Swiss Re says net profit fell 22.6% to $US3.56 billion ($4.63 billion) last year as Canadian wildfires, the Kaikoura earthquake and Hurricane Matthew increased catastrophe losses.

“We were reminded in the fourth quarter that large losses do occur, but paying claims and helping to make the world more resilient is what we’re here for,” CFO David Cole said.

Property and casualty reinsurance premiums increased 12.7% to $US17 billion ($22.11 billion), but the division’s combined operating ratio deteriorated to 93.5% from 85.7% and net income eased 30.2% to $US2.1 billion ($2.7 billion).

Swiss Re says its January renewals fell 18% due to disciplined underwriting and reduced capacity, particularly in Chinese quota share business.

“Overall market conditions are challenging but rate decreases in property, including natural catastrophe business, and specialty have started to slow down,” it says. “Casualty prices remain generally more stable, with significant differences by market and product.”

Chief Underwriting Officer Matthias Weber will step down on June 30 after 25 years with Swiss Re. His replacement is Head of Property and Specialty Reinsurance Edouard Schmid.

The company’s fourth-quarter net profit declined to $US517 million ($673 million) from $US938 million ($1.2 billion) in the corresponding period of 2015.