Two Euro Reinsurers Score Big Gains
By Steve Tuckey
NU Online News Service, Aug. 26, 4:20 p.m. EDT?Two major European reinsurers reported higher profits for the first six months of the year as low claims and solid investment gains made their impact on the bottom line.
Zurich-based Swiss Re beat market expectations as its net income doubled compared to the first six months of last year. Net profit came in at $1.1 billion, up from $542.9 million from the year before.
Paris-based Scor earned $70.2 million compared to $50.7 million in the comparable year-ago period.
For Swiss Re, a combined ratio improvement for its property-casualty business to 96.1 percent from 99.8 percent last year, with solid investment gains, contributed to the results that also beat analysts' estimates. Earned premiums were down around two percent.
Scor was helped by a push to reduce its exposure to riskier big insurance policies in the United States, lower costs and fewer disaster claims.
Over the past year and half, Scor has raised capital and lifted reserves to restore a balance sheet hit by costly U.S. workers' compensation and medical insurance claims. The company has lost its key "A" level rating from Standard & Poor's.
Swiss Re received an investment gain boost of $2.4 billion, partly due to equity gains.
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