General Insurance Article - Moody's comments on Swiss Re's results

 “Swiss Re’s results have been supported by very strong results in P&C reinsurance, benefitting significantly from below-average natural catastrophe losses during the year, leading to a reported P&C reinsurance combined ratio of 83.7%.”

  

 “The favourable P&C loss experience has been tempered, in our view, by the weaker than expected result in the life & health operations, as a result of the pre-tax loss of USD344m related to the unwinding of an asset structure related to a longevity transaction, and the loss on disposal of Admin Re’s US life subsidiary (Aurora).”

  

 “Looking to the future, we note that Swiss Re reported a decrease in its risk-adjusted price adequacy ratio by 3 percentage points for the January 2015 renewals, albeit still above 100% at 105%, reflecting continued pressure on reinsurance rates. The company is also expecting an increase by 200bps of their combined ratio to 97% in 2015, driven partly by the softer rate environment. Whilst nobody is immune from the current price pressures, we consider Swiss Re to be comparatively better positioned than most reinsurers to navigate the hurdles ahead.”