for the year 2000 are up more than 20 percent. The company attributes this to strong investment income and steady growth in its life reinsurance business.

The group does not publish seperate results for its offices, but a spokesman said the Bermuda office had had a very successful year and made a significant contribution to group profits.

The company said that although natural catastrophe losses were lower than in the record year of 1999, a series of serious manmade losses were recorded in 2000. Swiss Re will stregthen its reserves for future catastrophe losses and claims fluctuations by a larger figure than usual, which will further increase its financial strength.

Earnings for 2000 will be up by more than 20 percent after restructuring charges and stregthening equalisation reserves. In spite of the downward trend in the non-life reinsurance market, Swiss Re has shown strong earning growth of more than 27 percent over the last six years.

The company said the investment result will be in excess of $5.1 billion and analysts anticipate Swiss Re's reported net profits will be around $2.5 billion, when announced on 26 April.

Price increases for non-life reinsurance have been made in Europe and North America for business renewed during January. The company also plans to consolidate its European non-life business by merging its Bavarian Re division with its European division.

The company successfully negotiated significant improvements in reinsurance conditions and prices for the 1st January non-life reinsurance renewal period.

Business relationships not in line with the profit requirements were either re-underwritten, cut back or terminated. The company has also reduced its capacity (committed capital) for natural catastrophes by 10 percent with this renewal.

In addition to its successful trend in the reinsurance market, Swiss Re has seen direct insurance rates and conditions improve in relevant large markets.

Capital has been withdrawn from the reinsurance markets and capacity in the retrocession (reinsuring reinsurers) markets is also dwindling.

The company anticipates this trend towards higher prices and better conditions will continue for the balance of renewals in 2001 and 2002. Barring any extraordinary or unusually high losses Swiss Re feels confident of achieving a major target for 2001.

Swiss Re is a global reinsurer with more than 70 offices in 30 countries. A company statement said: " With the new direction taken by Swiss Re we can look forward with confidence to the future. Diversified yet focused the group is set on a course that will ensure growth and prosperity. While our stated goal is not necessarily to be number one in terms of volume, we do aspire to global leadership in terms of value to clients, value to shareholders, and career growth and opportunities for our employees.''