"The decline was driven mainly by significantly lower investment results as well as first-quarter reserves for the Ukraine war. After establishing reserves of USD 283 million for potential impacts from the war in Ukraine in the first quarter, Swiss Re did not increase them in the second quarter".
Net premiums earned and fee income for the Group increased 1.9% to USD 21.2 billion in the first six months of 2022 from USD 20.8 billion in the first half of 2021.
P&C Re reported a net income of USD 316 million for the first half of 2022, compared with USD 1.3 billion in the same period in 2021. "The result reflects the robust technical underwriting performance of the business, offset by materially lower investment results and first-quarter reserves in relation to the Ukraine war of USD 154 million".
The reinsurer mentioned that P&C Re absorbed large natural catastrophe claims of USD 938 million in the period, mainly relating to flooding in Australia and South Africa, February storms in Europe, and a series of hailstorms in France in June. Total claims came in USD 0.27 billion above expectations for large natural catastrophe losses in the first half of the year. "Importantly, P&C Re has USD 1.2 billion of the USD 1.9 billion full-year natural catastrophe budget allocated for the remainder of 2022".
Net premiums earned increased slightly to USD 10.6 billion. The increase was largely due to higher volumes and price increases, offset by adverse foreign exchange developments. At stable foreign exchange rates, net premiums earned would have increased by 3.6%.
The combined ratio was 98.5% for the first half of 2022. On a normalized basis, the combined ratio was 95.8%, which includes 1.5 percentage points for the reserves relating to the war in Ukraine. For the second half of the year, the normalized combined ratio is expected to be lower, as the Group earns the majority of its natural catastrophe premiums in the third and fourth quarters. P&C Re remains focused on achieving the normalized combined ratio target of less than 94% for the full year.
L&H Re reported a net income of USD 2 million for the first half of 2022, compared with a net loss of USD 129 million for the first half of 2021. "As deaths from COVID-19 declined sharply, L&H Re returned to a strong net income of USD 232 million in the second quarter, underscoring the earnings power of its franchise".
Over the half-year period, total COVID-19 claims amounted to USD 540 million, with the vast majority booked in the first quarter.
Net premiums earned and fee income decreased slightly to USD 7.5 billion in the first half from USD 7.6 billion in the prior-year period, primarily driven by adverse foreign exchange developments. At stable foreign exchange rates, net premiums earned would have increased by 2.8%.
L&H Re continues to target a net income of approximately USD 300 million for 2022.
Corporate Solutions reported a net income of USD 220 million in the first half of 2022, compared with USD 262 million in the prior-year period. "This result was achieved in spite of reserves related to the Ukraine war in the first quarter, less favourable prior-year development compared with the first half of 2021 and lower investment income".
Total large losses for the first half of 2022 were of a similar magnitude to the prior-year period. Large man-made losses of USD 165 million were higher than in the prior-year period, reflecting the first-quarter reserves for the war in Ukraine of USD 129 million, while large natural catastrophe losses were lower, amounting to USD 102 million for the period.
Net premiums earned increased by 12.8% to USD 2.9 billion, driven by the continuous earn-through of previously realised rate increases and new business growth in selected focus portfolios. At stable foreign exchange rates, net premiums earned would have increased by 17.2%.
"Corporate Solutions' combined ratio of 93.2% for the first half of 2022 is well on track to reach the full-year target of less than 95%".
iptiQ's gross premiums written for the core business increased 37% to USD 455 million in the first half of 2022 from USD 333 million in the prior-year period. iptiQ had over 2 million policies in force at the end of June 2022.