Swiss Re announced today first-half 2005 net profits fell 6 percent to $1.06 billion. In addition, the company said Chief Executive Officer John Coomber will retire at year's end and be replaced by his deputy, Jacques Aigrain.
Mr. Coomber assumed the CEO post in 2003 and during his tenure the company was brought back to profitability.
"As we change over to our new organizational structure, our long-term management plan now allows a smooth transition at the helm of the organization to Jacques Aigrain," Swiss Re said in a statement.
Mr. Aigrain in 2001 was put in charge of Swiss Re's Financial Services Business Group and last year was named deputy CEO.
The group's combined ratio for its p-c operation improved to 95.5 in the first half of the year from 96.1 in the comparable year-ago period.
Earned premiums declined 8 percent in what the company described as the result of pricing discipline in a softening market environment. P-C operating income declined about 25 percent.
The Zurich-based company is the world's largest health and life reinsurer and the second largest p-c reinsurer.
London-based Fitch Ratings director Damir Bettini said the company's earnings were in line with his expectations.
As for the company's claim that the premium drop was due to its cycle management techniques, he said the real test will be in the next couple of years as competition on pricing and terms and conditions intensifies.
"However, there are signs from a number of players, Swiss Re included, that this time around there may be somewhat more discipline than in previous cycles," Mr. Bettini said.
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