Swiss Re’s full-year net income rose sharply to $US3.2 billion ($4.8 billion) from $US472 million ($720 million) in 2022 as its property and casualty (P&C) reinsurance business performed strongly.

P&C reinsurance net income surged to $US1.9 billion ($2.9 billion) from $US312 million ($476 million) a year earlier. Swiss Re says the “solid” result was driven by a resilient underwriting performance and disciplined renewals.

“Strong margins and positive reserve developments in property and speciality lines helped offset reserve strengthening in the casualty business,” the reinsurer said. “In addition, the result was supported by a solid investment performance.”

Large natural catastrophe claims totalled $US1.3 billion ($1.9 billion), below the full-year budget of $US1.7 billion ($2.6 billion). Claims included the earthquakes in Turkey and Syria at the beginning of last year, Hurricane Otis in Mexico in the fourth quarter, and several storms and consequent flooding in Europe throughout the year.

Net premium earned increased 3.9% to $US22.9 billion ($34.9 billion), up by 4.3% at constant foreign exchange rates.

P&C reinsurance renewed treaty contracts resulting in $US13.1 billion ($20 billion) in premium volume on January 1. This represented a 9% volume rise, while the business also achieved rate increases of 9%.

“Improved price adequacy in our property and casualty businesses following strong renewals and our underwriting discipline helped us to manage elevated industry losses from natural catastrophes,” Group CEO Christian Mumenthaler said.

Swiss Re has affirmed its financial target for the year, forecasting net income above $US3.6 billion ($5.5 billion).

“We continue to put emphasis on underwriting discipline, as evidenced in the successful January renewals,” Mr Mumenthaler said. “Our focus on costs and strengthening proximity to our clients also remains paramount.”