Swiss Re Net Plunges, Standard Life Aberdeen to Exit Insurance Unit

Sarla Buch
23 Feb, 2018
New York City

Rhoen-Klinikum issued optimistic outlook. Swiss Re net plunged on sharp jump in natural catastrophe charges. Construction chemicals maker Sika net surged 15% on 9% jump in revenues. Standard Life Aberdeen agreed to sell insurance unit. Valeo net fell after higher raw material costs.

[R]4:00 PM Frankfurt – Rhoen-Klinikum issued optimistic outlook. Swiss Re net plunged on sharp jump in natural catastrophe charges. Construction chemicals maker Sika net surged 15% on 9% jump in revenues. Standard Life Aberdeen agreed to sell insurance unit. Valeo net fell after higher raw material costs.[/R]

In London trading, FTSE 100 index fell 18.56 or 0.3% to 7,233.83 and in Frankfurt the DAX index rose 19.03 to 12,480.38.

In Paris, CAC 40 index edged down 1.15 to 5,308.08.

For the week, FTSE 100 index slipped 0.8%, the DAX index increased 0.2% and the CAC 40 index gained 0.5%.

Rhoen Klinikum AG edged up 0.1% to €29.42 after Germany-based hospitals and medical care provider said preliminary revenues in the year ending in December of about €1.2 billion and operating profit of about €97.8 million and net profit in the year of €36.7 million.

In fiscal 2018, the health care services provider forecasted revenues in the range of €1.19 billion and €1.24 billion and operating profit between €117.5 million and €127.5 million.

Swiss Re AG jumped 2.7% to 97.70 Swiss francs after Switzerland-based insurance services provider reported gross premiums written in the year ending in December dropped 2% from a year ago to $34.8 billion.

Net income in the year tumbled to $331 million from $3.6 billion in a year ago period and diluted earnings per share dropped to $1.03 from $9.82.

In 2017, natural catastrophes in the U.S. and Mexico estimated combined claims were $4.7 billion but the company said “economic solvency remains strong and comfortably above the group’s respectability level.”

The insurer renewed jumped 8% to $8.1 billion from $7.5 billion for renewal on January 1 and this was driven by higher rates across all business and regions.

Sika AG dropped 1.4% to 7,665 Swiss francs after Switzerland-based construction chemicals maker said net sales in the year ending in December soared 8.7% from a year ago to 6.2 billion francs.

Net income in the year surged 14.5% to 649 million francs from 566.4 million francs in a year ago period and diluted earnings per share jumped to 253.52 francs from 221.81 francs.

In the 2018, Sika reaffirmed sales growth of more than 10%.

Standard Life Aberdeen Plc declined 3.3% to 373 after the U.K.-based investment services provider today confirmed that it had to sell its insurance business to Phoenix Group in a £3.2 billion transaction.

Valeo SA plunged 11.2% to €54.76 after France-based auto parts supplier reported sales in the year ending in December soared 12.7% from a year ago to €18.6 billion.

Net profit in the year declined 4.2% to €886 million from €925 million in a year ago period and diluted earnings per share slumped to €3.68 from €3.86.