First Quarter Earnings Report: Swiss Re, Zurich Financial Services

Swiss Re has estimated that its first quarter P&C pre-tax catastrophe losses exceed $2.3 billion, resulting in the $1.233 billion operating loss in this sector given above. Swiss Re’s earnings bulletin pointed out that the reinsurer’s P&C “treaty business written premiums grew by 5 percent year-on-year in the April renewals, or by 13 percent year to date.”

It also noted that, “historically, large losses from natural disasters have been followed by price increases and stronger demand in the Property & Casualty market.” Swiss Re added that it “believes the combination of the recent natural catastrophes, very low interest rates, and years of price declines are likely to bring forward the turn in the cycle.”

The full report, as well as additional and supplemental information and details on accessing the replay of today’s earnings conference call may be obtained on the company’s web site.

As a global and widely diversified insurance group, Zurich’s results were less impacted by the first quarter’s catastrophic events than many other companies. However ,Zurich said its aggregate losses for the five natural disasters in Australia, New Zealand and Japan were $517 million. In addition the bulletin noted that the “slow economic recovery in the U.S. and much of Europe also impacted results.”

See the full quarterly earnings report from Zurich.