Swiss Reinsurance reported a 76 per cent drop in first quarter net profit from a year earlier, as shifts in currency values partially offset writedowns on investments.

The company said its net profit during the quarter was 150 million Swiss francs – about USD$132 million, down from 624 million francs, about USD$565 million, in the same period 2008.

The result means Swiss Re returned to profitability after suffering a loss of 1.75 billion francs in the fourth quarter of 2008.

Its property and casualty insurance unit saw premiums grow by 5 per cent to 3.88 billion francs. Its combined ratio dropped to 90.2 per cent from 96.4 per cent the previous year. The improvement reflects higher premiums and fewer claims.

Life and health insurance saw premiums decline by 5 per cent to 2.63 billion francs. Swiss Re said it benefited from fewer than average deaths in the United States during the quarter.

Swiss Re, which received a 3 billion franc capital injection from U.S. investor Warren Buffett's Berkshire Hathaway earlier this year, said it was revising its medium-term financial targets as a result of volatile market conditions.

The company said it would focus on improving its capital base, dropping its previous target of 10 per cent annual earnings per share growth.