Swiss Re reports net loss in Q1 due to natural cats

Swiss Re reported a net loss of $665 million for 2011 Q1, compared to a profit of $158 million in the same period of 2010. A very high level of natural catastrophe claims affected the reinsurer’s property and casualty segment, including the earthquakes in Japan and New Zealand, as well as the floods in Australia.Swiss Re’s property and casualty segment reported an operating loss of $1.2 billion in the first quarter, compared to an operating income of $259 million in the first quarter of 2010. This result was largely driven by natural catastrophe pre-tax losses of $2.3 billion. The company’s combined ratio in the property and casualty segment rose to 163.7% in 2011 Q1, compared to 109.4% in the prior-year period. The net impact from natural catastrophes on the combined ratio was 89.4 percentage points – 79.8 percentage points above the expected level.