Swiss Re Will Probably Say Profit Fell on Restructuring CostsCarolyn Bandel
Swiss Re Ltd., the world’s second-biggest reinsurer, will probably say first-quarter profit dropped on restructuring costs in its life and health unit.
Net income probably fell 19 percent to $1.12 billion from $1.38 billion a year earlier, according to the average estimate of eight analysts surveyed by Bloomberg. Swiss Re is due to report first-quarter earnings tomorrow at 7 a.m. in Zurich.
Swiss Re is revamping its life and health business and targets a return on equity of between 10 percent and 12 percent by 2015 from 5.4 percent at the end of 2013.
Swiss Re said in June that a U.S. life portfolio of business written before 2004 failed to meet the company’s profitability expectations and that fixing this business will cost $500 million pretax in 2014.
Earnings per share probably dropped to $3.32 from $4.02 the year before, according to the average estimate of four analysts.