Swiss Re, the world’s second-largest reinsurer, plans to launch its share buyback programme next month after posting an unexpected rise in third-quarter net profit on Thursday.
Reinsurers such as Swiss Re, Munich Re and Hannover Re act as a financial backstop for insurance companies, helping them pay for large damage claims from hurricanes or earthquakes in exchange for part of the premiums.
Earnings for the quarter to September were boosted by the release of cash that had been set aside for insurance policies as well as low payouts for natural disasters.
This helped net income rise to $1.4 billion from $1.2 billion a year earlier, exceeding an average estimate of $964 million in a Reuters poll of eight analysts.
Swiss Re’s property-casualty combined ratio for the third quarter, a measure of underwriting profitability, was 78 percent, against a Reuters poll average of 88.3 percent. A figure below 100 percent indicates a profit…Read more at Reuters