Swiss Re’s first-half net income beat estimates, as the re-insurer avoided higher claims from natural catastrophes that have impacted the broader insurance industry.
Profit for the second quarter was US$996 million ($1.3 billion), resulting in net income of US$2.1 billion for the six months to June, the Zurich-based insurer said in a statement Thursday. Return on the group’s investment portfolio was 4% for the first half of the year, compared with 2.8% a year earlier.
“After a strong start in the first half of this year, we maintain our 2024 targets, including group net income of more than US$3.6 billion,” CEO Andreas Berger said in a statement.
In its key property and casualty business, Swiss Re reported US$989 million in net income in the first half, mainly due to low reported large natural catastrophe claims that were partially offset by selected additions across natural catastrophe and man-made loss reserves.
Swiss Re’s performance contrasts with the hits taken by insurers during a period when weather events jumped well above the 10-year average. Both Allianz and Zurich Insurance Group reported weaker property and casualty results on the back of events including flooding in Germany, though they reported higher profit.
The re-insurer attributed part of its result to “disciplined underwriting”. Earlier this month the company warned that global insured losses from natural catastrophes reached US$60 billion in the first half.
See also: Extreme weather, high premiums: Is insurance necessary to tackle climate change?
Swiss Re said that the planned exit from its digital insurance business iptiQ is progressing, while disclosing a net loss of US$182 million for the first half of 2024.
European insurers saw their stock price taking a hit in the past last month as Hurricane Beryl caused billions in damage after becoming the Atlantic’s earliest Category 5 hurricane on record.
Earlier this year, Swiss Re appointed Andreas Berger as its new CEO in a surprise management reshuffle. Berger took over from Christian Mumenthaler who stepped down after a quarter of a century at the company. The firm also named Anders Malmstrom as its next chief financial officer to replace John Dacey who will retire from his executive role in March 2025.
