Leading global reinsurer Swiss Re has reported a strong increase in first half year profits, garnered through a successful reduction in risk exposure through diversification and an increase in premium pricing in key regions.
Swiss Re’s net income for H1 2006 came in at CHF1.6 billion, up 16% compared to the first half of 2005.
Total premiums earned rose to CHF13.8 billion in the first half of 2006 compared to CHF13.2 billion a year earlier. Net investment income was CHF2.8 billion, compared with CHF 2.5 billion in the first half of 2005: a 13% increase with a return on investments of 5.3%.
Attractive pricing conditions and Swiss Re’s continued focus on underwriting quality pushed Swiss Re’s first half property & casualty operating income up 51% to CHF1.9 billion, the company said in a statement. However, overall, premiums were down slightly at CHF7.8 billion, reflecting higher client retentions.
Swiss Re’s life & health division returned an operating revenue increase of 1.5% to 11.0% in the first half of 2006. The operating income increased to CHF0.8 billion from CHF0.6 billion a year earlier. Premiums grew 9% to CHF5.5 billion.