Swiss Re and Munich Re results cast shadow over industry’s prospects

Munich Re’s and Swiss Re’s half year results suggest that the European insurance industry is still not out of the woods. Hopes that higher rates since the beginning of 2002 would produce encouraging results have been disappointed. Munich Re produced a net loss of €383mn (US$371mn) for the first six months, compared with a net profit of €493mn in the corresponding period a year earlier. Gross premium income rose to €9.70bn from €8.10bn. However, there was some good news as the company’s combined ratio improved to 102.2% from 103.2%.