At the same time, premiums earned and fee income for the Group totalled USD 7.9 billion, up from USD 7.6 billion in 1Q2015. "At constant exchange rates, premiums earned and fees increased by 9.0%, reflecting growth in selected markets and lines of business, often through tailored transactions".
"The overall environment remained challenging during the first quarter, in which low interest rates and declining reinsurance prices continued to make their mark on the entire industry", said Michel M. LIES, CEO.
"All Business Units contributed to our strong profitability in the quarter and we remain very well capitalised", said David COLE, CFO.
P&C Re delivered net income of USD 587 million in the first quarter (vs USD 808 million for Q1 2015), "reflecting good underwriting and continued benign natural catastrophe experience and higher realised gains, partly offset by unfavourable prior-year developments", as the reinsurer pointed out in the press release. Net premiums earned increased 5.0% to USD 4.0 billion, up from USD 3.8 billion in the prior-year period, while the combined ratio was 93.3%, compared to 84.3% for the previous year.
L&H Re reported net income of USD 244 million (vs. USD 277 million in 1Q 2015). "The decrease was mainly driven by lower realised investment gains". At the same time, premiums earned and fee income rose to USD 2.8 billion. "At constant exchange rates, premiums earned and fees increased by 13.6%, driven by several large transactions in the US, UK and Australia".
Corporate Solutions reported net income of USD 80 million (vs. USD 167 million for Q1 2015). "The 2016 result was driven by profitable business performance across most lines of business and moderate income from investment activities, partially offset by realised losses from insurance in derivative form, due to the continued impact of the unseasonably mild winter". Net premiums earned were USD 865 million, a decrease of 1.9%, while the combined ratio increased to 90.4% (vs. 87.8%): "Both periods benefited from the absence of major natural catastrophe events".
Created on 1 January 2016, Life Capital manages Swiss Re's closed and open life and health insurance books, including the existing Admin Re business and primary life and health insurance business. "Comparative information has been restated accordingly". The 2016 result includes the contribution from Guardian since the date of acquisition, Swiss Re mentioned. For the first three months of 2016, Life Capital reported a net income of USD 321 million (vs USD 206 million in Q1 2015), while the value of neet premiums earned and fee income was slightly lower at USD 284 million (vs. USD 306 million).
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