(by Peter Van Bruggen)

Swiss Re, the world’s second biggest reinsurer, said first-half profit more than doubled as catastrophe claims declined and investment returns improved.

Net income climbed to 1.44 billion Swiss francs ($1.1 billion), or 4.56 francs a share, from 691 million francs, or 2.21 francs, in the year-earlier period. Profit surpassed the 1.09 billion-franc median estimate of market analysts.

Having said last week that Hurricane Charley, which devastated parts of Florida, would cost the group less than $200m, John Coomber, chief executive, had more good news for investors.

“Swiss Re is on track to deliver strong results in 2004, building on its performance in the first half year,” he said.

The company said all business groups had contributed strong results, but it was the SFr3.1bn investment gains, helped by an improvement in equities, that boosted Swiss Re’s earnings and saw it beat analyst expectations. 

The result continues the group’s recovery from the recent tough years of large investment losses, although Swiss Re was not hit as hard as its larger rival Munich Re, which reported a return to profits this month following its emergency capital raising last year.