ratio was 83.1%, compared with 104.7% in the previous year.

Australia contributed 5% of gross written premium (GWP), with life and health premium of $US1.02 billion ($995 million) and non-life GWP of $US885 million ($863.6 million).

Group CEO Michel Liès says P&C performance has been particularly strong, while the investment result of $US4.5 billion ($4.4 billion) – a 4% return – is excellent.

P&C income was $US3 billion ($2.9 billion), up 58%, which Swiss Re attributes to a 22% rise in net premium, better margins, a favourable prior-year reserve development and investment gains.

Swiss Re estimates total net claims from the Christchurch earthquakes to be $US1.29 billion ($1.26 billion) – its largest loss in 2011, followed by the Japan quake at $US955 million ($931.9 million). Hurricane Sandy was the largest single loss last year at $US900 million ($878 million).

Lower investment returns cut life and health reinsurance profit by 56% to $US739 million ($721 million).

Premium and fee income rose 8.5% to $US9.1 billion ($8.88 billion).

Mr Liès has announced an in-depth review of the life and health business, with results to be presented at the group’s June investor day.

He says the January P&C treaty renewals were successful, with a portfolio price increase of 2%, although there was strong competition in Europe and Asia and a slight fall in prices there. 

Growth has been driven by demand for tailored solutions, as well as insurers in Europe and the Americas using reinsurance to meet solvency requirements.