Swiss Re L&H Operating Income Down Nearly 43%

Swiss Re reported net income of $2.6 billion for 2011 today, noting that a low tax rate coupled with a strong underlying performance contributed to its results.

Shareholder’s equity rose by $4.3 billion compared to 2010 precipitated by a healthy Group result and $3.2 billion increase in unrealized gains that can be attributed to declining interest rates on government bonds.

But the big news was a nearly 43% drop in its life & health operating income, which fell to $464 million from $810 million the previous year. The insurer said the drop was in response to financial market volatility and increased cost in Admin Re, a solution where in which Swiss Re acquires closed blocks of in-force life and health insurance business and assumes responsibility for administrating the underlying policies.