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Swiss Re recovering with $362 million profit

Global reinsurer Swiss Re continues to recover from last year’s $1 billion loss with a third-quarter net profit of CHF334 million ($362 million).

The company reported strong core business performance including operating income of CHF998 million ($1.1 billion) from property and casualty and CHF388 million ($421 million) from life and health.

The improved result follows a CHF304 million ($330 million) loss in the same period last year while the property and casualty combined ratio improved 15 percentage points to 84.5%. 

A benign period for catastrophes further bolstered Swiss Re’s quarterly results.

CEO Stefan Lippe says the result shows strong underlying performance and “continued de-risking of legacy activities”.

Bad investment strategies resulted in a heavy loss for the reinsurer last year, resulting in former CEO Jacques Aigrain departing the business.

Mr Lippe says while market fundamentals suggest higher prices will be imposed in the January renewal season, “restored industry capital and the absence of hurricanes may partially delay the market correction”.