Swiss Re has attributed a 24% increase in first-half profit to healthy underwriting margins and a solid investment result.

Net income grew to $US2.6 billion ($3.9 billion), while insurance revenue of $US20.9 billion ($31.9 billion) was down 6% on the same period in 2024.

Insurance service earnings – a measure of underwriting profitability – increased 5% to $US3 billion ($4.5 billion).

CFO Anders Malmstrom says healthy new business contractual service margins are being maintained, despite a more challenging property and casualty environment.

The reinsurer achieved a price increase of 2.3% at the June and July property and casualty renewals, but volume was down 5.9% amid “pruning” of casualty lines.

Property and casualty reinsurance net income was $US1.2 billion ($1.8 billion) for the half, up 23% on disciplined underwriting, low large natural catastrophe claims in the second quarter, favourable reserve development and a solid investment result.

Large natural catastrophe claims of $US556 million ($849 million) related mostly to the California wildfires in the first quarter.

The P&C division achieved a combined operating ratio of 81.1%, improving from 84.3%. Swiss Re has a target of 85% for the full year.

Net income from the Corporate Solutions commercial insurance arm fell 2% to $US441 million ($674 million). Life and health reinsurance profit fell 5% to $US839 million ($1.2 billion).