Swiss Re reports 7% profit increase

Swiss Reinsurance Co. has reported a 7% improvement in its economic profit due to focus on technical profitability and its volume of business written has grown to 9.3 billion Swiss francs (US$7.1 billion) in its January non-life contract renewals.

Michel Lis, head of client markets, says Swiss Re’s financial strength has enabled the reinsurer to improve the quality of its portfolio and further consolidate its market position during renewals.

In the January renewals for traditional treaty business, dominated by the European portfolio, overall premium volume remained constant at 8 billion Swiss francs. Swiss Re also experienced a shift in business, with property and specialty lines growing 6% while liability and motor lines were cut by 10%.

Premium volume for European treaty business remained unchanged while the US treaty business declined 13% due to reductions in liability business, according to Swiss Re. However, the reinsurer indicated a 23% growth in the Asia market, predominantly in the emerging markets.

Attractive opportunities and a robust credit environment, Swiss Re says, helped the company to grow its corporate risks business by 14% and its credit and surety business by 12%. Total premiums written for these portfolios reached 1.3 billion Swiss francs (US$992.5 million).

The Company reports that throughout 2006 it plans to focus on profitable underwriting, targeting terms and conditions above the market average and maintaining leadership in price discipline.