Swiss Re reports second-best results in its history

Swiss Re has reported a net income of CHF4.2 billion (about Cdn$3.96 billion) for 2007, down 9% from 2006, but nevertheless the second-best result in the company’s history.”Driven by an outstanding performance across our key businesses, we delivered the second-best result in Swiss Re’s 144-year-history,” Swiss Re CEO Jacques Aigrain said in a press release. “Property and casualty had its best performance ever, and life and health improved on an already very strong prior-year result.”In 2007, the company recorded a return on equity of 13.5%, “despite the isolated mark-to-market loss from credit underwriting activities announced in November.”Swiss Re described its 2007 Q4 net income as “modest” at CHF170 million (Cdn$160.5 million).The company’s property and casualty unit had what the reinsurer described as “an excellent performance,” achieving a combined ratio of 90.2% (or 88.9% before unwind of discount). This resulted in an operating income of CHF5.9 billion ($Cdn5.57 billion). Premiums earned grew 2% to CHF19 billion (Cdn$17.9 billion). “The main drivers were a strong performance, particularly in the property and specialty lines of business, as well as the first full-year inclusion of GE Insurance Solutions business,” Swiss Re said in a press release. “These results reflect the quality of Swiss Re’s insurance underwriting despite the increased frequency of weather events in 2007.”