Swiss Re H1 Profit Surges, Backs FY23 View; Stock Down
Swiss Re Ltd. reported Friday significantly higher profit in its first half with contained natural catastrophe losses as well as improved net premiums earned and fee income. The reinsurance giant further maintained its profit target of more than $3 billion for fiscal 2023. The shares were losing around 3 percent in the morning trading in Switzerland.
Swiss Re’s Group Chief Executive Officer Christian Mumenthaler said, “As we enter the second half of the year, our transition to a simpler organisational structure, which we began implementing in April 2023, is well underway. Given the positive contribution of all our main businesses, we are focused on achieving our profit target of more than USD 3 billion for the year.”
For the year, L&H Re continues to target a net income of around $900 million.
For the first half, Swiss Re’s net income climbed to $1.45 billion from $157 million in the same period in 2022.
According to the company, main drivers for the result were contained natural catastrophe losses in the first half, along with L&H Re’s performance returning to pre-pandemic levels and a strong result for Corporate Solutions.
P&C Re reported a net income of $904 million, up from $316 million last year, driven by a solid investment result and low level of large natural catastrophe claims in the second quarter.
The large natural catastrophe losses of $634 million in the first half were related to the earthquake in Turkey and Syria, Cyclone Gabrielle and flooding in New Zealand, all of which occurred in the first quarter. Large man-made losses amounted to $76 million.
L&H Re reported a net income of $393 million, significantly higher than $2 million last year, benefitted from much lower COVID-19 claims as well as from higher investment income. However, there was elevated mortality in the US from the winter months.
The group net premiums earned and fee income increased 4.4 percent to $22.14 billion from the previous year’s $21.20 billion. At constant foreign exchange rates, net premiums earned and fee income grew by 6.6 percent.
P&C Re net premiums grew 9.6 percent at constant foreign exchange rates, and the growth was 6.4 percent at L&H Re.
In spite of macro-economic volatility, higher interest rates and steadily increasing recurring income contributed to an improved investment result, according to Chief Financial Officer John Dacey.
In Switzerland, Swiss Re shares were trading at 86.88 Swiss francs, down 2.5 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
Source: Read Full Article