Swiss Re sees first-half net profit tumble 17% amid accounting changes

Christian Hartmann | Reuters

The Swiss Re building in Zurich is shown in this Feb. 19, 2009 photo.

Swiss Re reported weaker-than-expected net profit over the first six months of the year, with the world’s second-largest reinsurer citing accounting changes as the main drag on earnings.

The company posted net profit of $1.0 billion during the first half of the year, down from $1.2 billion a year earlier. Despite the 17 percent fall in profit, Swiss Re said its latest figures would have been flat if it did not have to account for the changes in U.S. GAAP that affect the measurement of equity investments.

Reuters analysts had expected net profit of $1.13 billion.

Swiss Re also announced Friday it is exploring the listing of its U.K. closed book business ReAssure next year. It said any potential initial public offering (IPO) of ReAssure could help grant access to new capital in order for the U.K. unit to acquire additional closed books.

The insurance industry is still recovering from its costliest year on record in 2017, following a series of major hurricanes, fires and earthquakes in North America.

Meanwhile, falling prices and intense competition has ratcheted up the pressure for Swiss Re and its rivals in recent years.

In February, the company was in talks with SoftBank over the possibility of the Japanese firm taking a stake in the reinsurer, but discussions ended without a deal.