Major global reinsurance provider Swiss Re has reported its embedded value increased by 18% in 2005 thanks to growth in its existing business.

Embedded value of life and health business increased significantly to CHF20.1 billion in 2005, up from CHF17.1 billion in 2004, the company said in a press statement.

Meanwhile, operating profit from existing business grew 38% to CHF1.5 billion from CHF1.1 billion in the previous year.

However, value added by new business disappointed industry analysts. Total value added of CHF283 million in 2005 was down from CHF666 million in 2004, although profitability of the new business in 2005 increased to 13.1% from 12.5% in 2004.

Jacques Aigrain, chief executive officer of Swiss Re, commented: We’re pleased with the strong results of our existing business and the attractive rates of return of the new business. As we explore new avenues for growth in our life and health business we remain focused on the quality of the portfolio to provide continued solid returns in the future.