Swiss Re’s net income, P/C income climbs in 2006

Swiss Re has reported a 2006, first-half net income of CHF 1.6 billion (CD$1.43 billion) up 16%, compared to a strong first half of 2005. Annualized return on equity was 13.9% and shareholders’ equity increased 18% to CHF 27.1 billion (CD$24.23 billion). “We are pleased with our first half results, as they underline our progress towards sustainable business performance,” Swiss Re CEO Jacques Aigrain commented in a press release. “Swiss Re’s diversification and continued focus on sound technical results, along with the transfer of peak risks to the capital markets, have clearly reinforced the quality and sustainability of our earnings.”Total premiums earned rose to CHF 13.8 billion (CD$12.35 billion) in the first half of 2006, compared to CHF 13.2 billion (CD$ 11.81 billion) a year earlier. The company associated the increase with higher foreign exchange rates and the first three weeks of revenues from the GE Insurance Solutions acquisition, which closed June 9, 2006. “Attractive pricing conditions and Swiss Re’s continued focus on underwriting quality pushed Swiss Re’s first half property and casualty operating income up 51% to CHF 1.9 billion (CD$1.7 billion), from CHF 1.3 billion (CD$1.16 billion) in the first six months of 2005,” the company reported.Also, the company’s combined ratio for traditional business improved from 96.3% in the first half of 2005 to 93.0% in the first half of 2006.”Overall, premiums were down slightly at CHF 7.8 billion (CD$6.98 billion), reflecting higher client retentions,” the company announced.