By divisions, the P&C division recorded a net income of USD 1.0 billion and a 7.9% increase in the value of earned premiums, to USD 3.8 billion (vs. USD 3.5 billion), while the P&C Re combined ratio was 78.8% (vs. 69.7%), "reflecting a higher impact of man-made losses and lower reserve releases".
The L&H Re division reported profit of USD 51 million, compared to USD 222 million in the prior-year. "The result was impacted by a loss on an interest rate hedge". Premiums earned and fee income were 15.5% higher at USD 2.7 billion, largely due "to significant new business in Asia and Europe as well as recaptured business".
Corporate Solutions generated a first-quarter net income of USD 80 million (vs. USD 101 million), while the premiums earned rose by 35.4% to USD 830 million. According to the press release, the decrease in net income was mainly attributable "to higher man-made losses as well as higher claims from business written in prior years". The Business Unit's combined ratio increased to 95.2% from 87.6% in the prior-year period.
ADMIN Re delivered a net income of USD 48 million in the first quarter of 2014, compared to USD 78 million in 1Q2013, while the premiums earned and fee income totaled USD 236 million.
"I'm pleased with the first quarter performance of our Group. P&C Re had another remarkable quarter. L&H Re wrote significant profitable new business, and while the US GAAP result is below expectations, we are making good progress in strengthening the underlying business. Corporate Solutions continued growing profitably in the quarter and Admin Re has become a solid and steady cash generator for the Group. I'm confident that all segments will contribute to achieving our 2011-2015 financial targets", said Michel M. LIES, SWISS Re's Group Chief Executive Officer.