Swiss reinsurance giant Swiss Re said on Friday that rising interest rates had allowed it to return to profit after financial market downturns, the Covid-19 pandemic and the war in Ukraine pushed it into red earlier in the year.
“Swiss Re returned to profitability in the second quarter of 2022 (…) after the first quarter was marked by the negative impacts of the financial market slowdown, the Covid-19 pandemic and the war reserve in Ukraine,” the group said in a statement. .
“Rising interest rates are clearly positive for the re/insurance industry, and we’re starting to see the benefits,” Chief Financial Officer John Dacey said.
Swiss Re said it posted a net profit of $405 million in the April-June period, compared with a loss of $248 million in the previous three months.
Still, taking the two quarters combined, first-half net profit fell 85% to $157 million, Swiss Re said.
Net premiums and commission income – the equivalent of insurance company sales – rose 1.9% to $21.2 billion in the first six months, Swiss Re said.
“Growth was negatively affected by unfavorable exchange rate developments.”
Swiss Re said that after setting aside $283 million in reserves in the first quarter for potential impacts from the war in Ukraine, it did not increase them in the second quarter.