Swiss Re Lifts Profit But Warns of Hefty China Claim
October 29 2015 - 5:30AM
Dow Jones News
ZURICH—Swiss Re AG on Thursday reported increased profit for the
third quarter, even as the reinsurance giant detailed losses
expected as a result of the deadly explosion in August at a port in
Tianjin, China.
Zurich-based Swiss Re said it expects a pretax loss of roughly
$250 million related to the disaster. In September, Zurich
Insurance Group AG said it expected losses of about $275 million
related to the explosion, which was caused by the improper storage
of hazardous chemicals and killed more than 100 people.
Swiss Re's net profit rose to $1.4 billion in the third quarter
from $1.23 billion in the same period last year, in part because of
the absence of large natural catastrophes. Premiums and fee income
fell to $7.85 billion from $8.31 billion, Swiss Re said.
Return on equity was 17.3% in the quarter, up from 14.8% a year
earlier.
Swiss Re's results this year have been solid, "especially when
taking into account the overall insurance market, which continues
to be challenging," chief financial officer David Cole told
reporters.
Swiss Re said it would start a share buyback program next month,
which it initially unveiled earlier this year. Mr. Cole said
details of the buyback are forthcoming.
The reinsurance firm's largest unit, the property and casualty
business, reported that net profit rose to $1.01 billion in the
third quarter from $842 million in the same period last year. That
came even as premiums earned fell to $4.1 billion from $4.3
billion. Swiss Re said the business benefited from strong
investment returns.
Swiss Re's Admin Re business, which has been in the process of a
revamp and is acquiring U.K.-based Guardian Holdings Europe Ltd. as
part of that effort, reported that net profit fell to $21 million
in the quarter from $54 million in the same period last year. The
company cited a poor investment performance in the U.K. market.
Separate from its financial results, Swiss Re said its board
will propose Paul Tucker, a former deputy governor of the Bank of
England, as a new director at the firm's annual shareholder meeting
next year.
Write to John Letzing at john.letzing@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 29, 2015 05:15 ET (09:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Zurich Insurance (QX) (USOTC:ZURVY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Zurich Insurance (QX) (USOTC:ZURVY)
Historical Stock Chart
From Jul 2023 to Jul 2024