(Bloomberg) — Swiss Re AG, the world's second-biggest reinsurer, said first-quarter profit rose 17 percent helped by higher income from life and health reinsurance and the Admin Re division.
Net income advanced to $1.4 billion from $1.2 billion in the year-earlier period, the Zurich-based reinsurer said in a statement Thursday. That beat the $971 million average estimate of 8 analysts surveyed by Bloomberg.
Swiss Re shares climbed to 96.95 Swiss francs in Zurich trading on April 13, the highest since 2007, fueled by strong payouts to investors via special dividends and a planned buyback of stock worth as much as 1 billion francs ($1.1 billion). Following the dividend payment for last year, the shares have since fallen 14 percent to 83.30 francs by the close of trading in Zurich yesterday.
Earnings at the life and health reinsurance unit increased to $277 million from $64 million a year ago, driven by realized gains on sales of securities and foreign exchange re- measurement.
Swiss Re's Admin Re unit, which buys and manages closed books of life and health insurance, increased net income to $206 million from $48 million, boosted by returns from sales of government bonds, favorable investment market performance in the U.K. and tax credits. Profit at the property and casualty reinsurance division declined 18 percent to $808 million.
