Swiss Re boosts profit 27 per cent in 2018 despite tough year for natural disasters
Swiss Re boosted net profit 27.2 per cent in 2018, despite sustaining hits from natural and man-made disasters.
The reinsurer reported net profit of $421m (£366m) compared with $331m a year previously, despite 2018 being the fourth-costliest year on record for the insurance industry.
However, its profit is 37 per cent behind consensus, according to figures from UBS.
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Swiss Re said combined claims reached $3bn in 2018, with big losses caused by hurricanes Michael and Florence in the US and typhoons Jebi and Trami in Japan.
The insurer said it plans to propose a higher dividend of 5.60 Swiss francs and the authorisation of a new share buy-back programme to be executed by the 2020 annual meeting.
Swiss Re Group Chief Executive Officer, Christian Mumenthaler, says: “There was no respite from large nat cat events and man-made disasters in 2018. Our financial strength enabled us to support our clients in these tough times. It was the second challenging year in a row for the industry and us."
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UBS analysts said Swiss Re’s “earnings trends are weak” and said “the underlying development in property and casualty reinsurance is disappointing.”