Reinsurance specialist Swiss Re has posted a net profit of CHF1.2 billion for the second quarter of 2007, representing a 45% jump over Q2 2006, which saw a net profit of CHF825 million.
The group also revealed a successful quarter for its property and casualty business, which saw operating income reach CHF1.7 billion, up 68% over Q2 2006, due to strong underwriting results, the acquisition of Insurance Solutions and strong investment performance.
However, its life and health business booked an operating loss, down 30% to CHF335 million from CHF477 million in the second quarter a year ago. This decrease has been attributed to the short-term volatility in US mortality.
We are pleased with the results for the second quarter as we continued to generate economic profit growth through careful cycle management and efficient capital allocation. The results also demonstrate our continuing ability to deliver against our other goals of reducing earnings volatility, enlarging market scope and achieving organizational excellence, said Jacques Aigrain, Swiss Re’s CEO.
Assuming an average level of natural catastrophes, the outlook for the rest of the year remains strong, added Mr Aigrain.