Reinsurer Swiss Re announced it generated a full-year net income of USD 421 million in 2018. The result includes estimated large claims of USD 3.0 billion, net of retrocession and before tax, which significantly affected both Property & Casualty Reinsurance (P&C Re) and Corporate Solutions’ earnings.
The reinsurer mentioned the P&C combined ratio was 104.0%, reflecting the impact from these losses.
“Following a relatively benign first half of the year, the second half saw a number of major natural catastrophes, notably typhoons Jebi and Trami in Japan, hurricanes Florence and Michael, the Carr, Camp and Woolsey wildfires in the US, a windstorm in Canada and a hailstorm in Australia and several man-made disasters. Despite the estimated combined claims of USD 2.2 billion from natural catastrophes and USD 0.8 billion from large man-made losses, Swiss Re reported a net income of USD 421 million, compared to USD 331 million in 2017”.
The net income also reflected an estimated negative pre-tax impact of USD 599 million due to the previously reported change in US GAAP on recognition and measurement of equity investments that took effect on 1 January 2018. Excluding the impact of the change in accounting guidance, net income would have been USD 894 million…