6 August 2018 13:30
Photo : Freepik
The reinsurer Swiss Re has reported a net income of one billion us dollars (G$ US) during the first six months of the year 2018, announced the group. This result would have been$ 1.2 billion US, similar to that of the second half of the year 2017, if it were not for the new accounting rules in the us that have had a negative impact of 265 million us dollars (US$ M) pre-tax income.
“It is encouraging to see that the market is recovering gradually,” stresses Christian Mumenthaler, president and ceo of Swiss Re. We have improved our profitability and underwriting performance, particularly in the property and casualty insurance, and our solid results demonstrate the value of our diversified business portfolio. “
“I am pleased to see that we have been able to grow as a group as well,” he added.
Premium growth across the company
Premiums written gross in the group increased by 8 % during the period to reach to 19.6 billions of US$, due to premium growth in the activities in life and medical group.
The life reinsurance subsidiary, and medical has generated net revenues of 398 million us dollars (M US$), and its premiums amounted to 7.4 billion US$, an increase of 15.2 % compared to the same period of the previous year.
38% increase in net income in damages
Swiss Re maintains that its positive results are particularly attributable to an improved underwriting performance in general insurance. For the first six months, the sector has experienced a net income of 752 MILLION US$, with heavy losses on benign. Premiums written the gross rose 1.8 % to reach US$ 9.6 billion. The combined ratio has also improved and reached to be 92.9 %.
The round renewal of the treaties of reinsurance of July has also progressed well, says Swiss Re. The company says it has improved the quality of the rate of 2 % raising the premiums for the segments in housing affected by high losses. For the current year, the volume of premiums for treaties has increased by 9 % to a level of 14.4 G US$.
The sector dedicated to companies is as well
Smaller losses related to natural disasters and better results than in the previous year have enabled the sector to the reinsurance companies to record a net profit of$ 58 MILLION US for the first half of 2018. Swiss Re, however, argues that the results are affected by business written in previous years to explain the combined ratio from 101.7 %.
The gross premiums written increased by 18.5 % to reach US$ 2 billion, reaping the benefits of strategic investments, supports the reinsurer. Rates are improved compared to 2017 and increased to almost 10% for the accounts affected by the losses. Swiss Re indicates that the rate remain a challenge.