LONDON (dpa-AFX) - Reinsurer Swiss Re (SSREY.PK) reported net income of $1.01 billion for the first six months of 2018, in spite of the adverse impact of the new US GAAP guidance on recognition and measurement of equity investments, which took effect as of 1 January 2018. The accounting change had an estimated negative impact on pre-tax earnings of $265 million for the first six months of 2018. The company reported net income of $1.21 billion in the the first six months of 2017. Earnings per share declined to $3.24 from $3.76 in the prior year.
Without the change, net income for the latest-period would have been $1.2 billion.
Gross premiums written for the half year increased 8.0% to $19.6 billion from last year, driven by growth in the life and health businesses and tailored transactions.
Swiss Re said its capitalisation remains very strong and it is well positioned to weather any headwinds while continuing to focus on its capital management priorities and respond to market opportunities. The current share buy-back programme of up to 1.0 billion Swiss francs purchase value, which started on 7 May 2018, is well on track.
Swiss Re noted that it is exploring a potential initial public offering of its UK closed book business ReAssure in 2019. There can be no assurance that the exploration will result in an IPO of ReAssure, and there is no certainty as to the timing of, or the details relating to any such initial public offering, including its terms, structure or the size of Swiss Re's shareholding in ReAssure following any initial public offering.
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