Swiss Re has revealed the impact of the recent natural catastrophes on insurance pricing in Australia and New Zealand.

Its latest Sigma report shows that combined general insurance premium growth in the two countries was 8.1% last year, up from 2.8% in 2010.

Gross written premium (GWP) increased 9% in Australia to $US44 billion ($43 billion), and rose 3.7% in New Zealand to $US8.5 billion ($8.3 billion).

Combined, the countries represent 2.7% of global general insurance market share.

The report says that while the high levels of losses incurred by Australian and New Zealand insurers last year were largely mitigated by reinsurance, operating results for Australian general insurers still fell 35%.

But Swiss Re forecasts “solid” growth for general insurers in the two countries this year.

The Sigma report shows that globally, general insurance GWP increased 1.9% last year, mainly on the back of “solid economic growth in emerging markets”, which recorded 8.6% premium growth.

GWP across the developed economies was broadly flat, with “selective rate increases in some advanced markets” offset by the weaker European and US economies, which “dampened demand for insurance cover”.

But the report also found that overall levels of capital and solvency in the global market remain solid, despite the recent run of large natural catastrophes and an extended period of low interest rates.

Swiss Re forecasts “moderate premium growth” this year, with emerging markets continuing to lead the way.

It says prices may continue to harden, but “the turn of the pricing cycle will likely be gradual and limited to certain markets and lines of business”.

“Last year was not a great one for premium growth, but 2012 should be a lot better as rates continue to improve in non-life markets,” Swiss Re Chief Economist Kurt Karl said.