Swiss Re reports CHF4.6 billion profit in 2006

Swiss Re delivered record earnings in 2006, announcing a 98% increase in profits to CHF4.6 billion [Cdn$4.4 billion].Swiss Re CEO Jacques Aigrain said in 2006 Swiss Re achieved a record result, based on disciplined underwriting in property and casualty, consistent returns from life and health and a rising contribution from our financial services business.Property and casualty operating income increased CHF4.2 billion [Cdn$4.06 billion] to CHF5 billion [Cdn$4.8 billion] in 2006. Premiums earned grew 7% to CHF17.4 billion [Cdn$16.8 billion].The company said its combined ratio improved to 90.4%, reflecting strong underwriting performance and lower natural catastrophes.In addition, the company reported a 16.3% return on equity.Swiss Re plans to buy back shares for up to CHF6 billion [Cdn$5.8 billion] over the next three years. In a first step, Swiss Re has agreed, subject to market conditions, to re-purchase approximately 50% of General Electric’s stake between Mar. 1-9, 2007.In a second step, Swiss Re plans to launch a share buy-back program over the next three years for up to CHF4 billion [Cdn$3.86 billion]. In addition, the board of directors will propose the cancellation of approximately 8 million shares and approximately 8 million conditional shares.