Swiss Re Corporate Solutions delivered a profit in the first quarter, despite booking $ 129 million in reserves for the war in Ukraine, but could not stop the parent group Swiss Re Ltd. to fall to a loss of $ 248 million.
Swiss Re Corporate Solutions, which includes its commercial insurance business, reported net income of $ 81 million in the first quarter, a decrease of 15.6% compared to the same period last year.
The results were affected by Ukraine’s war reserves, which were equal to 9.3 percentage points on the unit’s total cost percentage, and “significantly” lower investment results.
The business also absorbed large natural disaster losses of $ 75 million, mainly from floods in Australia and the European winter storms in February.
The unit̵7;s total cost ratio for the first quarter was 95.2%, slightly improved from 96% at the same time last year and towards the full – year target of 95%.
Swiss Re said the unit “continues to focus on disciplined issue guarantee and strict cost management”.
Swiss Re Corporate Solutions’ net premium income increased by 14% during the quarter to $ 1.39 billion.
The parent company Swiss Re fell to a loss of $ 248 million compared to a profit of $ 333 million a year earlier.
The group was hit by “higher than expected” major natural disasters of $ 524 million during the period of its real estate / accident operations and COVID-19 claims of $ 515 million, almost entirely on the life side.
Swiss Re booked $ 283 million in reserves related to the war in Ukraine during the first quarter.
Net premium income and fee income increased by 4% to $ 10.62 billion.
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