Swiss Re’s first-quarter results rose dramatically in the absence of natural catastrophes this year.

First-quarter net income was $US1.14 billion ($1.13 billion), compared with a net loss of $US665 million ($657 million) in the first quarter of 2011.

Revenue rose 34% to $US8.97 billion ($8.86 billion) and claim expenses fell 43% to $US2 billion ($1.98 billion).

Premiums earned increased 22% to $US5.98 billion ($5.91 billion) and net investment income increased 3% to $US1.2 billion ($1.19 billion).

The company says the outlook for property and casualty (P&C) reinsurance is strong due to improved prices and continued demand for natural catastrophe cover and solvency relief contracts.

The P&C division reported a profit of $US700 million ($691 million), compared with a loss of $US600 million ($593 million) in the previous corresponding period when the group was hit by catastrophe losses.

A relatively benign quarter for losses swung the combined ratio to 85% compared with 171%.

The specialty combined ratio improved to 80.5% from 93.8% despite losses from the Costa Concordia cruise ship.

Premiums and fee income from the life and health division increased 10% to $US2.2 billion ($2.17 billion) on higher rates in the Americas and business growth in Europe.

Swiss Re says growth in the traditional life business is expected to be challenging, as cession rates may decrease as insurers retain more risk.

The corporate solutions division increased net income to $US84 million ($83 million) from a loss of $US42 million ($41 million).

The reinsurer says the corporate insurance market is at a cycle turning point, with some industry segments and geographies showing improvement in terms and conditions.

Group CEO Michel Liès says the results reflect Swiss Re’s asset management and ability to grow as prices rise, as well as the drop in natural catastrophes.

“Going forward, we will now seek to reap the benefits of our cycle management,” he said.